Canada & Japan unveil new partnership: AI, energy, cyber

Ottawa and Japan have announced a new Comprehensive Strategic Partnership covering defence, energy, critical minerals, trade and technology, as Prime Minister Mark Carney met Japanese Prime Minister Takaichi Sanae in Tokyo.

The announcement positions the relationship as a pillar of Canada's Indo-Pacific engagement and reflects Japan's role as a major investor and trading partner.

Japan is a market of more than $5.5 trillion and the world's fourth-largest economy. Canada describes Japan as its fourth-largest source of foreign direct investment, with bilateral trade of nearly $40 billion, according to Canadian government figures cited during the visit.

"Japan is a trusted partner and a global leader in innovation, technology, and advanced manufacturing. Together, we are strengthening our economic security, securing resilient supply chains in critical minerals and clean energy, and deepening security and defence cooperation in support of a free and open Indo-Pacific. By expanding and modernising our partnership, we are creating long-term opportunities for our workers and building a more secure and resilient future for both countries," Carney said.

Defence focus

Security and defence cooperation is a central part of the partnership. Canada and Japan already work together through multilateral exercises in the Indo-Pacific and through Canada's Operation NEON. They also cooperate on cybersecurity and what Canada describes as emerging threats. 

Cyber cooperation will expand through a new Canada-Japan Cyber Policy Dialogue focused on information exchange, resilience building and collaboration on cyber threats.

The partnership also calls for stronger defence industrial links, including greater collaboration between Canadian and Japanese companies on frontier technologies such as artificial intelligence, autonomous systems and space security. 

Canada and Japan will also draw on existing memorandums on battery supply chains and industrial science and technology, with the stated aim of deeper cooperation and economic gains for both countries.

The partners plan to modernise the Canada-Japan Joint Economic Committee, which marks 50 years of structured economic dialogue. The update will focus on semiconductors, batteries, artificial intelligence, clean energy, critical minerals and supply-chain resilience.

Trade delegations will follow. Canada said a Team Canada Trade Mission will travel to Japan later this year. Japan's business federation is also expected to visit Canada, as both sides point to new commercial partnerships and investment opportunities.

Energy links

Energy security is another strand of the partnership. The leaders committed to expanding bilateral trade and cooperation on energy projects, including liquefied natural gas and liquefied petroleum gas, citing their roles in energy security and the energy transition. Canada also pointed to its methane regulations in describing its position as a supplier of lower-emission energy.

The partnership also identifies areas for cooperation on clean-energy technologies, including nuclear technologies, hydrogen and energy-efficient industrial processes. Carbon capture, utilisation and storage is also included, along with work on storage, grid modernisation and clean-energy integration.

Technology accelerators

Beyond government and established industry ties, the partnership aims to increase collaboration across innovation, venture and startup ecosystems. The goal is more two-way investment and stronger links between accelerators and corporate innovation networks, alongside joint commercialisation in emerging technology sectors.