The Japan-Australia trade agreement, also known as the Japan-Australia Economic Partnership Agreement (JAEPA), is a bilateral free trade agreement between Japan and Australia that came into effect on January 15, 2015. This agreement is considered to be one of the most comprehensive trade agreements that Japan has ever signed, and it has been hailed as a significant step forward in the economic relations between these two countries.
The Japan-Australia trade agreement aims to increase trade and investment between the two countries. This will be achieved by eliminating tariffs on a wide range of goods and services, reducing regulatory barriers to trade, and promoting investment and the flow of capital between Japan and Australia.
One of the key components of the agreement is the elimination of tariffs on beef and dairy products. This is a major win for Australian farmers, who have been seeking access to the Japanese market for their high-quality beef and dairy products for many years. In return, Japan has gained improved access to Australia`s agricultural markets, including wheat, barley, and seafood.
The agreement also includes provisions for increased cooperation in a number of areas, including science and technology, energy and resources, and intellectual property. This will allow both countries to share expertise and resources, as well as creating opportunities for innovative collaboration.
Since the Japan-Australia trade agreement came into effect, it has had a significant impact on trade and investment between the two countries. In 2019, Japan was Australia`s second-largest trading partner, with two-way trade totaling A$88.5 billion. Japan is also Australia`s second-largest export market, with exports valued at A$48.9 billion, of which A$16 billion was beef and A$1.8 billion was dairy.
The Japan-Australia trade agreement has also had a positive impact on the Australian economy, creating new jobs and boosting economic growth. The Department of Foreign Affairs and Trade estimates that the agreement has boosted Australia`s GDP by A$ 1.6 billion, and created an additional 10,000 jobs.
In conclusion, the Japan-Australia trade agreement is a significant milestone in the economic relationship between these two countries. By promoting trade and investment, reducing barriers, and encouraging cooperation, this agreement has created new opportunities for businesses and farmers in both countries. As a result, it has had a positive impact on the Australian economy, and will continue to do so for many years to come.
