AUSTRALIA and Japan are considering pulling forward the introduction of the bilateral free trade agreement signed in July, which could mean that some exporters in each country will get two tariff cuts next year instead of one.
They are discussing starting the agreement before April 1 next year, which is the beginning of the Japanese financial year and the nominated date each year when the scheduled tariff cuts will occur.
This would mean Australian beef exporters would get two tariff cuts in 2015 making their beef more competitive. Japanese car makers would get two tariff cuts making their products cheaper in Australia.
Japanese ambassador Yoshitaka Akimoto told the annual Australia Japan Business Co-operation Committee conference in Darwin yesterday that he hoped the agreement formally known as an Economic Partnership Agreement would come into effect early.
"Australia and Japan have a special relationship. We will co-operate even closer in the future," he said.
"With the Japan Australia EPA it is hoped the economic relationship will become stronger."
The government leaders think the supercharged tariff cut start to the agreement would elevate it as a breakthrough in a much broader economic relationship between the countries than the relatively narrow resources export business that has long dominated business.
The Australian government would be able to argue to beef farmers that they have got a quick leg up in Japan – their top export market – even though over the longer term the beef tariff into South Korea will fall much more than the tariff on exports to Japan.
Japanese officials are also keen on the double-cut because it means Japanese car makers won't be undercut on exports to Australia by their increasingly competitive South Korean rivals who were hoping to get a head start into Australia under the South Korean trade deal with Australia, which was concluded before the Japan deal.
Trade agreements have to be ratified by each partner country's parliament before they are implemented on a date which is usually the beginning of the calendar or financial year.
With Japan having a different financial year to Australia and January 1 seen as too soon to sort all the details given Australia's holiday shutdown, a date in about February is being discussed which would allow a second tariff cut on April 1.
For beef exports the EPA will cut the Japanese tariff from 38.5 per cent to 32.5pc on day one and then lower the rate by 0.6pc annually for 15 years.
Mr Akimoto said: "We strongly hope that by the end of the current (Japanese) parliamentary session, that is the end of November, it will be approved by Japanese parliament.
"After the agreement is approved by two parliaments we have to take the necessary domestic procedures so that the agreement can enter into force, and that will take one or two months."
