The Japan-Australia Economic Partnership Agreement (JAEPA)
JAEPA will significantly improve Australian companies’ access to the Japanese market, making their goods and services exports more cost competitive.
Overview of JAEPA
Japan Australia Economic Partnership Agreement
August 26, 2016 | pdf, 452.8 KiB
The Japan-Australia Economic Partnership Agreement (JAEPA) entered into force on 15 January 2015.
The Japan-Australia Economic Partnership Agreement (JAEPA) delivers substantial benefits for the Australian economy, making it easier to do business with Japan, our 2nd largest trading partner. The Agreement will strengthen and deepen trade between two of the Asia-Pacific’s largest economies.
JAEPA is the most liberalising bilateral trade agreement that Japan has ever concluded, providing Australian exporters, importers, investors and producers a significant advantage over their international competitors. It will deliver unprecedented market access and competitive advantage to Australian agricultural exports – many of them Queensland-based.
This groundbreaking agreement will significantly improve access to the world’s third-largest economy for Australian business.
See the factsheet for Japan Australia Economic Partnership Agreement – August 26, 2016 [pdf, 452.8 KiB] for more information on the prospective benefits of the Agreement.
Note: This publication was produced prior to the current government.
Japan is a vital, long-standing and highly complementary trading partner for Australia.
Japan is an economic heavy-weight: it is the third-largest economy in the world, worth almost US$5 trillion in 2013, and Australia’s second-largest trading partner. Two-way trade between Japan and Australia stood at $70.8 billion in 2013, more than 10 per cent of Australia’s total trade.
Japan is the third-largest investor in Australia, with investment stocks worth over $130 billion in 2013. Japan is Australia’s sixth-largest investment destination.
JAEPA is Australia’s second bilateral trade agreement to be concluded with a major trading partner in North Asia after a Free Trade Agreement (FTA) with Korea was signed in April 2014. An FTA with China is currently under negotiation. Together these three economies represent over half of Australia’s exports.
Key benefits of JAEPA
- Allow more than 97 per cent of Australia’s exports to Japan to enter duty-free or receive preferential access when it is fully-implemented.
- Slash prohibitive agricultural tariffs on a wide range of products including rapid tariff reductions for beef, Australia’s largest agricultural export to Japan. Japan is the second-largest market for Australian agriculture and our largest food market. Through JAEPA, Australia becomes the world’s first major exporter to unlock Japan’s high import barriers.
- Eliminates tariffs on all of Australia’s current minerals, energy and manufacturing exports
- Guarantee Australian service providers outcomes equal to or better than the best commitments Japan has made in any of its other trade agreements.
- Provide a framework for both governments to work towards enhanced mutual recognition of professional qualifications.
- Promote Japanese investment in Australia by raising the screening threshold at which private Japanese investment in non-sensitive sectors is considered by the Foreign Investment Review Board.
- Provide enhanced protections and certainty for Australian investors in Japan.
- Secure levels of protection to Australian innovators for their intellectual property in Japan broadly equivalent to protections provided in Australia.
- Provide Australian consumers with a wider and lower priced range of goods and services including cars and electronic goods.
- Guarantee Australian services suppliers access to the significant and well-developed Japanese market in key areas. Japan has committed to extend future liberalisation, including commitments it makes in future trade agreements, to Australian services exporters and investors.
- Improve the range and price of Japanese inputs for Australian manufacturers.