Recently, Japan and Australia have reached a historic agreement that will have a significant impact on their respective economies. The agreement, known as the Japan-Australia Economic Partnership Agreement (JAEPA), was signed on July 8, 2014, and came into effect on January 15, 2015.
The JAEPA is designed to promote economic cooperation between Japan and Australia and eliminate trade barriers between the two countries. It covers a wide range of sectors, including agriculture, services, and investment, and is expected to boost trade between the two countries by more than $20 billion.
One of the main benefits of the JAEPA is the elimination of tariffs on a wide range of goods, including beef, cheese, and wine. For Australian beef producers, the agreement means that tariffs on exports to Japan will be reduced from 38.5% to just 9% over the next 15 years. This is a significant development for the Australian beef industry, as Japan is one of its largest export markets.
Similarly, the agreement will have a positive impact on the Australian wine industry, as tariffs on exports to Japan will be eliminated over the next seven years. This is a significant development for Australian winemakers, as Japan is currently the fourth-largest export market for Australian wine.
The JAEPA is also expected to boost investment between the two countries. Japanese companies are already significant investors in Australia, with investments totaling around $100 billion. The JAEPA is expected to encourage more Japanese companies to invest in Australia, particularly in the areas of agriculture, energy, and infrastructure.
Finally, the JAEPA is expected to promote closer ties between Japan and Australia in the areas of education and tourism. The agreement includes provisions for the mutual recognition of qualifications, which will make it easier for students and professionals to work and study in both countries. The agreement also includes provisions for the promotion of tourism and cultural exchange between the two countries.
In conclusion, the Japan-Australia Economic Partnership Agreement is a significant development for both countries. The elimination of tariffs on a wide range of goods is expected to boost trade between the two countries, while the agreement is also expected to promote closer economic ties and investment. With the JAEPA in place, it is expected that the relationship between Japan and Australia will continue to grow and strengthen in the years to come.