The fifth round of tariff cuts under the Japan-Australia Economic Partnership Agreement (JAEPA) have come into effect, delivering wide-ranging benefits for Australian businesses that will help drive exports and create new jobs.
The new tariff cuts will boost Australia’s already vibrant trade and investment relationship with Japan, our second-largest trading partner and the world’s third largest economy.
Australia’s goods exports to Japan were valued at $45 billion in 2017, a rise of 24 per cent over 2016.
JAEPA is the most liberalising trade agreement Japan has ever negotiated and implemented. Once fully implemented, about 98 per cent of Australia’s merchandise exports to Japan will receive preferential access or enter duty-free.
Examples of exports that received further tariff cuts on 1 April include:
- Fresh or chilled beef: 38.5 per cent pre-JAEPA, now 29.3 per cent. Exports up one per cent to $1.1 billion in 2017.
- Frozen beef: 38.5 per cent pre-JAEPA, now 26.9 per cent. Exports up 24 per cent to $883.3 million in 2017.
- Natural honey: 25.5 per cent pre-JAEPA, now 13.9 per cent. Exports up 51 per cent to $2 million in 2017.
- Oranges: 16 per cent pre-JAEPA, now 8.7 per cent. Exports up 15 per cent to $54.2 million in 2017.
- Mandarins: 17 per cent pre-JAEPA, now 11.7 per cent. Exports up 66 per cent to $8 million in 2017.
- Handbags: 8-16 per cent pre-JAEPA ; now 4.4 per cent. Exports up 300 per cent to $1.4 million in 2017.
Australian businesses are embracing JAEPA. Almost 96 per cent of eligible products exported to Japan made use of JAEPA’s preferential access in 2017.
JAEPA is also helping grow bilateral services exports and investment. Services exports to Japan in 2016-17 were worth $2.5 billion, a rise of almost nine per cent over the previous year.
The recently signed TPP-11 will build on these outcomes, and will enhance opportunities for Australian businesses to grow in Japan, thanks to accelerated tariff reductions secured for beef, grains, seafood and dairy.
Creating new export opportunities through trade agreements, like JAEPA, is a cornerstone of the Turnbull Government’s economic plan to drive growth and create new jobs.
More information on the JAEPA tariff cuts is available on the award winning FTA Portal: ftaportal.dfat.gov.au.