Japan-Australia EPA takes effect

Japan-Australia Economic Partnership Agreement (JAEPA) came into effect Thursday, with Australia becoming the first major agricultural exporter to reach a free trade agreement with Japan.

The agreement, signed by Japanese Prime Minister Shinzo Abe and his Australia counterpart Tony Abbott in July 2014, provides Japan with valuable preferential access for Australian exports.

Under the agreement, Japan will incrementally lower its tariffs on Australian beef by up to half from the current 38.5 percent. Japanese automakers will also be benefited with the abolition of a 5-percent Australian tariff on imports of Japanese automobiles.

In a joint statement released Thursday, Abe and Abbott said the agreement was the most significant one between Japan and Australia since the 1957 Agreement on Commerce.

"JAEPA will deliver significant economic benefits to both countries, through increased trade in high-quality goods and services, an easing of bilateral investment restrictions and promoting economic growth," they said.

Japan's agricultural imports make the country the world's fourth-largest importer, however, it imposes heavy tariffs on some major agricultural products to protect domestic productions.

Australia becomes the first major agricultural exporter to reach a free trade agreement with Japan. Some trade observers expect it can help break the stalemate in talks for a broader Trans-Pacific Partnership free trade deal, which involves Japan, the United States and nine other members. Endi