Political overview

Japan is a democratic, constitutional monarchy with a parliamentary government. Emperor Naruhito acceded to the Chrysanthemum Throne on 1 May 2019, marking the beginning of the Reiwa ('beautiful harmony') Era in Japan. The ruling Liberal Democratic Party (LDP) has been in power in Japan almost continuously since 1955, except for 1993-1994 and 2009-2012. It currently governs in coalition with the Japan Innovation Party. Prime Minister Takaichi Sanae was appointed in October 2025 and reappointed in February 2026.

The Diet comprises a House of Representatives (Lower House) and a House of Councillors (Upper House). The Lower House has 465 members who are elected for four-year terms, although the House is frequently dissolved earlier than this. The Upper House has 245 members who are elected for six-year terms, with the majority elected in prefecture-based constituencies and the remainder by proportional representation at the national level. One half of the Upper House is dissolved for election at regular three-year intervals.

Executive power is vested in the Cabinet, which comprises the Prime Minister and other members known as Ministers of State. The Prime Minister is selected from among members of the Diet through a vote by both Houses. There is no term limit for Prime Ministers, although individual parties often have term limits in place under party rules. Under the Constitution, the majority of cabinet members must be elected officials. However, the Prime Minister can appoint non-politicians to the Cabinet and as Special Ministers of State.

Japan's governmental structure has three tiers: national, prefectural and local. There are 47 prefectures and 1,741 local municipalities. Each tier is governed by elected assemblies. Universal suffrage is limited to citizens of Japan aged 18 years or older. Voting is not compulsory.

Foreign relations

Japan's foreign policy aims to promote a peaceful and stable international community that adheres to agreed rules and norms. This supports its economy which is highly dependent on international trade and investment. Japan actively contributes to international solutions to shared challenges such as environmental protection and climate change, terrorism, economic security and resilience, maritime security, nuclear disarmament and non-proliferation, poverty reduction, disaster resilience and infectious diseases.

The Japan-US alliance is the cornerstone of Japan's foreign policy and national security. Its security cooperation with the US has been important to maintaining stability in the region. The US military maintains a presence of approximately 54,000 personnel in Japan under the US-Japan Treaty of Mutual Cooperation and Security of 1960. The US is currently upgrading its military command in Japan to a joint force headquarters that will have expanded missions and operational responsibilities. The US Seventh Fleet is based in Yokosuka and the 3rd Marine Expeditionary Force (III MEF) is based in Okinawa. In January 2024, construction for the relocation of the US marine air base at Futenma in Okinawa commenced and is expected to be completed in 2033.

The Indo-Pacific region is a key focus for Japan's foreign policy. Its approach to the Indo-Pacific aligns with Australia's efforts to achieve an open, inclusive and resilient region based on agreed rules and norms. In 2016, then Prime Minister Abe introduced Japan's ‘Free and Open Indo-Pacific' vision, under which Japan would support the rule of law, including by promoting freedom of navigation, free trade, economic prosperity, and peace and stability.

On 2 May 2026, Prime Minister Takaichi launched Japan's Updated "Free and Open Indo-Pacific" (FOIP) strategy [PDF] in Hanoi, Vietnam. It focusses on three priority areas: strengthening supply chains, rules-based economic order, and boosting security cooperation. The speech by Prime Minister Takaichi [PDF].

Japan is the fifth largest contributor of official development assistance (ODA). In 2024 it contributed USD16.8 billion. In Oceania, it was the fifth largest contributor of ODA to the region and contributed USD 121.28 million in 2024.

Japan is an active member of multilateral institutions. It was a non-permanent member of the UN Security Council in 2016-17 and served as a non-permanent member for 2023-2024. As of 2026, Japan is the third-largest contributor to the UN budget. Japan has served multiple terms as a member of the UN Human Rights Council. While Japan's constitution limits the role of its military forces, the Japan Self-Defense Forces contribute actively to UN peacekeeping operations and disaster relief, including in the Pacific. In September 2015, the Diet passed security reform legislation to give the Self-Defense Forces greater flexibility to contribute to international peace and stability, including by exercising Japan's UN Charter right to collective self-defence.

