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14th JAPAN-EU SUMMIT Luxembourg, 2 May 2005 JOINT PRESS STATEMENT

1. Mr Jean-Claude Juncker, Prime Minister of Luxembourg, in his capacity as President of the European Council, assisted by the High Representative Javier Solana, Mr Jose Manuel Barroso, President of the European Commission, and Mr Junichiro Koizumi, Prime Minister of Japan, met in Luxembourg on 2 May 2005 for the 14th Summit between the European Union and Japan. 2. The Summit leaders reviewed the implementation of the Action Plan for Japan-EU Cooperation, adopted in 2001, and set priority actions to be taken by the time of the next Japan-EU Summit (see Annex), noting that this dynamic work programme underlines the deepening relationship between the enlarged EU and Japan. In this perspective, the Summit leaders discussed a wide range of international, multilateral and bilateral issues. Creating an effective partnership to address key international issues 3. Summit leaders had an open exchange of views on the situation in East Asia and briefed each other on the recent developments of their relations with China. They welcomed that China will continue promoting stable reforms and open policies and stressed the importance of having China as a responsible and constructive global partner. Japan reiterated its opposition to the lifting of the EU's arms embargo on China. Summit leaders stressed that their strategic dialogue on East Asia's security environment should be enhanced. 4. Summit leaders reconfirmed their resolve to strengthen their partnership with Russia, based on common values, and their wish to see Russia fully integrated into the global economy. They underlined the importance of continued reforms to strengthen the Rule of Law and the respect for human rights in Russia. They also noted the importance of modernising Russia's production base and increasing its economic growth potential including through improving the investment environment. Timely accession to the WTO and improvements in energy efficiency would be important in this regard. 5. On Iran, the Summit leaders took stock of progress in the European efforts to find a negotiated solution to the nuclear issue. They fully supported further efforts to reach an agreement on long-term arrangements. In this context, accepting Iran's application to the WTO will be an important step. They would try to get the most out of their parallel efforts to obtain objective guarantees of the peaceful nature of Iran's nuclear activities. Concrete progress on the nuclear issue would have a positive impact on the deepening of its relations with the EU and Japan. 6. Summit leaders reiterated their commitment to a peaceful resolution of the DPRK nuclear issue. They urged the DPRK to completely dismantle its nuclear programmes subject to credible international verification and, to that end, return to the Six-Party Talks process expeditiously and without preconditions. Both parties encouraged the DPRK to take further steps in modernising its economy and promoting the welfare of its population. Both sides urged the DPRK to fully respect the resolution on the situation of human rights in the DPRK recently adopted by the UN Commission on Human Rights. In this context, the EU confirmed its strong support to efforts intended to lead to the settlement of the abduction issue. 7. On Iraq, the Summit leaders considered that the successful holding of elections and the subsequent formation of a transitional National Assembly reflected the attachment of the Iraqi people to the political process underway, to democratic principles and the rule of law. They welcomed the formation of the new transitional Iraqi government and reaffirmed the importance they attach to the continuing implementation of the next stages laid down in Resolution 1546, including the drafting of a permanent Constitution, leading to the establishment of a Government by 31 December 2005 at the latest. They expressed their shared commitment to enhance concerted efforts by the international community to provide political and financial support to Iraq's reconstruction. 8. As regards Afghanistan, Summit leaders looked forward to the holding of Parliamentary and provincial elections on 18 September, to which they would give their full support. They welcomed the adoption by the Afghan government of a counter-narcotics implementation plan for 2005 and underlined the importance of international support for Afghan-led efforts to tackle the problem of illicit drugs in a balanced and sustainable manner. They reaffirmed their support for security sector reform and stressed the importance of judicial reform. They welcomed the substantial progress in the disarmament, demobilization and reintegration (DDR) process and encouraged the Afghan government to complete the DDR process by June 2006. The EU and Japan decided to continue to coordinate on the ground in implementing their reconstruction assistance and security sector reform efforts. 9. Summit leaders welcomed recent developments regarding the Israeli-Palestinian conflict, in particular the commitment made by both parties at the Sharm El Sheikh Summit on 8 February 2005 to stop all acts of violence, including all acts of terrorism, and to cease all military activity in parallel. They reaffirmed the principle that all efforts have to lead to a negotiated two-State solution agreed between the parties which would result in a viable, contiguous, sovereign, democratic and independent Palestinian State living side by side in peace with Israel, within recognised and secure borders. They also reaffirmed their belief that the Roadmap, endorsed by UNSC Resolution 1515, represented the route to achieving such an outcome, and called on both sides to fulfil their obligations under the Roadmap. They confirmed their intention to continue their financial support to the Palestinians with clear objectives and conditions and to encourage other international players to provide such support. 