Currently, Australia is on the edge of finalising a free trade agreement with Japan that could see a fall in prices for consumers on everything ranging from electronic equipment to Japanese tea!
The Japanese Prime Minister, Shinzo Abe, is expected to arrive in Australia tonight, 7/7/2014, which will be the first visit by him or any Japanese leader in 12 years. He will sign a free trade agreement with Prime Minister Abbott. This agreement has been designed over the past 7 years, and it is aimed at providing Australia with valuable access to the massive Japanese economy.
With a population of 127 million people, Japan is already Australia’s largest trading partner and owner of over 11% of the world trade. As liberalising as this agreement sounds, it is clear that Australians know what they are going to get out of it.
Consumers
If you are looking to purchase a new car or a brand new laptop, it is better to hold off for now, until the agreement comes into effect. The most prominent benefit the Australians will enjoy lays in less costly electronics made in Japan.
According to a prominently known international business professor, the people to benefit the most from this agreement would be from the education, tourism, and health sectors. Moreover, people who love Japanese cars and want them at cheaper rates will also be able to benefit. As the agreement strips away many barriers to trade, it will make trade easy and inexpensive.
Business Owners
This free trade agreement is also expected to be a never-ending gold mine for business owners, particularly in the services industry. Services like financial management, legal services, and telecommunication businesses could gain essential leverage from easier access to the Japanese market.
Many business owners believe that the Japanese market will expand and grow for a number of Australians. There will be cheaper holidays and most importantly, a noticeable presence of Australian business.
What will be more interesting is the arrival of the head of Japanese industrial giants Mitsubishi, and Nippon Steel who will come to sign the agreement. Prime Minister Abbott said this agreement would create a huge pool of new job opportunities in Australia.
Industrial Exporters
A large number of Australian exports like iron ore, coal, and liquefied natural gas are already under the Japan duty free category. However, over the next few years, other additions like coke, petroleum, and aluminium hydroxide will also be added to this duty-free list. This will create new opportunities for sharing natural resources with Japan and it will open the doors to great future trade relations.
Beef Producers
Beef producers are among some of the biggest beneficiaries of this free trade agreement. Australian beef producers are set to have Japan’s standard 38.5% tariff on frozen meat to 19.5% once the agreement will be finalised. Additionally, fresh beef exporters are expected to see a 23.55 cut in tariffs over the next decade.
Dairy and Food Products
The deal will bring outstanding trade benefits to the Australian dairy and food industry. With duty free access for dairy products like cheese, the $372 million dairy industry is bound to see further improvement. Moreover, there are tons of opportunities for ice cream and yoghurt producers.
Not just the dairy industry, the free trade agreement has a lot in store for other food products as well. The massive Australian sugar market will also witness reduced levies, while tariffs on canned foods will be eliminated.
Bulk wine, seafood, vegetable oil exporters will also experience 0 tariffs while all the chocolate exporters in Australia will be able to enter Japan duty free.
Automotive Industry
For people who love Japanese made cars, the free trade agreement is the perfect treat. Up to 5% tariff will be cut off Japanese made cars, reducing Japanese car prices by a whopping $1500. On the other hand, Australian car manufacturers will now be able to compete on a completely new level, a global market.
Final Word
Whether it is cars, electronics, or even sushi, the free trade agreement is bound to bring a lot of benefits to Australia and the customers here. This agreement will open the doors to a new relationship that could bring growth and development to both the countries. A large number of mergers and acquisitions are also expected to take place. If you are a consumer and you wish to get a new car or lap top or you need to make major changes to your investment portfolio, you might want to hold until the agreement comes into effect.
The Japanese Prime Minister, Shinzo Abe, is expected to arrive in Australia tonight, 7/7/2014, which will be the first visit by him or any Japanese leader in 12 years. He will sign a free trade agreement with Prime Minister Abbott. This agreement has been designed over the past 7 years, and it is aimed at providing Australia with valuable access to the massive Japanese economy.
With a population of 127 million people, Japan is already Australia’s largest trading partner and owner of over 11% of the world trade. As liberalising as this agreement sounds, it is clear that Australians know what they are going to get out of it.
Consumers
If you are looking to purchase a new car or a brand new laptop, it is better to hold off for now, until the agreement comes into effect. The most prominent benefit the Australians will enjoy lays in less costly electronics made in Japan.
According to a prominently known international business professor, the people to benefit the most from this agreement would be from the education, tourism, and health sectors. Moreover, people who love Japanese cars and want them at cheaper rates will also be able to benefit. As the agreement strips away many barriers to trade, it will make trade easy and inexpensive.
Business Owners
This free trade agreement is also expected to be a never-ending gold mine for business owners, particularly in the services industry. Services like financial management, legal services, and telecommunication businesses could gain essential leverage from easier access to the Japanese market.
Many business owners believe that the Japanese market will expand and grow for a number of Australians. There will be cheaper holidays and most importantly, a noticeable presence of Australian business.
What will be more interesting is the arrival of the head of Japanese industrial giants Mitsubishi, and Nippon Steel who will come to sign the agreement. Prime Minister Abbott said this agreement would create a huge pool of new job opportunities in Australia.
Industrial Exporters
A large number of Australian exports like iron ore, coal, and liquefied natural gas are already under the Japan duty free category. However, over the next few years, other additions like coke, petroleum, and aluminium hydroxide will also be added to this duty-free list. This will create new opportunities for sharing natural resources with Japan and it will open the doors to great future trade relations.
Beef Producers
Beef producers are among some of the biggest beneficiaries of this free trade agreement. Australian beef producers are set to have Japan’s standard 38.5% tariff on frozen meat to 19.5% once the agreement will be finalised. Additionally, fresh beef exporters are expected to see a 23.55 cut in tariffs over the next decade.
Dairy and Food Products
The deal will bring outstanding trade benefits to the Australian dairy and food industry. With duty free access for dairy products like cheese, the $372 million dairy industry is bound to see further improvement. Moreover, there are tons of opportunities for ice cream and yoghurt producers.
Not just the dairy industry, the free trade agreement has a lot in store for other food products as well. The massive Australian sugar market will also witness reduced levies, while tariffs on canned foods will be eliminated.
Bulk wine, seafood, vegetable oil exporters will also experience 0 tariffs while all the chocolate exporters in Australia will be able to enter Japan duty free.
Automotive Industry
For people who love Japanese made cars, the free trade agreement is the perfect treat. Up to 5% tariff will be cut off Japanese made cars, reducing Japanese car prices by a whopping $1500. On the other hand, Australian car manufacturers will now be able to compete on a completely new level, a global market.
Final Word
Whether it is cars, electronics, or even sushi, the free trade agreement is bound to bring a lot of benefits to Australia and the customers here. This agreement will open the doors to a new relationship that could bring growth and development to both the countries. A large number of mergers and acquisitions are also expected to take place. If you are a consumer and you wish to get a new car or lap top or you need to make major changes to your investment portfolio, you might want to hold until the agreement comes into effect.