Japan and Canada signed a strategic agreement in Tokyo on Friday to tighten cooperation on defense, economic security and energy, with the two sides linking the effort to concerns about international oil supplies amid the war in the Middle East. Prime Minister Sanae Takaichi met with Canadian Prime Minister Mark Carney and their governments tied the talks to broader “geopolitical uncertainty,” according to a statement from Japan’s foreign ministry. The agreement also reflects growing attention by both countries to China’s expanding role in the Indo-Pacific, including in trade and military activity.
Carney, who made his first visit to Japan since taking office last year, addressed the drivers of the meeting during a joint news conference. He said, “The world is at a turning point. We see the manifestations in the Middle East. We see it everywhere,” according to the Japanese ministry’s statement. The visit followed Carney’s comments in Australia earlier this week calling for de-escalation in the Iran war.
At the center of the energy component, Japan and Canada agreed to work together to diversify energy resources. The foreign ministry said the talks also included plans to expand trade and investment aimed at supporting energy supply chains. The agreement was discussed alongside concerns that crude oil shipments that travel through the Strait of Hormuz are vulnerable to the effects of the fighting involving Iran.
Beyond energy, Takaichi and Carney also agreed to launch bilateral dialogues focused on economic security and cyber policy. The foreign ministry said those talks would take place as both countries confront challenges tied to China’s growing assertiveness in the region—spanning both commercial activity and military operations. The two leaders framed cyber and economic security as areas where closer coordination could reduce risk and improve resilience, as the Indo-Pacific competition intensifies.
The agreement further includes steps intended to deepen defense cooperation, including negotiations aimed at a defense pact. Japan and Canada said they will start talks aimed at achieving a pact that would simplify procedures for military visits, joint exercises and other operations. The proposal is also linked to Japan’s efforts to expand its defense sales beyond current levels as part of the country’s plan to further build its military capability and strengthen its defense industrial base.
Tokyo also signaled that the defense industry-to-industry relationship will become an explicit part of the partnership. The two sides agreed to step up cooperation between their arms industries, with Japan seeking to expand modest defense exports as part of its broader security buildup strategy.
Earlier Friday, Japan’s governing Liberal Democratic Party and its coalition partner, the Japan Innovation Party, submitted a proposal calling for scrapping restrictions on lethal weapons sales. The agreement was announced on the same day, with the expectation that the government would formally endorse the proposal in the coming months, marking a further shift away from Japan’s postwar pacifist principle. ___