During the third High-Level Economic Dialogue (HLED) meeting held between the European Union and Japan June 27, the two sides finalized the EU-Japan Digital Trade Principles, a program that will be of major importance for bilateral trade and investment between both parties.

The principles establish a common understanding of key issues related to digital trade as well as a joint commitment by Japan and the EU to create an open digital economy that is free of “unjustified” international trade barriers, according to the European Commission. The Digital Trade Principles cover topics such as consumer trust, business trust, data governance and digital trade facilitation.

The dialogue also confirmed the two sides would continue to enforce current and future sanctions against Russia to curb the country’s trade capabilities. Additionally, both parties agreed they needed to build resilient supply chains as a way to diversify their sourcing practices. They also discussed enhanced cooperation under the Joint Statement Initiative on e-commerce and digital trade with an emphasis on concluding data flow negotiations by the fall of 2023, which will enable Japan and the EU to implement modern trade rules that are "fit for the digital era."

“At today’s High-Level Economic Dialogue, we further strengthened our partnership with Japan, with whom we share values and strategic goals. We agreed to coordinate further on economic security, supply chain resilience and WTO reform,” said Valdis Dombrovskis, EVP and commissioner for Trade in Europe. “We concluded EU-Japan Digital Trade Principles and progressed negotiations on data flows. Reaching an agreement in these areas will benefit businesses on both sides and put us at the cutting edge of the digital economy. All in all, we can say with confidence that the EU-Japan relationship is stronger than ever, which matters enormously in this time of geopolitical uncertainty.”