Japan Business Council in Europe

⌛ It’s a wrap! JBCE was delighted to take part in the 26th EU-Japan Business Round Table last week.   🗨️ Our President, Mikihito Saito, made a presentation during a panel on Economic Security, alongside Jean-Eric Paquet (Ambassador of the EU to Japan, 駐日欧州連合代表部 • Delegation of the European Union to Japan), Shige Watanabe (Deputy Director-General / Deputy Assistant Minister (Ambassador), Economic Affairs Bureau, Ministry of Foreign Affairs of Japan) and Lasse Hamilton Heidemann, Senior Director for Outreach, DIGITALEUROPE).   📝 He also presented the recommendations of Working Party 1 (Trade Relations; Investment and Regulatory Cooperation; Financial Services; Accounting and Taxation), which JBCE co-chaired with the European Business Council in Japan (EBC).   In particular, Working Group 1 recommended that the EU and Japanese authorities should ▪️Build a common philosophy on competitiveness and economic security. ▪️Further develop concrete initiatives to enhance competitiveness and economic security based on existing EU-Japan cooperation frameworks. ▪️Promote collaboration to ensure fair markets (development and application of common criteria for non-price factors in both markets) and to secure critical minerals, to respond in a coordinated manner to dependence on specific regions and geopolitical risks. ▪️Encourage cooperation in a wider range of industrial policy areas, including Japan's participation as an Associated Country to Horizon Europe, and strengthen cooperation in specific policy and industrial areas, such as start-up policy and defence industry development measures. ▪️Establish policy dialogue between EU and Japanese competition authorities on the review of competition policy in the EU, as set out in the Draghi Report, with a view to harmonising policies between the two regions etc.   Other recommendations include a proposal for an ambitious multilateral trade agenda for the next WTO Ministerial Conference as well as further harmonisation of legislations and standards between the EU and Japan.   🤝 We would like to thank the EU-Japan Centre for Industrial Cooperation for the organisation of the BRT and the European Business Council in Japan (EBC) for the cooperation.   🇪🇺 🇯🇵 JBCE looks forward to seeing how the recommendations of Working Party 1 and the BRT joint recommendations will be taken into consideration by the European and Japanese authorities and remains committed to further advancing EU-Japan relations.

JBCE has published its position on the first #Omnibus package on sustainability.   We firmly believe that #sustainability is, and will continue to be, a fundamental pillar in enhancing business competitiveness. Strengthening alignment with existing EU legislation is essential, as it will not only reduce the administrative burden associated with reporting requirements but also allow businesses to focus their resources on innovation and effective implementation strategies. This, in turn, will enhance their performance and contribute positively to society as a whole.   To ensure legal clarity, we call for Omnibus discussions to be conducted in a way that prevents regulatory uncertainty. Additionally, JBCE underscores the importance of aligning with international standards, recognising that many companies, including our members, operate both within the EU and globally.   Key Priorities 🔸 Legal Consistency: Ensuring alignment in terminology, scope, context, and definitions between EU legislation and related international standards. 🔸Clear Guidance & Implementation Tools: Supporting the timely adoption of Delegated Acts with clear guidance and necessary support tools. 🔸Practical Adjustments to #CSRD: Postponing the assurance implementation timeline and simplifying taxonomy alignment disclosure obligations. 🔸Harmonised Due Diligence Compliance: Preventing duplicated due diligence obligations across various regulations. 🔸Reducing Reporting Burdens: Easing supplier data collection requirements and introducing standardised supplier questionnaires. 🔸Proportionality in Requirements: Ensuring that regulatory obligations remain balanced and feasible for businesses. 🔸Consistency Across Member States: Harmonising national transpositions of the Corporate Sustainability Due Diligence Directive (#CSDDD). 🔸Capacity Building: Enhancing global support and collaboration for sustainable business practices.   JBCE emphasises the critical importance of achieving sustainability objectives through well-balanced and coherent legislation.   We trust that the EU will uphold its commitment to promoting sustainability through the upcoming Omnibus package on sustainability while minimising unnecessary burdens on businesses. 🔎 Read our position paper below.

