“Norway – A Good Partner for Japan”, 23 May 2011

 “Norway – a Good Partner for Japan”

It is a pleasure to welcome you to the Embassy this evening. We appreciate this opportunity to present Norway and highlight our bilateral relations to some old friends and to our many new ones. Very important members of the Japanese business community all of you. Our intention this evening is to give you both “food for thought” and “food for stomach”. I will start by presenting Norway in a nutshell, putting us on the global scene and highlighting some areas of our bilateral relations.

When natural catastrophe strikes

But let me first confess that my original intention this evening was to highlight the success of the visit of our Prime Minister, which was to take place on 15 -18 March. A visit, with a business focus, we had worked so hard to prepare and expected so much of in terms of strengthening the relations between Norway and Japan. The business delegation to accompany him was impressive. The largest business delegation to accompany him as Prime Minister on an official visit abroad.

Promoting good business relations and our companies abroad has become an increasingly important part of our work at Norway’s embassies around the world, and as this evening an important part also of our pleasure.

But the Prime Minister’s visit was not to be. Four days before his planned arrival, disaster struck Japan. A mega-catastrophe in scope and destruction unlike any before – earthquake, tsunami nuclear reactor explosion and radio-active leakage and further apprehension. All this at the same time. Japan’s 3/11 has changed almost everything. 

Our happy vision of a Tokyo with Norwegian flags all over the city. A high-profiled Norway-Japan Business Forum and official dinner for 900 people – Japanese political leaders and ministry officials, culture and academia, assembled with business leaders, Japanese and Norwegian, in our focus fields of co-operation - not least fisheries, shipping, energy and environment, science and technology. Consolidating established ties and co-operation and opening doors for new exciting business ventures. And all of these people singing Happy Birthday to our Prime Minister, his 52nd birthday, led by the President of the House of Councillors of the Diet on 16 March at our official dinner. A memorable experience for all of us, indeed.     

The visit had to be postponed under the tragic circumstances to a time better suited in the near future, when it will be implemented with renewed purpose. Prime Minister Stoltenberg immediately sent his condolences to Prime Minister Kan asking him convey his sympathy to those bereaved and offering to support Japan in any way we could. The two Prime Ministers will have a short meeting together in Paris this week in the fringes of the meeting commemorating 50th anniversary of the OECD. Our King and President of Parliament likewise sent messages of sympathy to the Emperor and Presidents of the Diet.
 
In an article in the “Japan Times” last week, I have highlighted some Norwegian responses to the natural catastrophe. We have included a translation into Japanese in our hand-out material. We Norwegians here in Tokyo and elsewhere in Japan have our own special feelings and empathy, living here, having so many friends here. We are happy that no Norwegians suffered injury or loss. But we are mindful of all the Japanese who have. When we Norwegians in Tokyo gathered to celebrate our National Day here at the Embassy last week, we enjoyed food produced in Tohoku in addition to the waffles, hot-dogs and ice-cream and other traditional items.

We are now looking into how Norway can assist Japan in a longer-term perspective in efforts to recover, reconstruct and further develop. In areas, where we have unique experience to share and can make a difference, and where we already have close co-operation. Such as fisheries, the whole value chain, and coastal development. We too have a long coastline scattered with communities dependent on fisheries. Renewable energy and environment are other areas, where Norwegian experience and state-of-the-art technology can be of interest to Japan as you mobilize all efforts to meet the challenges ahead. And in these efforts, we would want to see a partnership not only between our government authorities, but also partnerships among Norwegian and Japanese businesses to their mutual commercial benefit, which is so important for viable solutions.  

In a Nutshell

Norway is located on the northwestern edge of the Eurasian landmass. On the opposite side to Japan. Since some of you might already be thinking about dinner, I can illustrate this in another way by saying that Norway and Japan, shaped like croissants both of our countries, are like the two buns of a hamburger with a substantial piece of meat in between - Russia.

