Australia’s tree nut industry is looking to increase its presence in the Japanese market in 2015, following the announcement that exporter tariffs will be cut twice within the first half of 2015.
The double reduction will take place after a free trade agreement (FTA) between the two nations enters force in mid-January.
“The deal means that our exporters will benefit from an immediate round of tariff cuts by Japan on January 15, followed by a further round of cuts on the 1stof April 2015,” explained Australian minister for trade and investment Andrew Robb. “Like the back-to-back tariff cuts provided by the free trade agreement between South Korea and Australia, this will deliver immediate benefits for exporters and significantly enhance their competitive position in the Japanese market.”
Robb said more than 97 per cent of Australian products exported to Japan will enter duty-free once the FTA is fully implemented. Trade between the two nations is estimated at A$70bn (US$57bn), making Japan Australia’s second largest trading partner.
The FTA’s ratification will be a breakthrough for the nut industry, with significant reductions on duties for macadamias, almonds and walnuts. Japan is the second largest export market for Australian macadamias, with the immediate elimination of a 5 per cent tariff expected to take off around A$500 (US$411) from the per tonne price of kernel exports. Australia currently sells around 2,000 tonnes of macadamia kernel to Japan each year.
Japan is an established almond consumer base, however, Australian producers do not currently enjoy a meaningful share of the market. The removal of a 2.4 per cent tariff will create an opportunity to renew efforts in this market, according to Almond Board of Australia’s marketing programme manager Joseph Ebbage.
“The Californian almond industry has built a strong presence in Japan, and it’s more a market where we need to build the trust of importers of a long time,'Ebbage told Asiafruit. 'Having said that, the small tariff reduction is a bonus, and we will certainly be looking to increase shipments to Japan over the next 10 years.
A 10 per cent tariff on Australian walnuts and a 4.5 per cent tariff on pecans will be gradually eliminated over a five-year period.
No comments yet