The EU and Japan have pledged to work together to support a "free and fair" global trading system as US tariffs and disputes with China roil their economies.

At a high-level meeting in the Japanese capital, Brussels and Tokyo announced a "competitiveness alliance" to increase bilateral trade, tackle unfair practices, and promote innovation.

"In today's world, competitiveness must be built with reliable partners such as Japan," European Commission President Ursula von der Leyen said after talks with Japanese Prime Minister Shigeru Ishiba.

"Together, Europe and Japan account for one-fifth of global GDP and a market of 600 million people. So we have the scale to shape global rules for trade and technology in line with our values of fairness and openness," she said.

Faced with speculation about his future after his election defeat at the weekend, Ishiba said the EU and Japan agreed to work together to strengthen a "stable and predictable, rules-based, free and fair economic order."

Von der Leyen congratulated the prime minister on his "successful negotiations" to reach a trade agreement with Washington, an achievement that the European Commission she heads has so far failed to achieve, AFP reported.

US President Donald Trump announced a "massive" trade deal with Japan on July 22, while the EU and other major US trading partners are facing a deadline to reach agreements or face high tariffs.

Tokyo announced that under the deal, tariffs on Japanese cars would be reduced to 15%.

EU Trade Commissioner Maros Sefcovic will hold further talks with US Trade Representative Howard Lute today.

The von der Leyen Commission, the EU's highest executive body, is responsible for the trade policy of the 27 member states.

"In a world of growing uncertainty, we are also strengthening our joint efforts to enhance economic security and resilience," Antonio Costa said in Tokyo.

Costa heads the European Council, which represents the EU member states.

He said the EU and Japan, which support Ukraine in its war with Russia, would push for deeper cooperation between their defense industries.

Coelho and von der Leyen will visit Beijing, where they will meet with senior Chinese leaders on July 24.

Beijing and Brussels will mark the 50th anniversary of the establishment of diplomatic relations.

However, differences over state subsidies, market access, and China's support for Russia are expected to overshadow the event. | BGNES