Haul trucks and heavy machinery used in mining could soon become cheaper in Australia with the recently brokered Australia-Japan free trade agreement coming into force today.
The Japan–Australia Closer Economic Partnership Agreement (JAEPA) comes into force today on the heels of the Korea–Australia Free Trade Agreement (KAFTA), which took effect on 12 December 2014.
Industry Minister Ian Macfarlane said Australian businesses and investors now have a competitive edge in a market with a combined population of more than 177 million people and a combined GDP of more than $6 trillion.
“This is a huge opportunity as Japan is our second largest trading partner and Korea our fourth largest, with combined two-way goods and services trade worth more than $100 billion,” Mr Macfarlane said.
“These trade agreements will deliver new jobs and expansion opportunities across the Australian economy with major openings for the Australian resource, pharmaceutical and food processing sectors.
“While there are challenges facing manufacturers across the globe as the economy continues to transition, businesses here are innovating, adapting and grasping new opportunities in the global market.”
“Resource companies such as Woodside, Mitsui and Co, MMG, Centennial Coal, and Newmont Mining have shown strong support for the agreements, highlighting the enormous potential for increased investment.”
The agreement ensures that tariffs on Australian coal and iron ore exports to Japan and Korea, worth over $37 billion in 2013, are locked in at zero.
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