Forging a New Partnership With Japan

Canada is focused on what we can control – strengthening our economy at home and diversifying our partnerships abroad, including in the Indo-Pacific. Japan is an over $5.5 trillion market, the world’s fourth-largest economy, and Canada’s fourth-largest source of foreign direct investment – with nearly $40 billion in bilateral trade. Canadian businesses in Japan are leaders in financial services, forestry, and automotive sectors, and 70% of the cars manufactured in Canada are made by Japanese companies – supporting thousands of high-quality careers for Canadian workers.

Yesterday, the Prime Minister travelled to Tokyo, where he met with Prime Minister Takaichi Sanae. Following their meeting, the leaders released a joint statement and announced an ambitious new Comprehensive Strategic Partnership between Canada and Japan across defence, energy, critical minerals, trade, and technology. This partnership will reinforce collaboration between our two countries, attract more capital into Canada, and give greater depth and opportunities to our growing relationship.

Canada and Japan share a robust defence and security partnership, spanning the Canadian Armed Forces’ Operation NEON in the Indo-Pacific, joint and multilateral exercises with the Japanese Self-Defense Forces, cooperation on cybersecurity and emerging threats, and a shared commitment to achieving a just and lasting peace for Ukraine.

To bolster our defence and security relationship and build up our defence industrial cooperation, the leaders announced:

  • Three bilateral Memorandums of Cooperation (MOCs) that will strengthen collaboration on international emergency response, joint Coast Guard exercises, and action against illegal, unreported, and unregulated fishing in the North Pacific.
  • Additional strategic planning, bilateral exercises, and joint operations and training exercises, including joint sails between the Royal Canadian Navy and the Japanese Navy as well as the potential for Japan’s participation in Canada’s Operation NANOOK.
  • Strengthened cybersecurity and cyber defence cooperation through a new Canada-Japan Cyber Policy Dialogue, including information exchange, resilience building, and collaboration on cyber threats.
  • Greater defence industrial collaboration between Canadian and Japanese companies on frontier technologies, including artificial intelligence (AI), autonomous systems, and space security, to build out our defence supply chains, increase capital flows into defence sectors, and create high-paying careers.

To build on and expand their strong trade ties, Canada and Japan will:

  • Instruct their officials to identify immediate investment opportunities, including through pension funds.
  • Increase efforts to support Japanese automotive manufacturers in advancing their decarbonisation efforts in Canada through multiple pathways.
  • Leverage existing MOCs, including those on battery supply chains and industrial science and technology, to deepen bilateral cooperation and catalyse economic gains for both countries.
  • Modernise the Canada-Japan Joint Economic Committee, building on 50 years of close economic cooperation, to capitalise on emerging opportunities such as semiconductors, batteries, AI, clean energy, critical minerals, and resilient supply chains.
  • Deploy trade delegations, including a Team Canada Trade Mission to Japan in 2026 and an upcoming visit to Canada by the Japan Business Federation to unlock new commercial partnerships for Canadian businesses and investment opportunities in Canada.

To bolster energy security and leverage Canada and Japan’s complementarity in supply, the Prime Ministers committed to:

  • Expanding bilateral trade and cooperation on energy projects, including liquified natural gas and liquified petroleum gas, recognising their important roles in energy security and the energy transition. This also underscores Canada’s unique position to meet demand for low-emission energy, thanks in part to our enhanced methane regulations.
  • Increasing cooperation on clean energy technologies, including nuclear technologies, hydrogen, energy-efficient industrial processes, as well as carbon capture, utilisation, and storage.
  • Harnessing innovation in clean storage, grid modernisation, and clean‑energy integration.

Canada and Japan are both leaders in advanced technology and trusted partners in the responsible development of AI, manufacturing, and research and development (R&D). To reinforce this relationship, the two countries will:

  • Deepen cooperation on critical minerals, including joint work to secure reliable supplies, enable value‑added processing, and support diversified manufacturing ecosystems. This includes collaboration through the G7 Critical Minerals Production Alliance.
  • Increase partnership opportunities on semiconductors, AI, cybersecurity, batteries, hydrogen fuel cells, clean technologies, quantum technology, fusion energy, and other strategic sectors central to economic competitiveness.
  • Advance joint R&D and innovation cooperation in new and emerging technologies, building on this year’s 40th anniversary of the Canada-Japan Agreement on Cooperation in Science and Technology.
  • Intensified collaboration between our two countries’ innovation, venture, investor, and startup ecosystems, including by accelerating greater two‑way investment, strengthening links between accelerators and corporate innovation networks, and supporting joint commercialisation in emerging technology sectors.

In addition to these efforts, Canada and Japan will increase Arctic scientific and technological cooperation as well as joint efforts on climate change and environmental observation. To that end, the leaders welcomed the signing of a bilateral MOC to conduct joint scientific activities in fisheries and marine research, including stock assessment, climate and ecosystem science, advanced marine technologies, and researcher exchanges to support sustainable resource management.

The Prime Minister’s visit to Japan follows his latest engagements in India, where Canada secured over $5 billion in commercial agreements, and in Australia, where Canada elevated the bilateral partnership in critical minerals, defence, and AI and secured up to $10 billion in investment commitments. By re-engaging with global giants and deepening our partnerships with our closest allies, Canada is creating high-paying careers at home, diversifying our trade, attracting massive investment, and building a stronger, more sovereign, and more resilient Canadian economy.

That’s how we Build Canada Strong.

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