Australia–Japan trade shows strength in tough times
The Minister for Trade, Simon Crean, said today that Australia’s trade relationship with Japan was as strong as ever, despite the global slowdown and the rapid growth of Australia’s trade with China and other countries in the region.
“Our merchandise exports to Japan in the first three quarters of 2008 have already surpassed total merchandise exports in 2007,” Mr Crean said ahead of the launch of a new report from the Department of Foreign Affairs and Trade’s Economic Analytical Unit, Australia and Japan: How distance and complementarity shape a remarkable commercial relationship. “Japan is a crucial customer for Australia’s major commodity sectors, and Australian business should also be aware of how change in the Japanese economy is opening up a range of opportunities in other sectors as well.”
In launching the report at Parliament House, Parliamentary Secretary for Trade John Murphy said that Japan was Australia’s number one export market by a significant margin, and Australia’s second largest overall trading partner. Australia’s 2007-08 merchandise trade surplus with Japan exceeded total two-way merchandise trade with India – the fastest-growing major export market – in the same period. Japanese firms are key investors in the development of Australian energy, resource, automobile and agrifood industries.
The report highlights the importance of the relationship to both countries, as well as to the wider Asia-Pacific region. The relationship, forged on two-way trade and investment, now transcends the purely bilateral and has become regional in nature. Investment by Japanese firms in China and other regional countries is linked to the rise of regional production networks and presents opportunities for firms in Australia.
Mr Murphy said both business and government could capitalise on new areas of opportunity through efforts to reduce the distance in the business relationship, through measures such as the FTA currently under negotiation and by encouraging people-to-people links through education, high-level business missions, and tourism. Traditional stereotypes about the difficulties of doing business in Japan may no longer be accurate, and Australian firms needed to be open to taking another look at the Japanese market.
Media Inquiries: Mr Crean's office 02 6277 7420 - Departmental Media Liaison 02 6261 1555