CANBERRA: Australian Prime Minister Malcolm Turnbull will reveal the successes today of the free trade agreement with Japan, namely in the agribusiness sector. The success is aided by a promotion of Australian food in Japan’s Prince hotel chain which promotes the products of 50 Australian exporters.
The first figures to emerge since the free trade agreement with Japan came into effect in January, show that Australian exporters have been quick off the mark to take advantage of the reduced barriers.
In the first six months of this year — compared with the corresponding period in pre-FTA days last year — sales of table grapes soared 1025 per cent to $6.5 million, asparagus sales are up 41 per cent to $14m, almonds up 1058 per cent to $4m and fresh Valencia oranges are up 77 per cent to $4m. Japan is Australia’s second-biggest trading partner after China.
Australian exports to Japan in 2014 reached $48.3 billion and Japan now buys 18.2 per cent of all Australian exports, and has invested $175bn in Australia, $66bn of it directly in projects and businesses. Australia’s biggest asparagus grower, Joe Vizzarri, from Koo Wee Rup southeast of Melbourne, exports 30 per cent of his 1700-tonne crop to Japan.
Mr Vizzarri said it was difficult to gauge the impact of trade liberalisation on his business as it was recovering from a series of wet years, but the increase in trade with Japan was good news. The Australian dollar being down has also helped. Vizzarri Farms supplies fresh asparagus to Coles, Woolworths, Aldi and Costco in Australia, and exports to Canada, Hong Kong, Singapore and Taiwan, as well as Japan.
New data on trade with South Korea, Australia’s third-biggest export market, demonstrates the Japan surge is not a one-off, and that it is likely to be replicated once the China FTA comes into effect on December 20.
