Japan-Australia business and economic relations

Japan-Australia business and economic relations

Relations between Japan and Australia have been warm and of great substance which comes from their mutual interests since they both enjoy strong ties to the Western world. Japan is among the major economic partners of Australia. It is ranked second largest business partners, which is the largest source of investment. Recently their interrelations have grown and expanded to tourism, culture, scientific cooperation, and defense. Although their relationship have strained for some time due to world war 11, that lead to domination of Japan economically, such tensions have ended as Japan stagnated in 1990’s (Trade statistics, 2015). Moreover, at the same time the economics of Australia has grown.

The government of Australia together with investors visualizes Japan as the most important market for exports that is expected to contribute much growth and prosperity in the region of Asia-Pacific. Japan also values Australia as a reliable partner mostly in contribution to sources of energy. In addition, Australia also produces minerals, raw materials, acts as a tourist estimation site, which generates a lot of revenue especially from western countries (Department of foreign affairs and trade, 2016). Thus, it is valued as a middle power in the economy of Asia-Pacific. Their friendship in trade is also commented upon by leaders such as Prime Minister Tony Abbott who expressed that Japan is among the closest friends of Australia in the Asian-Pacific.

Their Stronger ties, which have continuously expanded, have raised great concern between the two economies and lead to establishment of a partnership agenda. The agenda wishes to promote a mutual understanding that is deeper that will lead to more cooperation among bilateral interests, multilateral fields and regional areas. The following actions are part of the declaration raised by the two countries.

Political dialogue.

The political dialogue stresses that the two countries will progress with their partnerships and cooperation through having dialogues at the highest levels (Department of foreign affairs and trade, 2016). They include conducting annual meetings with their prime ministers and forming Japan-Australian committee.

Security and defense

Because of their increased mutual trust in their trades, Japan and Australia is aimed at improving the security and defense sectors. The two countries will develop and grow their dialogues about security by conducting annual meetings and talks with military and political departments among other senior level visitors. They will also assess ways they can use to implement changes between forces of Australia and Japan.

Bilateral Economic and Trade Relations

Australia has enjoyed very strong ties commercially making them encouraged to strengthen them as their trade diversifies. The proposed actions such as promotion and facilitation of trade and investment will advance and increase their growth.

Promotion and facilitation of trade and investment

Australian and Japanese government aims at examining the nature of feasibility and development of recognition arrangements in areas of issuing certificates and conducting assessments. They also hope to conduct meetings including technical experts.

They also wish to strengthen their cooperation in custom area to facilitate efficiency of custom procedure. Moreover, they aim at continuing cooperation arrangements between the Trade Commission of Australia and Trade Organization (JETRO) of Japan. The process will facilitate Japan exports and encourage collaboration in identification of market segments. As a result, they will promote activities and events located in Japan, which are aimed at meeting supply capability of Australia.

The two countries have a goal of cooperating in transfer of health certificates electronically through establishment of an initial pilot program (Department of foreign affairs and trade, 2016). Lastly, they wish to continuously exchange their information about structural reforms that are important in the production of the nation and growth economically. Moreover, they conduct researches and arrange their institutions to better understand their community and productivity.

Deregulation and competition policy

To tighten the already established links between the two countries, public policy planners of the two nations aim at conducting delegations regarding administrative reform planners(Department of foreign affairs and trade, 2016). As a result, they visit Australia to research and study their experience on micro-economic reform. Australian government will personally share its experiences on economy deregulation and competition policies roles through examination of holding a seminar sponsored by Japan in collaboration with a University from Tokyo.

Tourism

Tourism is among the areas that the two governments associate with each other. They generate revenue from the sector (Bayari, 2004). The two governments will facilitate development of tourism by conducting discussions and collaborations with the industry to state the presiding barriers and establish their solutions. Moreover, visitors from Japan will enjoy cheaper entry rates and fewer requirements.

Energy

Energy is most required by all economies. Australia and Japan have great importance to minerals and energy contributed by each of the countries (Silva, 2009). The two governments therefore work to ensure that they maintain continued viability. Japan energy is ranked the highest level from energy forecasts conducted. Development of energy as a resource offers a forum of discussion and exchange of information.

Employment and training

The two economies face similar challenges and therefore are enhancing cooperation through exchanging certain officials of the government and sharing related information.

Commercial application of scientific research and development

Japan and Australian government realize the change created by advancement in research, science, and technology (Department of homeland security, 2015). In addition, they realize its effect on their developments. Thus, they aim at performing commercial application of scientific research to favor their businesses. They also ensure that the two economies have safety in their use of nuclear energy.

 

 

 

References

Silva, L.(2009).Japan-Australia Trade Issues: An analysis of recent developments in market             liberalization. The Otemon Journal of Australian studies,1(35),1-19.

Bayari, C.(2004).Japanese business in Australia: a management survey of industry interaction      with location factors. The Otemon journal of Australian studies,1(30),119-149.

Department of foreign affairs and trade. (2016).  Partnership Agenda between Australia and         Japan. Retrieved from http://dfat.gov.au/geo/japan/Pages/partnership-agenda-between-     australia-and-japan.aspx

Department of Foreign affairs and trade. (2016). Japan Country Brief. Retrieved from             http://dfat.gov.au/geo/japan/Pages/japan-country-brief.aspx

Trade statistics.(2015).Trade and economic statictics.Trade statistics. Retrieved             fromhttp://dfat.gov.au/trade/resources/trade-statistics/Pages/trade-statistics.aspx

Census.(2015).U.S. Trade in goods with Australia. Trade in goods with Australia. Retrieved        from https://www.census.gov/foreign-trade/balance/c6021.html

Department of homeland security.(2015).Australia Free trade Agreement(AUFTA). U.S. Customs and border protection. Retrieved from http://www.cbp.gov/trade/free-trade-     agreements/australia

 

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