The 25th EU-Japan Summit took place on 17 July in Tokyo. At the summit, leaders signed two landmark agreements, the Strategic Partnership Agreement and the Economic Partnership Agreement, which will significantly boost bilateral relations.
Jean-Claude Juncker, President of the European Commission and Donald Tusk, President of the European Council, represented the European Union at the Summit. Japan was represented by its Prime Minister, Shinzo Abe. The European Commission Vice-President for Jobs, Growth, Investment and Competitiveness, Jyrki Katainen also participated. EU Leaders offered their condolences to the people of Japan following the floods and landslides in Western Japan, and offered their support to Prime Minister to help in any way.
“Today is a historic moment in our enduring partnership”, said President Jean-Claude Juncker. “Today’s signature of the EU-Japan Economic Partnership Agreement is a landmark moment for global trade, and I am also delighted that we have signed the first ever Strategic Partnership Agreement, which takes our cooperation to the next level. The impact of the Economic Partnership Agreement goes far beyond our shores. Together, we are making a statement about the future of free and fair trade. We are showing that we are stronger and better off when we work together and we are leading by example, showing that trade is about more than tariffs and barriers. It is about values, principles and finding win-win solutions for all. As far as we are concerned, there is no protection in protectionism – and there cannot be unity where there is unilateralism.”
For open, fair and win-win trade
The Economic Partnership Agreement between the EU and Japan is the biggest ever negotiated by the European Union. It creates an open trade zone covering over 600 million people and nearly a third of global GDP. It will remove the vast majority of the €1 billion of duties paid annually by EU companies exporting to Japan, and has led to the removal of a number of long-standing regulatory barriers, for example on cars. It will also open up the Japanese market of 127 million consumers to key EU agricultural exports and will increase EU export opportunities in a range of other sectors. The Agreement follows the highest standards of labour, environmental and consumer protection and has a dedicated chapter on sustainable development. It is the first trade agreement negotiated by the European Union to include a specific commitment to the Paris climate agreement.
Commissioner for Trade Cecilia Malmström said: “We are sending a strong signal to the world that two of its biggest economies still believe in open trade, opposing both unilateralism and protectionism. The economic benefits of this agreement are clear. By removing billions of euros of duties, simplifying customs procedures and tackling behind-the-border barriers to trade, it will offer opportunities for companies on both sides to boost their exports and expand their business.”
Concerning data protection, the EU and Japan concluded the negotiations on reciprocal adequacy on 17 July, which will complement the Economic Partnership Agreement. They agreed to recognise each other’s data protection systems as ‘equivalent’, which will allow data to flow safely between the EU and Japan, creating the world’s largest area of safe data flows.
Věra Jourová, Commissioner for Justice, Consumers and Gender Equality said: “Japan and EU are already strategic partners. Data is the fuel of global economy and this agreement will allow for data to travel safely between us to the benefit of both our citizens and our economies. At the same time we reaffirm our commitment to shared values concerning the protection of personal data. This is why I am fully confident that by working together, we can shape the global standards for data protection and show common leadership in this important area.”
A Strategic Partnership Agreement fit for truly Strategic Partners
The European Union and Japan are like-minded partners, working together both bilaterally as well as in multilateral fora, such as the United Nations and the G7. The Strategic Partnership Agreement, signed today by President Juncker, President Tusk and Prime Minister Abe, will deepen and strengthen EU-Japan relations by providing an overarching and binding framework for enhanced cooperation.
“In today’s world, no country can think of tackling the global challenges that we are faced with on its own”, said the High Representative/Vice-President Federica Mogherini ahead of the Summit. “Japan is a country that we already work so closely with, on many files, from peace-building to denuclearisation, from counter-terrorism to effective multilateralism. The Strategic Partnership Agreement will allow us to strengthen this cooperation across a wide range of sectors, but also open up the possibility for cooperation in new areas, from science, technology and innovation, environment and energy, to climate change and security.”
At the Summit, the Leaders addressed regional and foreign policy issues including the situation on the Korean Peninsula, the conflict in eastern Ukraine and the illegal annexation of Crimea and Sevastopol, the commitment to preserving the Joint Comprehensive Plan of Action – the Iran nuclear deal, among others. As the Strategic Partnership Agreement foresees, Leaders also discussed the shared commitment to strengthen cooperation on global issues and confirmed the EU and Japan’s joint vision and support to the rules-based international order with multilateralism, democracy, non-proliferation of weapons of mass destruction, open markets and a global trading system with the World Trade Organisation at its core.
The Leaders also discussed other bilateral issues, including possibilities to strengthen the EU-Japan security partnership, strengthened cooperation in the fields of development policy and education, culture and sports.
