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 European Union |  Japan |
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Relations between the European Union (EU) and Japan date back to 1959. They have a strong trade relationship, particularly in investment flows. [1] [2]
On February 1, 2019, the European Union–Japan Economic Partnership Agreement (EPA), the world's largest open economic area [3] covering a third of the world's economy, entered into force. [4]
In 1959, the Japanese ambassador in Belgium was accredited as Japan's first Representative to the European Communities (what would later become the EU in 1993). However, the establishment of a European delegation in Tokyo would take until 1974. In 1984 the first ministerial meeting between the two sides took place (the first summit would be in 1991). [5]
Although cultural and noneconomic ties with Western Europe grew significantly during the 1980s, the economic nexus remained by far the most important element of Japanese-West European relations throughout the decade. Events in West European relations, as well as political, economic, or even military matters, were topics of concern to most Japanese commentators because of the immediate implications for Japan. The major issues centered on the effect of the coming West European economic unification on Japan's trade, investment, and other opportunities in Western Europe. Some West European leaders were anxious to restrict Japanese access to the newly integrated European Union (until November 1993, the European Community), but others appeared open to Japanese trade and investment. In partial response to the strengthening economic ties among nations in Western Europe and to the United States-Canada-Mexico North American Free Trade Agreement, Japan and other countries along the Asia-Pacific rim began moving in the late 1980s toward greater economic cooperation. In 1987, The Japanese government (METI) and the European Commission (Directorate General for Enterprises and Industry) established the EU-Japan Centre for Industrial Cooperation, a non-profit organization aimed at enhancing all forms of industrial, trade and investment cooperation between Japan and the EU. On July 18, 1991, after several months of difficult negotiations, Japanese Prime Minister Toshiki Kaifu signed a joint statement with the Dutch prime minister and head of the European Council, Ruud Lubbers, and with the European Commission president, Jacques Delors, pledging closer Japanese-European Community consultations on foreign relations, scientific and technological cooperation, assistance to developing countries, and efforts to reduce trade conflicts. Japanese Ministry of Foreign Affairs officials hoped that this agreement would help to broaden Japanese-European Community political links and raise them above the narrow confines of trade disputes.
The EU and Japan share values of democracy, human rights, and market economics. Both are global actors and cooperate in international fora. They also cooperate in each other's regions: Japan contributes to the reconstruction of the western Balkans and the EU supports international efforts to maintain peace in Korea and the rest of Asia. [1]
The EU Japanese relationship is anchored on two documents: the Joint Declaration of 1991 and the Action Plan for EU-Japan Cooperation of 2001. There are also a range of fora between the two, including an annual summit of leaders and an inter-parliamentary body. [1] Both sides have now agreed to work towards a deep and comprehensive free trade agreement, discussed at the 42nd G7 summit on May 27, 2016. Four agreements thus far have been signed by the two sides; [2]
On December 8, 2017, Japan and the European Union finalized an Economic Partnership Agreement after an agreement in principle was reached in July 2017. [6]
The EU-Japan Economic Partnership Agreement was officially signed on July 17, 2018, becoming the world's largest bilateral free trade deal, creating an open trade zone covering nearly one-third of global GDP. [7] [8]
Japan and the EU are members of the European Union–Japan Economic Partnership Agreement (EPA), the world's largest open economic area, [3] covering a third of the world's economy since February 1, 2019. [4] Japan is the EU's 6th largest export market (3.3% in 2018 with a value of €64.75 billion). EU exports are primarily in machinery and transport equipment (31.3%), chemical products (14.1%) and agricultural products (11.0%). Despite a global growth in EU exports, since 2006 EU exports to Japan have been declining slightly. In 2009, due to the global financial crisis, exports saw a 14.7% drop; however, in 2010 they recovered again by 21.3%. Japan is also the 6th largest source of imports to the EU (3.6% in 2018 with a value of €70.47 billion). [9] Japanese exports to Europe are primarily machinery and transport equipment (66.7%). The EU is Japan's 3rd largest trading partner (11.1% of imports, 13.3% exports).
