Japan “is looking with great interest at the planned visit to Italy by Prime Minister Shinzo Abe, at Prime Minister Enrico Letta’s invitation, early next year”. The visit could take place as early as January 2014, announced the Secretary General of the Farnesina, Michele Valensise, who also mentioned a possible mission to Tokyo by Foreign Minister Emma Bonino. The Secretary General was in Japan to exchange views on common interests while strengthening the already strong ties between Rome and Tokyo. Ties that have been built up through political-institutional collaboration in international fora such as the G8, and in their advanced economic-cultural relations.
Trade, investment, energy, SMEs
“We have laid the foundations to decide together on the content of the meeting, and to identify the issues on which to work beforehand”, added Valensise after his meeting with the Deputy Foreign Minister, Saiki Akitaka. In detail, the questions for discussion include trade and investment, energy, relations between Japanese and Italian SMEs, disaster prevention, defence supplies and the social security agreement.
Italian commitment to ratify bilateral social security agreement
On social security, Valensise assured his hosts of the Italian government’s “utmost commitment to ratify the bilateral agreement”. The agreement could cost INPS, Italy’s national social insurance institute, an initial 10 million euros, a figure, however, that will decrease over time. The agreement, signed in 2009 and already ratified by Tokyo, is intended to avoid double social security contributions and thus remove a non-tariff barrier to investment.
Japan has used the instrument with other nations, including France. “Although it would create a financial burden on Italy in the medium term, the burden would be outweighed by the benefits generated by the increased flows of Japanese investments. As has been the case for other European countries with the same type of agreement” commented Valensise.
Destinazione Italia: the plan for inward investment
The imbalance can be explained by the higher Japanese presence in Italy, often in management roles, compared with the Italian presence in Japan. With over 300 companies operating in Italy, Tokyo is our third non-EU investor, after the USA and Switzerland. And with the “Destinazione Italia” plan approved by the Letta Government in September 2013, the conditions are now right for an increased flow of inward investment. Including from Japan.
