Alan Griffin (Bruce, Australian Labor Party) Share this | Hansard source

I also rise to speak in support, for the most part, of the motion moved by the member for Cowan. I join in expressing the importance of the strong relationship between Australia and Japan on a number of different levels, including trade and investment. I also commend successive governments for the work they have done in building the Japan Australia Economic Partnership Agreement.

There have been three major phases in the development of the post-war Australia-Japan relationship. These are: the establishment of a major trading relationship with Japan shortly after World War II, formalised by the 1957 Japan-Australia Agreement on Commerce; a process of broadening the relationship, particularly at the cultural level, reflected in the 1976 Basic Treaty of Friendship and Co-operation between Australia and Japan, also known as the NARA treaty; and over the last decade, the emergence of a more fully-rounded and diverse partnership, including important political and security objectives, highlighted by the 2007 Joint Declaration on Security Cooperation and the conclusion of negotiations on the Japan Australia Economic Partnership Agreement.

Australia and Japan have a strong partnership and work together closely to tackle both regional and global issues of concern. The 2007 Joint Declaration on Security Cooperation serves as a platform for cooperation on a number of security issues between Australia and Japan, such as counter-terrorism, law enforcement, disarmament and maritime and aviation security. At a summit held in April, Prime Minister Tony Abbott and his Japanese counterpart decided to start negotiations towards a framework of agreement in the field of defence science, technology and equipment cooperation, as well as a cyber-policy dialogue to discuss cyber threats. Although Japanese whaling has been a very contentious issue, both Australia and Japan have an agreement not to let it get in the way of our nations' strong partnership. The strong trade relationship between the two nations has been beneficial. Having Japan as a strong and reliable customer of Australian produce has helped build the Australian economy, following the agreement in 1957.

Japan was Australia's second-largest trading partner in 2012-13. Japan is Australia's second-largest export market and will remain so for the foreseeable future. Two-way goods and services trade between Australia and Japan was valued at $69.2 billion. Goods exports to Japan in 2012-13 represented approximately 18.8 per cent of Australia's total exports. Total bilateral trade and services in 2012-13 was valued at about $4.4 billion. Japan is Australia's third-largest investor with an investment stock of $126.4 billion as at the end of 2012. Over 40 per cent, about $52 billion of Japan's total investment in Australia is direct investment. Japanese direct investment has been essential in the development of many of the export industries that have driven Australia's growth, including large-scale projects to meet Japanese demand for resources, such as in iron ore and in coal. Australian companies and individuals also target Japanese businesses for investment and Japan is Australia's sixth-largest destination for foreign investment. At the end of 2012, Australia's stock of investment in Japan was about $39 billion.

On 7 April 2014, Prime Minister Tony Abbott announced the conclusion of negotiations on the Japan Australia Economic Partnership Agreement that had been in the making by efforts from successive Australian governments. The agreement will provide valuable preferential access for Australian exports, better than any of Japan's agreements with other partners. Australian and Japan commenced negotiating a bilateral economic partnership agreement in April 2007.

According to the Department of Foreign Affairs and Trade, the EPA will address tariff and non-tariff barriers facing Australian companies; create commercial opportunities across all industries; expand export opportunities in Japan's agricultural markets; promote investment; promote our mineral and energy relationship; address any discrimination resulting from Japan's EPAs with other countries; and provide a fundamental commercial framework for increased trade and investment.

A conservative estimate of a net benefit of the EPA to the Australian economy would be an increase of 0.66 per cent of GDP by 2020. The joint study equated these amounts to a net gain in present value terms over 20 years of $39 billion for Australia and some $27 billion for Japan.

I note that earlier speakers made mention of the visit of Prime Minister Abe in the near future. This will be an opportunity for both nations to continue the dialogue and continue to develop the relationship between our two nations, which has been such a profitable and successful one for both our nations in the post war period.

Debate adjourned.

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