Japan and the European Union (EU) have created a new model for regular high-level economic and foreign policy discussions. This joint initiative was designed to enhance that partnership, adapt it to a more competitive and perilous global landscape. Most significantly, the new “economic two-plus-two” dialogue will link the foreign and economy ministers of Japan and the EU. Side by side, they will address shared interests and develop common plans to achieve them.
The first-ever meeting of the economic two-plus-two dialogue is a big step in that direction. Secondly, it bolsters the already strong economic linkages between Japan and the EU. In each of these conversations, officials from both metro areas will explore multiple challenges and opportunities. They’ll be looking to discuss trade relations, investment opportunities, and security issues. The discussion, as it turns out, couldn’t be more timely given increasing geopolitical tensions. After recent events, both parties are nervous and looking to bolster their economic resilience.
One of the chief aims of this discussion is the search for collaborative public-private partnerships. These partnerships will be essential in growing and diversifying our domestic supply chains. They are hoping to decrease the nation’s reliance on China, which is a major supplier of rare-earth elements. Japan and the EU are working together closely on joint procurement. They want to ensure a stable and sustainable supply of strategic and critical materials vital to defense, aerospace and other high-tech industries.
The joint efforts in rare-earth procurement reflect a growing recognition of the need for greater economic sovereignty amidst global supply chain vulnerabilities. Both Japan and the EU have expressed similar concerns to the United States about their reliance on China for critical minerals. These minerals are necessary for both manufacturing new advanced technologies and renewable energy generation as well as in defense applications. They focus on encouraging the development of innovative technologies by collaborating through public-private partnerships. This new dynamic embedded by collaboration will develop a resilient supply chain that’s able to better absorb shocks.
Japan and EU officials alike have expressed optimism that this new dialogue format will improve information sharing. They hope that it will help improve coordination on issues related to the economy. In addition, they meet frequently at the level of their foreign and economy ministers. This strategy is meant to synchronize their policies and more effectively address global challenges. This strategic framework is a testament to their deep commitment to advancing bilateral relationships. Even more importantly, it instills a sense of common values in our increasingly interconnected planet.