Japan and the European Union will soon launch the Japan-EU Competitiveness Alliance, according to a draft statement obtained on Monday. Prime Minister Shigeru Ishiba plans to finalize the statement with EU leaders during high-level talks in Tokyo on July 23.
European Council President Antonio Costa and European Commission President Ursula von der Leyen will join Ishiba in the capital. The alliance will focus on trade, economic security, and strategic industry collaboration in response to global geopolitical shifts.
The draft highlights shared values like rule of law, multilateralism, and commitment to fair and free trade. Japan and the EU also pledge to resist economic coercion, aiming to defend a rules-based global economic order.
Though unnamed, China and the U.S. clearly shape the alliance’s urgency and objectives. China has restricted rare earth exports, while the U.S. imposed steep tariffs on both Japan and the EU.
To address these pressures, the Japan-EU Competitiveness Alliance will strengthen cooperation in key areas. It will prioritize monitoring and diversifying supply chains for critical resources like rare earths and lithium batteries.
Both sides will promote energy security through joint investment in resources such as liquefied natural gas. Japan will also continue separate tariff negotiations with the U.S., hoping to strike a deal before the August 1 deadline.
The alliance will further support defense industry collaboration and encourage dialogue between industrial players from both sides. Japan and the EU aim to jointly develop small satellite constellations to enhance their strategic capabilities in space.
The alliance builds on existing agreements—namely, the 2019 Economic Partnership Agreement and the Strategic Partnership Agreement from 2023. These frameworks have already strengthened diplomatic, economic, and strategic ties between the two sides.
The new Japan-EU Competitiveness Alliance intends to deepen those ties and confront global economic instability with unified action. Japan and the EU also plan to lead trade reform discussions at the World Trade Organization and G7 summits.
Through this alliance, both powers hope to secure long-term competitiveness, stability, and strategic resilience in today’s complex world.
