Traditional trade relations between the EU and Japan were once characterized by large trade surpluses in favour of Japan. On 17 July 2018, the European Union and Japan signed an Economic Partnership Agreement (EPA), the largest trade agreement ever negotiated by the EU, which will create an open trade area of more than 600 million people. Exports and imports from Japan increased between 2009 and 2019. Over the period 2009-2019, EU exports to Japan reached their highest level (61 billion euros) in 2019 and the lowest in 2009 (32 billion euros). EU imports from Japan were the largest (63 billion euros) in 2019 and the lowest in 2013 (49 billion euros). Although cultural and non-economic relations with Western Europe increased considerably during the 1980s, the economic link remained by far the most important element of relations between Japan and Western Europe throughout the decade. Events in Western European relations, as well as political, economic or even military affairs, have been important to most Japanese commentators because of the direct impact on Japan. The main questions focused on the impact of the impending economic unification of Western Europe on trade, investment and other opportunities in Western Europe. Some Western European heads of state and government have tried to restrict Japan`s access to the newly integrated European Union (until November 1993, the European community), but others seemed open to Japanese trade and investment.

In partial response to the strengthening of economic relations between Western European nations and the North American Free Trade Agreement between the United States and Canada-Mexico, Japan and other countries along the Asia-Pacific region began moving toward stronger economic cooperation in the late 1980s. In 1987, the Japanese government (METI) and the European Commission (General Directorate of Business and Industry) established the Eu-Japan Industrial Cooperation Centre, a non-profit organisation aimed at improving all forms of industrial, trade and investment cooperation between Japan and the EU. On 18 July 1991, Japanese Prime Minister Toshiki Kaifu, after months of difficult negotiations, signed a joint declaration with Dutch Prime Minister and Head of the European Council, Ruud Lubbers, and European Commission President Jacques Delors, in which he called for closer consultations between Japan and the European Community on external relations , scientific and technological cooperation, aid to developing countries and efforts to reduce trade conflicts.