Japan's Defence Transformation: a growing opportunity for European Industry.
Japan's defence sector is undergoing its most significant transformation since the postwar era, driven by a challenging regional security environment, an ambitious rearmament programme, and a deliberate effort to diversify industrial partnerships — including with Europe.
The pace of Japan's defence build-up has accelerated sharply under the Takaichi cabinet which is also working to revise core security documents by the end of 2026, representing a shift to more active deterrence and international security engagement.
Perhaps the most consequential development is the formal lifting of Japan's postwar ban on lethal weapons exports. The Cabinet approved a two-category framework distinguishing lethal systems (warships, tanks, missiles) from nonlethal equipment (radars, protective gear). Exports will initially be limited to 17 countries, including several European states with defence equipment and technology transfer agreements with Japan. The revision removes five restrictive export categories; decisions on individual sales will henceforth be assessed on their merits.
The EU-Japan Security and Defence Partnership, concluded in November 2024, covers maritime security, cyber defence, hybrid threats, space, and defence industrial cooperation. The first EU-Japan Defence Industry Dialogue took place on 17 April 2026, with both sides confirming strong interest in enhancing defence supply chain resilience and advancing cooperation in dual-use sectors.
Concrete cooperation is already emerging. Finland and Japan entered negotiations on a defence equipment transfer agreement, building on Japan's decision to procure Patria's AMV XP under a licensed production arrangement — a model likely to attract other EU companies.
Japan has shown interest in engaging with European defence industrial initiatives including co-development in unmanned systems, missile defence, and maritime surveillance. The country’s export liberalisation also creates a new dynamic.
Japan is no longer merely a recipient of allied defence equipment — it is becoming a co-developer, manufacturer, and exporter in its own right. The combination of record defence spending, a landmark export reform, a maturing EU-Japan institutional framework, and an explicit policy of industrial diversification an opening for EU companies across aerospace, naval systems, cybersecurity, and dual-use technologies.
The Centre’s Japan Tax & Public Procurement (JTPP) Helpdesk and the Enterprise Europe Network (EEN) Japan service are supporting this momentum by organising the second edition of the Defence Business Mission to Japan from 27-30 April 2027, offering 16 EU companies the opportunity to explore the Japanese defence market firsthand and exhibit their solutions at the 3rd DSEI Japan Exhibition.
A call for participation is expected in the Fall.
https://www.eu-japan.eu/events/defence-mission 
Published: June 2026
Joint venture established in 1987 by the European Commission (DG GROW) and the Japanese Government (METI) for promoting all forms of industrial, trade and investment cooperation between the EU and Japan.