Japan FTA Feasibility Study off to Good Start

Deputy Prime Minister and Minister for Trade Mark Vaile today welcomed the start of work on a Free Trade Agreement Feasibility Study between Australia and Japan.

"Both countries have now agreed on detailed terms of reference to examine the feasibility of a comprehensive FTA covering a number of issues including trade in goods and services, investment and intellectual property rights," Mr Vaile said.

The finalisation of terms of reference follows the agreement in April by Prime Minister Howard and Japanese Prime Minister Koizumi to examine ways to further enhance the economic relationship between Australia and Japan.

"I am delighted the process towards a possible FTA that began in my discussions with the Japanese in 2001 has reached a new stage with this agreement on a way ahead with the FTA feasibility study,"Mr Vaile said.

"I am confident the study will highlight the benefits an FTA would bring to both our economies, and further cement the special nature of our relationship with Japan. An FTA would mean clear benefits to Australian business."

"Japan is the world's second largest economy and our number one export market, and has been for four decades. It is the number one export market for key Australian exports, coal and iron ore. An FTA would take this important relationship to new levels of integration and ensure competitive access for our exporters. "

"That said, if the study concludes that Australia and Japan should proceed to negotiate an FTA, we need to be realistic that any negotiation will require a firm political commitment on both sides."

Economic modelling published by both governments in April this year showed that full bilateral liberalisation of markets would produce $39 billion in additional GDP over 20 years for Australia and $27 billion for Japan.

Contacts: Richard Forbes (Mr Vaile's Office) 02 6277 7420, Matt Anderson (Departmental) 02 6261 1555