Economic overview

Japan's highly industrialised market economy was the fourth-largest in the world in 2025 (GDP in USD at current prices). Japan is a world leader in the manufacture of automobiles, machine tools, optical and precision equipment, machinery and chemicals. Faced with growing concerns about economic security, supply chain dependencies and increasing competition from other manufacturing economies, Japanese firms have diversified manufacturing production around the world through global value chains and foreign acquisitions. Japan's services sector, including financial services, accounts for about 70 per cent of Japan's GDP.

International trade contributes significantly to the Japanese economy, with exports equivalent to approximately 22.8 per cent of GDP in 2024. Key exports by value include cars, integrated circuits, electrical products, and refined petroleum. In 2025, Japan's major goods export destinations were the United States (18.5 per cent), China (17 per cent), Taiwan (7.2 per cent) and Republic of Korea (7 per cent).

Japan's main imports include crude petroleum, petroleum gas, , integrated circuits and broadcasting equipment. In 2025, leading suppliers of goods imports were China (23.5 per cent), the United States (11.4 per cent) and Australia (6.0 per cent).

To continue reinvigorating the economy, Prime Minister Takaichi launched Japan's Growth Strategy to encourage investment in 17 strategic sectors including energy, critical minerals and shipbuilding.

Bilateral relations

Australia and Japan's Special Strategic Partnership is built on trust, friendship, shared values and strong strategic and economic alignment. Our cooperation reaches across a wide range of areas including defence and security, trade and investment, and strong people-to-people links. Together, we support a free and open Indo-Pacific that is inclusive and resilient and brings peace, stability and security to the region.

The bilateral relationship dates back to the late 1800s, when Japan began importing Australian coal and wool. At around the same time, Japanese immigrants came to Australia to work in agriculture and maritime industries, including pearl diving. The trade relationship between Australia and Japan continued to strengthen until the onset of World War II, when in 1941 Australia joined allied troops to fight against Japan.

Australia and Japan re-established bilateral relations in 1952. Our post-war relationship grew with the establishment of a major trading relationship under the 1957 Commerce Agreement, and deepened investment and people-to-people links under the 1976 Basic Treaty of Friendship and Cooperation.

In 1957, Sir Robert Menzies became the first Australian Prime Minister to visit Japan, and then-Prime Minister Kishi Nobusuke became the first post-war Japanese Prime Minister to visit Australia. Since then, our leaders, ministers and senior officials have had regular interactions and visits, including a commitment to annual reciprocal leaders' visits under our Special Strategic Partnership (2014). Our foreign ministers have regular formal and informal discussions, including with defence ministers at the 2+2 Ministerial Consultations (most recently held on 5 September 2025 in Tokyo), and our trade ministers meet regularly for the Ministerial Economic Dialogue (most recently on 19 May 2026).

On 4 May 2026, Prime Minister Albanese hosted Prime Minister Takaichi for her first official visit to Australia. They agreed a range of ambitious outcomes that comprehensively elevate the Special Strategic Partnership, including cooperation on economic security, energy, critical minerals, defence, cyber, and the establishment of a new leadership dialogue. Both leaders recognised that Australia and Japan were more strategically aligned than ever before.

Australia and Japan share common strategic interests, including our alliances with the United States, and a commitment to peaceful, stable and prosperous Indo-Pacific region. Our economies are highly complementary, deeply rooted in the Indo-Pacific, and dependent on free and open trade and resilient supply chains.

Australia participated in World Expo 2025 Osaka, Kansai alongside more than 150 countries and regions. The Expo provided a strong platform to deepen our relationship with Japan, project a modern and diverse Australia, and showcase the best of Australian business, innovation, exports, sport and culture to a highly influential global audience.

Defence and security cooperation

Australia and Japan enjoy a strong and broad-ranging security relationship and have unprecedented strategic alignment.

The 2007 Joint Declaration on Security Cooperation provided a foundation for wide-ranging cooperation on security issues between Australia and Japan, including in law enforcement, border security, economic security, health security, climate change, energy transition, counter-terrorism, disarmament and non-proliferation, maritime and aviation security, peace operations and humanitarian relief operations.