Dayton Peace Accord 23 Years On: Ensured Peace and Stability in Former Yugoslavia
For the past twenty-three years life has been comparatively peaceful in the breakaway republics of the former Yugoslavia. The complicated civil war that began in Yugoslavia in 1991 had numerous causes and began to break up along the ethnic lines. The touching stories and the aftermath effects of the breakaway republics of Bosnia- Herzegovina, Croatia and in Kosovo are still unfolding. Though the numbers of deaths in the Bosnia- Herzegovina conflict in former Yugoslavia are not known precisely, most sources agree that the estimates of deaths vary between 150,000 to 200,000 and displaced more than two million people. During the conflict a Srebrenica a North-eastern enclave of Bosnia once declared as a United Nations (UN ) safe area” saw one of the worst atrocity since second world war.
It has been estimated that more than 8,000 Muslim Bosniaks were massacred in Srebrenica and it was one of the most brutal ethnic cleansing operations of its kind in modern warfare. The US brokered peace talks revived the a peace process between the three warring factions in Bosnia- Herzegovina. For Peace in Bosnia and Herzegovina a United States (US ) -brokered peace deal reached in Dayton on 21st November 1995. In a historic reconciliation bid on 14 December 1995 , the Dayton Peace Accord was signed in Paris, France, between Franjo Tudjman president of the Republic of Croatia and Slobodan Milosevic president of the Federal Yugoslavia (Serbia and Montenegro), Alija Izetbegovic, president of the Republic of Bosnia-Herzegovina.
When conflict in Bosnia- Herzegovina, Croatia ended, the reconciliation began between ethnically divided region. The US played a crucial role in defining the direction of the Peace process. In 1996, North Atlantic Treaty Organization (NATO) -led 60,000 multinational peace enforcement force known as the Implementation Force (IFOR)) was deployed to help preserve the cease-fire and enforce the treaty provisions. Thereafter, the Court was established by Resolution 808 and later, Resolution 827 of the United Nations Security Council, which endorsed to proceed with setting up of the International Criminal Tribunal for the former Yugoslavia (ICTY) to try crimes against humanity . International Criminal Tribunal for the Former Yugoslavia (ICTY) was the first United Nations (UN) war crimes tribunal of its kind since the post-second world war Nuremberg tribunal.
In the late 1990’s, as the political crisis deepened a spiral of violence fuelled the Kosovo crisis between the Kosovo Liberation Army (KLA) and the Yugoslav forces. Unlike the Bosnia- Herzegovina, Kosovo was a province of Serbia, of former Yugoslavia that dates back to 1946, when Kosovo gained autonomy as a province within Serbia. It is estimated that more than 800,000. Kosovos were forced out of Kosovo in search of refuge and as many as 500,000 more were displaced within Kosovo.
Subsequent t hostilities in Kosovo the eleven week air campaign led by NATO (North Atlantic Treaty Organisation) against Yugoslavia in 1999 the Yugoslavian forces pulled troops out of Kosovo NATO. After the war was over, the United Nations Security Council, under the resolution 1244 (1999) approved to establish an international civil presence in Kosovo, known as the United Nations Interim Administration Mission in Kosovo (UNMIK). Nevertheless UNMIK regulation No 1999/24 provided that the Law in Force in Kosovo prior to March 22, 1989 would serve as the applicable law for the duration of the United Nations Interim Administration Mission in Kosovo (UNMIK).
In this context reconciliation is a key to national healing of wounds after ending a violent conflict. Healing the wounds of the past and redressing past wrongs is a process through which a society moves from a divided past to a shared future. Over the years in Serbia, Bosnia- Herzegovina, Croatia and in Kosovo the successful peace building processes had happened. The success of the peace building process was possible because of participation of those concerned, and since appropriate strategies to effectively approach was applied with all relevant actors. The strengthening of institutions for the benefit of all citizens has many important benefits for the peace and stability of former Yugoslavia. Hence, the future looks bright for the Balkan states of Serbia, Bosnia- Herzegovina, Croatia and Kosovo.
Hungarian Interest, Ukraine and European Values
Diplomatic conflicts that have recently arisen between Hungary and its neighboring countries and the European Union as a whole most clearly show the new trend in European politics. This trend is committing to national and state values of a specific European country, doubting the priority of supranational interests within the European Union. Political analyst Timofey Bordachev believes that “the era of stale politics and the same stale politicians, who make backstage decisions based on the“ lowest common denominator,” are finally coming to an end. Politicians with a new vision of the world order come to power, such as Hungarian Prime Minister Viktor Orban, Austrian Federal Chancellor Sebastian Kurtz, or the new head of the Italian Interior Ministry, leader of the right-wing League of the North Party, Matteo Salvini ”.
