In free trade negotiations that started in 2007, Japan andAustralia have finally reached a high point, agreeing on the issue of farm products. Government sources said on Sunday that the bilateral talks will now progress on to other issues, but both sides are satisfied with the agreement reached on the sensitive issue of agriculture, as both countries rely heavily on the industry and are looking to protect that bloc.
The agreement stipulates that Japan would retain current tariff levels on some farm goods that it deems “sensitiveâ€, provided that the country accepts at low customs duties a specified quantity of the same goods from Australia – with the exception of rice, as Japan wants to heavily protect its interests in the import and export of the product. Specifically, the agreement specifies that the two countries would apply low tariffs for Australian beef and dairy exports into Japan based on a specific quota. Once the quota limits are reached, tariff rates will revert to the current ones Japan has for the said products. This agreement is particularly significant for the Australians since beef is the country’s most valuable export to date, and Japanese tariffs for beef are at a very high 38.5 percent.
For the longest time, agriculture has been a particularly sticky issue for the two countries at the negotiation tables. Both countries have heavy interests to protect in their agriculture industries. Japan Prime Minister Shinzo Abe has repeatedly pledged his support and protection of the countries farmers, while Australia is a globally known as a major exporter of foodstuff. Initially, Australia put on the table a request to eliminate altogether Japan’s tariffs it set on beef, wheat, dairy products and sugar. Japan had repeatedly refused this request. Australia seemed to compromise its position when Japan formally announced last month that the country would be joining the Trans-Pacific Partnership (TPP) negotiations spearheaded by the United States, as the country is said to be looking to increase farm exports into Japan as much as possible before the new trade accord happens.
Source: Japan Dailly Press
