4 days ago
Ishiba, EU Leaders to Agree on Intl Economic Order; Draft Statement Shows Support For Rules-Based Free Trade
Japan and the European Union intend to lead a rules-based international economic order in the face of U.S. tariff policies and threats of economic coercion by China, according to a draft Japan-EU joint statement obtained Monday.
The statement, to be finalized between Prime Minister Shigeru Ishiba and EU leaders later this month, will also include a launch of the Japan-EU Competitiveness Alliance to upgrade their cooperation across multiple fields, including economic security, trade and defense industries.
The joint statement and supplementary documents on the alliance scheme are expected to be released following talks scheduled for July 23 between Ishiba and European Council President Antonio Costa and European Commission President Ursula von der Leyen when they visit Tokyo.
The draft states that Japan and the EU 'firmly share values and principles' such as the rule of law and free and fair trade, and recognizes that Japan-EU cooperation has become 'all the more important.'
China has tightened trade controls, including restrictions on exports of rare earths, while the administration of U.S. President Donald Trump has slapped high tariffs on Japan and the EU. The joint statement, while avoiding naming these countries, stated that Japan and the EU 'continue to contribute to maintaining and strengthening a stable and predictable rules-based free and fair economic order.'
Japan will steadily advance tariff negotiations with the United States, hoping to reach an agreement by the Aug. 1 deadline, while clarifying its stance on multilateral cooperation with the EU toward the stabilization of the long-term international economic order.
Trade and economic security are a main focus of Japan-EU cooperation. They will agree to work together to maintain the World Trade Organization-centered free trade system and lead discussions in multilateral forums such as WTO and Group of Seven summit meetings.
They will cooperate in monitoring the supply chains of strategic materials and strengthening and diversifying the supply chains of critical materials such as rare earths and batteries. To enhance energy security, Japan and the EU will also support investment to stabilize energy supplies including liquefied natural gas.
Japan and the EU will invite industrial entities from both sides to launch a dialogue on defense industry collaboration between Japan and the EU, including in connection with advanced and dual-use technologies. They will also accelerate the development of satellite constellations that link multiple small satellites.
The two sides have deepened their cooperative relationship through the Japan-EU Economic Partnership Agreement, which came into effect in 2019, and the Strategic Partnership Agreement, which officially came into effect in January. These agreements serve as a basis for the upcoming Competitiveness Alliance to further strengthen their strategic competitiveness in face of the current state of the global economy.
