Japan trade agreement brings immediate benefits
19 January 2015
The Japan-Australia Economic Partnership Agreement (JAEPA), which came into effect on 15 January, brings significant benefits for NSW farmers and businesses.
Tariffs on some key NSW agricultural goods, such as wheat, will be eliminated immediately, while tariffs on other agricultural products will be reduced over several years.
NSW primary production benefits include:
- Tariffs on the majority of NSW's fruit, vegetables and nuts will be reduced over time. For example, tariffs on grapefruit, pears, apricots, peaches and plums will be reduced over five years. The tariff on apples will be reduced over 10 years.
- Tariffs on fresh and frozen beef, currently 38.5 per cent, will be significantly reduced over 15 years, including an eight per cent cut in the first year – giving NSW a significant advantage over our major competitor, the United States, and
- Wine and beer exports will also benefit, with some tariffs eliminated immediately and others phased out over five and10 years.
For dairy, JAEPA provides an immediate duty-free quota for NSW cheese. There is immediate, preferential duty-free access for milk protein concentrates, lactose and casein plus new opportunities for ice cream and frozen yoghurt.
Dairy is currently NSW's fourth largest agricultural export to Japan, despite Japan's historically highly-protected diary industry.
Tariffs on most manufactured goods and resources are also being eliminated immediately.
NSW's services sector also benefits. The agreement gives services suppliers access to the well-developed Japanese market in key areas including finance, education, telecommunications and legal services.
NSW has a Trade & Investment office in Tokyo available to work with NSW firms wanting to do business in Japan. The Department also has business and export advisers across the NSW to help new and experienced exporters explore opportunities generated by the new trade agreement.