Australia-Japan: Strengthening Economic Relations

A printer-friendly version of this document is available.

Joint Media Release

Australian Minister for Trade, Mark Vaile and Australian Minister for Foreign Affairs, Alexander Downer

29 April 2001

The Minister for Trade Mark Vaile and the Minister for Foreign Affairs Alexander Downer today announced the release of a major report, Strengthening Australia-Japan Economic Relations.Ê Mr Vaile launched the report at the start of the ãAustralia-Japan Conference for the 21^st Centuryä being held in Sydney on 29-30 April.

ãThe report provides an excellent roadmap on ways Australia and Japan can expand our economic relations further,ä Mr Vaile said. ãIt identifies how regulatory reform, Înew economyâ developments and other structural changes are creating new complementarities in information and communications technology, financial services, medical and health services and biotechnology.Ê A key recommendation is for a new Australia-Japan Trade and Investment Facilitation Agreement (TIFA) which would update the commercial framework of the relationship.ä

Mr Downer encouraged Australian companies to take a fresh look at their Japan market strategies in light of the report.Ê ãMany Australian firms do not fully appreciate the opportunities opening up in Japan as a result of economic reforms or find it difficult to realise them,ä Mr Downer said.Ê ãGovernment has an important role to play in helping to realise the full potential of the Australia-Japan relationship but business must also rise to the challenge.ä

Australiaâs exports to Japan account for four per cent of GDP and support 380,000 Australian jobs. Despite a decade of slow growth, Japan remains by far Australiaâs largest export market, with exports increasing by 65 per cent in the last 10 years to $25.5 billion.

Mr Vaile and Mr Downer said they would meet with Japanese Ministerial colleagues shortly to discuss an appropriate means to address the reportâs recommendations, including the TIFA proposal.

ãOne idea might be to enlist an Expertsâ Group drawn from our two countries to work on the way forward,ä Mr Vaile said.

The report was prepared for the Department of Foreign Affairs and Trade by Professor Gordon de Brouwer of the Australian National University and Dr Tony Warren of the Network Economics Consulting Group.Ê It was based on interviews with more than 100 companies from Australia and Japan.

Media inquiries: John Kunkel (Minister Vaile) 02 6277 74204
Matt Francis (Minister Downer)
Gordon de Brouwer (ANU) 0414 327 196