The trend in the goods trade since 2000 has been characterized by a significant reduction in the EU27 trade deficit with Japan due to a marked drop in latter's share in total EU imports from 9.3% in 2000 to 3.6% in 2012. For details, see the table below: [10]
In 2013, automakers from EU exported 245,363 vehicles, worth €6.4 billion. On the other hand, 365,897 vehicles of €5.7 billion were imported from Japan. [11]
| Direction of trade | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| EU to Japan € billion | 45.5 | 45.5 | 43.5 | 41.0 | 43.4 | 43.7 | 44.7 | 43.7 | 42.3 | 35.9 | 43.9 | 49.0 | 55.5 |
| Japan to EU € billion | 92.1 | 81.1 | 73.7 | 72.4 | 74.7 | 74.1 | 78.2 | 78.9 | 76.2 | 58.2 | 67.3 | 69.2 | 63.8 |
| Balance | −46.6 | −35.6 | −30.2 | −31.4 | −31.3 | −30.4 | −33.5 | −35.3 | −33.9 | −22.3 | −23.3 | −20.2 | −8.3 |
Between 2009 and 2011 the trade in commercial services between the two partners increased with the EU maintaining a stable surplus and Japan's share in total EU imports also remaining stable at just over 3%. [10]
| Direction of trade | 2009 | 2010 | 2011 |
|---|---|---|---|
| EU to Japan € billion | 18.6 | 19.8 | 21.8 |
| Japan to EU € billion | 13.4 | 15.2 | 15.9 |
| Balance | 5.2 | 4.6 | 5.9 |
Recently, foreign direct investment (FDI) flows have switched from an EU to Japanese [12] centred flow to one from Japan to the EU. [13] In 2006 the EU invested 16.2 billion euro and Japan disinvested 1.6 billion euro. By the end of 2009, 5.0% of the EU inward FDI stock came from Japan and 2.3% of EU outward FDI stock was in Japan. [2] The EU has been attracting the largest portion of Japanese investment: €78 billion in investment stocks. [1] For details, see the table below: [10]
| Direction | 2008 | 2009 | 2010 | 2011 |
|---|---|---|---|---|
| EU FDI to Japan € billion | 1.726 | 1.301 | −1.785 | 2.360 |
| Japan FDI to EU € billion | 2.324 | 2.607 | 2.952 | 12.068 |
Doing business and investing in Japan can be difficult for European companies [14] and there have been some trade disputes between the two parties. However the slowdown in the Japanese economy encouraged it to open up more to EU business and investment. [2] While working on reducing trade barriers, the main focus is on opening up investment flows. [1]
The Delegation of the European Union to Japan, a formal diplomatic mission, and the European Business Council in Japan (EBC) are both based in Tokyo. [15] [16]
The economy of Indonesia is one of the emerging market economies in the world and the largest in Southeast Asia. As an upper-middle income country and member of the G20, Indonesia is classified as a newly industrialized country. It is the 16th largest economy in the world by nominal GDP and the 7th largest in terms of GDP (PPP). Estimated at US$40 billion in 2019, Indonesia's Internet economy is expected to cross the US$130 billion mark by 2025. Indonesia depends on the domestic market and government budget spending and its ownership of state-owned enterprises. The administration of prices of a range of basic goods also plays a significant role in Indonesia's market economy. However, since the 1990s, the majority of the economy has been controlled by individual Indonesians and foreign companies.
The economy of Vietnam is a developing mixed socialist-oriented market economy, which is the 36th-largest in the world as measured by nominal gross domestic product (GDP) and 26th-largest in the world as measured by purchasing power parity (PPP) in 2022. Vietnam is a member of the Asia-Pacific Economic Cooperation, the Association of Southeast Asian Nations and the World Trade Organization.
Relations between the European Union (EU) and the People's Republic of China (PRC) or Sino–European relations are bilateral relations that were established in 1975 between the PRC and the European Community. The EU is the PRC's largest trading partner, and the PRC is the EU's largest trade partner.
The Republic of Azerbaijan and the European Union (EU) have maintained a positive relationship through the years and have become more closely linked since 1991. Azerbaijan is currently part of the European Neighborhood Policy, the Eastern Partnership and the Council of Europe. The EU is the largest foreign grant donor to and investor in Azerbaijan, both in the government sector and civil society, making available over 600 million EURO of bilateral EU assistance since 1992.
The ASEAN–European Union relations are the bilateral foreign relations between the two organisations; the European Union (EU), and the Association of South-East Asian Nations (ASEAN). EU and ASEAN have been interacting with each other on the economic, trade, and political levels for more than four decades. The partnership between the EU and ASEAN dates back to 1972, when the EU established ties with ASEAN. The EU became an ASEAN Dialogue Partner in 1977.
