Transcript: A video case study on Australian financial services in Japan

 

Transcript

>>Male Voiceover: The Japan-Australia Economic Partnership Agreement, or JAEPA, is by far the most liberalising free trade agreement that Japan has ever concluded.

It ensures that Australian financial services providers can establish or acquire institutions in Japan as a branch or subsidiary, without the need to open full commercial presence, including wholesale securities trading, investment advice and portfolio management services for investment funds.

>>Leonie Muldoon Senior Trade Commissioner Austrade: In the financial services sector, the treaty-level guarantee of an equal playing field has really brought Australian asset managers and financial advisors back to the Japan market, so it’s made a real difference for our financial service sector providers.

Grant Knuckey Chief Executive Officer ANZ Japan: The real attraction of Japan for ANZ is that there’s a very deep trade and capital connection between Australia and Japan and that connection is very long-standing.

Agreements like JAEPA are really all about momentum – getting people engaged, getting people thinking about the market, getting people taking some action.

Empirically the evidence through every trade agreement over the past few decades is that they are beneficial to all signatories and they tend to boost the trade of all parties and the growth of all parties.

From the perspective of a Japanese corporate, Australia represents firstly a triple-A-rated sovereign. It also represents a regulatory regime which is seen as absolutely world class. And the banks themselves are very well capitalised and with very strong credit rating.

The second thing that I think is attractive is that Australian banks have a level of expertise and a lot of experience in areas that are important to Japan, so infrastructure, agriculture and natural resources.

The medium – long term story for JAEPA is about that evolution through trade, through capital, then through people. And once you go beyond trade and begin to look at things like direct investment and companies putting down roots, that becomes far more sustainable through trade cycles.

What JAEPA has done is levelled the playing field for Australian products, and it’s given them a pricing advantage, and they already enjoy that brand advantage, that perception of quality. So if you can combine that with the ability to get a better price point, from an exporter’s point of view that’s a very good combination.

Catherine Taylor Senior Trade Commissioner and Consul General, Austrade: The other benefit of JAEPA is that it’s spotlighted Australian… not just product, but services. So even if there aren’t tariff reductions to be had in a certain area, the head-turning effect has meant that there’s increased interest. It’s a very exciting time to be doing business with Japan.

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