Cyprus’ business and investment environment has many strengths, but these features are not well known in Japan. Although some Japanese companies are doing successful business in Cyprus’ financial and shipping sectors, there is much room for better promotion of these comparative advantages to deepen relations between the two countries in the future, says Yoshio Yamawaki.
How would you characterise the current state of Japan-Cyprus diplomatic relations?
Japan and Cyprus have maintained friendly diplomatic relations for more than 60 years. Especially since the opening of the Japanese Embassy in Nicosia and the Cypriot Embassy in Tokyo, seven years ago and six years ago respectively, the cooperation between the two countries has been strengthened. In recent years, the cooperation between the two countries has grown in a number of areas, including people-to-people exchanges, culture, business and economics, research and innovation, shipping, and education. However, the presence of Japan in Cyprus and the presence of Cyprus in Japan, is not strong enough yet, and I believe there is much room for deepening the relations between the two countries in the future.
What significant projects are there between the two countries at the moment, and what kind of cooperation would you like to see developed in the future?
Trade between the two countries has been increasing in recent years. The main export items from Japan include cars, ships and electrical equipment, and the main import items from Cyprus include agricultural products and pharmaceuticals. The volume of trade overall is not yet high, and I expect even more increase in trade between the two countries in the future.
In terms of Japanese companies investing directly in Cyprus, although the number is still limited, there are companies doing successful business in Cyprus in the financial and shipping sectors at present. I hope that the number of Japanese companies investing in Cyprus will increase following these successful examples.
As Japan seeks to expand its global economic partnerships, what opportunities do you see for Japanese businesses and investors in Cyprus?
Cyprus has several strengths in terms of its business and investment environment. These include its stable social system as a member of the EU, its excellent local human resources who are fluent in English, its tax and intellectual property systems that are favourable to foreign companies, and its high-quality living environment. However, these features of Cyprus' business environment are not well known to Japanese companies. In April this year, the Ministry of Commerce, Industry and Energy and the Cyprus Chamber of Commerce and Industry sent a business mission to Japan for the first time. They also held a business forum in Tokyo to which Japanese companies were invited. I believe that it is important for Cyprus to make efforts to increase the number of such opportunities in order to draw more interest of Japanese companies to Cyprus.
Cyprus lies in a strategic position between three continents. How do you see Cyprus supporting Japan’s broader economic and trade goals in Europe and the Eastern Mediterranean?
In addition to the business environment strengths already mentioned, Cyprus is said to have the advantage of being geographically located at the crossroads of Europe, the Middle East and North Africa. It could provide foreign companies with a gateway to these large markets.
On the other hand, looking at Cyprus from the perspective of Japanese companies considering next investment, it is not clear enough specifically what advantages Cyprus has over other European and Middle Eastern countries, since there are not enough data and examples. Japanese companies wishing to enter the European, Middle Eastern and African markets have the option of investing directly in these regions without going through Cyprus. In addition, as a common practice, Japanese companies do not proceed to investments if they do not have sufficient information to make a decision. The comparative advantages of investing directly in Cyprus need to be specifically demonstrated to foreign companies, which I believe will encourage foreign investors to become more interested in Cyprus as a destination.
What are Japan’s key priorities for strengthening diplomatic ties with Cyprus, and how do you see the relationship evolving in the future?
Japan and Cyprus are both maritime countries, and we share the same value in respecting international law, including the United Nations Convention on the Law of the Sea. Cyprus is a member of the EU and has good relations with countries in the Middle East. It has a great geopolitical importance, and as Ambassador to this important country, I hope to further strengthen our strong bilateral diplomatic relations. The most successful example in strengthening the bilateral relations recently is a conclusion of memorandum of cooperation in the field of science and technology. In October this year, the Cypriot Deputy Minister of Research, Innovation and Digital Policy visited Japan and signed a memorandum of cooperation with the Japanese Minister of Education, Culture, Sports, Science and Technology. Research and innovation sector is an important area of common priority for both countries, and I would like to deepen our relations in this field for mutual benefit through people-to-people exchanges, research cooperation and the promotion of innovative start-ups.
