As global economic tensions increase, Australia and Japan have strong tailwinds for increased economic security through cooperation a new report from the United States Studies Centre (USSC) at the University of Sydney has found.

In the first half of 2025, the USSC Economic Security program hosted a first-of-kind workshop series bringing together Australian and Japanese government and industry to forge new public-private partnerships on energy security, critical minerals, and global trade. In Developing a shared Australia–Japan agenda for economic security, Director of Economic Security Hayley Channer, Senior Research Associate Tom Barrett, Senior Research Associate Samuel Garrett and Research Associate Sahara Hoff share the findings of consultations in Tokyo, Canberra, and Sydney.

“Countries around the Indo-Pacific are facing competing challenges through new tariffs and increased economic coercion, but in the midst of this disruption, there’s an opportunity for Japan and Australia to increase stability through more coordinated action,” Channer said.

The report found that energy security, clean energy technologies, critical minerals supply chains, AI regulation and critical infrastructure protection were the areas of the most convergence between the Australian and Japanese economic agendas.

“Whether it’s energy, critical minerals, or AI, Australia and Japan have much to learn from each other’s approaches. Australia can learn from Japan’s highly successful engagement with the private sector and get more buy-in to deliver on things like Future Made in Australia,” Channer noted.

The report includes an overview of the government bodies and policies that manage each nation’s economic security and a map of priority alignment.

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Key recommendations

  • Trade architecture | Promote the utility and ongoing relevance of international trade organisations and related dispute resolution mechanisms for countries, particularly small and middle powers.
  • Energy security and clean energy policies | Increase consultation and early warning on national energy policy developments as well as more sub-national level engagement with international partners on policy developments.
  • Critical minerals | Support critical mineral miners and processors with long-term, patient capital (not just one-off investments), support during low-pricing periods, and expertise and technical assistance.
  • Technology | Prioritise a joined-up approach to AI policy through information-sharing and consultation to provide best-practice policy options for other countries to emulate.