How Geoeconomics Advances Geopolitical Cooperation: The Case of EU-Japan Relations

Abstract

The relationship between Japan and the European Union (EU) has developed and matured over the last decades. It comprises of both complex economic relations recently formalized in the Economic Partnership Agreement (EPA), and the subsequent Strategic Partnership Agreement (SPA) that covers a broader set of political issues. Here, we are addressing the trade diplomacy interaction that has been associated with the long negotiation process between Japan and the EU. The article seeks to answer the question: How has the geopolitical relationship between Japan and the EU evolved based on the context forming the EPA? The empirical section discusses the development that led to the establishment of the EPA and SPA, as well as to the current relationship and additional agreements. Our findings suggest that the EPA has been central also to deepened political cooperation between Tokyo and Brussels, emphasizing the ground-breaking role of an FTA in contributing to solidify a changing geopolitical order. We suggest for future research to explore the development of the EPA and SPA, and their impact on geopolitics, respectively. These future studies would benefit from a cross-disciplinary perspective within the area of political economy and international business.