You will find some basic facts about Norway in the handout material. In area, Norway is more or less the same size as Japan. That is if you do not include our possessions in the Antarctic which in area are seven times larger. But our population is only 4.9 million. Much smaller than Japan’s, even if we include all the penguins in our Antarctic lands. Our GDP per capita is the second highest in the world – JPY 7 million (USD 80 000). Foreign trade accounts for about half of our GDP. Norway is one of the world’s largest exporters of oil and natural gas, the second largest seafood exporter and the sixth largest shipping nation in the world. Our economy has fared relatively well through the financial crisis. We expect 2.1% growth in GDP this year and 2.9% next year. Unemployment is around 3 ½ %. We provide 1% of our GDP as official development assistance.
 
Our Oil Fund, “the Norwegian Government Pension Fund – Global”, is now the second largest sovereign wealth fund in the world with assets of around Yen 45 trillion (USD 500 billion). All invested in shares, bonds and real estate abroad in order to shield our domestic non-oil economy from over-heating. 5% of the Fund, around Yen 2 trillion, is invested in Japanese bonds and equities – holding shares in more than 1 300 Japanese companies. Japan is the Fund’s 6th largest investment destination.

Norway is a Constitutional Monarchy and Parliamentary Democracy. Governed by a Red-Green coalition government re-elected in 2009 and led by the Social Democratic Party, with the Centre (Agrarian) Party and Socialist Left Party. We have a broad national consensus on the basic elements of our foreign policy and domestic policies. 

We pride ourselves in Norway being a brand name for a welfare state and a nation of gender equality. Half of our Cabinet Ministers are women. Over the last decade, Norway has remained number one in the UN Human Development Index on the best country to live in. According to the magazine “National Geographic”, the Norwegian fjords are the world’s most spectacular tourist destination. We have Midnight Sun in the summer and Northern Lights, Aurora, in the winter. We are centre-stage in Arctic developments. As you can see, I have named our four tables appropriately, emphasizing these unique characteristics, instead of using numerals one to four that are not unique to any nationality and that anyone can claim. 

Global Outlook

Ladies and Gentlemen, Norway may be a small country, but we make a large and visible global footprint. We are actively engaged in promoting sustainable and equitable development, as well as peace-building, for a better organized world community. Active participation in the United Nations system is a corner-stone of our foreign policy. We find our interests best served by strong multilateral institutions and an effective UN, a UN-led world order. Norway is the fifth largest contributor to UN operational activities, closely behind Japan. We support Japan being made a permanent member of the Security Council. 

Our security policy is anchored in the North Atlantic Treaty Organization. Like Japan, Norway has committed herself not to produce or store nuclear weapons. Like Japan, we are under an American nuclear umbrella. NATO, a defence alliance of countries on both sides of the North Atlantic, is now engaged also outside its original geographical scope. The challenges to our security today are global.

Some 600 Norwegian troops are in Afghanistan, in ISAF, along with those of our NATO allies to contribute to stability, security and development. They are there at the request of the UN Security Council and Afghan authorities. Norway is one of the biggest contributors to civilian reconstruction in Afghanistan providing more than Yen 10 billion per year..

The countries of the European Union are our main political and economic partners. 80% of our trade is with EU countries. But Norway is not a member of the EU. Our people have in two referenda, in 1972 and 1994, opted not to join. Norway is pursuing a pro-active policy towards Europe as member of the European Economic Area, where Norwegian companies have the same rights and responsibilities as companies of European Union member countries. The EEA ties us closely to EU developments in many fields. And Norway is part of the Schengen area.
 
As industrialized democracies, Norway and Japan are partners in the OECD. Our economies are dependent on international trade and we share interests in the World Trade Organization (WTO), not least in maintaining a vibrant agricultural sector in our countries.

Unlike Japan, Norway is not a member of the G20. Our GDP is the 23rd largest in the world. Considering our financial and petroleum resources as well as track record for international development and environment as well as peace-building, we think we should be included in an appropriate way. We recognize the important role that the G20 is playing as a forum for efforts to stabilize the world economy, but we also see the self-appointed G20 as a challenge to principles of multilateralism and international legitimacy.

Norway’s international profile would not be complete without mention of the Nobel Peace Prize, perhaps the most coveted prize in the world. In 2009, the Norwegian Nobel Committee, an independent Committee appointed by the Norwegian Parliament, awarded the prize to President Obama. Last year to the Chinese dissident Liu Xiaobo. That caused quite a stir in our bilateral relations with China. This year’s laureate will be announced in October.

