Austrade and the Australia-Japan Business Co-operation Committee will launch a Japanese-language version of Japanese Investment in Australia – A trusted partnership at a special lunch in Sydney tomorrow.
Australia’s Ambassador to Japan the Hon. Richard Court AC and the Ambassador of Japan to Australia HE Mr Sumio Kusaka will attend the event and take part in a panel session discussing the outlook for bilateral trade and investment.
This year marks the 60th anniversary of the historic 1957 Agreement on Commerce, which allowed the resumption of commercial ties between Australia and Japan after World War II.
Minister for Trade, Tourism and Investment the Hon. Steven Ciobo said today’s event was an opportunity to reflect on the importance to both countries of strong business links.
“The report recognises and celebrates the significant role of Japanese investment in Australia’s economy. Importantly, it also looks to the future and to new areas of investment cooperation emerging with Japan,” Mr Ciobo said.
“Our two nations’ ongoing commitment to open markets and a strong, rules-based global trading system paved the way for the Japan-Australia Economic Partnership Agreement which has eliminated tariffs on more than 3,400 Australian product lines.”
Japan is now Australia’s second-largest source of Foreign Direct Investment, second-largest export market, and third-largest two-way trading partner.
From 2010 to 2016, Japan’s stock of direct investment in Australia increased by 78 per cent to $91 billion.
Over the years, much of Japan’s investment has been in established areas such as resources and energy, contributing to the growth of leading export industries like iron ore, coal and LNG.
However, the report shows Japan’s investment profile is evolving, thanks in part to its high rate of reinvestment, where profits made in Australia are channelled back into new ventures here.
Japanese companies such as NEC and Fujitsu are recognising Australia’s strengths as a regional research hub where ideas and technology bound for Western and Asian markets can be tested and developed.
Along with investments in advanced manufacturing, the report notes Japanese companies are diversifying into services including tourism, infrastructure, ICT, finance and agribusiness.