EU, Japan Expand Industrial, Economic Security Partnerships

• EU and Japan launch a Competitiveness Alliance to align trade and industrial policy.
• Focus on rare earth resilience, joint mining/refining projects, and high-tech cooperation.
• New defense dialogue and security accord reflect convergence of economic and strategic interests.

At the 30th Japan-EU Summit held in Tokyo on July 23, leaders announced the launch of a new "Japan-EU Competitiveness Alliance" to further deepen cooperation across trade, industrial policy, and economic security. Prime Minister Shigeru Ishiba, European Commission President Ursula von der Leyen, and European Council President António Costa all committed to pursuing a rules-based, free, and fair economic order in the face of mounting uncertainty on the global stage.

The alliance is intended to support supply chain resilience for critical inputs (rare earth minerals) while reducing reliance on China's control of supply and export restrictions. The major opportunities involve joint ventures on mining and refining projects, particularly in Africa, and increasing technology transfer and sustainable investment in high priority sectors, such as automotive and semiconductors.

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Both sides also agreed to initiate a Defense Industry Dialogue and formally enage in negotiations on a Japan–EU Security of Information Agreement, which corresponded with an increasing overlap of economic policy and strategic security, at a time of shifting U.S. tariff policies and geopolitical uncertainty.

This strengthened cooperation builds on earlier institutional bodies such as the High-Level Economic Dialogue (HLED) and the long-standing Economic Partnership Agreement (EPA) which has been in force since 2019. The two partners are also collaborating in a working group focused on transparent, resilient and sustainable supply chains to address strategic dependencies and industrial vulnerabilities.