In the second part of the interview, we asked Mr. Kolbar about strengthening the relationship between Israel and Japan.
Click here to read the first part of the interview
Mr.Kolbar specializes in free trade negotiation, also known as FTA. Equipped with experience in FTAs, he aims to establish one between Israel and Japan.
“Unfortunately there isn't an FTA between Israel and Japan yet. This is our ultimate goal. Israel has Free Trade Agreements with 42 countries, including countries like the EU, Switzerland, the US, and Turkey. South Korea will be the first country in Asia we will have an FTA with (the agreement is expected to be signed very soon). We are also negotiating with China, Vietnam, India and the Eurasian Economic Union(Russia, Belarus, Armenia, Kazakhstan and Kyrgyzstan).”
“My mission in Japan is to utilize the experience I have in international trade to enhance the bilateral relations. Export goods from Japan to Israel are mostly machines, cars and parts thereof but many products, when imported from Japan, are subject to an import tax. With other markets like Europe and America, there is no import tax. Soon, Israel will also not have import taxes on imports from South Korea. Because of this, Japan is at a disadvantage. By creating an FTA, both countries will benefit.”
Although Israel and Japan have not yet reached a Free Trade Agreement, the relationship between the two countries has seen significant growth in the last few years. We asked Mr. Kolbar his thoughts on the current relationship between the two countries, as well as the direction he sees it going in the future.
“The trade relationship between Japan and Israel has improved a lot and I see that there is a big momentum – in recent years. Even during the COVID-19 pandemic the trend and investment continues.
Almost every month a new Japanese office is opened in Israel, mostly to scout for technologies, and there are now over 90 Japanese companies in Israel looking for business and collaboration partners. There are also many projects that have developed from this relationship. For example, last week I met with representatives of important financial group, which have recently dispatched two people to Israel for scouting. This week I met with representatives of a large insurance company that plans to dispatch people to Israel for the same purpose in the upcoming months.
The growth still continues, but I think there is a bigger potential that can be reached.
Japan is the third largest economy in the world, but current trade between Israel and Japan is extremely small. Imports from Israel to Japan account for about 0.2% of Japan's imports from the world.”
“I think we will see an increase in investments as well as trade in goods and services between Israel and Japan in the upcoming years, especially considering the digital transformation (DX) reform in Japan which will open the door for Israeli innovations in fields such as artificial intelligence, big data and Internet of Things.”
“A few years ago a book called “Start up Nation” was published. With the popularity of the book, Israel was then commonly known as a “Start Up Nation”. However, recently there has been a change in mindset of Israeli entrepreneurs and investors to scale up the start-ups rather than selling them at early stage. The benefit of this to Israel is that more value is created to the local economy, more employment, etc.
On the other hand, we can not forget that Israel's strength is creating new ideas. Entrepreneurs create a new start up, there is a growing ecosystem, and there are many serial entrepreneurs who are constantly creating new startups.
As a diplomat, it is not in the place of the government to interfere with how people conduct their business but rather to facilitate. As a free market, I believe that our economy will thrive as long as people work towards achieving their goals.”
“That being said, we have seen that the relationship between startups in Israel and big companies in Japan goes extremely well together.”
Israel is amazing at making an idea and creating something innovative, and Japan is amazing at developing the product, manufacturing and commercializing. Understanding these strengths and weaknesses is what makes trade as efficient as possible.
As a man experienced in service, trade, and business, Daniel Kolbar was the perfect person to help enforce the business relationship between Japan and Israel. Israel is still not a widely known country in Japan, and together with his team in Tokyo and Osaka, Daniel is hopeful to create more business opportunities and strengthen the ties between the countries.
Written by Hitoshi Arai
Translated by ISRAERU Editor
