Doc. MUDr. Jaroslav Zvěřina CSc., Member of the European Parliament

2. Economic Relations

EU and Japan cooperate based on the common principle of market economy.

EU and Japan are important trade partners for each other. Japan is the fourth largest export partner (4.8%) after the US, Switzerland, and China, and the third largest import partner (8.2%) after the US and China in 2003. Likewise, EU is the third largest import partner for Japan and the second largest export partner. Trade relations between the two have been balanced increasingly. However, there exist difficulties in Japanese social and economic structures still.

In terms of investment, Foreign Direct Investment from each other has become very important. Yet, FDI from EU to Japan is not much compared to that to the US because of Japanese bureaucracy, poor competition policy, and lack of independent policy.

In order to develop economic relations with each other, EU and Japan have held dialogues on various subjects such as regulatory reform, transparency of regulations, trade standards of products, intellectual property rights in Asia, deregulation, and mutual investment.

Various dialogues between EU and Japan are held in order to develop economic relations with each other.

EU and Japan also cooperate in international settings such as WTO to develop multilateral trade.

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