After two years JAEPA is still bringing benefits for Australia
Tomorrow marks two years since theJapan-Australia Economic Partnership Agreement (JAEPA) entered into force andthe Agreement continues to deliver a competitive advantage for Australianbusinesses in our second-largest export market.
For the past two years JAEPA has given Australian businessesa competitive advantage that is driving Australian exports, creating new jobsand growing our economy.
With more than 97 per cent of Japan's goods imports fromAustralia now entering Japan duty free or under preferential tariff rates, andwith another round of cuts to come on 1 April 2017, JAEPA is furtherstrengthening the long-standing commercial bonds between our nations.
Amongst the many winners across industry is Australian wine.Wine exports from Australia to Japan have already grown by more than 12 percent between January-September 2014 and January-September 2016, followingearlier tariff reductions. This reflects growing opportunities for Australianwine producers in Japan as tariffs on bottled wine are being progressivelyeliminated by 2021.
Beef exporters are also reaping the benefits. Beef tariffsof up to 38.5 per cent are being significantly reduced under JAEPA, exports ofAustralian fresh and frozen boneless beef were almost 30 per cent higher in thefirst three-quarters of 2016, compared to the same period in 2014, before JAEPAwas in effect.
Exports of fresh table grapes have continued their stellarrun, growing from barely $600,000 in the period January to September 2014, tomore than $30 million in 2016. Similarly, the value of Australian shelledmacadamia exports to Japan nearly doubled in that same period.
Importantly, Australian businesses are telling us that theyare benefiting from this export growth occurring under JAEPA, with more salesabroad meaning more jobs at home.
The next tariff reductions under JAEPA will occur on 1 April2017, further boosting opportunities for Australian businesses looking toaccess Japan's large and well-developed market.
Today's visit to Australia by Japanese Prime Minister Abedemonstrates the closeness of our relationship with Japan - one of our largestand longest-standing trading partners. We stand together as advocates of open markets and inclusive growth, andas strong partners in securing the peace and prosperity of our region.