Key takeaways from the EU-Japan Summit

The 27th summit between the European Union (EU) and Japan conducted on May 27, convened to take forward the close and comprehensive partnership between the two nations. The two nations have been grounded in certain common interests and values of freedom, respect for human rights, democracy, the rule of law, free and fair trade and rules-based international order.

The two major agreements between the EU and Japan, the EU-Japan Economic partnership agreement and strategic partnership agreement have been strengthening the ability to bring benefits to the citizens of both nations. The summit focussed on the situation of the covid-19 pandemic, trade and connectivity and climate change, that is green transition.

Defeating the covid-19 pandemic is one of the highest priorities of the two nations and they view the vaccination process as a race against time. They have made substantial contributions to the access to the Covid-19 tools accelerator and its COVAX facility and are also making efforts to expand the production of vaccines. The two nations would work towards achieving Universal Health Coverage and will coordinate efforts to support and reform the World Health Organisation (WHO) and engage in discussions on an international treaty on pandemics.

Japan and the EU support strengthening the World Trade Organisation (WTO) as a central pillar of the global economic system. The two nations will negotiate to increase the contribution of trade to health and sustainability objectives and advance rules on E-commerce. Japan is keen on having a trade deal with the EU, its third-largest trading partner. Japan is the EU’s sixth-largest trading partner. Last year, the EU exported goods worth €44 billion to Japan and imported goods worth €65bn from it.

The two nations are also quite determined to harness the benefits of data and digital transformation for society and the economy. They plan to collaborate to promote global standards which include regulatory approaches for digital policies such as cybersecurity, 5G and 6G technologies and artificial intelligence. The two nations affirm strengthening EU-Japan digital cooperation to support an inclusive, sustainable and human-centric digital transformation.

EU and Japan also look forward to promoting comprehensive and rules-based connectivity through the partnership for sustainable connectivity and quality infrastructure. This further includes cooperating on infrastructure projects respecting the economic efficiency, and transparency standards. These infrastructure projects shall boost growth and bring long term benefits in the regions of the Western Balkans, Eastern Europe, Central Asia, and Indo-Pacific. The summit also widely welcomed the EU-Japan collaboration on financing projects, such as the Gulf of Suez wind farms in Egypt and Olkaria Geothermal power stations in Kenya.

The summit has also recognised the essential role in the creation of knowledge and that the two nations believe in expanding cooperation between industry, science, innovation and space sectors. EU and Japan resolve to continue a dialogue on economic resilience issues and explore mechanisms to address risks to the resilience of critical global supply chains.

One of the main focuses of the summit was on the climate change transitions and environmental degradation. The two nations recognise that climate change is an existential threat to humanity that requires urgent global action. EU and Japan are quite determined to create climate-neutral and resilient, biodiversity-friendly and resource-efficient economies. They are also committed to implementing the enhanced 2030 emissions reduction targets of reaching net-zero greenhouse gas emissions by 2050. They have also launched the Japan-EU green alliance through which they will deepen cooperation on energy transition and environmental protection.

Japan and the EU also discuss cooperating for a free and open Indo-Pacific which is inclusive and based on rule of law. They also wish to remain steadfast in their support to nuclear non-proliferation efforts which include complete and irreversible dismantlement by North Korea of its nuclear weapons. The two nations are also concerned about the situation in the East and South China seas and oppose any unilateral attempts to change the status quo.

The EU and Japan, being the pivotal partners to the US, have sustained the development of democracy and market economy in the world. The two countries have made good contributions to the steady growth of major industrial sectors. They have also propped up the liberal trade regime and multilateralism under the General Agreement on Tariffs and Trade (GATT) as the basis of the growth of the global economy. It remains to be seen how both the nations carry forward their agendas and implement them in near future.

Simran Walia
Simran Walia
Simran Walia is an Associate Fellow at the Centre for Air Power Studies, New Delhi and is pursuing PhD in Japanese Studies under the Centre for East Asian Studies at Jawaharlal Nehru University, New Delhi. She has also completed an M.Phil in Japanese Studies and worked at the Observer Research Foundation. Her Research Interests include Japanese Politics and Foreign Policy, Indo-Pacific Dynamics and East Asian Foreign Policy. She has published articles and Papers in magazines and Journals like the Diplomat, Asia Times, National Interest, and Global Policy Journal among others.