Tony Abbott in Japan: Japanese car prices in Australia could fall under free-trade deal

THE price of an imported Japanese car in Australia could fall by up to $1500 under an historic free-trade deal as Tony Abbott begins Tokyo talks.

Grand welcome ... Tony Abbott will become the first foreign leader to sit in on a meeting of Japan’s newly established National Security Council.

THE price of an imported Japanese car in Australia could fall by up to $1500 under an historic free-trade deal that officials are confident will be struck on Monday as Tony Abbott begins his first round of official meetings of a seven-day trade mission to North Asia.

Other Japanese high-tech household goods such as televisions, fridges and stereo systems would also become cheaper.

The Prime Minister was given a king’s welcome when he arrived for an official state visit to Japan, sharing a rare private dinner with Japanese leader Shinzo Abe on Sunday night where it was expected that the two would shake hands on a Free Trade Agreement.

PM’S THIGHS CRITIQUED BY JAPANESE CYCLING TEAM

On Monday, after a private audience with the Japanese Emperor, Mr Abbott will also become the first foreign leader to sit in on a meeting of Japan’s newly established National Security Council in which he is expected to raise proposals for joint development of military technology.

The PM will address the top ranks of the Japanese Government for 45 minutes. Korea and China — the two countries the PM will visit next — are reported to have reacted warily to the strengthening of ties between Japan and Australia and Mr Abbott’s support for Japan to play a greater strategic role in the region.

But in a bold speech to be delivered at the Japan Chamber of Commerce, Mr Abbott will warn of the dangers of war if disputes in the region were not resolved peacefully. Japan and China are currently in dispute over island territories in the East China Sea raising fears of military conflict between the two nations.

News_Image_File: Talking trade ... Prime Minister Tony Abbott joins James Packer and Kerry Stokes at a reception at the Australian embassy in Tokyo.But Mr Abbott said there was no reason Australia could not manage relationships with all three countries.

“As the countries of North Asia grow economically stronger, quite properly, they will be militarily stronger too,” Mr Abbott will say.

“As countries grow stronger its more important than ever that disputes be resolved peacefully and in accordance with international law because the consequences of conflict would be so severe.”

News_Image_File: Cherry blossoms ... Prime Minister Tony Abbott, with ambassador Bruce Miller, is on a week-long trade mission. On the trade front, Mr Abbott will argue that an FTA with Japan, already our second largest trading partner, will reduce the cost of living for Australians: “I am confident that the long awaited free trade or economic partnership agreement between Japan and Australia will shortly be finalised.

“More affordable Japanese consumer products will be good for Australian families,” he will say.

If successful it will mark the second of three FTAs Mr Abbott promised to have completed within 12 months of taking office.

News_Image_File: Networking ... Tony Abbott chats with Japanese Justice Minister Sadakazu Tanigaki at the embassy reception. A Korean FTA which will be signed on Tuesday in Seoul is estimated will improve the purchasing power of Australian families by $700 a year.

Officials last night were confident that agreement would be reached after seven years of negotiations for the first FTA between Australia and Japan which would see tariffs on $6 billion worth of imported cars every year dropped from five per cent to zero.

On the cost of a $30,000 car this could mean a saving of up to $1500.

In return, Japan would agree to reduce the tariffs on imported Australian beef and allow more Australian dairy to be sold into the lucrative Japanese market.

Trade Minister Andrew Robb has spent the weekend negotiating a better deal for Australia.

The deal would hold special significance with Mr Abe’s grandfather signing the first commercial treaty between the two countries with Australian Prime Minister Robert Menzies in 1957.

Mr Robb tried to play down expectations of a deal on Sunday, claiming “we are still at the very difficult end, we have made progress but nothing is guaranteed.”

However, Mr Abbott appeared more optimistic that he would leave Japan on Tuesday with an agreement.