Japan and the European Union are preparing to launch a 'Competitiveness Alliance' to enhance corporate resilience and strengthen trade and economic security. This initiative, set to be announced at an upcoming summit in July, will focus on upholding a rules-based economic order and building on the existing Japan-EU free trade agreement. The alliance will prioritize diversifying supply chains for rare earth minerals and harmonizing subsidy policies for green technologies, including hydrogen production. Additionally, efforts will be directed towards supporting reforms at the World Trade Organization (WTO), engaging with emerging economies, and exploring closer ties with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The EU is particularly interested in collaborating on setting rules related to digital trade and climate practices. The overall sentiment of the article is positive, emphasizing the mutual benefits and shared values of the alliance between Japan and the EU in promoting free and fair trade while ensuring adherence to the rule of law.