Austrade media release

14 March 2007

Business awareness of current Australia-Japan Free Trade Agreement negotiations underway must be increased according to Austrade’s Chief Economist Tim Harcourt who said there is far more awareness of China negotiations. 

“Even though Japan is Australia’s top export destination, a new DHL survey found general awareness in the business community of the Japan FTA negotiations was only 13 per cent compared to 44 per cent for China’s,” Mr Harcourt said. 

“This awareness level must be raised as negotiations with Japan are still underway.  Now is the perfect time for individuals to put forward submissions on issues relevant to the negotiations of an FTA with Japan.

While addressing business leaders at the Australia & Japan Economic Outlook Conference 2007 (details below), Mr Harcourt said Australia’s relationship with Japan can only strengthen through the FTA.

“Now is a good time to be looking at Japan. The Japanese economy is in a growth phase and is experiencing its longest uninterrupted expansion since the 1960s. In the December quarter Japan grew by a strong 1.3 per cent, (or 2.5 per cent annually over the same quarter in the previous year) with employment and business sentiment gaining momentum. With the end of deflation, export-led growth and stronger local confidence, Japan is officially back in the game,” he said. 

Austrade’s Tokyo-based Senior Trade Commissioner, Phil Ingram said the FTA negotiations, Japan’s government reforms and new trends are good news for Australian businesses, but more could be done.

“Despite Japan’s importance to Australia as an export destination, only 100 Australian companies have representation in-market. For an economy of Japan’s size, this is an opportunity lost,” he said.

“Businesses interested in exporting to Japan should contact Austrade.  We have six offices around Japan with specialised staff that can fast track export success and provide key contacts to secure deals.”

Mr Harcourt said Japan’s unique demographics at both ends of the scale are particularly well suited to Australia. 

“At the young end of the market, surf exports are booming.  According to the latest data from the Australian Bureau of Statistics (ABS), Australia exports around $21 million worth of water, surfboards and water sports equipment, with Japan our number one destination – accounting for $8 million worth of exports,” he said. 

“On the other end of the scale, grey power is doing its big for our exports as well.  Tourism plays a big role; the older Japanese are spending a lot of time in Australia on a range of leisure and educational activities.  Their trips are longer as retirement frees them up. 

“Japan is still Australia’s number one export destination, and even with the amazing rise of China it will continue to be an important economic partner for Australia and a key global economic player – particularly in the Asia Pacific region,” Mr Harcourt said. 

Tim Harcourt is a key note speaker at the Australia & Japan Economic Outlook Conference 2007 to be held Friday, 16 March, 2007 at the Conference Centre, Deloitte, Level 9, Grosvenor Place, 225 George Street, Sydney from 9am until 12.30pm.

Submissions on the FTA can be lodged to JapanFTA@dfat.gov.au or by post to:  Japan FTA Task Force, Department of Foreign Affairs and Trade, RG Casey Building, John McEwen Crescent, Barton, ACT, 0221.

ENDS

Media contact

Name:  Karla Davies
Tel:      +61 2 9390 2745 
Mob:     0421 288 755
Email:   karla.davies@austrade.gov.au

For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au/mediacentre.