Environmental Forefront

It is Norway’s ambition to be a leading nation in environmental policy. We regard climate change as a major political challenge of our time. The poorest people in the world will be the hardest hit by the effects of climate change. Developed countries, with their financial and technological resources, must take the lead within a broad international framework. Norway’s Prime Minister Jens Stoltenberg is Co-chair of the High Level Group established by UN Secretary General Ban Ki Moon on financing measures in developing countries to mitigate climate change.

Norway will continue to press for a more comprehensive and legally binding climate agreement to succeed the Kyoto Protocol. We will reduce our emissions by 30-40% from 1990 levels by 2020. 40% as part of a global agreement, where major emitters reduce emissions in line with the objective to keep the rise in global temperature below two degrees. Our objective is to be “carbon neutral” by 2030. We will follow up our commitments and reduce emissions nationally and internationally through use of the flexible mechanisms under the Kyoto Protocol. All countries must contribute by reducing emissions in order to limit humanly induced climate change.
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Norway and Japan have taken global leadership in efforts to reduce emissions from deforestation and forest degradation in developing countries – REDD+. Last year, Norway’s Prime Minister a high-level political summit attended by Prime Ministers, Ministers and experts - “Oslo Climate and Forest Conference”. Japan’s Environment Minister hosted a follow-up Ministerial meeting in Nagoya back-to-back with the 10th Conference of the Parties to the UN Convention on Bio-diversity.

Environment Conscious Energy Producer

The world will need more energy for economic and social development. Energy is crucial for our efforts to reach the UN Millennium Development Goals. But production and use of energy are also at the core of global environmental, not least climate change, concern. We need cleaner energy, used in a more efficient way, accessible and affordable to a larger share of the world’s population. This means new and innovative technologies for environmentally better use of fossil fuels. Not least large scale commercialization of technologies for carbon capture and storage. This also means accelerated development of alternative, renewable sources of energy, such as solar, tide, thermal, bio-fuels and wind. Especially floating off-shore which Norway is pioneering. All combined with improvements in energy efficiency. The world has much to learn from Japan, the world leader in energy efficiency. And right now, the world is following closely how Japan handles the nuclear reactor problems at Fukushima.  

Japan is an environment-conscious energy-importing country. Norway is an environment-conscious energy-exporting country. We produce ten times as much energy as we use ourselves.  Almost 100% of our electricity and 60% of our total energy mix is generated by emissions-free and renewable hydro-power. Our reliable exports of substantial amounts of offshore oil and natural gas contribute to the security of energy supply of our trading partners. Norway is the world’s second largest exporter of natural gas, only Russia exports more. 95% of our natural gas goes to markets in Europe. We are the sixth largest exporter of oil. We have vast offshore areas yet to be explored and resources yet to be tapped. The petroleum sector now accounts for almost a quarter of Norway’s GDP, half of our total exports and more than a quarter of total government income.

The Arctic – A New Frontier

Let me now take you to the Arctic, where the ice sheet is melting at an alarming rate, being reduced by an area more than one and a half times that of Japan per decade.

As the Arctic ice sheet is getting smaller and smaller, international interest in the Arctic is getting bigger and bigger.  The melting of Arctic ice opens long-term perspectives for exploiting huge reserves of oil and natural gas.  More than a fifth of the yet-to-be-discovered reserves of oil and natural gas in the world could be found in the Arctic. State-of-the-art technology is called for in this challenging and high-cost environment. Norway is already producing and exporting oil and natural gas from our part of the Arctic. Idemitsu has been awarded interests in licences in the area.

Melting of Arctic ice can also open new routes for maritime transport that will substantially shorten sailing routes from Asia to Europe. The Northeast Passage brings Norway and Japan closer together and reduces the distance from Yokohama to Rotterdam by 40% as compared to the southern route through the Suez Canal. This also has geo-political and security policy implications as it bridges the North Atlantic area and North East Asia.
 
The Norwegian Government has the High North as a foremost area of strategic focus. Our policy is to safeguard Norwegian economic, environmental and security policy interests by means of a coherent policy that integrates the three. It is a policy of dialogue with the states that have interests in the region. It is a policy of strengthening institutionalized multilateral co-operation, such as that we have in the Arctic Council, the world’s only circumpolar forum.

