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Geopolitics & DefenseGovernment & Policy

Australia, Japan Forge Model for Middle-Power Cooperation

Two dignitaries in formal attire stand side by side overlooking a serene harbor.

"We must protect our principles: rule of law, open markets, and freedom from coercion," Japan’s Ambassador to Australia, Kazuhiro Suzuki, told the ASPI Defence Conference on 25 June. He used that injunction to frame a larger claim: Australia and Japan, as leading Indo‑Pacific democracies, have complementary capabilities across economics, politics and security that position them to lead practical institution‑building in the region.

Kazuhiro Suzuki’s case at the ASPI Defence Conference

Suzuki presented the partnership as a demonstration of middle‑power leadership. He traced the Free and Open Indo‑Pacific concept to former prime minister Shinzo Abe’s 2007 Confluence of the Two Seas speech, and cited current Prime Minister Sanae Takaichi’s update last May emphasizing resilience, autonomy and practical cooperation in a more contested environment. Suzuki argued that safeguarding those principles requires capacity to determine independent paths, diversification to avoid excessive dependence on any single country, and strengthened resilience.

CPTPP and POWERR Asia: economic tools of influence

Suzuki pointed to the Comprehensive and Progressive Agreement for Trans‑Pacific Partnership (CPTPP) as a clear precedent for Australia–Japan practical leadership. He said, "The TPP was initiated by the United States, but the United States withdrew. And then Japan and Australia jointly, we saved it from collapsing and created the CPTPP." More recently, Japan’s launch of POWERR Asia in April 2026—backed by US$10 billion (A$14 billion) and including 16 Asian countries—offers a major regional energy security initiative focused on emergency fuel procurement, strategic stockpiles and long‑term supply diversification. During Prime Minister Takaichi’s Canberra visit, the two countries signed a Joint Declaration on Economic Security Cooperation committing to closer cooperation on energy security and critical minerals, tying the economic agenda to broader strategic aims.

Critical minerals: from project financing to strategic coordination

Critical minerals are a named locus of bilateral complementarity and rising institutional architecture. The Australia–Japan Critical Minerals Partnership, launched in 2022, established co‑financing mechanisms and working groups. During Takaichi’s visit, a Joint Statement on Elevated Critical Minerals Cooperation committed up to A$1.3 billion through Australia’s Critical Minerals Facility and Export Finance Australia to projects involving Japanese participation. The Lynas rare earths investment and the Alcoa gallium recovery project in Western Australia are cited as concrete outcomes. The source frames the immediate policy task bluntly: move beyond project‑by‑project finance toward longer‑term strategic coordination.

Defence cooperation: Mogami‑class frigates, access, and sustainment

Defence ties have advanced rapidly. Australia agreed to acquire up to 11 Upgraded Mogami‑class frigates, with the first three contracted during Japanese Defence Minister Shinjiro Koizumi’s April visit. A reciprocal access agreement permits the two militaries to operate from each other’s facilities, and Defence Minister Richard Marles is quoted as saying that "no country has greater strategic alignment with Australia than Japan." ASPI analysts Alex Bristow and Justin Bassi have argued the partnership has moved close enough to warrant calling Japan an ally, "treaty or not." The Mogami deal also raises industrial questions: Perth could become a sustainment hub for regional operators of Japanese equipment.

Australia–Japan and the Gulf: a proposed western flank dialogue

The analysis highlights an underused axis: the Gulf as the western flank of the Indo‑Pacific. Around 82 percent of crude oil passing through the Strait of Hormuz is destined for Asia, creating a direct interest for Gulf producers in reliable maritime trade and security arrangements. Australia’s expanding partnerships with the United Arab Emirates, Saudi Arabia and Qatar, together with Japan’s decades of cooperation across the Gulf Cooperation Council, suggest a basis for a structured Australia–Japan–GCC dialogue. The piece proposes such a forum could, over time, be extended to middle powers like South Korea and India to better align producer and consumer interests exposed by recent disruptions.

What this means for policymakers, defence planners, and resource companies

  • Policymakers: Canberra and Tokyo are using trade, finance and political declarations—CPTPP, POWERR Asia, and joint economic security declarations—to translate strategic alignment into tangible regional leadership; the immediate policy question is institutionalizing long‑term coordination on critical minerals and energy.
  • Defence planners: procurement and basing decisions, such as the Upgraded Mogami‑class frigates and a reciprocal access agreement, signal deeper operational integration and require planning for sustainment roles, including potential hubs such as Perth.
  • Resource companies and financiers: existing co‑financing mechanisms under the 2022 Partnership and the A$1.3 billion commitment point to concrete investment channels, but firms will watch for moves from one‑off project finance to enduring strategic frameworks that reduce investment risk in small, technically uncertain deposits.

Suzuki’s closing theme was practical: frameworks matter, but projects matter more. The CPTPP, POWERR Asia and deeper defence cooperation are his evidence that strategic alignment can be converted into deliverables. The articulated challenge—"to move from project‑by‑project financing to more long‑term strategic coordination"—is the clearest yardstick by which Canberra and Tokyo’s middle‑power model will be judged.

Original ASPI article