Australia Encourages Japan to Scrap Food Import Tariffs: Trade Minister

Australia will encourage Japan to eliminate its agricultural import tariffs, but will not insist on it during free-trade negotiations, Trade Minister Craig Emerson said on February 11, 2011.

Both countries declined to provide details of high-level talks between Emerson and Japan's Trade Minister, Banri Kaieda, in Sydney on February 11, 2011, according to Australian Associated Press (AAP) report.

Japan is keen to safeguard its heavily subsidized farm sector, which it protects with tariffs of 800 percent on imported rice and up to 250 percent on wheat imports.

On February 10, 2011, diplomats from both sides met in Tokyo for the 12th negotiating round of the Australia-Japan Free Trade Agreement.

"Our side has reported to me some very encouraging developments in terms of engagement from the Japanese side," Emerson told reporters at a joint press conference with Kaieda in Sydney.

"It's a continuation of the new-found momentum in the negotiations."

"We are seeking only to encourage the reform process," he said.

"But I have long taken the approach that reforms that are worth pursuing in a country should be pursued in their own right."

Kaieda was hopeful about striking an agreement, but neither minister would say when that might happen.

"Of course, there are still challenges that need to be overcome, " Kaieda told reports.

Emerson stipulated that he welcomed changes to Japan's import tariff system, but said it was not a sticking point in trade negotiations.

The next round of formal talks will be held in Canberra in April.

Japan is Australia's second-largest export market and its third- largest source of foreign investment.

Negotiations on the Australia-Japan Free Trade Agreement (FTA) commenced in April 2007 following the conclusion of a joint government study on the feasibility of a bilateral FTA.