EBC Newsletter – January 17, 2024

EBC Newsletter – January 17, 2024


From the EBC

Dear Friends of the EBC,

On Friday 12 January, Müge Adalet McGowan, Senior Economist, Head of Japan/Ireland Desk, Economics Department, Organisation for Economic Development and Cooperation, presented the OECD 2024 Japan Survey.
The key messages are that Japan should:
“-Contain ageing-related expenditures and gradually increase revenues to put public debt on a downward trend and improve the fiscal framework;
– Adopt a comprehensive approach to raise fertility, the employment of women and
older persons and inflows of foreign workers and boost productivity;
– Promote renewables, ensure planned carbon pricing policies follow international best practices and improve contingency planning in emission reduction plans.
The report is available at: https://www.oecd.org/economy/japan-economic-snapshot/

In light of recent attacks on shipping vessels in the Red Sea, several shipping companies have opted to avoid the Suez Canal and instead take the longer route around Africa. This shift is expected to result in extended shipping times, affecting not only future shipments but also those currently in transit or about to depart from Europe.
As a result, delayed arrivals in Japan may disrupt originally planned schedules, possibly extending into another financial year. Such delays could affect the use of certain preferential treatment, such as quotas under the Economic Partnership Agreement (EPA). Failure to meet allocated quotas could also result in penalties in certain cases.
We encourage members of European National Chambers affected by this issue to email us for further consultation. We have already contacted the Ministry of Agriculture, Forestry and Fisheries (MAFF) and are keeping them informed of the situation.

The Delegation of the European Union to Japan has launched a business survey under the EU-Japan Economic Partnership Agreement (EPA) Implementation Facility Instrument on the fifth year of EPA implementation. The aim of this short survey is to identify existing regulatory barriers that hamper EU exports to Japan and the need for the development or adaptation of new standards or technical regulations that would facilitate and enhance trade between the EU and Japan. If you are directly affected by the problem, don’t hesitate to respond! The survey can be found at the following link: : https://eu.research.net/r/HM3LTPZ  (new deadline: 24 January 2024)

On 2 February (3:30pm-6:00pm), the German Chamber will organise a conference on “Status Quo of Due Diligence & Supply Chain Regulations in Germany and the EU and its implications on Japan”.

The EBC team is looking forward to hearing from you soon!

Valerie Moschetti
EBC Chief Operating Officer

What’s in the Media

  • The government aims to industrialize domestic production of autonomous underwater vehicles (AUVs), or underwater drones, by 2030, according to a new strategy. The government strategy lays out plans for the public and private sectors to jointly engage in state-of-the-art research and development projects. (The Japan News)
  • The Hyogo Prefectural Government will launch a certification system for local companies hiring foreign workers starting in fiscal 2025, with the aim of allowing those workers to sketch out plans for their mid- to long-term careers. (The Mainichi)
  • Defense contractor companies, such as heavy industry firms and electronic machinery makers, which manufacture fighter jets, ships and missiles, among other things, are expanding their workforce and capital investments in the field. For a long time, it had been a hurdle for these companies to make a profit since profit margins from sales of defense-related products have been low. (The Japan News)

Upcoming EBC Committee Meetings

Date Committee Time / Location
Jan 25 (Thu) Medical Equipment & Diagnostics Off-site
Jan 25 (Thu) Insurance Hybrid
Feb 2 (Fri) Railways Hybrid
Feb 7 (Wed) Energy Hybrid
Feb 20 (Tue) Medical Equipment & Diagnostics Off-site

If you are interested in joining a committee meeting, please contact the EBC to confirm the time and meeting place.

Stakeholders of the EBC:

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