PM Takaichi's Arrival in Canberra Marks Key Milestone

Japanese Prime Minister Sanae Takaichi touched down in Canberra on May 3, 2026, kicking off the Australian leg of her five-day diplomatic tour through Southeast Asia and Oceania. This visit, coinciding with the 50th anniversary of the Japan-Australia Basic Treaty of Friendship and Cooperation signed in 1976, underscores the deepening bond between the two nations. Takaichi, Japan's first female prime minister who assumed office in October 2025 and was re-elected in a landslide in February 2026, received a ceremonial welcome at Parliament House, complete with military honors and a guard of honor. Australian Prime Minister Anthony Albanese hosted the event, highlighting the 'special strategic partnership' that has evolved over decades into what Takaichi described as a 'quasi-alliance.'

The timing could not be more critical. With global energy markets in turmoil due to the ongoing Middle East conflict and a de facto closure of the Strait of Hormuz since late February, Japan—one of the world's largest energy importers—is seeking reliable partners to diversify its supply chains. Australia, as Japan's top supplier of liquefied natural gas (LNG) and a major provider of coal and other resources, stands as a natural ally in this endeavor. The leaders' discussions on May 4 focused on bolstering resilience against such shocks while addressing broader Indo-Pacific security challenges.

Bilateral Summit Yields Landmark Agreements

The centerpiece of the visit was the summit between Takaichi and Albanese, resulting in five key outcome documents. These include a joint declaration on economic security, aimed at fortifying supply chains for rare earths, energy resources, and food products. The declaration emphasizes collaborative efforts to mitigate vulnerabilities exposed by recent geopolitical disruptions. In a joint press conference, Albanese praised the 'ambitious outcomes' that elevate their partnership, noting that the two countries 'have never been more strategically aligned.'

Takaichi echoed this sentiment, stating that Japan and Australia are 'front-runners of collaboration among like-minded partners' committed to regional peace and stability. Among the highlights was the announcement of contracts for the first three of 11 Mogami-class stealth frigates that Japan will supply to the Australian Navy—a $7 billion deal marking Japan's largest military export since lifting its ban in 2014. This pact builds on the 2023 Reciprocal Access Agreement (RAA), which streamlines joint military exercises and troop deployments.

Prioritizing Energy Security in Turbulent Times

Energy topped the agenda, given Japan's heavy reliance on imports—over 90% of its oil comes via the Strait of Hormuz, now effectively blockaded amid the U.S.-Israeli conflict with Iran. The closure has halted much of the region's crude oil shipments, spiking global prices and forcing Japanese refineries to scale back operations. Takaichi highlighted the 'enormous impact' on the Asia-Pacific, with manufacturing sectors feeling the pinch through higher costs and supply shortages.

Australia supplies about one-third of Japan's energy needs, including vast quantities of LNG—39.7% of Japan's LNG imports in 2025 came from Down Under, totaling around 25.81 million tons. The leaders agreed to enhance coordination on stable supplies, leveraging Japan's strategic petroleum reserves exceeding 200 days of demand. Discussions also covered low-carbon transitions, with joint investments in hydrogen and ammonia technologies to align with both nations' net-zero goals by 2050. For context, bilateral trade reached $43.52 billion in imports from Australia to Japan in 2025 alone, underscoring the economic stakes.Kyodo News details the energy commitments.

• Expanded LNG offtake agreements to buffer short-term disruptions
• Joint R&D on renewable hydrogen production
• Information sharing on global market volatility

Defense Cooperation Reaches New Levels

Defense ties, already robust as U.S. allies, received a significant boost. The summit reaffirmed commitments under the Quadrilateral Security Dialogue (Quad) and AUKUS frameworks, with plans to institutionalize comprehensive security dialogues by the next leaders' meeting. Japan will expand testing of advanced weaponry, including missiles, on Australian soil, enhancing interoperability.

Shared concerns over China's assertive actions in the South China Sea, East China Sea, and around Taiwan drove these moves. Recent Chinese export restrictions on critical minerals—cited as retaliation to Takaichi's comments on potential Self-Defense Forces involvement in a Taiwan contingency—add urgency. The quasi-alliance label signals a shift toward more integrated operations, including trilateral exercises with the U.S.Reuters covers the defense pacts.

Critical Minerals: Countering China's Dominance

Critical minerals emerged as a strategic priority. China controls 70% of global mining and 90% of refining for rare earths, vital for EVs, semiconductors, and defense tech. Australia's rich deposits position it as a key alternative supplier. The leaders pledged to fast-track six joint projects, with Australia offering up to A$1.3 billion in support for gallium, nickel, graphite, rare earths, and fluorite developments involving Japanese firms.

This builds on existing partnerships like the Australia-Japan Critical Minerals Partnership, aiming to diversify away from Beijing's grip. Japan, procuring most rare earths from China, views these initiatives as essential for supply chain resilience amid escalating U.S.-China tech rivalry.

Vietnam: The Tour's Opening Chapter

Before Australia, Takaichi's tour began in Hanoi on May 1-3, where she met Vietnamese Prime Minister Lê Minh Hưng. Six agreements were signed on technology transfer, agriculture, space cooperation, and energy. Vietnam, a rising Indo-Pacific player, shares Japan's wariness of Chinese expansionism. Takaichi urged Southeast Asian unity on supply chain resilience, pledging support for Vietnam's semiconductor ambitions.

This leg reinforced Japan's 'Free and Open Indo-Pacific' vision, with Vietnam as a linchpin against regional dominance by any single power.

Navigating Regional Tensions

The visit unfolds against a backdrop of heightened tensions. In the Indo-Pacific, North Korean missile tests and Chinese naval incursions persist, while the Middle East crisis exacerbates energy woes. Japan's manufacturing output has dipped due to fuel shortages, with inflation ticking up. Australia faces its own challenges, importing refined products from Asia now strained by Hormuz disruptions.

Stakeholders from business lobbies to think tanks applaud the proactive diplomacy, seeing it as a model for like-minded nations.

Long-Term Economic Synergies

Beyond security, economic pillars were reinforced. Japanese investment in Australia hit record highs in 2025, spanning infrastructure and renewables. Discussions touched on food security and disaster-resilient infrastructure, reflecting shared vulnerabilities to climate events.

Photo by Zoshua Colah on Unsplash

Outlook: Toward Institutionalized Partnership

Looking ahead, the leaders committed to concrete steps for annual security dialogues, potentially formalizing the quasi-alliance. As Takaichi wraps her tour, analysts predict accelerated defense tech transfers and mineral offshakes, fortifying both economies against shocks. This visit not only strengthens bilateral ties but signals a united front in a volatile world.MOFA outlines the full tour itinerary.