The Japan Australia Economic Partnership Agreement (JAEPA)

The signing of the Japan Australia Economic Partnership Agreement (JAEPA) in July 2014 was a monumental event in the history of the Australia-Japan bilateral relationship. It promises to bring the two economies and societies even closer together, and to underwrite a new era of growth in trade of goods and services that were previously constrained by government-imposed barriers and restrictions. The deal came just months after the signing of a similar pact with Korea, and as negotiations for a trade deal between Australia and China were reaching an advanced stage.

The agreement has removed barriers and opened up new opportunities for Australian professional services providers in areas including the law, finance and design, to name just a few. The will also deliver significant benefits to Australian farmers, manufacturers, exporters, service providers and consumers by bringing down barriers to the Japanese market.

Specifically, under JAEPA:

  • More than 97 per cent of Australia’s exports to Japan will enter duty-free or receive preferential access when the deal is fully implemented
  • Prohibitive tariffs will be slashed on a wide range of products to Australia’s second-largest agricultural export market, including rapid tariff reductions for beef, Australia’s largest agricultural export to Japan
  • Tariffs on all of Australia’s current minerals, energy and manufacturing exports will be eliminated
  • Australian service providers will be guaranteed outcomes equal to or better than the best commitments Japan has made in any of its other trade agreements
  • Both governments will support work towards enhanced mutual recognition of professional qualifications
  • Investment in Australia will be promoted by raising the screening threshold at which private Japanese investment in non-sensitive sectors is considered by the Foreign Investment Review Board
  • Australian innovators will enjoy levels of protection for their intellectual property in Japan broadly equivalent to protections provided in Australia.

Immediately after implementation of JAEPA began, 99.7 per cent of Australia’s exports of resources, energy and manufacturing products started entering Japan duty free. On full implementation on 1 April 2034, all of Australia’s current resources, energy and manufactured goods exports will benefit from duty-free entry. 

To further explore the potential benefits of JAEPA for Australian businesses, check out the FTA Tool developed by the Export Council of Australia. This website helps Australian exporters navigate the basics of all of Australia’s free trade agreements (FTAs) quickly and easily. Businesses can search by country and industry to discover how FTAs can make doing business easier.

Want to learn more? Explore our other Indonesia information categories or download the Japan Country Starter Pack.