(MENAFN- Qatar News Agency) Japan and Australia have reached broad agreement on how to deal with farm products in their ongoing negotiations on a bilateral free trade agreement, government sources said Sunday. Under the deal, Japan will be allowed to retain high tariffs on imports of some of its most "sensitive" farm goods in exchange for accepting a certain amount of those products from Australia at low customs duties, according to the sources, according to Japan Times.
With the deal, the two countries are hoping to conclude the trade negotiations as early as this summer, after working out automotive tariff reductions. Agriculture had been a major stumbling block since the talks began in 2007. Australia, a major food exporter, had urged Japan to eliminate tariffs on beef, wheat, dairy products and sugar. Japan refused. Australia decided to compromise after Japan formally announced last month that it intended to join the talks on the Trans-Pacific Partnership agreement.
The agreement reached over the weekend will allow the two countries to create low-tariff quotas for Australian beef and dairy exports to Japan. Once the quotas are exceeded, the products will be subject to Japan's high duties. Australia, on the other hand, has managed to retain a 5 percent tariff on Japanese cars for some time. About half of Japan's exports to Australia is composed of transport equipment and related parts.
Since Japan will be able to protect some of its farm products under the FTA, it might agree to the idea of Australia lowering its auto tariff gradually instead of all at once.Â
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.