History has been made yesterday when a free trade agreement with Japan was agreed to.
Following seven years of negotiations between our two countries the Japan-Australia Economic Partnership Agreement (JAPEA) has now been procured. The trade deal struck will improve prosperity between both nations.
Australian Prime Minister, Tony Abbott and his Japanese counterpart Shinzo Abe sat down and have settled on the major points on this agreement.
The following are some of the major changes that have struck under the proposed deal:
• 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.
o 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.
o 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.
Mr Abe is due to formally sign the deal in July when he arrives into Australia, and will possibly come into effect later this year.
EES will keep you informed of the developments as they come to hand.
Source credits: abc.net.au & CCI International Trade Services
Image credit: smh.com.au