Ties that bind: A chat with UK Ambassador Tim Hitchens

The relationship between Japan and Great Britain dates back to 1600, when the first Englishman, William Adams, arrived on the shores of Kyushu. British Ambassador Tim Hitchens’ personal connection with Japan isn’t quite so long, but does range back to his teenage years. First having come here in 1977, when his father was in the Royal Navy, Hitchens today oversees British interests in his adopted country. He spoke to EURObiZ Japan about the future of Japan–UK relations.

Much interest is focused on the free trade negotiations between Japan and the European Union. What would you consider the benefits of free trade for the UK and the EU?

I’ve got no doubt it would benefit the whole of the EU. I think if one looks at the free trade agreement that was signed between the EU and [South] Korea three years ago — that has opened up British exports, as well as broader European exports to South Korea, over the course of the last three years. So there’s a great deal to play for. As far as the EU–Japan connection, we’re very clear that there is one of three great trade negotiations going on at the moment. We have the EU-Japan EPA, the T-TIP [The Transatlantic Trade Investment Partnership] connecting Europe and the US, and we have the TPP connecting the Pacific. In a way, they will create a ring of steel in setting the standard for trade negotiations, which will be important not just for those three regions of the world, but [also] for anyone else who wants to join in to free trade arrangements in the future. We’re really building the rules for the 21st century.

Are there specific areas of interest for UK companies and exporters in these negotiations?

We have narrow interest in pharmaceuticals, medical implements, processed foods and government procurement … But in addition to the narrow interests, this is something bigger and broader that will give impetus to not just the Japanese market or the European market, but also to markets which need a boost in demand. And this will give them that boost.

Are there other areas where you see the possibility of a bilateral trade relationship growing?

I think that, compared with when I was here in the ’80s, this is no longer a closed market. It’s a very easy market to enter; it’s very difficult to make lots of money and grow fast once you’ve entered. The challenge is all about how you are successful in the market. And where I see particular opportunities, for both Japanese and European firms, are in the ways in which we can bring our different ways of doing things together. [For example], just a few weeks ago at the embassy, we had experts on British animation talking to Japanese experts on animation. And we’re both really good, but at different parts of the industry, so [it’s important] bringing that together so we can work as one.

There are [other] areas, such as decommissioning of nuclear sites. Clearly, we’ve got some immediate challenges, but there are also plenty of future challenges, where the answer is not simply for Japan Inc. to huddle in a group and decide what they think is best, but for us [to solve] together — because these are issues for any of us who have a nuclear industry that is over 50 years old. We all have to find ways around this.

The UK is said to be the top European partner for Japanese investment and scientific collaboration. Can you expand on that?

I would broaden it around science and tertiary education as a whole. Because, where in Japan, the very best science and research is done within the really impressive, big companies, in Britain, almost all the top-level research happens within — or is linked to — universities. So what we’re trying to do is make more of those connections between British universities and Japanese companies.

Britain has taken a leading role in encouraging Japan to support sustainable growth and to play an active role in climate negotiations. Why is that?

Our starting point is that climate change is the biggest challenge facing us all. And one can actually say that the greatest threat of the 21st century is not terrorism, is not the recovering economy — it is climate change. The nuclear issue, for example … we see it as a subset of climate change. How do you deliver a low-carbon economy? The British experience was that between 2008 — when our economy collapsed — and 2013, it was a very difficult period for the British economy. But, the “green sector” — goods and services, which reduce carbon emissions — grew at 4% every year. So our experience is that green growth is real. One of the challenges of Japan is that there can be a mindset that says there is a choice between being green or growing. There is solid evidence that says it’s not a choice. In fact, it’s a no-brainer: You have to go green. And there are leading technologies in Japan that will allow Japan to be a leader in this.

There is nervousness in Japan and elsewhere about the UK’s future in the EU. We may not know what will happen in the future, but how do you address this uncertainty?

There has been a grand deal between the UK and Japan, since the time of Mrs. [Margaret] Thatcher, that Britain would be the most active member state in advancing the single market, within the European Union. And that that would create an environment in which Japanese companies invested in the UK, revived our manufacturing sector — and then could export into the whole, single market. And that fundamental equation still exists. It’s the position of the British government that we want to stay within the European Union. We want to help change the European Union so it’s a more competitive environment. As [German Chancellor] Angela Merkel regularly says, you have 7% of the population of the world in the European Union, and we pay 50% of the social security. You cannot have both things happen unless you have high rates of growth; and, therefore, it’s a key task for all member states … that growth has to be the heart of the deal. Therefore, Britain is very keen to find ways in which we can work with the rest of Europe to have a growth agenda.

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