executive impact

New EU ambassador arrives at critical time

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By Mike de Jong for EURObiZ Japan

In September, Romanian Viorel Isticioaia Budura was appointed the European Union’s new ambassador to Japan. A long-term diplomat, Budura brings more than 35 years of experience to the post, including time as his country’s ambassador to China and minister-counsellor at the Romanian Embassy in Japan.

His appointment comes at an important time, with free trade talks between the EU and Japan entering a crucial phase. EURObiZ Japan discussed this and other issues with the new head of the EU Delegation.

What do you see as your primary objective in your new role as EU ambassador to Japan?

I would say that a big part of my mandate is to keep consolidating what was done for a number of years, of which EU–Japan trade and economic relations are a very big part. They have acknowledged shared and common interests; they have shared moments of competition; and now have shared wisdom that says we need a new economic framework. And this is the Free Trade Agreement [FTA], the Economic Partnership Agreement [EPA] — and the negotiations.

Secondly, it’s to challenge this established pattern of our bilateral relations. Trade is a must, but that’s not enough. And I would say the current context, regional and international — plus the domestic needs — are pushing us to see what can be done beyond this traditional, well-established pattern of focusing on trade relations. We need to be more ambitious in going beyond that; and what we are doing in the parallel set of negotiations, toward a political agreement called the Strategic Partnership Agreement, shows that we are balancing and updating our relationship.

With the ongoing free trade talks and the sluggish economy in Japan, would you say that you are here at a critical time?

I would say that, indeed, it’s a crucial moment in two ways. First, because not only is Japan moving — as the recent elections show — there’s a new dynamic at work and the political forces have to acknowledge, more than before, the needs of the people. But it’s the same in Europe. Since the elections for the European Parliament in early spring [last year], the parliament and the new leadership in Europe are similarly feeling the need to get better connected to societies across Europe. The European Parliament is reflecting expectations that new, more dynamic, policies will be produced; and that additional efforts will be made to look for resources to generate growth, create jobs and, indeed, answer to the people’s needs. From this point of view, I would say we are living under the same pressures, and facing the same challenges, in Japan and Europe. It is against this background that we may need to work toward better connecting the two agendas and see how much they reflect shared, or common, priorities — which they do.

The eighth round of free trade negotiations between the EU and Japan recently ended in Tokyo. Can you give us an overview of the talks?

I think the preliminary assessment is a positive one, because both sides see the FTA/Economic Partnership Agreement as a way of answering to the needs, which [are] very much convergent. Given the nature of economic growth and the challenges in this respect, we feel on both sides that the conclusion and future implementation of the FTA/EPA may bring additional resources to secure stable, minimal, but still visible, GDP growth on both sides. That might be, according to preliminary assessments, about 1% for both sides.

From the EU’s perspective, what would you like to see happen in the next few rounds of talks?

For the European side, we are eager to see the proper promotion of our interests in the areas of protected geographical indications, public procurement [and] liberalising market access. We are working on that. In December, the eighth round marked an important point in trying to secure steady progress. I think that happened because we have guidance from our political leaders, with the right understanding, of the meaning and value of this new political and trade framework, of our bilateral relations in a parallel way.

You were the chief EU negotiator for another important initiative — the Strategic Partnership Agreement. However, those discussions haven’t generated much media attention. Why do you feel this is the case?

I’m not sure what we are aiming at is more public attention, because negotiations are always rather a discreet and delicate process. But we need to explain to our audience, to the public, to the communities that we look to engage … we need to explain what we expect from these negotiations and by the conclusions of the two agreements. In the case of the EPA, maybe there are so many elements that are obvious that media attention comes naturally. For the political agreement [SPA], to the same extent, its value would run long term. We need to secure a long-term, balanced and comprehensive relationship between the EU and Japan that really lives up to expectations of a strategic nature … that goes beyond the value of trade and economic relations, and covers new areas in which there are common or shared interests — from areas such as energy, climate and the environment … to education and academic exchanges. Everything in that is something we can share and work on together. [The SPA] represents the basic principles and values we share as like-minded partners; it also represents an exercise in exploring areas of potential. From this point of view, I would say, indeed, [the SPA] deserves more advertisement and more acknowledgment from the public; and I am sure we can do that.

The EU has been very strong in opposing the death penalty. Would this issue be included in the SPA?

In general, the political framework does include a number of standard clauses that refer to shared principles in respect to human rights, [nuclear] non-proliferation and disarmament, and certain financial aspects like tax transparency. This is part of our negotiating mandate. But in the negotiations with a certain partner, you create an agreement that reflects basic shared principles, which reflect mutual interests. The death penalty is a central interest for us, and we are already doing a lot, enhancing our dialogue with our Japanese friends here — institutions, NGOs, with the Diet — explaining our position. There is a strong possibility for the Japanese to understand better how the international community sees this issue, especially the Europeans. I’m sure this dialogue will produce a proper background for the advancement of our political agreement.

Moody’s recently downgraded Japan on concerns about the debt and prospects for growth, among other things. From an EU perspective, does the current state of the Japanese economy concern you?

We are watching the way in which the decision-makers [are working]. But we have the confidence that the political wisdom and experience of the prime minister and his government — after a number of years trying to promote Abenomics — may produce adequate measures in addressing these challenges. We don’t forget that in the EU we are also facing a number of risks and challenges, which were generated not only by domestic conditions in Europe — problems of the sovereign debt — but also because the general international climate had created a rather negative background for a number of years. And we also had to make additional efforts in securing a certain level of financial discipline, taking new steps such as deepening the Banking Union, and securing the mechanisms and funding for overcoming those challenges. So we know how much it is not an easy task. This is something that the decision-makers have to look into — the way that we can work together with social partners and the business communities. We are sure that as a stable, solid and mature democracy, Japan can easily work on this and produce the expected progress.

© Japan Today

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