Tony Abbott secures 'best ever' trade deal with Japan

[nero_bolt]

FANTASTIC NEWS and FANTASTIC for Australian 

Tony Abbott has secured a historic trade deal with Japan worth tens of billions of dollars to the Australian economy over the next 20 years.

The deal will free up exports of dairy, beef, wine, and a range of services, while also making Japanese cars, cameras, televisions and other high-tech goods cheaper in Australia.

Trade Minister Andrew Robb confirmed the deal in the Japanese capital on Monday afternoon, and Mr Abbott is expected to shake hands with Prime Minister Shinzo Abe on Monday evening in Tokyo.

It will then be subject to "lawyering" on both sides and must clear the hurdles of final parliamentary approval.

The hard-fought deal came at the end of seven years of negotiations, with the final six months proving "extremely rigorous" according to officials.

Mr Robb, who handled much of the hard grind of negotiations with his Japanese counterpart, Minister Hayashi, said he was honoured to be part of the agreement.

"After seven long years of negotiation, this historic agreement has been concluded," he said in the Japanese Capital on Monday afternoon.

"It's been, especially the last six months, it's been a very tough negotiation but it's been conducted with a lot of goodwill on both sides.

"It is an agreement which is a historic one in its extent of liberalisation that Japan has concede to. It will benefit greatly Australian businesses, Australian jobs and Australian consumers, with cuts in car prices of up to $1500 on the average car.

"I dont want to pre-empt the formal conclusion of this negotiation by our two prime ministers in a short while, but just want to say what an honour it is to be involved in this historic agreement.

"It builds on the trade treaty of 1957 which was the foundation for so much of our great relationship, our great business and cultural relationship since then and it will take that relationship to another level."

While details have not yet been released, trade officials say it represents the best deal ever granted by the giant Japanese economy to another nation.

Read more: http://www.smh.com.au/federal-politics/political-news/tony-abbott-secures-best-ever-trade-deal-with-...

[boris1gary]

some of the Prime Minister for Unemployments mates don't seem so chuffed........

http://www.abc.net.au/news/2014-04-07/australia-japan-free-trade-deal/5372242

Australian business groups are already urging the Government to release all the details of the deal.

The Chamber of Commerce and Industry says the negotiations have not been transparent, and says the implications for Australian companies remain unclear.

"We have seen some of the previous free trade agreement texts, most recently the Korean one, where there are some aspects we're pretty disturbed at," the chamber's director of trade and international affairs Bryan Clark told PM.

"We would prefer it if we could see the text before it's ratified."

[nero_bolt]

Yes that story does agree that this is great NEWS and great work by Tony and his team

Australia will benefit from this trade agreement its a very good eeal for all Australians

EXPORTERS will add billions of dollars to Australia’s economic growth under a trade deal struck with Japan tonight to give beef, dairy, sugar and other industries far bigger concessions than they expected.

Slashing barriers to Australian products, the Japanese government agreed to a dramatic increase in food imports — such as almost doubling the quota for dairy products — while also clearing the way for stronger trade in resources and services.

Australia has given ground in return to cut the price that consumers pay for Japanese cars, auto components, whitegoods and electronics, most of which will be free of tariffs within a year of the trade deal being ratified.

The Australian beef industry could grow by $2.6 billion over 20 years and others could post similar gains, according to the initial analysis offered by those close to the talks.

Japan will begin cutting its tariffs on frozen and fresh beef within a year to give Australian producers a level of market access unavailable to any other country.

Australian beef exports to Japan are worth $1.4bn a year but are subject to a 38.5 per cent tariff that pushes up prices for Japanese consumers and limits sales.

The tariff on frozen beef will fall by 8 percentage points within a year and then drop to 19.5 per cent over time.

The tariff on fresh beef will be cut by 6 percentage points in the first year and then fall to 23.5 per cent over 15 years.

While industry experts had little time to analyse the economic impact of the changes, government sources said it could add $300m or more to annual exports and add $2.8bn to the size of the beef industry in Australia over two decades.

Australian cheese exports are worth $372m a year but are subject to an annual quota of 27,000 tonnes, but this will be expanded with a further 20,000 tonnes in stages over two decades.

Other milk exports will gain an immediate cut in all Japanese duties to expand sales worth about $53m a year.

While the full impact is yet to be studied, a government analysis in 2005 suggested that a deal would add between 0.66 and 1.79 per cent to Australian GDP in 2020. This was calculated to add $39bn to the economy over two decades.

http://www.theaustralian.com.au/national-affairs/policy/tony-abbott-concludes-free-trade-agreement-w...

[spotweldersfriend]

So its taken 7 years. which means all these guys did was sign the papers,because they've only been in power for 6 months.

[just_me_karen]

Free trade deal is just another three word slogan, unless the details of the agreement are known.

What are the details, Nero?

And why are the details of a trade agreement made on behalf of the Australian people not shared with us?

[boris1gary]

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@spotweldersfriend wrote:
So its taken 7 years. which means all these guys did was sign the papers,because they've only been in power for 6 months.

---

To be fair, signing a document is quite an achievement for a village idiot, was peta there to remind him of his name.

[spotweldersfriend]

They probably gave them Queensland to seal the deal.Or maybe the offer of knighthoods
🙂

[carls*world]

Great deal......... we abolish tariffs on their stuff in a year, most of which will probably just be gobbled up in increased profits at wholesale/retail level, while they trim almost a quarter off their huge tariffs over a much longer period, in which time the Titanic has sunk.
Yep, we win again

[freshwater-2]

Was importing whale meat into Australia part of the deal?

[boris1gary]

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@freshwaterbeach wrote:

Was importing whale meat into Australia part of the deal?

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The Japanese have other concerns.....

Japan's key index of indicators designed to suggest the future condition of the economy plummeted at its fastest pace in five years, with concern intensifying that the first consumption tax hike in 17 years will significantly hurt the economy.

The index of leading indicators, which predicts economic developments in the coming few months, fell 4.6 points from a month earlier to 108.5 against the 2010 base of 100, down for the first time in six months, the Cabinet Office said Monday in a preliminary report.

As Tokyo stocks plunged and consumer sentiment worsened ahead of the 3-percentage tax hike to 8 percent that took effect last Tuesday, the index marked the sharpest fall since January 2009, when Japan's economy waned in the aftermath of the 2008 global financial crisis.

below from JCP late last year. They were right.

Japanese Communist Party Chair Shii Kazuo on October 1 demanded Prime Minister Abe Shinzo retract his decision to increase the consumption tax rate to 8% April next year arguing that it will impose the largest-ever tax burden of eight trillion yen on the general public.

Commenting on Abe's announcement of implementing a six trillion yen economic stimulus plan, Shii said at a press conference that it is irrational for him to use the six trillion yen for boosting the economy while admitting to the possibility that the massive tax hike with eight trillion yen would adversely affect Japan's economy.