After seven years of negotiations Australia has signed a free trade agreement (FTA) with Japan, but what exactly is an FTA?
Essentially, FTAs are designed to reduce the barriers to trade between two or more countries, which are in place to help protect local markets and industries.
Trade barriers typically come in the form of tariffs and trade quotas. One such example is Japan's tariff on Australian beef, which under the new deal will be cut from 38.5 per cent to 19.5 per cent over 18 years.
FTAs also cover areas such as government procurement, intellectual property rights, and competition policy.
Lowering trade barriers helps industries access new markets, boosting their reach and the number of people they can sell their products to.
FTAs are also ultimately designed to benefit consumers. In theory, increased competition means more products on the shelves and lower prices.
Japanese exporters will see Australian tariffs lowered on electronics, whitegoods and cars, and Australian consumers will see prices lowered as a result.
Australian car buyers will be paying about $1,500 less for Japanese vehicles.
Prime Minister Tony Abbott said in January that Australia's year-long G20 presidency, which culminates with the November summit in Brisbane, would make "freer trade" one of its priorities.
đang được dịch, vui lòng đợi..
![](//viimg.ilovetranslation.com/pic/loading_3.gif?v=b9814dd30c1d7c59_8619)