2007-08 Budget

Free Trade Agreement Negotiations: Japan and China

The Australian Government Budget has provided $17.0 million over two years for the negotiation of free trade agreements (FTAs) with Australia’s two largest trading partners, Japan and China.

The Japan FTA negotiations commenced this year and are being led by the Department of Foreign Affairs and Trade. This funding covers the work of nine other Australian Government agencies in the conduct of negotiations.

An FTA with Japan, the world’s second largest economy, has the potential to significantly boost the Australian economy. It will help secure and improve access for Australian exporters of goods and services to our largest export market and promote greater two-way investment. An FTA with Japan will foster market-based economic integration in our region and further strengthen Australia’s relationship with one of our most important regional partners.

This funding will allow the Government to conduct FTA negotiations with Japan, including consultations with domestic stakeholders, and to build support in Japan for a comprehensive FTA that encompasses Australia’s interests.

Funding is being provided for the continuation of the FTA negotiations with China. The Department of Foreign Affairs and Trade leads the negotiations, and eight other agencies are also included in the funding provision.

China is the world’s fastest-growing major economy. It is now Australia’s second‑largest trading partner overall and trade continues to grow rapidly. A comprehensive FTA with China will generate significant economic benefits for Australia across all sectors of the economy.

This funding will allow the Government to continue the negotiations, including consultations with Australian stakeholders and advocacy with influential Chinese to help ensure the FTA produces outcomes that are of a high quality and are commercially valuable to Australia.

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555