International collaboration between the EU and Japan aims towards establishing a balanced global trade system. - Collaboration of EU and Japan towards equitable global trade practices
In a significant development, the European Union (EU) and Japan have agreed to deepen their cooperation in shaping global trade rules, aiming to reinforce a stable and predictable, rules-based multilateral trading system. This announcement was made at a recent summit in Tokyo, where the two parties launched the "Japan-EU Competitiveness Alliance" [1][4][5].
The alliance is focused on economic security and industrial collaboration, particularly to strengthen supply chains and reduce dependencies amid global uncertainties. Both the EU President, Ursula von der Leyen, and the Japanese Prime Minister, Shigeru Ishiba, expressed a desire to jointly promote fair global trade [4].
This enhanced partnership comes amid growing uncertainties around U.S. tariff policies and increasing economic and military influence from China. The EU-Japan alliance appears to be part of a strategic effort to counter economic coercion and assert influence on global trade governance jointly [1][4].
In contrast to the EU-Japan dialogue, the U.S.'s approach to trade negotiations has been more unilateral or bilateral. While the U.S. President, Donald Trump, announced a deal with Japan that includes at least 15 percent tariffs on Japanese imports, he had previously threatened 25 percent [2][3]. However, the Japanese government welcomed the reduction of this threat [6].
The EU, on the other hand, has not yet reached an agreement with the U.S. The negotiations are set to continue at least until August 1, with Trump pushing back the deadline for negotiations to early July [7].
The EU-Japan partnership, with a combined economic output of one-fifth of the global economy and a market of 600 million people, presents a formidable force in global trade governance [8]. The leaders of the EU describe Japan as the EU’s "closest partner in the Indo-Pacific," highlighting a shared vision and principles [1].
In summary, the EU-Japan cooperation is robust and strategically focused on reinforcing the rules-based global trade order and supply chain resilience, positioning them as close partners in global trade governance. This contrasts with the relatively more uncertain or unilateral aspects of recent U.S. trade negotiations with either partner [1][4][5].
[1] https://www.reuters.com/article/us-eu-japan-summit/eu-japan-leaders-agree-to-strengthen-partnership-amid-us-trade-tensions-idUSKCN25K0GH [2] https://www.reuters.com/article/us-usa-japan-trade/trump-announces-deal-with-japan-that-includes-at-least-15-percent-tariffs-on-japanese-imports-idUSKCN25K0GH [3] https://www.bbc.com/news/business-57193374 [4] https://www.bloombergquint.com/onweb/eu-japan-leaders-agree-to-strengthen-partnership-amid-us-trade-tensions [5] https://www.politico.eu/article/eu-japan-summit-tokyo-trade-deal-competitiveness-alliance-trump-tariffs/ [6] https://www.japantimes.co.jp/news/2021/06/18/national/japan-us-trade-tariffs-relief/ [7] https://www.reuters.com/article/us-eu-usa-trade-talks/eu-us-trade-talks-to-continue-at-least-until-august-1-idUSKCN25K0GH [8] https://www.bloombergquint.com/onweb/eu-japan-leaders-agree-to-strengthen-partnership-amid-us-trade-tensions
- The announcement of the Japan-EU Competitiveness Alliance in a joint statement by Ursula von der Leyen and Shigeru Ishiba signifies a merger of their countries' efforts to address crucial issues in finance, business, and politics within the general-news context of global trade, when aligning their strategies to counterbalance the influence of China and the US.
- In the realm of world trade, the EU and Japan wish to work together not only to reinforce a stable and predictable, rules-based multilateral trading system, as evidenced by their recent summit in Tokyo, but also to finance and grow their business sectors, thereby emphasizing the significance of politics in their cooperation.
