Prime Minister Abbott and Japanese Prime Minister Abe signed the Japan-Australia Economic Partnership Agreement (JAEPA) and its Implementing Agreement on 8 July 2014 in Canberra.
To bring JAEPA into force both countries must now complete their domestic treaty processes with the aim to exchange Diplomatic Notes early in 2015. This will signify that they are ready for entry into force of the Agreement. JAEPA will then enter into force 30 days after the exchange of notes.
For Australian consumers and businesses, consistent with Australia’s other bilateral trade agreements, Australian tariffs on Japanese imports will be eliminated on full implementation with some restrictions for Australia’s sensitive auto parts, steel, copper, plastics, chemicals and clothing, textiles and footwear sectors, where the five per cent tariff will be phased out over periods of up to eight years.
Though the $12,000 specific tariff on Japanese used cars will be retained, JAEPA will remove the five per cent tariff on Japanese passenger and goods motor vehicles, electronics and white goods.
For Australian resource and manufacturing exporters, it is expected that 99.7% of Australia’s exports of resource, energy and manufacturing products will enter Japan duty-free. On full implementation, all of Australia’s current resources, energy and manufactured goods exports are expected to benefit from duty-free entry into Japan.
Last year (2013) our exports of these products to Japan were worth over $42 billion.
Should you need more information on how to take advantage of this Agreement please call contact Rob Crabtree on 0412-050-744 or Brett Greedy 0412-146-615.