On 3 February, JBCE was pleased to welcome a delegation from Japan's Council for Better Corporate Citizenship (CBCC)/ #Keidanren to its offices. The purpose of this meeting, which is part of our regular discussions, was to exchange views on a number of topics relating to EU legislation on #sustainabledevelopment. JBCE would like to thank in particular Keiji Nishizawa, Chair of CBCC as well as Lars Brückner, Vice-Chairman of JBCE and Chair of Environment & Energy Committee and Heidi Beers, Chair of Corporate Sustainability Committee. (first photo provided by CBCC)

JBCE has submitted its feedback on the Call for Evidence regarding the #SingleMarketStrategy   JBCE's members represent a very broad range of sectors and have a wealth of experiences that allow them to make proposals for important improvements. Accordingly, JBCE recommends that the Single Market should focus on removing barriers, harmonising regulations, and ensuring global alignment, with the objectives of promoting innovation, reducing compliance burdens, and fostering sustainable economic growth.    As an organisation with ties to both the #Europe and #Japan, JBCE advocates for a balanced approach that considers the realities of global supply chains and the needs of businesses within the #EU.   💬Our key messages are the following: 🔸To reduce barriers to the free movement of goods and services, JBCE calls for the harmonisation of customs regulations to alleviate the administrative burden placed on businesses, the harmonisation of standards for a greater integration of the digital infrastructure and greater support for SMEs. 🔸JBCE believes that a practical and proportionate regulatory framework is essential to encourage compliance and innovation without overburdening businesses. 🔸JBCE calls for consistency in regulation and implementation across Member States to avoid market fragmentation and ensure a level playing field. 🔸To maintain competitiveness and ensure smooth global trade, EU regulations should be aligned with international standards, ensure consistency of terms in regulations, and not include measures that inadvertently disrupt international trade flows. 🔸JBCE supports a governance structure that ensures coherence across regulatory areas through streamlined data management, balanced horizontal and vertical measures and inclusive governance. JBCE remains committed to contributing to the effective functioning of the Single Market. 🔎 Read our feedback below.

JBCE and JP4EE have submitted their joint feedback on the Call for Evidence regarding the Digital Product Passport (DPP) rules for service providers.   We support the idea that demonstrating and ensuring the sustainability of an entire product lifecycle through a DPP benefits both consumers and users. This position paper highlights shared concerns commonly raised by economic operators registering their DPPs and service providers supporting these registrations.   Our key messages are the following: 🔸 We support the creation of a mandatory certification scheme for DPP service providers 🔸 Call for clear definitions of the essential scope for DPP service providers 🔸 Implementation should be based on minimal requirements 🔸 Ensuring information security is critical for DPPs 🔸 DPPs should ensure database interoperability 🔸 A sufficient implementation period of at least 24 months is essential   JBCE and JP4EE remain committed to working closely with the European Commission and other stakeholders to ensure the successful implementation of the DPP while addressing the challenges outlined in our joint feedback.   🔎 Read our feedback below.

📝 JBCE has has submitted its feedback on the consultation for the Zero Draft of the #EuropeanModelClauses, developed in alignment with the EU Corporate Sustainability Due Diligence Directive (#CSDDD). This consultation was conducted by the Responsible Contracting Project. In our feedback, we recognise that contractual clauses between businesses play a crucial role in ensuring compliance with the #CSDDD. The European Model Clauses can serve as a vital reference in this regard. We propose that the clauses be developed with the following three key principles: 🔸 Adopt a risk-based approach: The model clauses should align with the risk-based approach of the #CSDDD, emphasising how to address salient risks effectively. 🔸 Ensure clarity in obligations: The clauses must eliminate ambiguity and clearly define the responsibilities of buyers and suppliers, reducing uncertainty. 🔸 Provide flexibility: The clauses should allow for adaptability, reflecting the unique dynamics of each business partnership and the specific circumstances at hand. To enhance clarity and ease of understanding, we strongly recommend keeping contracts as concise as possible and avoiding unnecessary complexity. JBCE remains committed to contributing to the development of practical and effective contractual tools that support sustainable business practices across Europe. 🔎 Read our feedback below.

