Australia and Japan recently entered into a historic free trade agreement, marking a significant milestone in the relationship between the two nations. The agreement, officially known as the Japan-Australia Economic Partnership Agreement (JAEPA), has been in the works for several years, and it finally came into effect on January 15, 2015.
The agreement is expected to have a significant impact on trade between the two countries, as it will eliminate or reduce tariffs on a wide range of goods and services. This will make it easier for Australian exporters to sell their products in Japan, and for Japanese companies to import goods from Australia. Some of the key sectors that will benefit from the agreement include agriculture, mining, and manufacturing.
One of the most significant aspects of the JAEPA is that it will remove tariffs on Australian beef, which is a major export for the country. Under the agreement, tariffs on fresh, chilled, and frozen beef will be gradually reduced to zero over the next 15 years. This is expected to increase demand for Australian beef in Japan, which is the world`s largest importer of beef.
The agreement will also benefit Australian dairy farmers, as tariffs on milk and cream will be eliminated immediately, while tariffs on cheese and butter will be eliminated over the next few years. This will provide Australian dairy farmers with greater access to the Japanese market, which is currently dominated by domestic producers.
In addition to the benefits for exporters, the JAEPA is also expected to have positive impacts on consumers in both countries. With the elimination of tariffs, prices on goods and services are expected to decrease, while the range of products available is likely to increase.
Overall, the Australia-Japan free trade agreement is an important development in the relationship between the two nations. It is expected to provide a significant boost to trade and investment, and to help both countries to strengthen their economic ties. As the world`s third-largest economy, Japan is a key trading partner for Australia, and the JAEPA is likely to provide significant benefits for years to come.