Free-trade agreements are getting a bit of a bad wrap lately what with the overbearing Trans-Pacific Partnership looming ominously on the horizon. But Prime Minister Tony Abbott is championing a free-trade agreement with Japan that could make gadgets and cars made in the country cheaper for us Aussies to buy.
Image: Lisa Maree Williams/Getty
The Prime Minister travelled to Japan to meet with the country's leaders and discuss — among other things — a free-trade agreement.
Such an agreement, according to PM Abbott, would see Aussies pay less for some of the great cars and gadgets made there.
News Limited reports the PM's comments:
"I am confident that the long awaited free trade or economic partnership agreement between Japan and Australia will shortly be finalised. More affordable Japanese consumer products will be good for Australian families."
Tariffs on car imports would drop from five per cent to zero per cent in Australia if the FTA was signed, meaning that Japanese autos would likely be $1500 cheaper on average.
Read more over here.
Update: Late yesterday, the FTA between Australia and Japan was signed.
The deal will indeed see Japanese goods like cars and gadgets get cheaper almost immediately.
The tariff Australia charged to Japan for importing local cars had only been to protect the local car industry, according to a report. Seeing as how we wont' have one of those within three years, it makes sense to make Japanese imports tariff free and therefore around $1500 cheaper.
The negative flipside here is that Australian automotive component manufacturers will now be subject to increased competition from cheaper Japanese parts thanks to a tariff-free environment.
Other goods like cameras, TVs and other gadgets will also get cheaper under the deal.