Thank you for hosting us at the 30th EU-Japan Summit. I saw yesterday the Osaka World Expo which was very impressive and outstanding. It showed us something Japan does uniquely well: Blending tradition and innovation. That is what the Expo is all about. It was truly a memorable visit.
Dear Shigeru,
First and foremost, I wanted to say congratulations on your successful negotiations on a tariff deal with the United States. This Summit between the European Union and Japan comes at the right time. The world is changing rapidly. For strategic partners like us, it means becoming even closer to face the realities of our times. We face rising pressure on two main fronts. On the one hand geoeconomics, with growing trade tensions and uncertainty, fragile supply chains, the challenge of overcapacity and unlevel playing fields. And on the other hand geopolitics, with rising threats to our shared stability and interests. From the battlefields of Ukraine to the waters of the Indo-Pacific. Today was about providing common answers and acting together.
Let us start with competitiveness. We know it begins at home. Europe is doing its part. We are investing heavily in innovation, we are improving the business climate and cutting red tape. But in today's world, competitiveness has to be built with trusted partners such as Japan. Together, Europe and Japan represent a fifth of global GDP and a market of 600 million people. So, we have the scale to shape global rules on trade and tech in line with our values of fairness and openness. That is why we are launching our Competitiveness Alliance today. It rests on three pillars.
The first pillar is increased bilateral trade between Europe and Japan. We build on the strong foundation of our Economic Partnership Agreement. The trade flows between our economies have increased by over 20%. But this was just the beginning. Now we must fully implement the Agreement in all areas such as government procurement and sanitary and phytosanitary standards and others so we can unlock the full potential. We have also agreed to simplify rules where possible, to make life easier for our businesses. And to further promote mutual investment opportunities.
The second pillar is strengthened economic security. Japan is a front-runner here. And the G7 Summit in Hiroshima set a clear direction. We are upgrading our High-Level Economic Dialogue to steer cooperation on robust supply chains, especially for raw materials and batteries, this includes also intensifying the circular economy; secure frameworks for joint research; stronger protection of critical infrastructure, both physical and cyber. We will also work more closely together to counter economic coercion and address unfair trade practices.
The third pillar is our joint work on innovation and the green and digital transitions. We are continuing negotiations for Japan to join Horizon Europe, the world's largest research and innovation programme. I hope we can conclude them this year. Under our Green Alliance, we are launching new cooperation on the circular economy, emission trading systems and clean technologies. On digital, we are establishing, among others, a Working Group on Submarine Cable Connectivity including in the Arctic. This is a concrete move toward more secure and trusted data flows between our economies. And finally, as you mentioned Prime Minister, we believe global competitiveness should benefit everyone. That is why Europe is stepping up cooperation with CPTPP countries. Not only to defend open trade but to shape it. Together, the EU and CPTPP countries can lead a meaningful reform of the World Trade Organisation, so that global trade rules reflect today's challenges and the risks of tomorrow.
Now, on security and defence. Here too, the work starts at home. Europe is building up its capabilities, with an EUR 800 billion defence industrial plan. And we also know that security today depends on partnerships. Therefore, it is so meaningful that Japan was the first country outside Europe to conclude our Security and Defence Partnership with us. We want to put that partnership fully into action. Next year, we will launch the first EU-Japan Defence Industrial Dialogue. Together we can reduce dependencies and build stronger defence ecosystems, grounded in mutual trust.
Prime Minister,
This Summit reaffirmed the strength of our unique bond. In a world that is growing more fragmented, this bond gives us both clarity and direction. The direction to shape a world that reflects our shared values: open economies, secure societies and fair rules.
