JAPAN-AUSTRALIA ECONOMIC PARTNERSHIP AGREEMENT –
KEY OUTCOMES
The Economic Partnership Agreement (EPA) between Australia and Japan is the most
liberalising bilateral trade agreement that Japan has ever concluded.
The agreement will deliver significant benefits to Australian farmers, resource exporters,
service providers and consumers.
The Japan-Australia EPA (JAEPA) will give many Australian producers and exporters a
significant competitive advantage. More than 97 per cent of Australia’s exports to Japan
will receive preferential access or enter duty-free when JAEPA is fully implemented.
Australia is the first major agricultural exporter to unlock Japan’s high import barriers.
Japan is the second largest market for Australian agricultural products.
The benefits of the EPA to Australian consumers come from lower priced cars and
household and electronic consumer goods.
JAEPA sends a clear message to Japanese investors that Australia is an attractive
investment destination. It will promote further growth and diversification in the flow of
Japanese investment into Australia by raising the screening threshold. The EPA also
provides enhanced protections and certainty for bilateral investments.
AGRICULTURAL GOODS
Agricultural tariffs of up to 219 per cent will be eliminated or significantly reduced on many
Australian agricultural exports. Exporters of beef, cheese, horticulture, wine and seafood
will benefit from preferential access to the Japanese market and tariffs will be bound at
zero for wool, cotton, lamb and beer.
Beef
As the first significant beef exporter to secure preferential access to Japan, Australia will
receive large cuts to this tariff, giving Australian beef producers an immediate advantage
over their competitors in this market. Japan currently imposes a 38.5 per cent tariff on
beef imports.
• The tariff on frozen beef will be cut to 19.5 per cent on full implementation. There
will be significant front-end loading, with an eight percentage point cut in the first
year, two in the second year and one in the third year.
• The tariff on fresh beef will be cut to 23.5 per cent over 15 years. The tariff will be
cut by six percentage points in the first year, followed by two annual one
percentage point cuts.
• For Australia, Japan’s 50 per cent global snapback tariff will be replaced with a
discretionary safeguard.
• Japan’s imports of Australian beef offal, worth $153 million in 2013, will face
reduced tariffs within a growing quota.
• JAEPA will reduce tariffs on imports of Australian preserved and prepared beef,
worth over $20 million in 2013, under a growing quota.
More information on the Japan-Australia Economic Partnership Agreement is available at
www.dfat.gov.au/fta/jaepa
Dairy
Cheese is one of Australia’s biggest dairy exports to Japan, worth $372 million in 2013.
Cheese producers will gain additional and immediate duty-free access for cheeses such
as cheddar.
• Under current arrangements, Australia already exports 27,000 tonnes of cheese
duty-free under a global quota. Australia has gained a preferential, duty-free
Australia-only quota growing to 20,000 tonnes.
• Japan has granted immediate duty-free access for milk products such as protein
concentrates and casein, with trade worth $53 million and tariffs of up to
5.4 per cent.
• Opportunities will also open up for ice-cream and frozen yoghurt exports under
growing quotas.
Sugar
Australia exported $226 million of sugar to Japan in 2013, accounting for a third of
Japan’s sugar imports. Australian sugar exporters will benefit from tariff elimination and
reduced levies for international standard raw sugar.
Horticulture
JAEPA will provide a very liberalising outcome for fruit, vegetables, nuts and juice,
resulting in quick tariff elimination on the vast majority of Australian horticulture exports to
Japan. The tariffs on canned products such as tomatoes, peaches and pears will also be
eliminated.
Other agriculture outcomes
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Bottled, sparkling and bulk wine will gain from tariff elimination over seven years.
Barley exporters will have increased duty-free access.
Exporters of canola and other vegetable oils will receive tariff elimination.
Tariffs on shrimps and prawns, rock lobsters, abalone (fresh or preserved),
oysters, crabs, yellowfin tuna, toothfish, sea urchins and fish oils and southern
bluefin tuna will be eliminated.
Around 95 per cent of Australia’s chocolate exports will enter Japan duty-free or at
a reduced tariff rate.
Australian honey producers will receive an Australia-specific quota that will rise
over time, with the tariff eliminated over ten years.
Australia will have preferential access for a large volume of pork and pork
products.
INDUSTRIALS, ENERGY AND MINERALS
On entry into force, 99.7 per cent of Japan’s industrials imports by value from Australia will
enter Japan duty-free, with 99.9 per cent eliminated within 10 years. On full
implementation of the agreement, 100 per cent of Australia’s industrials exports will
benefit from duty-free entry into Japan.