Moroccan trade is still dominated by its main import and export partner France, although France's share in Moroccan trade is declining, in favour of the US, the Persian Gulf region and China. If seen as a single entity, the EU is by far Morocco's largest trading partner.
Brazil and the European Union established diplomatic relations in 1960. The European Union and Brazil have close historical, cultural, economic and political ties. At the 1st EU-Brazil summit, in 2007, Brazil entered in a strategic partnership with the European Union, strengthening their ties. This new relationship places Brazil high on the EU's political map.
The ASEAN–India Free Trade Area (AIFTA) is a free trade area among the ten member states of the Association of Southeast Asian Nations (ASEAN) and the Republic of India. The initial framework agreement was signed on 8 October 2003 in Bali, Indonesia. and the final agreement was on 13 August 2009. The free trade area came into effect on 1 January 2010. India hosted the latest ASEAN-India Commemorative Summit in New Delhi on 26 January 2018. In the financial year 2017–18, Indo-ASEAN bilateral trade grew by almost 14% to reach US$81.3 billion. India's imports from ASEAN were valued at US$47.13 billion while its exports to ASEAN stood at US$34.2 billion.
Relations between the European Union and the Republic of India are currently defined by the 1994 EU–India Cooperation Agreement. The EU is a significant trade partner for India and the two sides have been attempting to negotiate a free trade deal since 2007. Indo-EU bilateral trade stood at US$104.3 billion in the financial year 2018–19.
European Union–Kazakhstan relations are the international relations between the Republic of Kazakhstan and the common foreign policy and trade relations of the European Union.
Relations between the European Union (EU) and the Hashemite Kingdom of Jordan are outlined by a number of agreements and close co-operation. The EU is Jordan's main trading partner.
Brazil–Japan relations are the current and historical international relations between Brazil and Japan. The diplomatic relations were officially established on 5 November 1895 with the Treaty of Friendship, Commerce and Navigation signed in Paris. Early relations were dominated by the Japanese immigration issues. The total number of Japanese immigrants reached 190,000 in the pre-World War II period. Now, more than 2 million Brazilians are of Japanese descent, making Brazil host to the largest Japanese community outside Japan. At the same time, Japan is host to the third largest Brazilian population, most being of Japanese origin. Both nations are members of the G4 nations, G20 and World Trade Organization.
Diplomatic relations between European countries and Indonesia date back to 1949. Initially, European Union (EU)–Indonesia relations were facilitated through the EU–Association of Southeast Asian Nations (ASEAN) cooperation. Bilateral cooperation was continuously expanded and eventually the EU Delegation to Indonesia was opened in 1988. Economic and political dialogue between Indonesia and the EU takes the form of regular Senior Officials Meetings. In 2000 relations were further reinforced with the release of the European Commission's communication "Developing Closer Relations between Indonesia and the EU". In November 2013, the EU's high representative for foreign and security policy Catherine Ashton made her first official visit to Indonesia.
The European Union (EU) and the Republic of Korea are important trade partners: Korea is the EU's ninth largest export market for goods, and the EU is Korea's third largest export destination. The two have signed a free trade agreement which came into effect at end of 2011. Furthermore, South Korea is the only country in the world with the three agreements covering economics, politics and security in effect as of 2020.
The European Union and Indonesia have built robust commercial relations, with bilateral trade amounting to approximately €25 billion in 2012 resulting in a sizeable €5.7 billion trade surplus for Indonesia with the EU. As of 2012 EU and Indonesia has been marked by an upward trend. Whereas total trade was worth almost €16 billion in 2009, by 2011 it had already reached €23.5 billion.
Argentina has strong cultural and historical links to the European Union (EU) and the EU is Argentina's biggest investor.
New Zealand and the European Union (EU) have solid relations and increasingly see eye-to-eye on international issues. The EU-New Zealand relations are founded on a Joint Declaration on Relations and Cooperation, first agreed in 2007. It covers not just economic relations, but broader political issues and cooperation.
Kazakhstan–Netherlands relations refer to the bilateral relations between Kazakhstan and the Netherlands. The Netherlands has an embassy in Astana. Kazakhstan has an embassy in The Hague.
The trade policy of Switzerland refers to Switzerland's approach to importing and exporting with other countries.
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