Australia’s Trade and Competitiveness Minister Craig Emerson has given a keynote speech at the Tokyo Chamber of Commerce to mark the 50th anniversary of the Japan-Australia Business Cooperation Committee and its Australian counterpart, in which he committed Australia to a conclusion of the long-discussed free trade agreement (FTA) with Japan as soon as possible.

Emerson remarked that Japan is Australia's second-largest trading partner, and its third-largest source of foreign investment with a total stock of investment in Australia of over USD120bn.

As such, he confirmed that Australia has welcomed the Japanese government’s announcement last October that it was interested in joining the Trans-Pacific Partnership (TPP), which is an Australian regional trade priority and “one possible pathway to a Free Trade Area in the Asia-Pacific, as envisaged by the Asia-Pacific Economic Cooperation". The latter, he added, remains the region's most successful trade grouping in terms of the results it has already delivered.

With regard to Japan’s application to the TPP, Emerson disclosed that Australia “will assess membership applications individually and seek assurances on the level of ambition and pace of the negotiations. In my discussions with aspirants I have asked them to demonstrate that they can match the high level of ambition outlined by TPP Leaders.”

“For Japan,” he added “our FTA negotiations will be an important demonstration of its level of ambition. This FTA could help to increase our trade flows, which are not growing as fast as they are with some of Australia's other large trading partners. This is why the Australian government is committed to concluding a high-quality and comprehensive FTA with Japan as soon as possible.”

“It would provide greater food and energy security, by making Japan a more attractive export destination for Australian producers,” he continued. “By keeping pace with Australia's other FTAs in the region, Japanese and Australian companies will be able to work together in other markets as part of regional production networks. It would demonstrate to others that Japan is serious about (trade) liberalization.”

“After five years of negotiations we are now at a stage where concluding the FTA will require concerted political effort on both sides. I can assure you that Australia remains committed to achieving this goal,” Emerson declared.

June 4, 2012

Source: Tax News

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