5th EU-Japan High Level Economic Dialogue

On the occasion of OECD Ministerial Council Meeting in Paris of 2 May, Mr Valdis Dombrovskis, Executive Vice President of the European Commission for an Economy that Works for People and European Commissioner for Trade, Ms Kamikawa Yoko, Minister for Foreign Affairs of Japan, and Mr Saito Ken, Minister of Economy, Trade and Industry of Japan, held the 5th Japan-EU High level Economic Dialogue and discussed the following points.

1. Ministers stressed the need to pursue EU-Japan dialogue and cooperation on economic resilience and economic security in order to globally reduce vulnerabilities and ensure sustainable development for all, while maintaining and improving the international rules-based trading system with the WTO at its core.
2. They expressed deep concern about the weaponisation of economic dependencies on certain supply sources for strategic goods, resulting from a wide range of non-market policies and practices such as market-distortive industrial subsidies. They recognise the need to address systemic vulnerabilities, stemming from such strategic dependencies and overcapacities, and to promote a level playing field through coordinated efforts.
3. Ministers concurred on a Transparent, Resilient, and Sustainable Supply Chains Initiative to coordinate and advance their efforts on policies for building more transparent, resilient, and sustainable supply chains. This Initiative builds on the Joint Statement of the EU-Japan Summit on of 13 July 2023, the outcome of the EU-Japan High Level Economic Dialogue in Osaka of 28 October 2023 and the “Working Group on international collaboration on policies for building more transparent, resilient and sustainable supply chains” which was established on that occasion, as well as on the ongoing efforts of the EU-Japan Industrial Policy Dialogue and its new Task Force on supply chain monitoring and supply chain coordination. Ministers raised the need to work together on the following issues, ensuring consistency with international rules including WTO Agreements:
   
   (a) Addressing strategic dependencies and systemic vulnerabilities and ensuring resilient and reliable global supply chains through the application of the principles of transparency, diversification, security, sustainability, trustworthiness and reliability, in the efforts to address, among others, climate change, energy security, cyber security and the stability of supply.
   (b) Continuing their coordinated efforts with the view to identifying requirements based on such principles including in the procuring and auctioning of goods and services, and in other demand-side policies such as consumer subsidies.
   (c) Encouraging businesses to enhance transparency, resiliency, and sustainability in the market.
   (d) Building and enhancing transparent, resilient, and sustainable supply chains as broadly as possible in coordination with like-minded countries.
    
4. They underlined the importance to advance cooperation on economic resilience and economic security, including sharing information on risk assessment analysis and on preventing leakage of critical and emerging technologies. They reaffirmed the need to increase their collective assessment of, preparedness, deterrence, and response to economic coercion through bilateral cooperation as well as through their work with the G7 and other like-minded partners.
5. They will work together to exchange information about efforts to make a more effective use of existing trade remedies prescribed for in the WTO Agreement.
6. They underlined the role of the multilateral trading system to underpin the stability of global trade and committed to further enhance EU-Japan collaboration on WTO reform to improve all its functions. Building on the outcomes of MC13, they reaffirmed the need to accelerate work in all areas to deliver an effective WTO with a fully and well-functioning dispute settlement system and capable of responding to current global challenges including on trade and industrial policy to address level-playing field issues. Both sides stressed their commitment to take forward all outstanding issues from MC13. They also underlined the importance of plurilateral initiatives, and reiterated their support for incorporating the Investment Facilitation for Development Agreement into the legal framework of the WTO, and promptly concluding the negotiations of the Joint Statement Initiative on E-Commerce. They stressed the importance of multilateral rule making, including the conclusion of the negotiations for Phase 2 of the WTO Agreement on fisheries subsidies as soon as possible. They welcomed the decision at MC13 to maintain the moratorium on customs duties on electronic transmission.
7. They highlighted the importance of the full and effective implementation of the Japan-EU Economic Partnership Agreement (EPA) in strengthening the resilience of our trade and investment relations, and ensuring that our citizens and businesses fully benefit from the opportunities it creates. They are committed to full and effective implementation, including on regulatory cooperation.
8. They welcomed the signing of the Protocol amending the Japan-EU EPA to include provisions on the free flow of data. Data flows are a key enabler of digital trade, fuelling growth of our digital economies. This Protocol is a building block promoting Data Free Flow with Trust (DFFT) based on our shared values and sending a strong message against digital protectionism and arbitrary and unjustified restrictions to data flows.

Source: European Commission

Published: June 2024