Australia has gained a huge competitive
advantage over Canadian beef exporters.
While Canada is negotiating a new trade
agreement with Japan, Australia has announced its deal that features a Japanese
reduction of its beef import tariff from 38.5 to 19.5 per cent in the first
year.
Australia is the first major agricultural
exporting economy to conclude such a liberalizing agreement with Japan, said
Andrew Robb, Australia’s minister for trade and investment.
Australia already exports about $1.4 billion
worth of beef to Japan every year. It’s Australia’s biggest agricultural
export to Japan.
The trade deal also grants Australia duty-free
access cheese and a wide array of fruit, vegetables and nuts.
The cheese deal will benefit Saputo Inc. of
Montreal because it recently bought Warrambool, a major Australian dairy
processor.
Tariffs on Austalia’s exports of canned
products such as tomatoes, peaches and pears, as well as fruit and vegetable
juices, will also be eliminated.
Australia eliminated tariffs on Japan’s cars, household
appliances and electronics.
That will benefit Australian consumers, but
increase competition for Australian companies in those businesses.
Access was also eased for Japanese financial,
education, telecommunications and legal services.
