Japan-EU Relations

February 2016
Ministry of Foreign Affairs, Japan
 Global partners sharing fundamental values and principles

Economic power
・ Total GDP of Member States accounts for about 24% of the world’s GDP
・ Major trade and investment partner for Japan
Important presence in major international frameworks
・ UN Security Council (Permanent Member: UK, France)
・ G7 (UK, France, Germany, Italy, EU)
Influence on global agendas, formulating rules/standards and international
public opinion
・ Influence through languages
・ Communication via media and think-tanks
Japan and the EU share fundamental values and principles such as
democracy, rule of law and human rights; common position on a number of
global issues.

Important global partner for Japan

Tackling global challenges in close collaboration
・Global economy, combating terrorism, global commons, energy, climate change, etc.
Fostering shared understanding on regional issues through multi-layered dialogues
・Security environment in East Asia, Middle East/ North Africa, etc.
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 Japan-EU Summit
●Agreed on holding annual summit meetings in “Japan-EU Joint Declaration” (1991). Alternating annual summit in Japan/Europe.
●Since 2010 (after Lisbon Treaty), the Presidents of the European Council and the European Commission participate from EU.

23rd Japan-EU Summit (May 29, 2015 in Tokyo)

１．Developing Strategic Partnership
- Recognized Japan and EU’s contribution to the peace, stability and prosperity of the international society over the past 70 years
since the end of WWII and 40 years since the conclusion of the Helsinki Final Act.
- Confirmed to accelerate the negotiations on Strategic Partnership Agreement (SPA) and Economic Partnership Agreement (EPA).

２．Acting together for global peace and security

- Security: welcomed expanding cooperation and agreed to explore further cooperation in Ukraine and Somalia.
- Counter terrorism: strongly condemned terrorism in all its forms and agreed to intensity Japan-EU cooperation in this regard.
- Cyber, space, ocean: emphasized the importance of ensuring the rule of law and welcomed cooperation in anti-piracy activities
- Disarmament and non-proliferation: reaffirmed further cooperation and committed to ensure strict export control.
- Regional security: condemned all violation of international law and shared concern over unilateral actions that change the status
quo and increase tensions.

３．Fostering growth, prosperity and sustainable development

- Climate change: resolved to play their parts towards COP21.
- Development: committed to cooperate on post 2015 development agenda and to organize an
expert meeting on humanitarian assistance and emergency relief.
- Science and technology: endorsed “Joint Vision towards a new strategic partnership in Research and Innovation”.

４．Deepening mutual understanding for future cooperation

- Prime Minister Abe announced to invite 150 university/post-graduate European students to Japan (MIRAI program).
- Welcomed active parliamentary exchanges, such as the 35th Japan-EU Interparliamentary Meeting.
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 Overview of Japan-EU relations
Economic ties
◆ Trade: Total trade between Japan the EU is approximately 108 billion euro (app. 16 trillion yen)
Japan is the 7th trading partner for EU, EU is the 3rd trading partner for Japan
◆ Investment:EU accounts for the 2nd largest share of outward FDI stocks in Japan (app. 33 trillion yen)
EU has the largest share of inward FDI stocks in Japan (app. 10 trillion yen)
*All figures indicated on this sheet are based upon the data in 2014.
Japan-EU Economic Partnership Agreement (EPA)
To promote trade and investment by eliminating tariffs and improving trade/investment rules in order to contribute
to boosting economic growth, creating employment and business competitiveness for both Japan and EU.
To contribute to stable growth of the world economy and to global rule-making on trade and investment
The leaders shared the view that Japan and EU continue to do their utmost efforts to reach agreement in principle
at the earliest possible time in 2016 (Japan-EU Summit Meeting in Antalya, November 2015).

Cooperation for the peace and security

Cooperation between Japan’s Official Development Aid (ODA) and EU’s CSDP missions
Anti-piracy activities off the coast of Somalia and in the Gulf of Aden

Addressing global challenges

Space, Cyber: First Japan-EU dialogue in 2014 and continuing
Disaster reduction, humanitarian assistance and emergency relief: Third UN World Conference on
Disaster Risk Reduction (March 2015, Sendai), Japan-EU expert meetings
Education, people-to-people exchange: MIRAI program (150 European students invited in 2015)
Japan-EU Strategic Partnership Agreement (SPA)
Reinforce overall partnership as global partners sharing fundamental values and principles
Establish legally binding foundation for Japan-EU strategic partnership covering wide range of areas 4
 Japan-EU Economic Partnership Agreement (EPA)
1. Benefits of the Japan-EU EPA
● Japan and the EU are important global partners which share fundamental values such as democracy, rule of law, and basic human rights.
The EU has a population of 500 million and accounts for approximately 24% of the world GDP. The EU is Japan’s major trading and
investment partner which contributes to approximately 10% of Japan’s total trade volumes.
● The Japan-EU EPA, together with the Strategic Partnership Agreement (SPA), will further strengthen the bilateral strategic relations,
providing important foundations for them.
● The Japan-EU EPA will promote trade and investment of both sides through eliminating tariffs and improving trade and investment rules. It
will contribute to boosting economic growth, creating employment and strengthening business competitiveness both in Japan and the EU. It
will also promote inroads into the European market by Japanese companies.
● The Japan-EU EPA is one of the mega FTAs along with TPP (Trans-Pacific Partnership) and TTIP (Transatlantic Trade and Investment
Partnership), aimed at further deepening of the economic relations among Japan, the US and the EU, which share a common view to
building a free, fair and open international economic system.
Population (2014) GDP (2014) Trade (Exports & Imports) (2014)
Japan+EU=8.8% Japan+EU=30.0% Japan, Japan+EU=35.8%
6.0%

