http://www.fpif.org/fpiftxt/4256
Foreign Policy In Focus |
Japan Infiltrates the Middle East

Shirzad Azad | May 24, 2007

Editor: John Feffer

Foreign Policy In Focus
www.fpif.org

Japanese Prime Minister Shinzo Abe's recent Middle East tour was the 
second trip to the region by a Japanese prime minister in less than 
16 months. By visiting five Arab nations in a single trip and 
pursuing a wide range of economic, political and strategic objectives 
for his country, Abe opened a new chapter in Japan's Middle East 
policy.

Tokyo's desire for a stable supply of energy has run up against its 
other foreign policy objectives. While Tokyo was a big supporter of 
the Bush administration's invasion of Iraq, it is uncomfortable with 
Washington's hard-line approach toward Iran. After all, Iran is 
Japan's third-largest supplier of crude oil. As it angles to become a 
more moderating influence in Middle East politics, Japan may find 
itself butting heads more often with the United States.

Thirsty Japan

Topping Abe's agenda on his recent trip was seeking new ways of 
securing energy supplies for Japan. Tokyo has long been dependant on 
the Middle East for most of its oil imports, and Japan's increased 
demand for natural gas is likely to deepen its dependence on that 
turbulent and volatile region. Japan is the world's largest importer 
of natural gas, and roughly 90% of its oil needs come from the Middle 
East. Japan is worried that the emergence of newly energy-hungry 
economies of Asia, especially China and India, may challenge its 
long-term access to crude oil and natural gas in the countries 
surrounding the Persian Gulf area.

Japan has many good reasons to worry about the supply of its 
economy's lifeblood. It may face serious consequences from the new 
energy rush and the prospect of reaching peak global oil production, 
particularly in the face of rising competitors in Asia. For example, 
China alongside India and Iran form the triangle of Asian ancient 
civilization. China has a long history of trading with the Middle 
East that goes back many centuries to the Silk Road era. Many Chinese 
citizens are now working in oil-producing Arab countries. And China's 
rising political power, stemming from its economic growth, has 
tempted autocratic rulers of Middle East countries to develop their 
relationship with Beijing, hoping to balance the West's long-term 
interference in the region.

Japanese companies have lost part of their Middle East markets to 
Chinese goods. For instance, according to current trends, China will 
likely replace both the United States and Japan as Saudi Arabia's top 
trading partner by the end of this decade. Other countries in the 
region may also follow the suit, in the same way that Iran replaced 
Japan with China as the biggest importer of its oil.

Like China, India has a considerable labor force working in the 
Middle East, and the influence of its cultural affinity and soft 
power in the region outweighs other East Asian countries. After all, 
the symbol of India, the Taj Mahal built in 1631 in memory of Iranian 
princess Mumtaz Mahal, is but one example of the historical 
connections between the Indians and Middle East nations.

Such concerns have forced Japan to reconsider its Middle East 
strategy and broaden its involvement in the region to include non-oil 
investments. Abe went to the region, for instance, with a large 
delegation of 175 businessmen led by Fujio Mitarai, head of the Japan 
Business Federation. This symbolic gesture indicated just how eager 
Japan is to forge multi-layered ties with the region that go far 
beyond energy deals and economic necessities. Trade officials in 
Tokyo have also voiced support for a free trade agreement (FTA) with 
six oil-producing countries of the Gulf Cooperation Council (GCC) in 
the Middle East, starting in 2008 with Saudi Arabia and the United 
Arab Emirates. Japan's Asian arch-rivals, China and India, have 
already started negotiations on FTAs with the GCC countries, while 
the Japanese only launched such negotiations in September 2006 with a 
focus on agriculture and goods.

Japan has developed other tactics. For instance, Abe's visit to Saudi 
Arabia, followed by Trade Minister Akira Amari two days after, 
included an offer to King Abdullah that Saudi Arabia's state-run oil 
company use part of Japan's oil-stockpiling facility in Okinawa 
prefecture as a base for export to other Asian countries. Due to the 
rapid growth in its mostly oil-based national income, Saudi Arabia is 
likely to be excluded from receiving Japan's official development 
assistance (ODA) in 2008. So Japan is scrambling to find other ways 
to sweeten economic deals with the world's number one oil exporter.

Burnishing a Tarnished Image

Prime Minister Abe's trip to five Muslim countries of the Middle East 
was driven, at least in part, by a desire to improve Japan's 
tarnished image in the region. Japan's staunch support for what has 
internationally been recognized as an illegal and illegitimate war in 
Iraq came as a shock to many people in the Middle East. By giving its 
full-fledged endorsement, Japan far outstripped some key Western 
allies like Germany and France in recognizing the U.S. invasion and 
occupation of Iraq in 2003.