It is not the first year that Hungary is trying to protect the interests of its citizens and the state from external influence, to protect the Hungarians in the territory of neighbouring states by establishing for this a special position (Commissioner for the development of the Transcarpathian region of Ukraine), to determine relations with other countries on the basis of their attitude to the rights of Hungarians. This is how conflicts with the European Union arose, after Hungary refused to let migrants into the country, in the same manner, a conflict arose with Ukraine, which is trying to build a state ideology, based on nationalism, which a priori does not provide for the proper level of realization and protection of the rights of non-titular nations.
In relation to Hungary, Ukraine follows the same policy as in relation to Russia – to initiate various accusations, to call for punishment, to talk about the inconsistency with European values of the Hungarian policy under the leadership of Orban. Doing so Kiev has its multifaceted interest: cooperation with NATO and the EU, support for any decisions of Brussels, the anti-Russian course, domestic policy based on the nationalist ideology. And in all these areas Hungary poses a problem for Ukraine. In the description of relations with Hungary Kiev even uses the word “annexation“.
Hungary is hardly planning to seize any Ukrainian territory, but on what grounds Ukraine falsely accuses Hungary of its annexation intentions in relation to Transcarpathia? The Ukrainian side highlights several positions:
Issuing Hungarian passports to Ukrainian citizens (ethnic Hungerians)
This is an old story, it has come to light again recently due to the growth of Ukrainian nationalism. Moreover, there are concerns about the implementation by Hungary of the “Crimean scenario” in relation to Transcarpathia.
The Hungarian government has created the position of “Commissioner for the development of Ukraine’s Transcarpathian region and the program for the development of kindergartens in the Carpathian region”.
Ukraine demanded an explanation. A note of protest was delivered to the Hungarian Charge d’Affaires in Ukraine, and the Foreign ministers of Ukraine and Hungary had a telephone conversation on the problem. Hungary continues to ignore the requirements of Kiev.
Ukraine fears further disintegration processes
At the same time, in Kiev there is no understanding of the fact that combining the ideology of nationalism with the country’s national diversity and European integration is hardly possible.
Ukrainian experts note the growth of separatism in the Transcarpathian region, as well as the “strange behavior” of the governor, who plays on the side of Hungary. They also complain that “pro-Ukrainian ideology”(?) is not being сonsolidated in Transcarpathia, and this region is not controlled and monitored by the Ministry of information. In a word, the state is losing control over the territory, which it neither develops nor controls. Such behavior of the governor and the region’s residents may indicate that the state is not sufficiently present in the lives of residents of Transcarpathia, and this a financial and humanitarian drawback they compensate with the help of Hungary, – experts believe.
Apparently, Ukraine is unable to reach an agreement with Hungary as relations are tense. In response to the Ukrainian law on education, adopted in the fall of 2017, which infringes the rights of national minorities, Budapest blocked another, the third, Ukraine-NATO meeting. Ukraine witnessed this embarrassing situation in April 2018. At the same time elections were held in Hungary, in which Viktor Orban’s party won a majority in the parliament. Such a tough stance of Budapest in relation to the Ukrainian educational policy Kiev considered to be just a sign of electoral populism. However, this was a mistake.
Viktor Orban’s victory in spring 2018 was convincing, and a convincing victory means obvious support of his migration policies as well as his support for compatriots abroad. The party of Orban – Fides – not only won a majority but a constitutional majority – 133 of the 199 seats in the National Assembly of Hungary.
There is no doubt that Hungary has become Ukraine’s another serious opponent in the process of its European integration. And it is unlikely that either country will take a step back: there will be presidential elections in Ukraine soon, and in Hungary, the victory won by Orban, apparently, confirms the approval of his independent foreign policy by the citizens. So the conflict is likely to develop.
First published in our partner International Affairs
Belt and Road Alternatives: The European Strategy
The European Union (EU) has put forward a plan for enhancing connectivity within Asia, which has been dubbed as the Asia Connectivity Strategy.
The EU does not want to give an impression, that the Asia Connectivity Strategy (ACS) is a counter to the Belt and Road Initiative (BRI). Yet, senior officials of the EU, while commenting on the broad aims and objectives of the project, have categorically stated, that the primary goal of the Asia Connectivity Strategy, is enhancing connectivity (physical and digital) while also ensuring, that local communities benefit from such a project, and environmental and social norms are not flouted (this is a clear allusion to the shortcomings of the BRI). There are no clear details with regard to the budget, and other modalities of the project (EU member countries are likely to give a go ahead for this project, before the Asia-Europe Meeting in October 2018). EU has categorically stated, that it would like to ensure that the ACS is economically sustainable.
