Japan opens market
A FREE trade deal between Australia and Japan could fasttrack northern development with a wave of new infrastructure and business investment in the region.
The Japan Australia Economic Partnership Agreement, signed yesterday in Canberra, reduces tariffs for agricultural goods such as beef, fruit and vegetables and eliminates import barriers for energy and minerals including coal.
The tariffs on beef exports to Japan, worth $ 1.4 billion last year, will be reduced by half as part of the deal.
The trade agreement also guarantees access to the Japanese market for a range of services where Australia has an enviable reputation, including financial, legal, education and telecommunications services.
Trade Minister Andrew Robb said the agreement could help boost industries based in northern Australia.
“This is the most ambitious trade deal Japan has ever concluded with anyone and affords Australia major concessions across a range of areas, most notably services and agriculture, an area of traditional sensitivity for the Japanese,” he said.
“Australian consumers will also benefit from cheaper Japanese cars and parts, and a range of household items in- cluding whitegoods and electronics through the elimination of tariffs.”
Townsville Enterprise chief executive David Kippin said the trade agreement would provide great benefits for the North’s economy.
“There are big advantages for agriculture and mining, which are obviously big players in the North, and both are key to Japan,” he said.
Another key component of the free trade agreement was relaxing foreign investment regulations for Japanese busisinesses searching for opportunnities in Australia.
“This agreement also sends ds a strong signal to Japanese innvestors that we both welcome me their capital and are open for business, which is most important given Australia is a country that has always relied on foreign investment to develop our commerce, infrastructure and standards of living,” Mr Robb said.
The relaxation on foreign investment rules could provide a huge opportunity for North Queensland- based businesses to attract capital for projects.