Federal Member for Hume Angus Taylor has lauded the Economic Partnership Agreement (EPA) with Japan as a game changer for Australian agriculture.

“This is a really profound agreement. It repeats what we did for the mining industry with Japan in 1957 which opened up two new industries - the coal industry and the iron ore industry. Japan has traditionally sought self-sufficiency in food production. This is a very clear signal that this era is coming to an end and they’re looking to us to help with their supply of food. We’re going to see the same right across Asia if we play our cards right. I predict this is the beginning of a significant shift in the importance of agriculture within the Australia economy,” Mr Taylor said.

“It should have happened sooner. Negotiations began in the previous Howard government and for seven years we’ve stumbled around trying to protect the car industry. What we gave away to do that was extraordinary, which is this opportunity to build our agricultural exports into a huge market.

“For the Japanese to reduce trade barriers, is a major move. Their social structures in regional areas are completely built around these tariff barriers and they’re starting to give them away, so it’s a phenomenally big reform for them.”

Mr Taylor said the agreement included a halving of the tariff on frozen beef from 38.5 per cent to 19.5 per cent, with deep cuts in the first year.  He said cheese, by far Australia’s largest dairy export to Japan at $372 million, would gain significant new duty-free access. Australian horticultural producers would gain from immediate tariff eliminations across a wide array of fruit, vegetables and nuts. He said the tariffs on canned products such as tomatoes, peaches and pears, as well as fruit and vegetable juices, would also be eliminated.

“It’s great news for our beef and dairy producers - and while it won’t eliminate all tariffs, it will give us a big advantage over our competitors. Traditionally we’ve seen agreements where there’s been a trickle down flow. What’s masterful here is that there’s a significant immediate reduction in tariffs on day one. Our farming businesses are tough businesses in which to make a dollar. If you add five or six per cent to the bottom line it makes a big difference. Relatively small differences in price have a huge impact on farming profitability.”