10. On the Western Balkans, Summit leaders reiterated their support for the further enhancement of stability, democracy, sustainable development and good neighbourly cooperation in the region and its rapprochement towards the EU in the context of the Stabilisation and Association Process. The EU expressed its appreciation for Japan's engagement and assistance to the region. Bilateral contacts will continue at expert level with a view to ensuring complementarity between the assistance programmes. Working together to strengthen the multilateral system 11. Summit leaders underlined their commitment to working to ensure that the WTO Ministerial Conference in Hong Kong in December 2005 will achieve a meaningful and balanced result through producing detailed modalities and commitments on all issues under negotiation in the Doha Development Agenda. They emphasised the importance of continued close co-operation between the EU and Japan to achieve this. Continued efforts are also needed to engage developing countries, including through improved market access for Least Developed Countries and trade related assistance. The Hong Kong Ministerial should also provide the opportunity to welcome new Members to the WTO. The EU and Japan will work together with the most advanced candidates, including Russia, Ukraine, Saudi Arabia and Vietnam to move forward in their accession processes. 12. Summit leaders stressed that close cooperation between the EU and Japan had greatly contributed to the entry into force of the Kyoto Protocol, a major step forward in addressing global environmental and development challenges. The EU and Japan aim to ensure the widest possible participation of countries in the Kyoto Protocol and, in the Post-2012 framework, to achieve an effective, cost-efficient and appropriate international response, in accordance with the principle of common but differentiated responsibilities and respective capabilities. They underlined the need for early consultations on actions after 2012, and the need to advance discussion on the post-2012 regime by the next UN Framework Convention on Climate Change Conference of the Parties (COP 11) with a view to initiating negotiations on a future framework. They will strengthen their cooperation to contribute to the deployment and development of existing and new climate-friendly technologies as well as facilitating transfer of such technologies to developing countries. Summit leaders also underlined their commitment to put steadily into effect the Plan of Implementation decided at the World Summit on Sustainable Development (WSSD), particularly, working together in the following areas: sustainable consumption and production patterns; sustainable management of water and forest resources including illegal logging; energy for sustainable development. Leaders also welcomed the success of the Ministerial Conference on the 3R (Reduce, Reuse and Recycle) Initiative hosted by the Government of Japan in April 2005. They looked forward to the 2005 UN Summit which in their view provides a unique opportunity to give fresh impetus to ensure environmental sustainability as included in the Millennium Development Goals. 13. Summit leaders looked forward to the successful conclusion of the convention on Cultural Diversity under negotiation at UNESCO. 14. They recognized the role of the International Criminal Court as an important means of complementing states' efforts to put an end to impunity for the most serious crimes of international concern. Both sides welcomed the hosting by Japan, in December 2004, of an Japan-EU seminar on the ICC. The EU expressed its hope that Japan ratifies the Rome Statute and underlined the importance of preserving its integrity. 15. Summit leaders renewed their commitment to implement the 2004 Japan-EU Joint Declaration on Non-Proliferation and Disarmament, and to coordinate further their activities, particularly in the context of major international conferences and in assistance programmes in third countries. They are committed to supporting the implementation of UNSC Resolution 1540 to promote a collective effort, particularly in strengthening export controls worldwide. They underlined in the context of the Non-Proliferation Treaty (NPT) Review Conference the crucial importance of the integrity of the Treaty for striking an effective balance between the three pillars of the NPT. The leaders supported an immediate commencement of negotiations of a Fissile Material Cut-off Treaty, bearing in mind the report of the special coordinator, and the entry into force of the Comprehensive Test Ban Treaty (CTBT), as soon as possible, without conditions. They urged signature and ratification of the CTBT by all states which have not yet done so and call on all states in the meantime to apply a moratorium and to refrain from any action contrary to the obligations and provisions of the Treaty. They stressed once again the importance of universal adherence to all treaties and instruments for Non-Proliferation and Disarmament and strict compliance by all states which have subscribed to these commitments. They underlined their support for the activities of the IAEA in this respect and expressed their hope for an early consensus decision on the appointment of the Director General. 