Japan, Australia Trade Talks Focus On Agriculture

by Mary Swire, Tax-News.com, Hong Kong

14 February 2011

A meeting in Sydney on February 11 between the trade ministers of Japan and Australia, which followed the conclusion of high-level official talks in Tokyo, has led to encouraging signs concerning the possible completion of the long-discussed economic partnership agreement (EPA) between the two countries.

In November 2010, the two countries had agreed to re-energize the EPA negotiations that had begun in April 2007, and the 11th round of negotiations for which had taken place in April last year. A trade treaty between Australia and Japan would be of some importance, given that Japan is Australia’s second-largest trading partner and export market, with merchandise trade in 2009-10 worth some USD55bn.

Craig Emerson, the Australian Minister for Trade, confirmed that his officials had reported “some very encouraging developments in terms of engagement from the Japanese side” in both their talks on the EPA, and on Japan’s possible involvement in the talks on a Trans-Pacific Partnership (TPP).

Banri Kaieda, the Japanese Minister of Economy, Trade and Industry, confirmed that both countries had agreed to make all efforts so as to arrive at the swift conclusion of the EPA.

He also mentioned that, regarding Japan’s possible participation in the TPP, the government would reach its decision whether to take part in its negotiation in June this year, following further intensive exchanges of information with the United States, Australia and other TPP negotiating countries.

Kaieda also reiterated that Japan would be pursuing domestic reform – including agriculture measures – that will be necessary for the conclusion of the EPA and its eventual participation in the TPP. He said that the government has a “basic policy of opening up our country”; a reference to its difficulties in allaying the fears of Japan’s highly-protected agricultural sector of any reduction to tariffs on sensitive products, such as beef, rice and wheat.

Emerson was careful to point out that Australia was not insisting on Japanese agricultural reform, but “seeking only to encourage the reform process.” He believed, however, that such “reform that is in Japan's interests, because Japan wants to engage more fully in trade and investment in the region.”

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