More information on the Japan-Australia Economic Partnership Agreement is available at
www.dfat.gov.au/fta/jaepa
Energy and mineral resources
Energy and mineral products account for almost 89 per cent of the value of Japan’s
merchandise imports from Australia. Under JAEPA, all tariffs on energy and mineral
products will be eliminated within ten years, most on entry into force of the agreement.
Although many of Australia’s major resource exports, such as coal, iron ore and liquefied
natural gas, enter Japan duty-free already, Japan will eliminate tariffs for all remaining
resources products over 10 years, including on nickel and ferro alloys. There will be
immediate tariff elimination on entry into force for:
• coking coal
• petroleum oils
• aluminium hydroxide
• titanium dioxide
Manufactured products
Japan currently applies tariffs of up to 30 per cent on some manufactured products.
Under JAEPA, tariffs on $243 million worth of Australian manufactured exports to Japan
will be eliminated immediately on entry into force of the agreement. Japan’s tariffs on
vehicles, automotive parts and most pharmaceuticals are already set at zero.
SERVICES
JAEPA guarantees Australian services suppliers access to the significant and welldeveloped Japanese market in key areas of commercial interest including financial,
education, telecommunications and legal services. The EPA provides Australia with
outcomes equal to or better than, the best commitments Japan has made in any of its
other trade agreements.
Australian financial services providers will benefit from commitments made by Japan for
the first time, guaranteeing cross-border access for Australian funds managers providing
investment advice and portfolio management services.
Australia and Japan have also agreed to an ongoing legal services cooperation agenda
including for greater movement and recognition of each other’s lawyers and strengthening
cooperation on provision of trans-national legal services in third countries through
discussion between the Law Council of Australia and the Japan Federation of Bar
Associations.
INVESTMENT, INTELLECTUAL PROPERTY AND GOVERNMENT PROCUREMENT
JAEPA sends a clear message to Japanese investors that Australia is an attractive
investment destination. It will promote further growth and diversification in the flow of
Japanese investment into Australia by raising the screening threshold, at which private
Japanese investment in non-sensitive sectors is considered by the Foreign Investment
Review Board, from $248 to $1,078 million. Australia has reserved policy space to screen
proposals for investment in agricultural land and agribusinesses at lower levels. JAEPA
also provides enhanced protections and certainty for bilateral investments.
More information on the Japan-Australia Economic Partnership Agreement is available at
www.dfat.gov.au/fta/jaepa
The agreement also includes commitments on intellectual property, which will ensure that
Australian innovators and Australian creative industries enjoy high levels of protection in
Japan broadly equivalent to protections provided in Australia.
JAEPA guarantees Australian suppliers access to the Japanese government procurement
market and contains commitments that will ensure transparency and facilitate participation
in procurement processes. Australian and Japanese procuring entities have committed to
provide national treatment for the goods, services and suppliers of the other Party for
procurements above agreed value thresholds
SNAPSHOT OF THE AUSTRALIA-JAPAN TRADE RELATIONSHIP
Japan and Australia are natural partners with highly complementary economies. JAEPA
will deepen Australia’s engagement with Japan, the world’s third-largest economy with a
population of over 127 million people. Japan is Australia’s second-largest export market
and our second-largest trading partner.
Total two-way trade reached $69.3 billion in 2012-13 – 11 per cent of Australia's total
trade. In 2012-13, Australian exports to Japan were valued at $48.6 billion, accounting for
over 16 per cent of all Australian exports. Total goods exports were valued at $46.5 billion.
Japan is Australia’s largest market for LNG and coal (both around $14.0 billion). Total
services exports were valued at $2.1 billion, comprising mostly recreational travel services
($828 million) and transport services ($596 million).
Australia imported $20.6 billion from Japan in 2012-13. Of this, goods imports accounted
for $18.3 billion. Services imports were valued at $2.3 billion, including transport services
of $1.0 billion.
More information on the Japan-Australia Economic Partnership Agreement is available at
www.dfat.gov.au/fta/jaepa
More information on the Japan-Australia Economic Partnership Agreement is available at
DFAT’s website www.dfat.gov.au/fta/jaepa
More information on the Japan-Australia Economic Partnership Agreement is available at
www.dfat.gov.au/fta/jaepa
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JAPAN-AUSTRALIA ECONOMIC PARTNERSHIP AGREEMENT