16. On counter-terrorism the EU and Japan reiterated their appeal to all states to ratify and implement all of the twelve international counter-terrorism conventions and protocols as a matter of urgency, and implement relevant UN Security Council Resolutions. They welcomed the growing bilateral contacts between Japan's Ambassador and EU Coordinator on Counter-Terrorism. While recognising the importance of counter-terrorism efforts at the global level, they decided to cooperate specifically in South East Asia and to actively promote regional co-operation, including through regional Counter-Terrorism centres. 17. Summit leaders underlined the importance of the Asia-Europe Meeting (ASEM) process in promoting dialogue and cooperation between Asia and Europe in order to address global challenges with effective multilateralism, and expressed their commitment to the strengthening of the ASEM process. They decided to closely cooperate for the success of the 7th ASEM Foreign Ministers' Meeting in Kyoto, 6-7 May 2005 as well as the other upcoming ASEM Ministerial Meetings. Building a strong and effective bilateral partnership 18. Summit leaders warmly welcomed the substantial progress on both sides since last year's summit in implementing the Investment Framework to foster growth in two-way direct investment (see Annex). This included mandating the European Securities Regulators to provide technical advice on the equivalence of Japanese accounting standards with international accounting standards by mid-year. The leaders recognised the need for further steps not least on facilitating green field investment and merger and acquisition activities to increase two-way direct investment. The Regulatory Reform Dialogue continued to deliver concrete outcomes, such as in finding practical solutions to facilitate the living and working environment of expatriate nationals. In that context, they underlined the usefulness of the ongoing dialogues and information exchanges on important economic issues, in particular on the REACH regulation and on government procurement. The EU and Japan will continue their dialogue on intellectual property rights (IPR) including in the area of geographical indications. The Joint Initiative to promote better enforcement of IPR in Asia has already delivered good results and will be implemented further in the coming year. In addition, Japan and the EU will work closely together, actively contributing to the ongoing discussions on the international patent agenda, and in particular on exploring ways and means to arrive at a global patent system. They will also advance their cooperation in line with the 2004 Joint Statement on Information and Communication Technology (as specified in the Annex). 19. In addition, important negotiations have been launched that will facilitate, and broaden the basis for, further economic interaction, on a Customs Cooperation Agreement and a Science and Technology Agreement which, together with the Japan-Euratom Agreement for the Peaceful Uses of Nuclear Energy, are expected to be finalised expeditiously. 20. Summit leaders underlined the importance of developing scientific cooperation with a view to establishing an ambitious partnership in research and technological innovation. As regards ITER and international cooperation in the field of nuclear fusion, the EU and Japan welcomed the progress achieved among all ITER Partners, and notably the constructive meeting between Minister Nakayama and Commissioner Potocnik on 12 April. 21. Summit leaders called for a continued innovative approach to the Action Plan to address new common challenges. These include promoting energy efficiency in Asia, bearing in mind the impact on world supply and on the environment. Moreover, as the move to global financial markets accelerates, they will deepen their cooperation by enhancing the informal financial markets dialogue. In addition, the dialogue on transport security should be developed in order to promote the use of agreed international rules, as well as standards of best practice. Similarly, the ongoing Japan-EU Industrial Policy and Industrial Cooperation Dialogue should be used to exchange ideas in depth on how to reinforce the competitiveness of the economies of the EU and Japan under the Lisbon Agenda and Economic Structural Reform respectively. 22. Summit leaders noted that as the two biggest grant donors to the countries afflicted by the Tsunami disaster, closer exchanges on reconstruction of affected areas would be fruitful. They underlined the crucial importance of coordination of assistance programmes and their alignment with national reconstruction strategies as essential to the effective use of the assistance. They welcomed the initiative to establish regional early warning systems in accordance with national priorities and under the coordination of UNESCO/IOC. 23. They noted the high number of events and projects in the EU Member States and Japan celebrating the 2005 Japan-EU Year of People to People Exchanges, comprising nearly 1000 events in the EU and in Japan. Leaders underlined their intention that the great interest shown in the 2005 Japan-EU Year should lead in the longer term to more and better contacts between people in the EU and Japan. They also welcomed the opening of a second EU Institute in Japan in Kobe. A symposium to be held before the 2006 Summit should contribute to further reflections on the future evolution of Japan-EU relations.