The relationship between Japan and Australia has continued to grow closer over the past couple of decades.
Currently, Australia’s exports to Japan are worth $41.5 billion dollars, making Japan our second-largest export destination. While these statistics prove our connections economically, a recently signed trade agreement between Australia and Japan will provide unique opportunities for Aussie businesses to grow further in Japan.
Despite launching in 2015 The Japan-Australia Economic Partnership Agreement is becoming increasingly valuable as agricultural exporters look for market alternatives to China.
“The agreement provides valuable preferential access for Australia’s exporters and will support further growth in two-way investment. JAEPA is by far the most liberalising trade agreement Japan has ever negotiated and implemented.”
The Department of Foreign Affairs & Trade
98 percent of Australia’s merchandise exports to Japan will be able to receive preferential access or enter duty-free deals demonstrating how broad this agreement goes.
Bringing Australian business access to almost 126 million people in Japan who could be new and potential consumers. Australia’s Department of foreign affairs and trade knows that Australia’s largest exports to Japan have been dominated by energy resources such as petroleum and iron ore. Hence a desire to diversify into other sectors of strength such as financial services, tourism, education, and most importantly, our agricultural sector.
Providing closer ties to the world’s 3rd biggest economy, increased connection to Japan’s advanced manufacturing capabilities, and in return for increased investment into Australia from Japan, which is a foundation pillar of the Trans-Pacific partnership. This deal not only provides economic benefits to both countries right now but it also lays the groundwork for more diversified trade deals in the near future.
Read more about the Japan Australia Economic Partnership agreement