Japan & Australia Reach Agreement on EPA

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On 4/7/2014, Japan and Australia have agreed to bind an EPA ("Economic Partnership Agreement"). PMs Abe and Abbott have agreed to lower the

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tariff on Australian beef exports to Japan, from the current rate of 38.5% to about 20%, over a 15 year period. Australia will remove the 5%

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tariff on Japanese automobile exports (mid-to-small-sized sedans) in return. The tariff on larger vehicles will be removed over 3+ years.

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Japan is Australia's biggest export market for its beef; Australia is Japan's 2nd biggest export market for its automobiles, after the US.

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Negotiations began during PM Abe's first term in 2007. The agreement will likely come into effect from 2015. The result will likely impact

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the ongoing TPP negotiations with the US. Rather than removing the tariffs immediately (which US requests), Japan will likely want tariffs

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to be reduced gradually over a number of years. Japan is scheduled to continue its TPP negotiations with the US this week.