Australia Japan Trade Agreement: What You Need to Know
As the global economy continues to evolve, the importance of international trade agreements cannot be overstated. Among the most significant trade agreements in recent years is the Australia Japan Trade Agreement (AJFTA), which was signed in 2014 and took effect in January 2015. This agreement is of particular importance to both countries, as it seeks to promote closer economic ties and promote greater cooperation.
Here`s what you need to know about the Australia Japan Trade Agreement:
1. It builds on an existing partnership.
Australia and Japan already have a strong and longstanding trading relationship. Both countries are members of the Asia-Pacific Economic Cooperation (APEC) forum and have participated in numerous bilateral trade agreements. The AJFTA builds on this history of cooperation and seeks to deepen and broaden this partnership.
2. The agreement reduces tariffs.
One of the key features of the AJFTA is the reduction of tariffs on a wide range of goods and services. This includes tariffs on Australian beef, dairy products, wine, and horticultural products exported to Japan. Similarly, Japan has reduced tariffs on a range of industrial goods exported to Australia, including cars, electronics, and machinery. As a result, the AJFTA has created new opportunities for businesses in both countries to trade with each other.
3. The agreement is expected to boost economic growth.
By reducing barriers to trade, the AJFTA is expected to boost economic growth in both Australia and Japan. According to a joint study by the two governments, the agreement is expected to increase Australia`s GDP by $1.5 billion by 2035 and Japan`s GDP by $3.5 billion. In addition, the agreement is expected to create new jobs and increase consumer choice.
4. The agreement includes provisions for intellectual property protection.
The AJFTA includes provisions for the protection of intellectual property, including patents, trademarks, and copyrights. This is important for businesses that rely on intellectual property to compete, and it helps to promote innovation and creativity.
5. The agreement has been praised by business and government leaders.
The AJFTA has been praised by business and government leaders in both Australia and Japan. For example, the Australian Chamber of Commerce and Industry has called the agreement a “win for Australian business” and an “important step towards greater economic integration in the Asia-Pacific region.” Similarly, the Japanese government has said that the agreement is “extremely significant” and will “strengthen the economic relationship between our two countries.”
In conclusion, the Australia Japan Trade Agreement is an important and significant trade agreement between two important Pacific nations. By reducing tariffs, promoting economic growth, and protecting intellectual property, the agreement is expected to create new opportunities for business and deepen the economic partnership between Australia and Japan.