Australia has concluded negotiations on an historic Economic Partnership Agreement with Japan, our second biggest trading partner. This historic agreement is good for the Australian economy, good for jobs, good for farmers and good for consumers.
The breakthrough follows the successful conclusion of a Free Trade Agreement with Korea, which will be formally signed in Seoul. Australia has broken new ground as the first major agricultural exporting economy to conclude such a liberalising agreement with Japan.
The Japan-Australia Economic Partnership Agreement (JAEPA) will deliver a significant boost to Australian farmers and other agricultural producers, resource exporters, service providers and consumers.
Better access for key agriculture products – including beef, cheese, horticulture and wine – will give Australia a head start over our competitors in this market.
- Beef: Currently there is a duty of 38.5 per cent on all beef going into Japan. The tariff will reduce over 15 years, however the bulk of the savings will be seen in the first two years of the agreement.
- The Frozen beef tariff will be cut to 19.5 per cent. This includes an 8 per cent reduction upon implementation and a further two per cent reduction in the second year of the agreement.
- Fresh beef tariff will be cut to 23.5 per cent, including a 6 per cent cut on implementation
- Seafood: Tariffs on shrimps and prawns, rock lobsters, abalone (fresh or preserved), oysters, crabs, yellowfin tuna, toothfish, sea urchins and fish oils and southern bluefin tuna will be completely eliminated.
- Wine: Bottled, sparkling and bulk wine will gain from tariff elimination over seven years
- Energy & mineral resources: Energy and mineral products account for almost 89 per cent of the value of Japan’s merchandise imports from Australia. All tariffs on energy and mineral products will be eliminated within ten years, most on entry into force of the agreement.
- Imports – Cars: The five per cent tariff on Japanese made cars imported to Australia will be phased out in the first year for three quarters of imported cars with the remaining quarter dropping the tariff in three years’ time.
- Cheese, by far Australia’s largest dairy export to Japan at $372 million, will gain significant new duty-free access.
- Australian horticultural producers will gain from immediate tariff eliminations across a wide array of fruit, vegetables and nuts.
- The tariffs on canned products such as tomatoes, peaches and pears, as well as fruit and vegetable juices, will also be eliminated.
Australian services providers will also gain significant new access to the Japanese market across areas such as financial, education, telecommunications and legal services.
JAEPA sends a strong message to Japanese investors that Australia is open for business.