Media Release

Australia-Japan Trade and Economic Framework

Trade Minister Mark Vaile welcomed the conclusion of the new Australia-Japan Trade and Economic Framework, signed today by Prime Minister Howard and Japanese Prime Minister Koizumi in Tokyo.

" The new Framework reflects the Government's strong commitment to further developing trade and investment linkages with Australia's largest export market and our most important economic partner in East Asia," Mr Vaile said.

The Framework includes a commitment by the two countries to work towards trade and investment liberalisation on a comprehensive basis. A detailed study will be carried out by the two governments into the benefits of trade and investment liberalisation between Australia and Japan and how to achieve that goal.

" This sets a clear direction for trade and economic relations between Australia and Japan. It confirms that comprehensive free trade is squarely on the bilateral agenda and it reinforces the importance of global trade liberalisation, which remains a key priority for both Australia and Japan," he said.

Mr Vaile emphasised that the focus of the study would be on how the goal of free trade could be achieved and the potential benefits for both countries. "We expect the study to establish for the first time a coherent and across-the-board basis for future decisions on next steps towards trade liberalisation," Mr Vaile said.

Given the sheer significance of Japan as a trade and economic partner for Australia, Mr Vaile welcomed the provisions in the framework for the two countries to consult on their FTAs with other countries.

Mr Vaile also highlighted a package of eleven initiatives in the Framework aimed at improving commercial and policy linkages. These cover well-established sectors, such as food and energy trade, emerging growth areas such as ICT and newer policy issues including competition policy and securities markets regulation. "This package widens and deepens trade and investment linkages and I am confident that it will deliver improvements to the overall business environment."

Mr Vaile said "Following on from our FTA with Singapore and along with our FTA negotiations with United States and Thailand, this new Framework demonstrates the priority the Government attaches to developing economic linkages with our key trading partners in the Asia-Pacific region to their full potential."