Others, EU28,
34.2% 24.0%

China, United
13.4% States,
22.5%

Population GDP Trade

Proportion（％） Proportion（％） (Exports & Imports) Proportion（％）
（2014, million） （2014, $ billion）
（2014, $ billion）
Japan 127 1.8% Japan 4,602 6.0% Japan 1,502 4.0%
EU 508 7.0% EU 18,527 24.0% EU 11,821 31.8%
U. S. 319 4.4% U.S. 17,348 22.5% Intra-trade 7,774 20.9%
China 1,364 18.8% China 10,357 13.4% U.S. 3,968 10.7%
Others 4,942 68.1% Others 26,435 34.2% China 4,306 11.6%
World 7,261 － World 77,269 － Others 15,579 41.9%
World 37,177 －
Sorce: World Bank， Source: IMF，World Economic Outlook Database，
World Development Indicators， December 2015 October 2015
Source: IMF，Direction of Trade Statistics， February 2016 5
 Japan-EU economic relations
Investment destination Origins of Investment Export destination Origins of
of Japan (Stock) to Japan(Stock) of Japan 10.0% Japan’s imports 9.5%
15.0%
EU ASEAN
5.1% The Cayman
21.6% 22.2% US
37.8% Islands
1.7% 40.6% 18.1% 46.3% 21.7%
8.3% China Other
13.4%
32.3% 0.4% 18.5%
30.5%
15.5% 8.4%
8.8%
14.1%
Source: Bank of Japan Statistics (2014)
Exports to the EU Imports from EU
Fish & fish
7.6 trillion yen 8.2 trillion yen
preparation
(54.0 billion euro) Mineral fuels (58.6 billion euro)
Foodstuff Raw materials Clothing & 0.6%
1.0% 0.3% accessories
0.3% Organic
Other transport chemicals 2.0% Bags
equipment 2.6% Other transport 2.2% Others Other foodstuff
equipment Scientific, 5.7%
1.1% Others 10.4%
Ships 2.7% optical Mineral fuels
11.0% Other chemicals Raw materials
0.4% instrument 1.3%
Scientific, optical 6.4% Parts of motor 3.1%
4.4%
Motorcycles, instrument Manufactured vehicles
Autocycles 3.5% goods 1.8% Organic
Chemicals Others Foodstuff chemicals
1.4% 7.2% Power
Others Manufactured 5.2%
Parts of motor generating Transport
vehicles goods machine Motor vehicles equipment
4.8% Transport 4.5% 11.1%
Pump & Chemicals
equipment Electrical
centrifuges Medical
machinery
Machinery 3.1% products
Motor vehicles Other electrical
Electrical Machinery 14.2%
13.9% machinery
machinery Manufactured
5.7%
goods
Other machinery
Other Other chemicals
18.9% Semiconductors Other
Other electrical machinery 7.3%
machinery Semiconductors etc 8.4% manufactured
13.2% etc 1.2% Power goods
2.9% Electrical generating 6.6%
Visual measuring Iron & steel
machine
Electrical apparatus 2.0% products
3.5%
apparatus 1.6% 0.5%
Source: Trade Statistics of Japan, Ministry of Finance (2015)
1.9% 6
 Japan-EU Strategic Partnership Agreement (SPA)

1. Background and current status

At the Japan-EU Summit of May 2011, leaders agreed to start the process
for negotiating “a binding agreement, covering political, global and other
sectoral cooperation in a comprehensive manner” (Strategic Partnership
Agreement: SPA, provisional title) . After a scoping exercise, the
negotiation was launched in March 2013.
Since then, 11 negotiation meetings (including a follow-up meeting) have
been held.
Currently negotiated in parallel with the Economic Partnership
Agreement (EPA) , aiming for an early conclusion

2. Significance of the Agreement

Reinforce overall partnership between Japan and EU from strategic perspective, by establishing
consensus in various fields of cooperation, on the basis of their shared fundamental values such
as democracy, rule of law, human rights.
To be the first legally binding agreement between Japan and EU, after Japan-EC Joint Declaration
(1991) and Japan-EU Action Plan (2001-2010) .
Provide legal basis for the Japan-EU strategic partnership for the coming decades on the basis
of existing cooperation, with a view to achieving peace, stability and prosperity of the world
and regions.
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