The renewed 2022 Joint Declaration on Security Cooperation issued by Prime Minister Albanese and then-Prime Minister Kishida deepened and expanded cooperation to respond to the most pressing security challenges in our region. The growth in security and defence cooperation included identifying ways to enhance interoperability, including through expanding existing military exercises and training. Australia and Japan's defence forces have cooperated in regional crises, including the 2021 Tonga Volcano eruption, 2021 Kiribati drought assistance, 2014 disappearance of flight MH370, and 2013 Typhoon Haiyan.

During the 2019-20 Australian bushfire response, Japan provided valuable support to Australia, including two Hercules aircraft to transport military and civilian personnel, protective masks, and over $5 million in cash donations. Similarly, Australia provided extensive assistance to Japan following the 2011 Great East Japan earthquake and tsunami, including specialised personnel and equipment, defence aircraft, and a donation of $10 million.

Australia and Japan signed a Reciprocal Access Agreement (RAA) in January 2022 to further deepen our strategic and security relationship. The RAA entered into force on 13 August 2023. This agreement is facilitating even deeper collaboration on joint defence exercises and humanitarian and disaster support.

On 5 August 2025, the Australian Government announced that it had selected Japan's upgraded Mogami-class frigate as the preferred platform for the Royal Australian Navy's future fleet of general purpose frigates. Following a rigorous and competitive tender process, Mitsubishi Heavy Industries' Mogami was assessed as best able to quickly meet the capability requirements and strategic needs of the Australian Defence Force. On 18 April 2026, Deputy Prime Minister Marles and Minister Koizumi announced the Australian Government approval and signing of contracts with Japan for the acquisition of Australia's first three general purpose frigates. The first general purpose frigate is scheduled to be delivered in 2029.

On 4 May 2026, Prime Minister Albanese and Prime Minister Takaichi met in Canberra and issued the Joint Statement on Enhanced Defence and Security Cooperation, which focuses on strengthening our respective capability, deepening integration, and bolstering interoperability between Australia and Japan.

On 4 May 2026, the leaders also agreed to establish a new Australia-Japan Strategic Cyber Partnership. Under the Partnership, Australia and Japan will strengthen our cyber relationship by collectively hardening our cyber defences, improving shared awareness and collaboration on cyber threats and critical technologies, and building the collective resilience of the Indo-Pacific through public-private partnerships.

Regional cooperation

Australia and Japan work together for peaceful, stable, and prosperous Indo-Pacific region. Together, we are supporting our neighbours in the Pacific and Southeast Asia. Our 2011 Memorandum of Understanding on International Development Cooperation facilitates information exchange and cooperation in sectors such as education, health, food security and infrastructure. Recent 2+2 consultations highlighted our respective enhanced approaches to Southeast Asia, and our work together towards mutually decided priorities with ASEAN and Southeast Asian partners, including economic development, security cooperation and the energy transition.

In 2016, we agreed to a Strategy for Cooperation in the Pacific [PDF]. The Strategy outlines four areas for cooperation: effective governance; economic growth and sustainable development; security and defence cooperation; and diplomatic initiatives. The 2022 Australia-Japan Leaders' Meeting Joint Statement articulated our pursuit of the expansion of effective cooperation with other partners, including through the Partners in the Blue Pacific (with New Zealand, the UK, and the US), on key areas of importance for the Pacific such as climate change, critical infrastructure, disaster recovery and resilience, and maritime security. In July 2024, Japan hosted the Tenth Pacific Islands Leaders Meeting (PALM10) with Australia and Pacific Island countries. Leaders also affirmed their commitment to collaborate on priority areas of cooperation aligned to the Pacific Islands Forum's 2050 Strategy for the Blue Pacific Continent, including to take significant action on climate change and oceans.

Australia and Japan are also members (alongside the US) of the Trilateral Partnership for Infrastructure Investment in the Indo-Pacific (TIP), which was announced in 2018. The TIP promotes sustainable infrastructure development and is focused on mobilising private investment in regional infrastructure in the Indo-Pacific region. In October 2020, the three countries announced the first project under the partnership – an undersea fibre optic cable to Palau. Since then, Australia has worked with Japan and the United States through the TIP to support other infrastructure initiatives, including Telstra's acquisition of Digicel Pacific. TIP members renewed their Memorandum of Understanding in October 2022. Australia and Japan work together in multilateral and regional fora, including the United Nations, G20, Asia-Pacific Economic Cooperation (APEC), the East Asia Summit (EAS), the ASEAN Regional Forum (ARF) and the Asia Zero Emission Community (AZEC). Our countries collaborate in minilateral frameworks, including the Trilateral Strategic Dialogue (with the US) and the Quad (with the US and India). Australia supports Japan's aspiration to become a permanent member of the United Nations Security Council.

