Free Trade agreements !

A big posse of Australian government officials and leading business figures is in Japan trying to thrash out the details of a Free Trade agreement between the two countries.  The purpose of " Free Trade " is to remove barriers to trade and to achieve that both sides engage in " horse trading " to advantage the goods that each country produces.   In the case of Japan, that means cars, white goods and the vast array of electricals.   For Australia - the list runs across the mining and minerals spectrum - and farm products.

Asia has three giants trading with Australia - Japan, China and South Korea.  In recent times, the Japanese economy has been fairly stagnant and Prime Minister Shinzo Abe is desperate to revive the glory days of several decades past.  The main obstacle in his way is the heavily restricted agricultural market and it's protectionist ethos.   Any move to free up agricultural imports seems likely to bring that nation's farmers into open conflict with the government.

Japan and South Korea closely compete in the same lines of merchandise.   Both are leaders in car manufacturing, white goods and the vast electrical array, but the difference is that South Korea has a more open stance in accepting Australian farm products.  If Japan can not match that there is every chance that it will be South Korea that enjoys the more liberal terms of any agreements that are struck.

China is a behemoth that is far in excess of both it's neighbours in both populace and production output. It is fast moving into car manufacturing and while the Australian new car market is small by international standards, it is certainly worth concessions to gain a favourable share.   Australia would be wise to trade our new car market to whoever opens their agricultural needs to this country.

We already sell coal, iron ore and many other minerals to all three of our Asian neighbours.     We have the climate, the agricultural space and the farming know how to expand our agricultural industry and growing, harvesting, processing, packing and exporting food could be the industry that provides the jobs of the future in the Australian economy.

Opening that window of opportunity should be the lynch pin of Australia's insistence in cutting a trade deal in Asia !