Exporters cashing on Japanese free trade deal

Japan has added another 640 tariffs to its free trade deal with Canberra.

Trade Minister Steve Ciobo.

Exporters will extend their competitive edge over international rivals after Tokyo yesterday cut about 640 tariffs under its free trade deal with Canberra, further expanding market access for Australian goods and services.

Since the free trade deal began in January 2015, more than 7700 tariffs have been eliminated with exports of Australian goods to Japan being valued at $45 billion in 2017 — a rise of 24 per cent on 2016.

Yesterday’s tariff reductions are the fifth round of cuts since the free trade agreement took effect, with Trade Minister Steve Ciobo hailing the outcome as “great news for Australia” and singling out some goods with “exponential growth” over the last three years.

“Exports of Australian fresh grapes have grown by 4900 per cent, shelled almonds have grown by 1156 per cent and natural honey exports by 288.2 per cent,” he said. “These aren’t typos — but proof of the benefit of free and open trade”.

Other goods to benefit from the free trade agreement include chocolate (exports up 31.4 per cent), mandarins (158.8 per cent), oranges (71.8 per cent), and sugar (140.7 per cent).

Almost 96 per cent of eligible products exported by Australian businesses to Japan in 2017 made use of the preferential tariffs created by the trade deal.

The agreement has also helped in education, finance and telecommunications. Services exports to Japan in 2016-17 were worth $2.5 billion, a rise of almost 9 per cent over the previous year.

Mr Ciobo seized on the gains to argue against any retreat to protectionism following the move by the US to slap tariffs on steel and aluminium imports.