TRILATERAL IMPERATIVES: Japan-India-EU Cooperation on Economic Security

The contemporary global landscape is increasingly defined by deepening divisions, driven factors such as the intensifying US-China rivalry and Russia’s invasion of Ukraine. In response, European countries are redoubling their efforts to establish secure and resilient supply chains, prioritizing partnerships with nations that share core democratic values. Japan too has embraced this approach. Its 2022 National Security Strategy explicitly outlines a policy of advancing economic security in collaboration with like-minded nations, aiming to uphold and strengthen an international economic order based on free, fair, and equitable rules.

In this context, India is poised to emerge as a significant economic security partner for both Japan and Europe. Set to surpass China as the world’s most populous country, India shares foundational values such as freedom, democracy, human rights, and the rule of law with both Europe and Japan. Additionally, India is a key player in the restructuring of global supply chains. Building strong economic ties with India, an increasingly influential democracy with a significant population, is essential for Europe and Japan in pursuing secure and value-aligned partnerships.

At the same time, however, the substantial economic interdependence with China makes it impractical and unrealistic for European countries and Japan to abruptly disengage from Chinese markets or supply chains. Severing economic ties with China would lead to increased costs for a wide range of products and substantial revenue losses for many European and Japanese companies. As such, our position reflects a complex balancing act, which can be characterized by efforts to strengthen ties with the democratic bloc while cautiously managing economic relations with an authoritarian state.

This book is the outcome of a joint effort to examine and address these pressing challenges. It represents the culmination of international collaborative research conducted by the Kajima Institute of International Peace (KIIP), a Japanese policy think tank, and the Institute for Security and Development Policy (ISDP), a Swedish policy research organization. The research, carried out from April 2023, brought together researchers and scholars from Sweden and other European nations, Japan and India. The primary objective was to develop policy recommendations for enhancing economic security cooperation among Japan, India, and Europe.