Australian FTA with Japan akin to a business deal with Asia as Japanese retailers expand through South East Asia

A senior Australian trade commissioner has urged Tasmanian growers to take an immediate step towards exporting products to Japan.

Japan has over 4, 000 businesses operating in South East Asia with a free trade agreement likened to a business deal with Asia.

Senior Trade Commissioner to Japan, Leonie Muldoon, says it's not just big businesses that Japanese retailers are looking at.

"Although there is clearly advantages at the commodity end of the market, whether it's in dairy or wheat, equally we see the processed food end of the market as being able to take advantage of the free trade agreement."

Processed products like cheese, chocolate, jams, truffles and olive oils are in high demand across Asian countries with Japanese retailers leading the charge into those markets.

Ms Muldoon says Japan will be a high value market for Tasmanian wine with vintages attracting a strong premium with consumers.

"I think there is a certainly a market for premium and quality," she said.

"The Japanese really appreciate premium goods that are beautifully wrapped, that have unique Australian ingredients, that are new to the Japan markets.

"The Japanese are very wealthy, they are 60 time wealthier than Indian citizens, they are 10 times more wealthy than their Chinese counter-parts, so they are very well positioned to meet whatever price is charged."

The aggressive Free Trade Agreement with Japan will see a major increase in quota's coming out of Japan for Australian products.

Ms Muldoon says Chilean sales of wine to Japan quadrupled to $200 million after a free trade agreement was signed with Japan in 2007.

Ms Muldoon says Tasmania is in a much better position to take advantage of its relationship with Japan.

"The bilateral relationship between Australia and Japan is really strong at the moment so Australia is much more in the press and of interest to Japanese consumers," she said.

"We're getting a lot of publicity, there is a very strong relationship between the two prime ministers which is also helping to keep Australian awareness high, so there are a lot of Japanese customers who are suddenly thinking Australian product so it's a great time to be tapping into that."

Australian exporters will see a two tier step down in barriers by the time the agreement commences in February next year with the second round step down occurring on the 31st March 2015.

Source: abc.net.au