Australia and Japan have started work on a two-year joint study into a possible free trade deal, Australia Trade Minister Mark Vaile told Reuters on Wednesday.
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Last year, Japan’s exports to Australia totalled 1.3 trillion yen ($US12.16 billion) and its imports from the country amounted to 2.1 trillion yen, Japanese government data has shown. Japan is Australia’s biggest export market and Australia is Japan’s fourth-largest source of imports, the news agency noted.
“Both countries have now agreed on detailed terms of reference to examine the feasibility of a comprehensive free trade agreement covering a number of issues including trade in goods and services, investment and intellectual property rights,” Vaile reportedly said in a statement.
Top Australian exports to Japan include coal, iron ore, aluminium, liquefied petroleum gas, grains and beef. Japan exports automobiles to Australia as well as a wide range of industrial and electronic products, Reuters said.
Economic modelling by both governments has shown full bilateral liberalisation of markets would produce $A39 billion ($30 billion) in additional gross domestic product over 20 years for Australia and $A27 billion for Japan, the report added.
