Japan�s Chance to Build Mideast�s
�Corridor of Peace�
Abdulaziz Sager, Arab News
When Shinzo Abe succeeded Junichiro Koizumi as Japan�s
prime minister late last year, he was widely expected to
make a foreign policy declaration, including a key
statement on Tokyo�s Middle East policy. It isn�t an
overstatement to suggest that there couldn�t have been a
better message to deliver than his visit this week �
accompanied by a delegation of over 100 businessmen � to
Saudi Arabia, Kuwait, Qatar and the UAE, as well as
Egypt.
Just how assertive the Japanese administration�s foreign
policy is and how serious it is about the region was
also evident in a defining speech by Minister for
Foreign Affairs Taro Aso in February that expanded on
his �Corridor of Peace and Prosperity� comments made a
few months earlier. The minister listed three reasons
highlighting the importance of the Middle East,
including the Gulf Cooperation Council (GCC) countries,
to Japan � oil, economic transformation that is throwing
up lucrative investment opportunities, and value of
Middle East stability for global peace.
In 2006, Japan was dependent on the Middle East for 89.2
percent of its imported crude oil, with the GCC
countries accounting for 76.4 percent. It is well
understood in Japan, like in most parts of economically
resurgent Asia, that the oil market would increasingly
become a sellers� market. As a major oil consumer, Tokyo
realizes the importance of maintaining a tangible
presence in the Middle East. Explaining the need to
strengthen Japan�s political engagement in the Middle
East, Aso urged using economic, intellectual, and
diplomatic resources, in an �all-Japan� effort.
In fact, the relationship between the GCC countries and
Japan is one of mutual interest and respect. The region
looks to Japan not just as a buyer of its oil, but as a
great source of investment and reservoir of expertise.
As a result of the increase in oil prices as well as
economic expansion in the region and Japanese economic
recovery, the GCC-Japan trade surged 39.1 percent in
2005 to $88.5 billion, making Japan one of the biggest
trading partners for the GCC. Mineral oil imports made
up nearly 85 percent of its trade, with Japan importing
about 1.2 billion barrels of crude oil from the region.
Japan�s exports grew by about 15 percent to $13 billion.
Machinery and equipment accounted for a lion�s share �
$10 billion. Of this, transport machinery was worth
about $7 billion. UAE was Japan�s largest market,
accounting for almost $5 billion.
This economic engagement is bound to gain momentum as
the GCC-Japan FTA negotiations, which began in September
2006 with a focus on agriculture and goods, reaches its
logical conclusion. Further, economic diversification
plans that are currently being implemented in the region
require huge investments and expertise, both abundantly
available in Japan.
Among the major joint ventures that are currently
operational and worth noting are Rabigh Petrochemical
Plant � a $9.8 billion joint venture between Aramco and
Sumitomo Chemical; stake in Qatari RasGas by LNG Japan
Corporation; Dubai Metro project � a consortium headed
by Mitsubishi; and marketing of ALBA-Aluminum by Sojitz.
One area of cooperation that will have wide
ramifications is human resources development. As the
region becomes increasingly aware of the need to
encourage a knowledge economy, it is important to
accelerate beyond the current arrangements such as the
Saudi government and organizations like SABIC promoting
scholarships to Japan for engineering courses, or Japan
Cooperation Center for the Middle East (JCCME)
transferring software in educational methods, management
skills and advanced technology to Bahraini
organizations, or JCCME helping Qataris in productivity
improvement skills.
On the road ahead, Japan must encourage discussion on
storage facilities to overcome crisis situations by
tapping the Gulf�s potential to be an energy solutions
provider and exploring the question of managing
strategic energy stockpiles. The GCC countries would
also greatly benefit from Japan�s expertise on
diversification into petrochemical and other heavy
industries, especially aluminum and steel.
There is no doubt that oil and trade serve as key
factors in shaping and altering the relations between
Japan and the Gulf countries, but it is an
oversimplification to analyze it only from this angle.
There are several regional and international issues that
are intertwined as well.
The GCC countries and Japan see eye to eye on the
Palestinian-Israeli conflict, with Tokyo urging the
international community to help achieve a just and
comprehensive peace settlement based on the UN Security
Council resolutions 242 and 338. Tokyo was also one of
the few countries to recognize the Hamas government
after its victory in democratic elections early last
year.
While the region, and the world at large, is grappling
with efforts to stabilize Iraq, it is worth lauding the
Japanese contribution to the cause. In 2005, Japan
cancelled nearly $7 billion of Iraqi debt, amounting to
80 percent of its claims. Further, it pledged about $5
billion to support Iraq�s reconstruction effort. During
the first week of April this year, Japan lent some $850
million to the Iraqi government in low-interest loans to
fund the construction of an oil export facility in
Basra. It will also fund fertilizer and oil refinery
plants and help improve electricity generation.
In a �Newsweek� interview that was conducted ahead of
the prime minister�s visit to the United States, Abe
said: �Japan today enjoys good relations with Iran and
would like to exercise whatever influence it has on the
Iranians to try and work toward a peaceful resolution of
the (nuclear) issue.�
It would be more enduring if Japan were to consider the
possibility of forming a troika with Saudi Arabia and
Turkey to convince Iran to step back from the brink.
While Saudi Arabia has a direct stake, along with the
other GCC countries, in denuclearizing Iran, Turkey
would be seen in a new light by the members of the
European Union, which it is persevering to join, if it
contributes positively to overcoming the current crisis.
Japan has the right credentials to take up this role as
opposed to the European troika that has been engaged in
unsuccessful diplomatic negotiations with Iran leading
to the current standoff. Besides the history of
Hiroshima and Nagasaki, Japan has a strong record in
promoting nuclear disarmament and nonproliferation. More
importantly, with Iran supplying more than 15 percent of
Japan�s oil, making it the third largest supplier, the
two countries share an excellent economic rapport that
can be converted into political capital.
Abe�s tour of the region will serve to recognize the
GCC�s concerns with regard to the nuclear issue and the
fallout of a possible conflict over the same, which are
identical to the Japanese fear of expansion of the
nuclear zone in its own surroundings. Tokyo is well
equipped to advise Tehran about the virtues of accepting
an inspection system involving the application of
comprehensive safeguards, which Japan has been adhering
to for decades.
If Japan�s desire to create a �Corridor of Peace and
Prosperity.. ..on a route starting from the West Bank,
across Jordan and beyond, leading to the Gulf states�
has to materialize, Iran has to be a big part of the
equation.
� Abdulaziz Sager is the chairman of the Gulf Research
Center in Dubai.
Source:
Arab News
