September 11, 2022

Japan Australia Economic Partnership Agreement

The Japan Australia Economic Partnership Agreement (JAEPA) is a free trade agreement that was signed between Japan and Australia in July 2014. This agreement aims to promote economic growth, investment, and trade between the two countries by eliminating tariffs on a wide range of goods and services.

Under the terms of the agreement, over 97% of Australian exports to Japan are now eligible for duty-free treatment, including beef, dairy, and wine. Japan will also gain greater access to the Australian market, with tariff reductions on industrial and agricultural goods.

The benefits of JAEPA are significant for both countries. For Japan, the agreement provides access to high-quality goods and services from Australia at competitive prices. Australia, in turn, gains access to one of the world`s largest and most lucrative markets for its exports.

The agreement also creates new opportunities for investment between the two countries. Under the agreement, Japanese businesses are encouraged to invest in Australia`s agricultural, mining, and energy sectors, while Australian businesses are encouraged to invest in Japan`s advanced technology, health, and finance industries.

JAEPA has already had a significant impact on the two countries` economies. Since the agreement was signed, the value of Australian exports to Japan has increased by 9.2%, while the value of Japanese exports to Australia has increased by 11.4%.

However, there are still some concerns about the impact of the agreement on certain industries. For example, some Australian farmers have expressed concerns about increased competition from Japanese producers in the beef and dairy markets.

Overall, though, JAEPA represents a major step forward in the economic relationship between Japan and Australia. The agreement has already had a positive impact on trade and investment between the two countries, and is expected to continue to do so in the years to come.