Analysis of the Bilateral Relationship Between Australia and Japan

This report provides an in-depth analysis of the bilateral relationship between Australia and Japan, highlighting the evolution of their economic, political, and cultural ties. It begins by examining the pre-World War II relations, which were initially weak, and then focuses on the significant improvements that followed the war. The report details key milestones, such as the signing of the first trade contract in 1957 and the establishment of the Japan-Australia Economic Partnership Agreement in 2014, which have fostered substantial economic growth and cooperation. It discusses Japan's role as a major trading partner for Australia, particularly in the import of raw materials and food, and Australia's position as a significant exporter of goods like beef. The report also explores the political alignment and security cooperation between the two countries, including their involvement in regional forums and support for each other's international initiatives. Overall, the analysis underscores the strengthening and well-rounded nature of the Australia-Japan relationship, emphasizing its importance in the global context.

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Bilateral relationship between Australia and Japan

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Bilateral relationship is the conduct of economic, cultural, and political relation
between two countries. It is important for countries to have strong relationship in order to do
trade among each other. Before World War II Australia and Japan relations was not strong.
After this war, both these countries have begun extending better trade relations (Department
of Foreign affairs, 2017). After World War II, relation between Australia and Japan has been
discussed. In recent years also, these countries have various partnership agreement that has
made the countries to enjoy better relation in the world. The discussion ends with explaining
the current relationship between Japan and Australia.
Before the World War II the relations between the two countries was not strong. The
purpose of these countries after World War II is to maintain the bilateral relations and close
contract in terms of trade, partnership, and security. Australia was the first nation who opens
its door for trading with Japan after the World War II (Thompson, 2017). These two
countries signed their first trade contract on 6th July 1957. In 1957, Japan Prime Minister
“Nobusuke Kishi” welcomed the “Menzies”, an Australian prime minister to visit Japan after
the second world war. In this meeting, the conclusion is drawn by doing agreement in
commerce (O’Neil, 2017). Signing of this agreement has made the substantial expansion of
economic relationship between both the countries that served the country with strong
partnership. Japan became the largest exporter for Australia in late 1960s. In early 1970s, it
became the second biggest source of import. Australia is major basis of raw material and food
for Japan. This leads to the growth in both countries by sharing trade agreements. In 1990,
Australia has total 5.4% of total Japanese import. Besides this, Australia was the only
supplier of iron, coal, wool, sugar, and ore to Japan in 1991 (Wang, 2016). This helped the
Japan to get easy access to these products in the country. The project on resource
development has attracted the Japanese capital towards Australia. In this way, the total
investment in Australia was US$8.1 Billion in 1988. Japan protect the agriculture while
Australia faces high tariffs, barriers and quotas in exporting agricultural products such as
butter, apples and beef to Japan (Lester, Mercurio & Bartels, 2016). Japan is therefore largest
beef exporter of Australia by talking into account the 35.8 % beef that is shipped in 2011.
In recent years, company shares a positive trade relation among each other. In 2014,
both countries have signed “Japan Australia Economic Partnership Agreement.” This
agreement is benefitting both the countries. It helps both countries in their economic growth
by increase the opportunities for trade and investment. The report published by Department

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of foreign affairs and trade stated the trade relations between Japan and Australia is still
strong (Rix, 2013). In 2016 and 2017, Japan was second largest trading partner of Australia
with two-way relation of goods and services. Australia has imported $billion goods to Japan.
In addition, trade ledger has represented the trade account between Japan and Australia. In
2016-17, the third largest source of export of Australia was Japan including gold ($2.6
billion), good vehicle ($1.4 billion), and refined petroleum of $ 2.5 billion. Japan also assists
Australian who wants to do business in Japan. It offers financial assistance, market
intelligence, and practical advice to all Australian companies who want to grow and establish
their business in Japan. Austrade is developed to assist the Australia companies in order to
implement the export strategies (News pty, 2018). It also promotes the education sector of
Australia within Japan. It seeks to attract the foreign direct investment in Australia. Japan and
Australia both are close partners in regional forums such as East Asia summit and Asia
Pacific Economic Cooperation. In addition, Australia supports the Japan in order to become
permanent member of “United Nations Economic Cooperation.” Australia is continuously
supporting in reconstruction of areas that are confounded by disaster.
In the discussion, it is mentioned that the bilateral relationship of Japan and Australia
is one of the most well rounded relationship in the world. From political, economic and
security perspective, the bilateral relationship between these countries is getting stronger and
stronger. The Australia Japan foundation provides the opportunities for Japan and Australia
experts to explore intensely into the mutual relationship (Satake, 2015). Recently, Joint
declaration on Security Corporation has established a regular talks between defence and
foreign ministers. At the seventh talk in Tokyo, ministers welcomed the near engagement
between Australia and Japan. In this, reaffirmation of commitment is done to further enhance
the bilateral relationship between these countries.

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It is understood that before World War II Japan and Australia was not having positive
trade relations. These were sharing warm relationship. After World War II, these countries
were getting closer that begins with started trading with each other. After the World War II,
the relations between these countries continue to grow stronger over the years. After the
World War II, Australian government has seen Japan as the major exporter country. Australia
becomes the major basis of raw, iron ore, and food for the Japan. On the other hand, Japan
was the largest beef exporter for Australia. Currently both these countries share a positive
trade relation by signing an economic partnership agreement. Due to this agreement, both the
countries are benefitting. The economic growth of both countries is possible by sharing open
trade among each other. It is founded that Japan assists the Australian firms who want to do
business there. It provides financial assistance and advice to the Australian peoples. In this
way, currently the relations between these countries are growing well.

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References
Department of Foreign affairs. (2017). Australia-Japan bilateral relationships. Retrieved from:
https://dfat.gov.au/geo/japan/Pages/australia-japan-bilateral-relationship.aspx
Lester, S., Mercurio, B., & Bartels, L. (Eds.). (2016). Bilateral and regional trade agreements: Commentary
and analysis(Vol. 1). England: Cambridge University Press.
News pty. (2018). Why Australia is choosing old enemy Japan over China. Retrieved from:
https://www.news.com.au/national/why-australia-is-choosing-old-enemy-japan-over-china/
news-story/8227dd3d943e8d4918f4498598e904e5
O’Neil, A. (2017). The Australia-Japan relationship: Worthy of more reflection. Retrieved from:
https://www.lowyinstitute.org/the-interpreter/australia-japan-relationship-worthy-more-
reflection
Rix, A. (2013). The Australia-Japan Political Alignment: 1952 to the Present. United Kingdom: Routledge.
Satake, T. (2015). Why a strong Australia-Japan relationship matters. Australia-Japan Research
Centre, 3(5).
Thompson, S. (2017). What was the relationship between Japan and Australia pre-World War II?.
Retrieved from: https://www.quora.com/What-was-the-relationship-between-Japan-and-
Australia-pre-World-War-II
Wang, Y. (2016). Australia-China relations post 1949: Sixty years of trade and politics. United Kingdom:
Routledge.