New Australia-Japan FTA to tap opportunities
Business awareness of current Australia-Japan Free Trade Agreement negotiations underway is lower than awareness of China negotiations, and it must be increased according to Austrade’s survey.
According to Austrade , even though Japan is Australia’s primary export destination, a new DHL survey found general awareness in the business community of the Japan FTA negotiations was only 13% compared to 44% for China’s negotiation.
This awareness level must be raised as negotiations with Japan are still underway. Now is the good time for individuals to put forward submissions on issues relevant to the negotiations of an FTA with Japan. And Australia’s relationship with Japan can only strengthen through the FTA.
Now is a good time to be looking at Japan. The Japanese economy is in a growth phase and is experiencing its long uninterrupted expansion since the 1960s. In the December quarter Japan grew by a strong 1.3%, (or 2.5% annually over the same quarter in the previous year) with employment and business sentiment gaining momentum. With the end of deflation, export-led growth, and stronger local confidence, Japan is officially back in the game.
The FTA negotiations, Japan’s government reforms, and new trends are good news for Australian businesses, but more could be done.
Despite Japan’s importance to Australia as an export destination, only 100 Australian companies have representation in-market. For an economy of Japan’s size, this is an opportunity lost.
Businesses interested in exporting to Japan should contact Austrade. Austrade has six offices around Japan with specialised staff that can fast track export success and provide key contacts to secure deals.
Japan’s unique demographics at both ends of the scale are particularly suited to Australia.
At the young end of the market, surf exports are booming. According to the recent data from the Australian Bureau of Statistics (ABS), Australia exports around $21m worth of water, surfboards and water sports equipment, with Japan its priority destination – accounting for $8m worth of exports.
On the other end of the scale, grey power is doing its big for Australia’s exports as well. Tourism plays a big role; the older Japanese are spending a lot of time in Australia on a range of leisure and educational activities. Their trips are longer as retirement frees them up.
Japan is still Australia’s primary export destination, and even with the good rise of China it will continue to be an important economic partner for Australia and a key global economic player – particularly in the Asia Pacific region.
4-May-2007