What does the Competitiveness Alliance signed today in Tokyo entail?

Strengthening economic competitiveness, ensuring supply chain security, and accelerating the transition to a decarbonized economy, positioning the European Union and Japan as leaders in a global economic order based on rules, transparency, and resilience. These are the objectives of the Competitiveness Alliance launched today during the visit to Tokyo by the President of the European Commission. Ursula von der Leyen, and the President of the European Council Antonio Costa.

The Alliance, according to the document released by the Japanese Foreign Ministry, builds on existing structures, such as the Japan-EU Economic Partnership Agreement and the High-Level Economic Dialogue, expanding their scope to address global issues in a coordinated manner. A central aspect of the agreement is trade cooperation and economic security. Japan and the EU are committed to coordinating their trade policies in multilateral fora such as the World Trade Organization (WTO) and the G7, countering non-market practices, economic coercion, and strategic dependencies, particularly for critical minerals such as rare earths and emerging technologies.

The strengthening of the High-Level Economic Dialogue, which now includes the European Commission’s Executive Vice President for Prosperity and Industrial Strategy, aims to develop joint strategies to protect critical infrastructure, promote export controls, and ensure data and network security. Supply chain resilience is another key pillar. The Alliance focuses on strategic sectors such as critical raw materials and batteries, promoting the monitoring and diversification of supply chains. Japan and the EU will work to develop common standards, in line with G7 principles, that enhance transparency, sustainability, and reliability, incentivizing investments to strengthen strategic complementarities and stimulate demand and supply of sustainable products, especially in zero-emission manufacturing. On the decarbonization front, the Alliance is part of the Green Alliance, promoting a circular economy through the exchange of best practices on circular product design, sustainable business models, and high-quality recycling. Cooperation extends to the creation of decarbonized supply chains, with a focus on clean technologies and innovative materials, supported by the Industrial Policy Dialogue’s Clean Technologies Working Group.

Energy security remains crucial, with a particular focus on natural gas, LNG, and renewable or low-emission hydrogen. Japan and the EU will cooperate through the Global Early Warning Mechanism for LNG and launch an intergovernmental dialogue on gas, supporting initiatives to reduce methane emissions. The Alliance also promotes low-emission technologies, such as next-generation perovskite solar cells, with standardization projects under the International Electrotechnical Commission, and supports joint projects under the EU’s Net-Zero Industry Act and Japan’s Green Transformation initiatives, with a focus on research and development for technological innovation. In the field of innovation, the Alliance is strengthening digital cooperation on topics such as semiconductors, 5G/6G, artificial intelligence, cybersecurity, and global connectivity, with a focus on projects such as Arctic submarine cables.

In space, Japan and the EU will cooperate on satellite constellations and Earth observation, integrating programs such as Copernicus and Gosat, and on space debris management. In the bioeconomy, the two sides will share information to promote bio-based materials and products, fostering startups and innovative companies. The private sector plays a key role, with the Japan-EU Business Roundtable and the revitalized EU-Japan Centre for Industrial Cooperation, called upon to integrate industry perspectives. The Alliance also promotes dialogue on competition policy to ensure fair and innovative markets, reducing administrative burdens for businesses and citizens. Finally, the document stipulates that progress be continuously monitored and reported to leaders, strengthening the global competitiveness of Japan and the EU and promoting “a sustainable and resilient growth model.”