Japan’s Economic Security: Trade Opportunities for Mexico

There are plenty of business opportunities with Japan based on its needs. Regional and bilateral trade relations with Mexico can become stronger and more prosperous through a better understanding of Japan's economy and trade ecosystem. A good place to start is Japanese government reports, which can shed light on what Japan is looking for, and what business sectors are in demand today.  

The Minister of Economy, Trade and Industry of Japan (METI) published the “Action Plan for Strengthening Industrial and Technological Foundations for Economic Security[1]” in May 2025. Despite having been published almost a year ago, it is still very relevant in terms of the guidance that Japan is working on for its own development and prosperity, which could be the first step to know if your business is needed in Japan.

The paper (only available in Japanese) refers to a brief description of the economic security strategy of Japan related to value chains, which has two main objectives:

1. Strategic autonomy.
2. Strategic indispensability.

Both concepts are related to national security because of external factors affecting Japan, including the use of digital infrastructure, which is led by the United States and China, and their own race using advanced technologies, including AI, biotechnology, and quantum computing. Those factors could represent a risk for Japan in that they could potentially lead to Japan's dependency on foreign countries’ digital technology, especially in digital services. To counteract this possibility and its potential damage, Japan is interested in developing its own digital infrastructure autonomy, including data centers, computing technology, including quantum computing, development of an industrial value chain in data analysis and protection, as well as advanced semiconductors to guarantee a reliable AI ecosystem.

It is also extremely important for the energy sector to develop a technology ecosystem in digital services. Japan knows that its own industrial transformation relies on clean energy; therefore, Japan is making an effort to promote decarbonization globally.

Another important situation in current international trade that is affecting Japan is the constantly changing global export measures. These represent a risk to maintaining a high quantity of Japanese exports. Japan needs nations that are open to its market, respect its industry, and are willing to make reciprocal alliances.

According to the paper, industrial promotion measures (promotion) and industrial defense measures (protection) under international collaboration through public and private dialogue (partnership) will ensure the strategic autonomy and indispensability that Japan needs. This action plan is also called the “Three Ps.” Under this plan, the manufacturing sector is developing a new concept called "manufacturing X" that addresses the inclusion of AI, robotics, and other technologies that make Japan irreplaceable in the world. The goal is Japanese business expansion. This action plan is revised constantly according to the needs of the country.

The "Three Ps" plan recommends actions that Japan should implement to maintain, strengthen, and rebuild the free international trading system:

• Internal corporate supply chain restructuring must be supported to respond to border measures.
• Reinforce the fundamental nature of Japanese exports to counteract border measures.
• Besides promoting exports of national products, promoting foreign trade by using intellectual property licenses.
• Increase highly skilled human talent to develop the digital industry and new technologies.
• Be autonomous in critical sectors related to economic security, such as energy, space infrastructure, and others, through public and private collaboration.

Japan wants to take the lead in strategic projects that promote its economic security. Those projects must be guided by the stability of the Japanese supply chain through the expansion of overseas business, while counteracting social challenges in other countries through the expansion of Japanese infrastructure projects.  

The paper also states that Japan wants to contribute to developing an AI ecosystem based on the “Run Faster Partnership,” which is a strategy that promotes industrial support and defense measures with countries with which Japan shares values and an equal trade system. The objective is to build industrial and technological alliances. This strategy will focus on the Indo-Pacific region in the first stage. This partnership means to cooperate in infrastructure, security, technology transfer, and other fields related to security, export procedures, and transfer of technology with the aim of reinforcing critical global value chains.  

To sum up, Japan will evaluate which strategy is better for collaborating strategically with a country and/or region, according to technological cooperation, raw material procurement, supply chains, including sea lanes, market creation, information sharing, and efforts to develop critical value chains.

What can Mexico offer to Japan to become a strategic and indispensable partner?  

Mexico’s free trade agreements, such as the United States-Mexico-Canada Agreement (USMCA), the Mexico-Japan Economic Partnership Agreement (EPA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) can play an essential role when doing business with Japan. The consolidation of the Japanese automotive value chain in Mexico is a good example of a win-win relationship that includes exchange of technology, creation of local jobs, and trade alliances. Strengthening sectors in which Mexico and Japan can develop value chains together, such as in the semiconductor sector, renewable energies, and technological innovation, can improve business relations for both.  

[1] 経済安全保障に関する産業・技術基盤強化 アクションプラン（再改訂）