ABSTRACT
JAPAN has been regarded by the European Union (EU) as a major economic competitor, and perhaps also as an example to the EU, especially in terms of new technological industries. Much of European Communities (EC) research and technological development policy has been determined by the perceived need to compensate for the advantage which Japan is believed to hold. More generally, trade relations between the EU and Japan have been fraught with problems. The main reason is the large trade deficit which the EU has incurred with Japan. In the period 1993-2001, Japanese exports to the EU increased from €50,100m. to €72,300m., whereas EU exports to Japan rose from only €28,800m. to €53,700m. In addition, Japanese exports are concentrated in a few important consumer fields, such as cars, electronics and computers. Japan has traditionally been slow to ease the entry of imports to its domestic market by relaxing or removing a range of non-tariff barriers. On the other hand, the European Commission has regulated the entry of several Japanese products and has passed several anti-dumping measures. In addition, Member States have imposed several restrictions on Japanese imports: the best known, perhaps, have been the so-called voluntary agreements limiting the volume of imports of Japanese cars. However, many Japanese companies have invested in the EU. Although the focus of EU meetings with Japanese ministers and officials has in the past been on the persistence of the trade imbalance, recent years have seen a shift in emphasis to requests for deregulation and structural reforms in Japan. Political dialogue between the EU and Japan also exists, dating back to a 1991 declaration, but has yet to be fully developed.