💬JBCE welcomes the official launch of formal discussions between the #EU and #Japan on association to #HorizonEurope! The negotiations concern association to Pillar II of Horizon Europe, which tackles societal challenges through multinational collaborative projects. JBCE remains committed to further advancing relations between the EU and Japan, including in the R&I sector. 🇪🇺 🤝 🇯🇵 📌Find the European Commission’s press release here: https://lnkd.in/eCSJPrRK

📝 JBCE, along with 26 other business associations, has co-signed a joint statement on the Corporate Sustainability Due Diligence Directive (#CSDDD).   The 27 European industry associations, representing companies and sectors impacted by the CSDDD, emphasise that the Directive imposes new challenges and impactful obligations on companies with global value chains and has the potential to cause unintended effects on the real economy in the EU and third countries.   With a view to the upcoming implementation and transposition phase, the co-signatories propose the following priority actions: 🔸Immediately launch a comprehensive competitiveness assessment of CSDDD in consultation with businesses and their business associations, to identify and address priority areas where simplification, clarification and burden reduction should be achieved within upcoming implementing legislation and guidance. 🔸 Guidelines and implementing legislation should be adopted at least two years before compliance with legislation becomes mandatory or the transition period should be extended. 🔸Harmonisation and interoperability of rules should remain key pillars in this phase to support Europe’s competitiveness and ensure a well-functioning Single Market.   JBCE remains committed to the implementation of the CSDDD and to providing industry views to ensure that it reflects the reality on the ground.   🔎 Read the joint statement below.

📝 JBCE has responded to the call for evidence on the evaluation of the EU-Japan EPA.   In our position paper, we underlined our appreciation for the liberalisation of trade through the elimination of tariffs and our support for the further reduction of trade barriers as envisaged in the proposed timeline of the EPA. We also emphasised the importance of regulatory cooperation in three areas: 🔸 Accelerating the green transition (e.g., by establishing a common methodology for calculating carbon footprints). 🔸 Realising the circular economy (e.g., further cooperation on input management for secondary raw materials). 🔸 Ensuring economic security (e.g., collaboratively developing economic security standards for key supply chains).   JBCE looks forward to further contributing to this evaluation process as a key stakeholder able to share its broad membership's experiences and recommendations with the European Commission. 🇪🇺 🤝 🇯🇵   🔎 Read our position paper below.

JBCE’s Corporate Sustainability Committee Vice-Chair, Yukako Kinoshita, represented the association as a guest speaker at the EU-Japan Open Dialogue on corporate sustainability due diligence -- EU Corporate Sustainability Due Diligence Directive, jointly organised by the Japanese Ministry of Economy, Trade and Industry, the Delegation of the European Union to Japan, and the EU-Japan Centre for Industrial Cooperation on 24th October 2024. Kinoshita-san stated that JBCE’s member companies have a significant stake in the Corporate Sustainability Due Diligence Directive (#CSDDD) due to the extra-territoriality of its scope. She highlighted three challenges facing businesses 🔸 Lack of uniformity in the internal market 🔸 Lack of clarity, particularly regarding scope, terminology, and the interconnection between human rights and environmental due diligence 🔸 The need for good guidance quickly, as the current 2027 deadline for publishing the guidelines would give companies insufficient preparation time before the entry into force of the CSDDD. She also called for the creation of an environment enabling the enforcement of due diligence and greater collaboration between public and private stakeholders. Finally, she noted the importance of establishing a good knowledge base and the need to engage with supply chain partners and SMEs, so that they better understand the issues at stake in the Directive and exercise appropriate due diligence. JBCE remains committed to the implementation of the CSDDD and to providing industry views, including in the upcoming public consultation on the guidance, to ensure that it reflects the reality on the ground. https://lnkd.in/ehX3c4Gj