Other alternatives to BRI
It is not just the EU, but even the US, along with Japan and Australia. which are trying to create an alternative vision to the BRI.
The US alternative to the BRI, is being funded by the recently created United States International Development Finance Corporation (USDFC) (an organization which will merge Overseas Private Investment Corporation and other Development Finance Programs) which came into being after the passing of the BUILD (Better Utilization of Investments leading to Development) Act recently.
It would be pertinent to point out, that the US which has been accused of lacking a cohesive vision to counter China’s BRI has in recent months spoken, on more than one occasion, about greater the dire need for robust connectivity in the Indo-Pacific. In July 2018 US Secretary of State while speaking at the Indo-Pacific Business Forum committed an amount of $113 million for U.S. initiatives to support projects related to digital economy, energy, and infrastructure. The Secretary of State, while speaking about close links between US and Indo-Pacific, also spoke about the need for greater private sector involvement in projects in the Indo-Pacific. Pompeo off late, has also been reaching out pro-actively to a number of countries in South East Asia, and visited Malaysia, Indonesia in August 2018.
It would be pertinent to point out that OPIC (now part of USFDC) has already signed with the overseas finance development arms of Japan and Australia, and is in talks with India to work jointly. Some of the areas being explored for joint investments are energy, infrastructure.
It is not just the US, even Japan has come with it’s own alternative, Partnership for Quality Infrastructure (PQI), to the BRI.
Potential Appeal of the Asia Connectivity Strategy
So the question then arises, why would countries seeking an alternative to China, not come on board the US’ connectivity initiative. The ‘Asia Connectivity Strategy’ may be especially acceptable to leaders, who do not want to be seen as blindly following US diktats, but who are also uncomfortable with Beijing’s economic policies, and want to avoid falling into what has been dubbed as Beijing’s ‘debt trap’ diplomacy. A perfect example being Malaysian Prime Minister, Mahathir Mohammad who scrapped projects worth 40 Billion USD, and also referred to the rise of a ‘new colonialism’ being promoted by China. The Malaysian PM has not shared a particularly cordial relationship with the US in the past. While addressing the United Nations General Assembly (unga), Mahathir made some interesting points, saying that Malaysians want a Malaysia, which seeks relations based on ‘mutual respect’ and a Malaysia, that is ‘neutral’ and ‘non aligned’
EU itself trying to strike a balance
EU Chief, Jean Claude Juncker, has been pitching for a more pro-active response to Trump’s insular policies, as well as China’s BRI. Given the fact, that EU has taken a divergent stand from US on the Iran issue, and has proposed a Special Purpose Vehicle (SPV) which will ensure that trade with Iran continues, even before the impending US sanctions to be imposed on Iran in November 2018. The SPV was announced, jointly with Russia and China, on the sidelines of the UNGA.
At the UNGA, French President, Emmanuel Macron disagreed with Trump’s views with regard to Iran, and supported the 2015 Vienna Accord. Said Macron: We know that Iran was on a nuclear military path but what stopped it? The 2015 Vienna accord.”
While it remains to be seen, if the SPV set up by EU works or not, but a number of countries which do not want to be part of the Chinese or American orbit would be attracted towards the EU, in spite of all the problems it is facing, due to it’s capacity to take an independent stand.
Asia Connectivity Strategy is not only about competition
It remains to be seen whether the Asia Connectivity Strategy can gain traction. In terms of connectivity, there may even be strong overlaps with the ‘Indo-Pacific vision’. France, which has strengthened strategic ties with Australia and India, is already seeking to play a pro-active role in the Indo-Pacific.
French President Emmanuel Macron had referred to the need for a strong Paris-Canberra-New Delhi axis, during his Australia visit, as a counter to China’s increasing assertiveness.
Interestingly, while there is a realization, that Asian Connectivity Strategy has a competitive element, and there are some clear differences between EU’s strategy and BRI, there are also some who believe, that there is space for collaboration between the Asia Connectivity Strategy and BRI. This point has been put forward by some policy makers and strategic commentators in EU, as well as sections of the Chinese media. Wang Wen Wen in an article for the Global Times, argues:
‘Asia needs Europe as much as it needs China. Since the EU and China are the two largest economic entities in Eurasia, it is vital that they steward the continent’s economic development agenda. Some programs in the BRI have carried out cooperation with the European side on technology and equipment procurement.’
In conclusion, the Asia Connectivity Strategy is an interesting idea. A lot will depend upon available resources and the response of potential stakeholders. But EU going ahead with such an initiative in spite of numerous problems within is truly laudable.
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