AZEC was launched by Japan, Australia and nine ASEAN partners on 4 March 2023 in Tokyo. The Japan-led initiative aims to advance Southeast Asia's transition to net zero and address climate change while achieving energy security and promoting inclusive economic growth. Australia is supporting the Asia Zero Emission Center.

Australia and Japan also cooperate closely on nuclear non-proliferation and disarmament. We have jointly led efforts in support of the Nuclear Non-Proliferation Treaty, including as co-founders of the cross-regional Non-Proliferation and Disarmament Initiative (NPDI) established in 2010. Australia and Japan are co-Chairs of the Friends of the Comprehensive Nuclear Test-Ban Treaty (CTBT) group. Australia joined the Friends of a Fissile Material Cut-off Treaty (FMCT), which Japan initiated and was launched on 23 September 2024 during the United Nations General Assembly High Level Week.

In 2019 Japan ceased its program of lethal whaling in the Southern Ocean, withdrew from the International Whaling Commission and resumed commercial whaling within its territorial waters and economic exclusion zone. Japan's commercial whaling program includes the minke, sei, fin and Bryde's whales.

Economic engagement

The Australia-Japan economic relationship is highly complementary and enduring. Australia is a secure and reliable supplier of energy, mineral resources and food to Japan, and is a world-class centre for financial and other services. Japan became Australia's largest trading partner in the early 1970s – a position it maintained for 36 years until 2005. Japanese investment plays an important role in the development of the Australian economy, including through the net zero transition under the Future Made in Australia agenda.

Australia and Japan held the sixth Ministerial Economic Dialogue in May 2026. Following the meeting, Australia's Minister for Trade and Tourism Don Farrell and Japan's Minister for Economy, Trade and Industry Akazawa released a Joint Statement.

On 4 May 2026, Prime Minister Anthony Albanese and Prime Minister Takaichi Sanae signed the Joint Declaration on Economic Security Cooperation (JDESC). The JDESC will make us more resilient to economic shocks and uncertainty, enable us to further build trusted supply chains, accelerate development of critical technologies such as AI, quantum and biotechnology, and support regional economic resilience. Australia and Japan also hold an annual Australia-Japan Economic Security Dialogue – a framework for exchanging information on economic and strategic risks and exploring ways of concrete and practical bilateral cooperation.

On 4 May, the leaders also issued a Joint Statement on Energy Security Cooperation and a Joint Statement on Elevated Critical Minerals Cooperation. The Joint Statement on Energy Security Cooperation reaffirmed Australia and Japan's commitment to maintain open trade flows of essential energy goods. The Joint Statement on Elevated Critical Minerals Cooperation elevated critical minerals to a core pillar of our economic and security relationship, driving Japanese and Australian co-investment in trusted critical minerals supply chains.

Opportunities exist for Australia to cooperate with Japan as each of our economies transition to a lower carbon future and build secure supply chains, including under Australia's Future Made in Australia agenda and Japan's Growth Strategy. These opportunities include supply and collaboration in relation to carbon-neutral LNG and technologies such as hydrogen and ammonia, low emissions steel and iron ore, and batteries, low carbon liquid fuels, as well as carbon capture and storage, and carbon recycling. Opportunities also exist in supplying the Japanese manufacturing sector with critical minerals including nickel, rare earths, fluorite, and magnesium, and to collaborate in new areas such as defence industry, Artificial Intelligence, and digitisation.

Investment

The total level of investment between Australia and Japan is significant. Japan was the fourth-largest total foreign investor in Australia in 2024, with total investments valued at $282.9 billion. Japan was also the second-largest direct foreign investor in Australia ($159.5 billion) in 2024, accounting for 12.5 per cent of direct foreign investment.