The Arctic Council held its biannual Ministerial meeting last week in Greenland. Ministers signed an agreement on search and rescue, the first legally binding agreement negotiated within the Arctic Council. Ministers further agreed to set up a permanent secretariat in Norway’s Arctic city Tromsø and agreed on criteria for new permanent observers. Norway supports Japan’s application for permanent observer status in the Arctic Council. We want to co-operate even more closely with Japan as you take active part in Arctic developments related to research, energy and shipping, not least because of what you can share in terms of Arctic and Antarctic research competence and activity. 

Our policy in the High North underscores the importance of co-operation with neighbouring Russia. I know you have problems with Russia concerning the four northern islands. Last year, Norway and Russia reached agreement on the maritime delimitation line in the Barents Sea and the Arctic Ocean – after 40 years of talks. The agreement divides the former disputed area 175 000 km2, half the size of Japan, into two parts of approximately the same size. The delegations recommend adoption also of provisions regarding co-operation in fisheries and petroleum activities.

Bilateral Co-operation

Ladies and Gentlemen, to conclude a word about our bilateral relations. Japan was one of the first countries to recognize Norway as a new and independent state in 1905, after centuries of Union with Denmark and Sweden. Japan was the first country in Asia with which we established diplomatic relations. We have strong traditions in co-operation in shipping, trade, sustainable fishing and whaling. Japan has been an important trading partner for Norway for generations. Today, our second largest in Asia.

Japan’s imports from Norway are mainly seafood such as mackerel, salmon, “shishamo” (capelin) and king crab accounting for more than a quarter of your total imports from Norway.
Last year, we celebrated the 30th anniversary of the arrival of fresh air-freighted Norwegian salmon to Japan, now an integral part of your sushi culture. This year, we are celebrating 40th anniversary of the arrival of Arctic “shishamo” (capelin) from Norway. You will enjoy both later this evening. We eat a lot of fish in Norway. I am very impressed that Japanese eat on average three times as much fish a year as Norwegians do. Other items imported from Norway are chemical products, machinery, furniture and design products. Japanese exports to Norway are mainly vehicles, about a third of your total exports to us, as well as iron and steel products, machinery and electronics.

We have a vibrant bilateral co-operation in science and technology that focuses on energy and environment, nano-technology and seafood safety. Last year our bilateral Commission added space, atmospheric and polar research as focus areas. Leading universities in the Kyoto region and in Norway co-operate in the Kyoto International Forum for Energy and Environment (KIFEE).

Japan is showing interest in Norway as a welfare State. We are happy to share our experiences, hoping that some can be of operational interest to you as you decide how best to address these issues in the years ahead. Our Embassy hosted in co-operation with your Cabinet Office last year an interesting seminar on “Work-life Balance and Corporate Social Responsibility”. The message being that Work-life balance and CSR equals good business. The standing Committee on Health and Welfare of our Parliament will visit Japan in September this year.

Our cultural exchanges are flourishing. The Embassy and other “Team Norway” institutions  in Japan made the launching of the film “Norwegian Wood” based on the world famous novel of Murakami, a book that has nothing to do with Norway, into an event that profiled Norway perhaps even more than it profiled Murakami himself. And that following an enormously successful Murakami Festival in Norway last summer, highlighted by Murakami being there himself and spending several weeks in Oslo.

We also had the first International Ibsen Festival here in Tokyo last year, the world famous Norwegian playwright Henrik Ibsen with plays performed by a troop from our National Theatre and by troops from theatres in Vietnam and Germany. In addition, Ibsen plays were performed in Japanese theatres as well.

We are happy for Japanese appreciation of our artist Edvard Munch. We have some original prints hanging here in this very room. Idemitsu has for more than 20 years now been a key supporter financially of the Munch Museum in Oslo. Three Munch paintings are brought from Norway for display at the Idemitsu Museum each year. 

We are happy for your interest in the music of our composer Edvard Grieg and our special Norwegian jazz, folk and contemporary music. We can look ahead to the Tokyo Jazz festival with Norwegian musicians. Mari Boine is coming to Hokkaido. Leif Ove Andsnes, very popular here, is also coming .

Ladies and Gentlemen, there is much more to say. I am looking forward to your questions and comments.

Ambassador Arne Walther