AS2 error-authentication failed

Hi all,
I am trying to establish AS2 connection with my partner.We already have a successful AS2 connection with that partner on production,but a few days ago he said that he wants to have a new conenction on the same URL and same port but different location and different AS2 id.The certs are also different.I created a new partner profile and gave AS2 id as given by him and the default id same as the AS2 id.I installed the certs properly.
But the problem is whenever he or I try to send some EDI document we get “authentication failed” error.I have double checked the certs they are correct and the type is “signedandencrypted”.There cannot be a firewall issue as we already have an open connection with him in production and this new connection is also in production.There is no username and password too.
Please suggest

Try changing from “SignedandEncrypted” to “plain” and see if the issue resolves.

Also ensure the unlimited encryption is set in the Java security folder.