When it comes to international trade, it`s important to know which countries have established free trade agreements (FTAs). An FTA is an agreement between two or more countries to remove barriers to trade and promote economic cooperation. In the case of Australia and Japan, do they have a free trade agreement?
The answer is yes. Australia and Japan signed a free trade agreement in 2014, which came into effect on January 15, 2015. The agreement is known as the Japan-Australia Economic Partnership Agreement (JAEPA) and it is one of the most comprehensive free trade agreements that Japan has signed with any country.
JAEPA aims to improve trade and investment relationships between Japan and Australia by eliminating or reducing tariffs on goods and services. Under the agreement, over 97% of Australia`s exports to Japan will be duty-free or have improved preferential access.
The agreement covers a wide range of sectors including agriculture, fisheries, manufacturing, and services. For example, Australian beef, wine, and sugar will benefit from reduced tariffs, while Japanese electronics and car parts will enjoy improved access to the Australian market.
In addition to trade in goods, JAEPA also includes provisions for the liberalization of investment, improved intellectual property protections, and enhanced cooperation in areas such as science and technology.
The benefits of the Australia-Japan FTA are significant for both countries. The agreement has the potential to increase trade and investment flows, create jobs, and promote economic growth. In 2018-2019, Japan was Australia`s second-largest trading partner, with two-way trade valued at AUD 86.4 billion.
In conclusion, Australia and Japan have a free trade agreement known as the Japan-Australia Economic Partnership Agreement (JAEPA). The agreement aims to remove trade barriers and improve economic cooperation between the two countries, benefiting both parties in terms of trade and investment.