15/7/2014

The Japan-Australia Economic Partnership Agreement (JAEPA) delivers substantial benefits for the Australian economy, making it easier to do business with Japan, our 2nd largest trading partner. The Agreement will strengthen and deepen trade between two of the Asia-Pacific’s largest economies.

JAEPA is the most liberalising bilateral trade agreement that Japan has ever concluded, providing Australian exporters, importers, investors and producers a significant advantage over their international competitors. This groundbreaking agreement will significantly improve access to the world’s third-largest economy for Australian business.

“Great for jobs and the economy. Japan is a very important market for Australia. It again reinforces Australia’s credentials as a trading nation.”

Richard Goyder | Wesfarmers Chief Executive (Chair of the 2014 B20)

Why Japan?

Japan is an economic heavy-weight: it is the third-largest economy in the world, worth almost US$5 trillion in 2013, and our second-largest trading partner. Two-way trade between Japan and Australia stood at $70.8 billion in 2013, more than 10 per cent of Australia’s total trade. Japan is a vital, long-standing and highly complementary trading partner for Australia.

Japan is the third-largest investor in Australia, with investment stocks worth over $130 billion in 2013. Japan is Australia’s sixth-largest investment destination.

JAEPA is Australia’s second bilateral trade agreement to be concluded with a major trading partner in North Asia after a Free Trade Agreement (FTA) with Korea was signed in April 2014. An FTA with China is currently under negotiation. Together these three economies represent over half of Australia’s exports.

“JAEPA will provide a significant boost to Australia’s minerals exporters and further strengthen the deep and complementary trade and investment relationship in resources between Japan and Australia.”

Brendan Pearson | Chief Executive Officer, Minerals Council of Australia

What will JAEPA do for Australia?

JAEPA will significantly improve Australian companies’ access to the Japanese market, making their goods and services exports more cost competitive. JAEPA will also improve the range and price of Japanese inputs for Australian manufacturers. As Asia’s rapid economic growth continues, closer trade ties with major Asian economies are essential to Australia’s continued prosperity.

For business and consumers

JAEPA will establish an advantage for Australian business over its competitors in Japan. More than 97 per cent of Australia’s exports to Japan will receive preferential access or enter duty-free when JAEPA is fully implemented.

Japan is the second-largest market for Australian agriculture and our largest food market. Through JAEPA, Australia becomes the world’s first major exporter to unlock Japan’s high import barriers. JAEPA will slash prohibitive agricultural tariffs on a wide range of products. JAEPA will eliminate tariffs on all of Australia’s manufacturing, energy and resource exports.

JAEPA guarantees Australian services suppliers access to the significant and well-developed Japanese market in key areas. Japan has committed to extend future liberalisation, including commitments it makes in future trade agreements, to Australian services exporters and investors.

JAEPA will boost Japan’s diverse and growing investment in Australia by raising the foreign investment review threshold.

It will also provide enhanced protections and certainty for Australian investors in Japan.

Australian consumers will benefit from a wider and lowerpriced range of goods and services including cars and electronic goods.

“This agreement will accelerate the growth of Australian food exports into Japan to meet growing demand from Japanese consumers who value Australia’s high quality food.”

Gary Dawson | Chief Executive Officer, Australian Food and Grocery Council

JAEPA at a glance – benefits of JAEPA

• More than 97 per cent of Australia’s exports to Japan will enter duty-free or will receive preferential access when JAEPA is fully-implemented.
• JAEPA will slash prohibitive agricultural tariffs on a wide range of products to Australia’s second-largest agricultural export market, including rapid tariff reductions for beef, Australia’s largest agricultural export to Japan.
• JAEPA eliminates tariffs on all of Australia’s current minerals, energy and manufacturing exports.
• JAEPA guarantees Australian service providers outcomes equal to or better than the best commitments Japan has made in any of its other trade agreements.
• Under JAEPA, both governments will support work towards enhanced mutual recognition of professional qualifications.
• JAEPA will promote Japanese investment in Australia by raising the screening threshold at which private Japanese investment in non-sensitive sectors is considered by the Foreign Investment Review Board.
• Australian innovators will enjoy levels of protection for their intellectual property in Japan broadly equivalent to protections provided in Australia

 

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