JAEPA Enters into Force
JAEPA SigningThe Japan-Australia Economic Partnership Agreement (JAEPA) entered into force on 15 January 2015.
On 8 July 2014 Prime Minister Abbott and Japanese Prime Minister Shinzo Abe signed the agreement during an official ceremony at Parliament House in Canberra.
JAEPA is described by the respective countries’ prime ministers as a historic development in economic relations between Japan and Australia and the most significant bilateral economic agreement since the 1957 Agreement on Commerce.
“JAEPA lays the foundation for the next phase of bilateral economic relations, and will strengthen “the special strategic partnership” between Japan and Australia,” the two ministers said in a joint statement.
The entry into force comes on the heels of the Korea–Australia Free Trade Agreement (KAFTA), which took effect on 12 December 2014.
JAEPA is expected to deliver significant economic benefits to both countries, through increased trade in high-quality goods and services, an easing of bilateral investment restrictions and promoting economic growth.
“This is a huge opportunity as Japan is our second largest trading partner and Korea our fourth largest, with combined two-way goods and services trade worth more than USD 100 billion,” Australian Industry and Science Minister Ian Macfarlane said.
“These trade agreements will deliver new jobs and expansion opportunities across the Australian economy with major openings for the Australian resource, pharmaceutical and food processing sectors.”
Resource companies such as Woodside, Mitsui and Co, MMG, Centennial Coal, and Newmont Mining have shown strong support for the agreements, highlighting the enormous potential for increased investment, according to a release from the Minister’s office.
The two agreements ensure that tariffs on Australian coal and iron ore exports to Japan and Korea, worth over USD 37 billion in 2013, are locked in at zero.