Japanese investment has been essential in the development of many of the export industries that have driven Australia's growth, including in large-scale projects to meet Japanese demand for resources such as coal and iron ore. Japanese investment has also enabled the rapid expansion of Australia's LNG production, notably by way of the Japanese-led Ichthys project located about 220 kilometres off the northern coast of Western Australia.

Japanese investment also extends to sectors such as renewables, critical minerals, housing (including build-to-rent), financial services, infrastructure, information and communications technology, food and agribusiness.

Trade

In 2025, Japan was our third-largest trading partner after China and the United States, with two-way goods and services trade valued at $97.5 billion. Japan was our second-largest export market, valued at $65.1 billion.

In 2025, Australia's major merchandise exports to Japan included coal ($19.6 billion), natural gas ($19.4 billion), iron ore ($6.5 billion), beef ($2.5 billion), and copper ($2.1 billion).In 2025 Japan was Australia's third-largest import source, valued at $32.4 billion, including passenger motor vehicles ($11.5 billion), recreational travel ($4.9 billion), goods vehicles ($2.4 billion) and refined petroleum ($1.9 billion).

The Japan-Australia Economic Partnership Agreement (JAEPA) entered into force on 15 January 2015, giving Australian exporters significantly improved market access in goods and services and substantially improving investment protections.

As strong supporters of the global, rules-based trading system, Japan and Australia cooperate closely in international and regional economic forums, including the World Trade Organisation (WTO), Asia-Pacific Economic Cooperation (APEC), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and Regional Comprehensive Economic Partnership (RCEP).

Doing business in Japan

Austrade assists Australian companies to build and implement their export strategies. Austrade's Japan market profile offers practical advice, market intelligence, financial assistance and ongoing support to Australian companies seeking to grow their business in Japan. Austrade also works to promote the Australian education sector within Japan and to attract productive foreign direct investment into Australia. Austrade has offices in Tokyo and Osaka.

People-to-people links

Early Japanese settlers started the pearling industry in Australia in the late-1800s. Larger-scale migration began after World War II, and Japanese continue to settle in Australia today. According to the 2021 census, more than 78,000 residents identified with Japanese ancestry. In 2025, there were 11,627 students from Japan studying in Australia (English courses, VET colleges and higher education). For Australian school students, Japanese is one of the most studied foreign languages.

There are more than 100 sister city and state-prefecture relationships between Australia and Japan. These relationships provide opportunities for educational, cultural, sporting and economic exchanges.

Since 2014, Japan has participated in the New Colombo Plan, an initiative of the Australian Government that aims to lift knowledge of the Indo-Pacific in Australia and strengthen people-to-people and institutional relationships through study and internships undertaken by Australian undergraduate students in the region. The New Colombo Plan has awarded 284 scholarships, 340 semester grants and 6,273 mobility grants for Australian undergraduates to undertake study and work-based experiences in Japan. This includes 74 scholarships, 340 semester grants and 488 student mobility grants in the most recent 2026 round.

The Australian Government supports the expansion of people-to-people and institutional links through the Australia-Japan Foundation (AJF). Since 1976, the AJF has provided grant funding for projects aligned with Australia's foreign and trade policy priorities, including in economic diplomacy, science and technology, sport, arts and education programs. People-to-people links are also supported by several Japan-Australia societies that provide grassroots community support to the relationship.

On 4 May 2026, Australia and Japan committed to further strengthen our relationship of deep trust and friendship by establishing the Australia-Japan Leadership Dialogue. The Leadership Dialogue will bring leaders across business, community and government together to shape our cooperation in the years ahead.

In 2025, there were 423,104 short-term Japanese visitors to Australia, a 6 per cent increase from 2024. International visitors from Japan spent an estimated $1.6 billion in Australia in 2025, a 13 per cent increase from 2024. A record number of Australians visited Japan in 2025 (1,058,300). This marked the first time the number of visitors to Japan broke the one million mark. Tokyo is one of Australia's most significant consular posts in the overseas network. In September 2025, Foreign Minister Wong and Foreign Minister Iwaya signed a Memorandum of Cooperation on Assisting Japanese and Australian Nationals Overseas, which will enable us to cooperate on the evacuation of respective nationals during an overseas crisis.