Japan-Australia Relationship
The two countries started cementing their trade relationship a decade after the end of the Second World War when the Japanese Prime Minister, Nobusuke Kishi, signed the trade agreement of 1957. The flow of trade between the two countries increased gradually, with the two countries becoming the leading destinations of each others exports. The Basic Treaty of Friendship and Cooperation of 1976 confirmed importance of the trade links between the two post-war economies (MCCORMACK, YEAR 28).
The power structures in the region have been changing, and so have been security and trade structures. The end of the Cold War, the rise of China to become one of the worlds largest economies and the US preference for bilateral trade and security agreements have had their impact on the relationship between Japan and Australia (Hughes, 2004 427). One of the implications of this balance shift has been seen in the weakening of the trade bonds between the two countries. The importance of Japan, as a trading partner, to Australia has been declining. The decline is in fact not surprising, as scholars have observed that the real reason why the two countries came together was secury-related (Bisley, 2008 50). With security threats easing in the region, Australia focuses more on its relationships with other countries, chief among them the United States.
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