Japan market snapshot
- GDP: US$5.9640 trillion (2012)
- GDP per capita: US$46,736 (2012)
- GDP growth: 2.0 per cent (2012)
- Population: 127.6 million (2012)
- Trade with Australia: A$69.2 billion (2012-13)
Who wins from the Japan-Australia Free Trade Agreement?
- Australian consumers - the price of whitegoods and electronics should drop, while $1500 could be shaved off the price of average Japanese car.
- Australian farmers - particularly beef and cheese producers, who are tipped to make millions from tariff cuts and preferential treatment.
- The Australian economy - two-way trade with Japan is already worth up to $71 billion per year, with billions more to be added.
- Japanese investors - proposals to invest in Australia will only be scrutinised if they're worth more than $1.1 billion, up from $248 million.
- There were losers - no ground made on sensitive sectors like rice, while some Australian beef farmers were also after more significant tariff cuts.
But the Chamber of Commerce and Industry says the implications of the deal remains unclear and is urging the government to release all details of the negotiations.
In a statement, Bryan Clark the chambers’s director of trade and international affairs wrote: "We will need to scrutinise the final document to fully understand what has been negotiated and how companies can take advantage of the preferential terms in the agreement."
Agriculture
Exporters of beef, cheese, horticulture, wine and seafood will benefit from the agreement.
Beef
- Japan currently imposes a 38.5 per cent tariff on beef imports.
- The tariff on frozen beef will be cut to 19.5 per cent.
- Tariffs on fresh beef will be cut to 23.5 per cent over 15 years.
Dairy
Cheese is one of Australia’s biggest dairy exports to Japan and is worth $372 million in 2013.
- Australia already exports 27,000 tonnes of cheese duty-free under a global quota. Under this agreement, this will be increased to 47,000 tonnes.
- Australian dairy producers have also gained immediate duty-free access for milk products such as protein concentrates, worth $53 million and tariffs of up to 5.4 per cent.
Other agriculture outcomes
- Bottled, sparkling and bulk wine will gain from tariff elimination over seven years.
- Barley exporters will have increased duty-free access.
- Exporters of canola and other vegetable oils will receive tariff elimination.
- 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 eliminated.
- Around 95 per cent of Australia’s chocolate exports will enter Japan duty-free or at a reduced tariff rate.
- Australian honey producers will receive an Australia-specific quota that will rise over time, with the tariff eliminated over ten years.
- Australia will have preferential access for a large volume of pork and pork products.
Industry, Energy and Minerals
Energy and mineral resources
- All tariffs on energy and mineral products will be eliminated within ten years.
- Many of Australia’s major resource exports (such as coal, iron ore and liquefied gas) already enter Japan duty-free. Under the agreement, Japan will eliminate tariffs for all remaining resources products over ten years.
- Tariffs will be immediately removed for: Coking coal, Petroleum oils, Aluminium hydroxide and Titanium dioxide.
Manufactured products
Tariffs of up to 30 per cent are currently applied to some manufacturing products. Under the agreement, Japan will remove $243 million worth of tariffs on Australian manufactured exports.
