This strategy outlines a vision of where Australia's relationship with Japan should be in 2025 and how Australia should get there.
Australia’s partnership with Japan is our closest and most mature in the region, and is a model for Australia’s wider engagement with Asia. Australia’s trade with Japan has been a mainstay of our economy for decades and will remain so in the future. Our second-largest trading partner, Japan accounts for just under one in four of all export dollars Australia earns, with total goods and services trade amounting to $71 billion in 2012. Australia is Japan’s number one source of coal, iron ore, liquefied natural gas (LNG), uranium, beef and dairy products. Japanese investment has been key to Australia’s past economic development, and has continued to grow apace in recent years – almost doubling since 2007 to reach $126.4 billion in 2012. Japan is currently our third-largest source of foreign investment after the United States and the United Kingdom.
Beyond trade, Japan is a key partner for Australia in the region and globally, including through our shared alliance partner the United States. Despite wide differences in geography and demography, Australia’s comprehensive partnership with Japan is based on the shared values of democracy, human rights and the rule of law, as well as mutual respect, trust and a deep friendship born from decades of close cooperation.
Japan is the largest developed economy in the Asian region and the world’s fourth-largest economy in terms of purchasing power parity (PPP). It is one of the world’s largest investors in science, technology and innovation, consistently ranking as one of the top two countries in lodging patent applications. Deeply integrated into the world economy through trade, investment and value chains, Japan will remain a key global and regional economic player well into the future.