Australia signs new deal with ally to counteract global shocks

Monday, 4 May 2026 15:40

Both countries have agreed to strengthen economic, energy and defence ties.

Australia and Japan have agreed to strengthen economic, energy and defence ties to withstand the shocks of the war in the Middle East.

Prime Minister Anthony Albanese and Japanese counterpart Takaichi Sanae marked 50 years of "friendship" today with the signing of the new Joint Declaration on Economic Security and Cooperation.

The agreement will build "trusted" fuel, energy, critical minerals, food and technology supply chains with the major trading partner.

"Our Joint Statement on Energy Security reaffirms our commitment to navigate the current energy crisis together and maintain open trade flows of essential energy goods, including liquid fuels and gas," Albanese said at a press conference with Sanae this afternoon.

"For Australians, it will mean we are less vulnerable to global shocks, like we are seeing right now because of conflict in the Middle East.

"It will mean more security for farmers when they are planting their crop, and more certainty for commuters when they are filling up their car."

It comes as Australia looks to shore up more fuel shipments from its allies after supply chain disruptions caused by the war in Iran.

Australia gets the majority of its refined fuel from Asian markets, which get their oil from the Middle East.

Albanese travelled to Malaysia and Singapore last month to secure more fuel and has now turned his sights on Japan.

While Australia gets some of its fuel supply from Japan, Japan receives about 40 per cent of its liquified natural gas from Australia.

Australia and Japan also signed agreements on critical minerals, defence and an open Indo-Pacific region.

Both countries have instructed their relevant ministers to find ways to strengthen their partnership.

"Our friendship has never been closer, and in these uncertain times, friendships matter more than ever," Albanese said.

Prime Minister of Japan Sanae Takaichi and Prime Minister Anthony Albanese.

Sanae, through a translator, said the meeting with Albanese was "highly productive" and would affirm their countries' relationship for the next 50 years.

"The two countries have built a relationship as frontrunners in cooperation among like-minded countries by advancing pioneering security cooperation at a level that could be described as quasi allies," she said.

Sanae admitted the closure of the Strait of Hormuz had created regional issues, but said the pair will work closely to strengthen their resilience.

"We affirmed that Japan and Australia will closely communicate with each other in responding with a sense of urgency," she said.

Japan is Australia's third-largest two-way trading partner and second-largest export market.

Under a $10 billion deal signed in April, Japan will deliver three upgraded Mogami-class frigates for the Royal Australian Navy in 2029.

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