Former Japanese Prime Minister Koizumi even resorted to the same kind 
of sophistry as the Bush administration to justify the invasion. 
"Just because we cannot find Saddam Husein, it doesn't mean he 
doesn't exist," Koizumi said, at a time when the Iraqi leader was 
still at large. "Therefore, we cannot say that there are no weapons 
of mass destruction." Japan had long boasted of a relatively neutral 
role in Middle East affairs, but siding with the United States 
damaged Tokyo's slight advantage in the region.

Japan's policy toward the Iraq War has been full of many ironies. The 
primary purpose of dispatching Japanese troops to Iraq was to offer 
humanitarian support and help the Iraqi people reconstruct their 
country. Japan withdrew its Ground Self-Defense Forces (GSDF) from 
Iraq last July and has kept about 200 members of Air Self-Defense 
Forces (ASDF) there. Japan's rationale for its reconstruction mission 
to Iraq might have been stronger if the GSDF had direct contact with 
Iraqis and if the ASDF were not stationed at Ali Al Salem Air Base in 
Kuwait mainly to serve the American occupying forces in Iraq.

At a speech in Kyoto in early February, Japanese Foreign Minister 
Taro Aso called U.S. policy in Iraq "immature," just days after 
Defense Minister Fumio Kyuma said that the war was a "mistake." 
Despite such genuine statements, the cabinet of Prime Minister Abe, 
in which both ministers are members, unanimously approved the 
deployment of Japan's ASDF in Iraq for two years beyond the current 
July 31 deadline.

Quandary over Iran

By avoiding the country altogether, Shinzo Abe's Middle East tour 
sent a signal to Iran. With 11.5 percent of the total, Iran is still 
Japan's third largest provider of crude oil. Saudi Arabia and the 
United Arab Emirates stand in first and second place with 31.1 
percent and 25.4 percent, respectively. Despite a friendly 
relationship and close ties between Tokyo and Tehran, however, no 
Japanese prime minister has visited Iran since the Islamic republic 
came to power in 1979.

Former Iranian President Mohammad Khatami, visited Japan in 2000, but 
Japan has so far been reluctant to pay back the visit. During his 
visit to Tokyo in 2000, when he announced that his government would 
give Japan preference in negotiations over the development of the 
Azadegan oilfield, it was as if Khatami had given Japan special 
access to one of the biggest untapped reserves as a hostess gift. 
Japan enthusiastically welcomed this proposal and in a matter of 
month the Japan National Oil Corporation signaled its agreement to 
participate in the project. But when Japan's Inpex Corp signed the $2 
billion deal in February 2004 to develop Azadegan, the United States 
tried to block the contract, which was so crucial to Japan's energy 
security. To develop and ship its own oil needs has become one of the 
key objectives of Japan's energy policy.

With the United States pushing for greater isolation of Iran, 
however, Tokyo had no option but to cancel the Azadegan contract. It 
continues to hope for a peaceful settlement to Iran's nuclear 
stalemate so that Inpex can regain its lost stake in the Azadegan oil 
project. "Japan today enjoys good relations with Iran," Abe told The 
Washington Post in April, "and would like to exercise whatever 
influence it has on the Iranians to try and work toward a peaceful 
resolution of the (nuclear) issue."

Japan has shown a keen desire to play a role in defusing the standoff 
and has employed its diplomatic skills and economic muscle to 
dissuade Iran from going nuclear. Japanese Foreign Minister Taro Aso 
has used a special diplomatic channel with his Iranian counterpart 
Manouchehr Mottaki, who once served as Tehran's ambassador to Tokyo 
from 1994 to 1999. He invited Mottaki to Japan last year and sent 
Deputy Foreign Minister Mitoji Yabunaka to Iran last month. On the 
stick side, Tokyo has cancelled some loans, frozen financial 
transactions with Tehran, and applied punitive UN measures such as 
sanction resolutions.

The United States is pushing Japan toward greater engagement in the 
Middle East. Despite its support of the Iraq fiasco, Japan's 
reputation in the region is far better than that of the United 
States, and many people in the Middle East still feel positively 
about the role it can play. Washington wants Tokyo, a trusted ally, 
to shoulder some of the economic and security burdens. More 
importantly, Japan is the preferred U.S. candidate among Asian powers 
to penetrate an increasingly eastward leaning Middle East. In 
providing advanced technology and investments that the region 
desperately needs, Japan has an advantage over India and China in 
this new rivalry for Middle East influence.

Shirzad Azad is an East-West Asian relations researcher at Aoyama 
Gakuin University Graduate School of International Politics, 
Economics and Communication in Tokyo.


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