New Japan FTA

[Pepscobra]

Australia has just signed a new Free Trade Agreement with Japan.

http://www.perthnow.com.au/business/...-1226877786953

I'm not sure how I feel about it yet; electrical and automotive goods set to get cheaper and could be good for our Farmers?

But what about our Local Manufacturing??

Your thoughts?

[Polyal]

Which sector of manufacturing?

Food services might get busier, they employee manufacturing I guess. That new Honda Civic Type R looks like a little beast.

[blueoval]

Question is how long will it take for the savings to be passed onto the consumer? Something tells me not as fast as cost increase would be.

[cheap]

IMO, the Australian economy is now focused on livestock, agriculture, some high tech industries, education, and an increasingly automated mining industry. The FTA should help these areas. Throw in financial services and government (which is more a burden than asset) and that's it. Manufacturing is virtually gone or soon will be. Tourism is stuffed with the high dollar and green policies which simply lock up our natural assets away from everyone - ever wanted to go offroad 4x4 driving in a State/National Park...

The real issue is rapidly aging population, ever increasing health care costs and now having the equivalent of every 2 working people supporting one person on some form of social security (it used to be 5 working people supporting 1 person). Hopefully the benefits of the FTA will flow on very soon to abate this issue otherwise we're sunk.

[cheap]

Reading details of the FTA indicates benefits can be measured in glacial terms. It will take years and years for benefits to be realised. It is better than nothing but not by much. Anyone who knows how the Japs behave wouldn't be surprised.

[Kieron]

Originally Posted by cheap

IMO, the Australian economy is now focused on livestock, agriculture, some high tech industries, education, and an increasingly automated mining industry. The FTA should help these areas. Throw in financial services and government (which is more a burden than asset) and that's it. Manufacturing is virtually gone or soon will be. Tourism is stuffed with the high dollar and green policies which simply lock up our natural assets away from everyone - ever wanted to go offroad 4x4 driving in a State/National Park...

The real issue is rapidly aging population, ever increasing health care costs and now having the equivalent of every 2 working people supporting one person on some form of social security (it used to be 5 working people supporting 1 person). Hopefully the benefits of the FTA will flow on very soon to abate this issue otherwise we're sunk.

I think your fairly spot on there except for tourism, it's not doing to badly despite the AUD -
http://www.tra.gov.au/publications/f...ring_2013.html

Around 6% growth forecast and recent growth is the best in 13 years -
http://www.abc.net.au/news/2014-04-0...n-13-y/5372672

A FTA with a physically small, high population developed nation such as Japan is a good fit for Australia's strong points as you mentioned above, livestock, agriculture and mining.

[2011G6E]

Yep, a very good fit...we can do things they can't, they can do things we can't.