11 March 2024 - Policy dialogue on EU-Japan cooperation

Held under the auspices of the EPC’s Europe in the World and European Political Economy programmes, and in cooperation with the Mission of Japan to the EU, this policy dialogue took stock of the increasingly coordinated EU-Japan approach to economic security with experts from across the bilateral relation (the lineup and further information can be found here). Both economies face the dilemma of maintaining openness while becoming more resilient and fit for geoeconomic competition. As a result, both have organically and deliberately converged on their broad responses and goals: screening of FDI and sensitive exports, supply chain reconfiguration and diversification, or research security (among others). 

However, as evidenced during the dialogue, there remain critical gaps between and within the strategies. Joint efforts were called for to remedy and deter economic coercion; involve private sector actors (SMEs in particular); and build fair and sustainable economic diversification partnerships in the ‘Global South’. At the level of EU bodies and Member States, concerns were raised about the absence of a consistent, unified approach to economic security and the complexity of deploying—limited—resources and creating incentives for industrial de-risking (as has Japan in the form of subsidies) without distorting the European single market. 

While acknowledging these challenges, the dialogue touched on them mainly as opportunities for further cooperation and knowledge exchange. Stay tuned to our work on economic security and see where the conversation goes next.