Japan, Australia boost economic security ties with finance dialogue

Japan ⁠and Australia ⁠have agreed to establish an ⁠annual finance ministers’ dialogue aimed at deepening cooperation in financial and economic policy, as well as strengthening bilateral collaboration on economic security.

Under ‌a memorandum of understanding signed on Monday that is effective for five years, the two countries’ finance ministers will meet regularly to promote cooperation across a broad range of economic themes.

“Recognising ⁠that Japan and Australia’s economic and security futures are ‌deeply connected, the Finance Ministerial Dialogue will enhance bilateral cooperation on economic security matters,” the ‌memorandum said.

“We will work together to promote stable economic growth in the Indo-Pacific region and around the world,” Japan’s finance chief Satsuki Katayama said during the signing ceremony.

Australian Treasurer Jim Chalmers said closer Australia-Japan cooperation was “more important now than ever”, adding the two countries “can seize new economic opportunities” by building on their complementary strengths.

The framework will focus on creating ⁠opportunities ⁠to enhance mutual energy and fuel security, investment in critical minerals, as ‌well as building “transparent, diversified, sustainable, and secure supply chains including in ‌the defence industry ‌sector”, it said.

The mechanism marks Japan’s third ‌ministerial-level finance dialogue with a major regional partner. Tokyo ⁠established similar frameworks with South Korea and China in ⁠2006, although no Japan-China finance ministers’ dialogue has been held since 2018.

Australia, a major supplier of ‌natural resources ‌to Japan, is one of the country’s key sources of liquefied natural gas. Australia is also rich in critical minerals, including rare earths.