In 2014, Japan and Australia marked a significant milestone in their economic relationship with the signing of the Japan-Australia Economic Partnership Agreement, paving the way for increased bilateral trade and cooperation. Commemorating JAEPA’s 10th anniversary, the partnership remains robust, dynamically impacting the economic ties between the two nations.
“Overall, I would characterize it as positive, growing and broadening,” H.E. Justin Hayhurst, ambassador of Australia to Japan, said of the current state of trade relations between Japan and Australia.
“I would highlight three areas of potential in our continued cooperation: energy transition, critical minerals and in the areas of strategic trust. Australia’s decade-long energy partnership with Japan remains very strong. We have very similar decarbonization and emissions reduction targets, and the challenge is how to support each other’s efforts, as partners.
“Energy transition and critical minerals are two of the vital areas. As for areas of strategic trust, defense industry, data and telecommunications technology are just some key aspects in which two countries with advanced scientific capabilities and a close political partnership can work together,” he elaborated.
H.E. Kazuhiro Suzuki, ambassador of Japan to Australia, said, “The Japan-Australia relationship has never been better.” Citing the results of the 2022 Lowy Institute poll, a survey of the Australian public’s perceptions of foreign relations, Suzuki noted that Japan placed first, with 85% of respondents saying they trust the country to “act responsibly in the world.”
“In many ways, this is not surprising, given that Japan and Australia enjoy a long-standing economic partnership often called a ‘complementary relationship,’” he added.
Moreover, Hayhurst underscored that JAEPA has been a great success not only on the forefront of bilateral trade, but also in strengthening “the principles that both countries stand for, economically.”
Over the last decade, JAEPA has fostered economic growth and stability. The agreement has played a pivotal role in the diversification of both countries’ economies by expanding trade relations and market access for businesses and investors across an array of sectors, including technology, natural resources and finance, among many others.
“About 60% of Japan’s iron ore imports and around 40% of its natural gas imports come from Australia. About 40% of Australia’s imported passenger cars are of Japanese origin. Furthermore, we now see more Japanese industrial products and investments in Australia, enriching society as a whole. On the financial front, Japanese banks run second only to Australia’s four megabanks for corporate loans; for project finance, three of the top seven banks in Australia are Japanese,” Suzuki said.
Richard Andrews, CEO of the Australia Japan Business Co-operation Committee, concurred with the insight on the far-reaching effects of JAEPA.
“The creation of new industries and new forms of collaboration requires the creation of new networks and new ways of working together. These networks will be needed across an unprecedented range of activities — from clean hydrogen and ammonia, green steel production and renewable energy to new collaborations on innovation and technology, in areas as diverse as robotics and nanotechnology, space, artificial intelligence and life sciences,” he concluded.
