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Ag News

More tariff cuts for the Japan-Australia Economic Partnership Agreement (JAEPA)

  • By: "Prime" Ag News
  • Apr 05, 2018

• Fifth round of tariff cuts under the Japan-Australia Economic Partnership Agreement (JAEPA) took effect from 1 April 2018
•   Includes tariff cuts for beef, honey, oranges, mandarins and onions
•   Japan is Australia’s second largest agricultural market, valued at around $5.5 billion in 2017

Australian beef, honey, oranges, mandarins and onions the latest to profit from the Japan-Australia Economic Partnership Agreement (JAEPA) following the recent round of tariff cuts.

Minister for Agriculture and Water Resources, David Littleproud, said the latest cuts would provide even more opportunities for Australian agriculture exporters. ​

“Almost 96 per cent of eligible product exported by Australian businesses to Japan made use of the preferential tariffs in 2017,” Minister Littleproud said.

“It is clear exporters value our trade relationship with Japan and are making the most of the tariff reductions along the way.

“Japan is Australia’s second largest agricultural market, valued at around $5.5 billion in 2017. The tariff cuts we are seeing through JAEPA will further increase the value of this market for Australia.

“To enable more exporters to take full advantage of JAEPA, the Department of Agriculture and Water Resources is delivering new technical market access to improve trade for a range of commodities.

“We are working on regaining access for blueberries from the mainland together with improving market access for other horticulture commodities including mangoes.”  

With the recently signed Trans-Pacific Partnership agreement (TPP-11), the Coalition Government is pursuing the most ambitious trade agenda in Australia’s history. The TPP-11 will build on JAEPA outcomes, with accelerated tariff reductions secured for beef, grains, seafood and dairy.

Since 1 January 2016, the department has secured approximately 130 technical market access gains across a broad range of markets and commodities. This includes 57 for new market access, 11 restored, 48 improved and 14 maintained.

This includes new access for peaches, plums and apricots and significant market improvements for table grapes, citrus and cherries to China, restoring access for cherries into Vietnam and new access for breeder sheep and goats to Canada and seed potatoes to Indonesia.

Key agricultural outcomes from the latest round of tariff cuts include:  
•   Fresh or chilled beef: 38.5 per cent pre-JAEPA tariff, now 29.3 per cent. Exports up one per cent year on year to $1.1 billion in 2017.
•   Frozen beef: 38.5 per cent pre-JAEPA tariff, now 26.9 per cent. Exports up 24 per cent to $883.4 year on year million in 2017.
•   Natural honey: 25.5 per cent pre-JAEPA tariff, now 13.9 per cent. Exports up 51 per cent year on year to $2 million in 2017.
•   Oranges: 16 per cent pre-JAEPA tariff, now 8.7 per cent (1 June to 30 September). Exports up 14 per cent year on year to $54.2 million in 2017.
•   Mandarins: 17 per cent pre-JAEPA tariff, now 11.7 per cent. Exports up 66 per cent year on year to $8 million in 2017.
•   Onions: 8.5 per cent tariff pre JAEPA tariff, now 1.4 per cent. Exports up 44 per cent year on year to $4 million in 2017.

Fast Facts:
•   JAEPA entered into force on 15 January 2015, and Australian exporters have benefitted from five tariff cuts to date—one on entry into force, the second on 1 April 2015,the third on 1 April 2016, the fourth on 1 April 2017 and the fifth on 1 April 2018.
•   Future phased tariff reductions and quota increases will continue to occur on 1 April each year.