The benefits stemming from Australia’s Free Trade Agreement with Japan will be felt right across regional Australia with local businesses and consumers set to reap the rewards of the deal.
The landmark Japan-Australia Economic Partnership Agreement (JAEPA) entered into force last week. This means more than 97 per cent of Australia’s goods exports to Japan will receive preferential access, or enter duty-free, once agreement is fully implemented.
Exporters will benefit from an immediate round of tariff cuts by Japan. This will be followed by another round of cuts in less than three months on 1 April.
Australia has had strong ties with Japan over many decades and Japan is Australia’s second-largest export destination. The JAEPA paves the way for a significant boost in opportunities for businesses in a range of industries including agriculture and processed foods, resources, manufacturing and services – such as financial, education, telco and legal services.
For businesses large and small the Agreement will enhance their competitive position in the Japanese market, placing them ahead of other international exporters. I urge all business people to take advantage of this and seek-out potential avenues for trade.
Agricultural exporters stand to benefit with tariffs cut or reduced in the beef, dairy, horticulture, wine, wheat, barley, seafood and sugar industries. The resources and mining industries will also benefit through tariff elimination putting our resources in a good position to compete with other exporters.
Consumers in Australia are also expected to gain from the Agreement. Just one example is that Japanese car-makers have reduced the cost of various models with savings ranging from $260 to $2600 for typical ‘family’ vehicles.
JAEPA is the second of three historic trade agreements concluded by the Abbott Government since coming to office. The Agreement with Korea entered into force late last year, while it is hoped the Free Trade Agreement with China will enter into force in the second half of this year.
These agreements will benefit the residents of the Parkes Electorate by enhancing economic growth and creating jobs, leading to greater prosperity and higher living standards for the entire community.
Further information on the JAEPA Agreement can be found at: http://www.dfat.gov.au/fta/jaepa/
Australian businesses are encouraged to use a step-by-step guide to accessing preferential tariffs on exports to Japan. The guide is available at: www.dfat.gov.au/fta/jaepa/fact-sheets/guide-to-using-jaepa-to-export-and-import-goods.html