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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 EU research and technological development policy has been determined by the perceived need to compensate for the advantage that 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 that the EU has incurred with Japan. In 1993-2004, Japanese exports to the EU increased by almost 40% from €50,100m. to €73,500m., while EU exports to Japan rose from €28,800m. to €43,100m. In 2010 Japan accounted for 3.2% of the exports of theTwenty-Seven (EU27) and 4.3% of EU27 imports, and was the EU27’s sixth most important trading partner. 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 a number of 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 EUmeetings 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. In addition to the long-established bilateral negotiations and contacts on economic issues, a political dialogue between the EU and Japan also exists. This, dating back to a 1991 declaration, has gradually been developed through an annual summit meeting between the European Commission President, the European Council presidency and the Japanese Prime Minister. In 2001 a joint EU-Japan action plan entitled ‘Shaping our Common Future’ was adopted. The 20th annual summit took place in Brussels in May 2011. The 21st summit, which was scheduled to take place in Tokyo in mid-2012, was postponed owing to the reported reluctance of several key EUmember states to negotiate a far-reaching free trade agreement with Japan.

ROY JENKINS (1920-2003), or as he became, Baron Jenkins of Hillhead, was President of the European Commission from 1977 to 1981. At the time of his

appointment a senior political figure in the Labour Party in the United Kingdom, he had always been strongly in favour of that country joining the European Communities (EC): in 1971 he led a party minority in the House of Commons which voted in favour of the terms of entry to the EC, thus defying the threeline whip (a mandatory voting instruction) imposed by his party leadership. Jenkins’ appointment as President raised hopes for a renewed momentum in EC developments after the presidency of François-Xavier Ortoli. These expectations were largely unfulfilled. A British President did not end continuing British scepticism about the EC and complaints about its budgetary contribution, but Jenkins did develop the concept of the European Monetary System and successfully fought for the right of the Commission President to attend the meetings of the Group of Seven (see G-8). The first achievement helped to reopen the debate on economic and monetary union, while the second increased the prestige and visibility of the Commission.