EU-JAPAN : Defining A New Paradigm
EU-Japan relations have come a long way since they first entered into trade negotiations in the 1970s. Their bilateral relationship was characterized by a series of confrontations until the early 1990s, after which a more cooperative strain began to emerge. Japan was then no longer perceived as the challenger to the global economic order. Like the European economies it was itself being challenged by the rise of China as well as the changes in the international economic system where the massive growth of foreign direct investment blurred the traditional lines of confrontations that gad so far dominated trade relations. Moreover, a new global interdependence required new cooperative approaches.
The 1990s also marked a qualitative change in the relationship. With the 1991 “Joint-Declaration on Relations between the European Community and its Member States and Japan”, the EU and Japan embarked on a political and security dialogue that only grew stronger with the passage of time, leading to the “Joint Action Plan for EU-Japan Cooperation” in 2001. The document identified four main areas of cooperation including the promotion of peace and security, the strengthening of economic and trade partnerships, addressing global and societal changes, and bringing together people and cultures. Yet, if trade relations have increased (at least in absolute terms), cooperation in matters of security remain underdeveloped.
This relationship is now entering a new phase. Since 2013, EU and Japan have embarked on negotiations on a strategic partnership as well as a comprehensive preferential trade accord. An ambitious and comprehensive, legally-binding Framework Partnership Agreement (FPA) is intended to further political relations across a wide range of political, global and sectoral issues, including security. In parallel, a Free Trade Agreement is being negotiated with the objective of unlocking the potential bilateral economic relationship by reducing barriers to trade in goods and services and increasing investment flows between the EU and Japan.
If successfully concluded, the EU-Japan Free Trade Agreement is likely to result in one of the most significant trade corridors eve created. Trade relations remain under-developed and have been declining in relative terms over the past two decades. Together, these agreements –whose importance has once again been underlined during the last Japan-EU summit –are supposed to bring EU-Japan relations to a new phase of economic and political revival. In this perspective, although the negotiations are likely to be difficult, the concessions accepted by Japan in the negotiations for the recently concluded Trans-Pacific Partnership (TPP) should help finalize the FTA with the EU.