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.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
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.
