Germany and Japan plan closer security and technology ties

Germany and Japan have agreed to deepen cooperation on economic security, advanced technologies and defence during German Chancellor Friedrich Merz's visit to Tokyo.

Japan and Germany are "premium partners" and it is currently more important than ever that they contribute to international peace and stability, Japanese Prime Minister Sanae Takaichi said during a joint press conference with Merz on Wednesday.

Merz described Japan as one of Germany's closest partners despite the great distance between them.

During Merz's visit - accompanied by a business delegation - around 30 cooperation agreements were signed at both government and private sector level. They foresee cooperation between the public and private sectors in areas such as fusion and hydrogen technology.

The two leaders also agreed to establish a high-level dialogue on cooperation in the field of artificial intelligence, including an AI summit in Japan.

Merz and Takaichi said they planned to strengthen their "operational readiness and defence industrial base," against the backdrop of today's increasingly challenging security environment.

Security in the Euro-Atlantic region and in the Indo-Pacific are "inextricably linked," Takaichi explained. She said Japan welcomes Germany's continued active engagement in the Indo-Pacific region. 

"We will examine opportunities and framework conditions that contribute to deepening cooperation between the armed forces of both countries," the Japanese prime minister added.

Support for Ukraine was also on the agenda. Japan providing humanitarian and reconstruction aid to war-torn Ukraine, but Merz said he was also hoping for its partner's assistance with air defence.

Ukraine has asked Japan for Patriot defence systems, which it urgently needs to counter Russian ballistic missile attacks. Japan has so far refused to supply them, citing legal restrictions and its own needs in the face of a growing threat in its neighbourhood. 

Merz and Takaichi also discussed Germany's possible participation in the Global Combat Air Programme (GCAP), involving Japan, the UK and Italy. Merz said Japan is hoping for a commitment by the start of 2027, but Germany may require more time.

Germany is looking for alternatives after the collapse of the Franco-German FCAS fighter jet project this year. Alongside GCAP, a partnership between the Airbus Group and Sweden and the defence firm Saab is also under discussion as a further option.

Merz proposes new alliance to defend global trade rules

Beyond closer bilateral ties, Merz also used his multi-day visit to Asia to push for broader international cooperation on trade, calling for a new political alliance to defend international trade rules and strengthen the global trade system.

Speaking at an economic forum in Tokyo earlier on Wednesday, Merz said the alliance of "like-minded" nations should protect, strengthen and further develop trade based on international agreements.

The grouping could respond jointly when "the rules-based order is under threat," he said.

Merz stressed that the alliance was not intended to replace the World Trade Organization (WTO), but could help advance urgently needed reforms of the body.

He suggested that members could agree to recognize WTO dispute settlement decisions as binding despite the current paralysis of its appeals body.

The alliance could also coordinate responses to unlawful tariffs and economic coercion, he said.

"Should the rules of the global trading system be violated by others, or should economic coercion be employed, we could coordinate our actions within the alliance and present a united front," he said.

Merz pushes for EU-Pacific free trade zone

Merz had already called for closer global trade ties during a visit to Singapore on Tuesday, backing a free trade agreement between the European Union and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The CPTPP, established in 2018, comprises 12 countries across five continents, including Japan, Canada, Australia, Chile and Britain.

Merz also called for renewed efforts to negotiate a free trade agreement between the EU and the Association of Southeast Asian Nations (ASEAN).

He suggested linking existing trade agreements with individual countries to make them more effective.