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Speeches and Statements by Prime Minister Junichiro Koizumi

Australia - Japan Trade and Economic Framework


July 16, 2003

Australia and Japan,
DESIRING to strengthen further the close and enduring relationship they have developed through many years of productive and mutually beneficial cooperation;
RECALLING the Agreement on Commerce between the Commonwealth of Australia and Japan and the Basic Treaty of Friendship and Co-operation between Australia and Japan;
REAFFIRMING their willingness to strengthen and reinforce the multilateral trading system as reflected in the World Trade Organization;
REAFFIRMING the importance they attach to promoting regional economic growth through cooperation in the Asia Pacific Economic Cooperation forum;
RECOGNISING that changes in the global economic environment as a result of globalisation, technological progress and regional integration through the creation of free trade areas present new challenges and opportunities to both countries; and
ASPIRING to promote their mutual interest through the further integration of their economies and by forging deeper and broader economic linkages through the liberalisation and expansion of trade and investment;
Have determined as follows:
Paragraph 1
Both countries will work towards the liberalisation of trade and investment between Australia and Japan on a balanced and comprehensive basis through various avenues.
Paragraph 2
Both countries will undertake consultations on the areas of cooperation set out in Annex I and proceed expeditiously with the implementation of the specified joint action in each area.
Paragraph 3
1.Without prejudice as to the position of either country, both countries will undertake the work program on trade and investment liberalisation as set out in Annex II.
2.Both countries will nominate government representatives to undertake the joint study set out in Annex II.
3.The Joint Consultative Committee established under this Framework will review and consider the findings of the joint study in line with the aims of this Framework.
Paragraph 4
1.Each country will afford adequate opportunity for consultations to exchange information on issues raised by the other country with respect to the possible implications of agreements that are the subject of negotiations or that have entered into force between either country and a third country or countries and that would provide for preferential treatment of trade or investment.
2.Either country submitting requests for consultations will present information specifying the issues to be addressed in the consultations.
3.Both countries will conduct these consultations promptly through the Joint Consultative Committee. The consultations will be confidential and without prejudice to the rights of both countries under international law.
Paragraph 5
1.Both countries share the view that all central government measures of general application affecting trade and investment activities between the two countries will be administered in a reasonable, objective, impartial and transparent manner.
2.Each country will respond promptly to all requests by the other country for specific information on any such measures. Each country will establish a dedicated contact point to carry out this function.
3.Each country will afford adequate opportunity for consultations to exchange information on issues raised by the other country with respect to such measures. Both countries will conduct these consultations promptly through the Joint Consultative Committee. The consultations will be confidential and without prejudice to the rights of both countries under international law.
4.Nothing in this Framework will be construed to mean that either country is required to introduce, amend or abolish specific measures as a result of the consultations.
5.This Paragraph will not apply to measures of sub-federal authorities or to measures governing the procurement by governmental agencies of goods or services purchased for governmental purposes and not with a view to commercial resale or with a view to use in the production of goods or the supply of services for commercial sale.
Paragraph 6
1.1. Both countries hereby establish a Joint Consultative Committee on Trade and Investment (the Joint Consultative Committee).
2.2. The Joint Consultative Committee will be composed of representatives of both countries and will be chaired jointly by relevant Deputy Minister/Deputy Secretary level officials from Australia and Japan.
3.3. The Joint Consultative Committee will report to ministers as appropriate.
4.4. The Joint Consultative Committee will meet regularly to undertake periodic reviews of progress in the implementation of this Framework. The Joint Consultative Committee will organise consultations on specific trade or investment issues.
5.5. The Joint Consultative Committee may establish working groups that may meet concurrently or separately to facilitate its work.
Paragraph 7
The cooperation under this Framework is subject to the laws and regulations of each country and within the available resources of the governments of the two respective countries.
SIGNED at Tokyo this 16th day of July, 2003.
John Howard
Prime Minister of Australia
Junichiro Koizumi
Prime Minister of Japan


ANNEX I

Areas of cooperation mutually determined by both countries:
1. Food issues
(a)Bilateral working level technical discussions on food safety inspection and certification systems, to facilitate the exchange of information, increase transparency, facilitate compliance with our respective systems and build confidence, with a view to ensuring consumer protection and facilitating trade in safe food products between Australia and Japan.
(b)Continuation of, and where appropriate new, bilateral working level discussions on food technical issues, to identify areas where mutually acceptable and beneficial improvements can be arranged.
2. Information and Communications Technology and E-Commerce
Reaffirming the key elements of the 1999 Joint Statement on Electronic Commerce, the two sides will increase cooperation between relevant Australian and Japanese authorities, in particular:
(a)to establish a greater understanding of legal systems surrounding the mutual recognition of digital certificates;
(b)to ensure that protection is provided to consumers using electronic commerce that is equivalent to that provided to consumers using other forms of commerce;
(c)the promotion of privacy of personal data transmitted electronically;
(d)a policy dialogue to promote electronic government;
(e)a policy dialogue to address digital divide issues; and
(f)a policy dialogue to promote the uptake of broadband access services.
3. Customs Cooperation and Paperless Trading
(a)The conclusion of a bilateral cooperative framework to cooperate on joint measures to promote trade facilitation; and
(b)Establish an exchange of technical information on electronic health certification of food and produce.
4. Mutual Recognition of Professional Qualifications
A forward work program on mutual recognition of professional qualifications consistent with GATS Article VII in the area of professional qualifications, beginning with priorities such as in specific engineering categories. Both countries intend to conclude promptly a framework for mutual recognition covering the areas of mechanical, electrical and chemical engineers.
5. Investment Promotion
Increased cooperation between Invest Australia, Austrade and JETRO to promote research, investment and commercial linkages in areas of mutual interest, including information and communications technology, biotechnology and nanotechnology
(a)conclude an MOU between JETRO, Invest Australia and Austrade providing for increased cooperation and enhanced communication in efforts to promote two-way investment between Australia and Japan;
(b)in particular, enhanced communication between JETRO, Invest Australia and Austrade in relation to specific enquiries about investment in these sectors by companies in either country, as appropriate; and
(c)seeking to maximise the benefits of promotional events through enhanced communication.
6. Energy
Conclusion of an enhanced bilateral framework for energy and minerals to broaden and deepen policy dialogue and cooperation in such areas as the promotion of a positive environment for bilateral trade and investment, sustainable development as it relates to energy and minerals policies and research, cooperation and collaboration in fields of mutual interest as well as to allow for participation by industry.
7. Competition Policy
Exploring options for the facilitation of information exchange, enforcement assistance and enhanced dialogue between the Australian Competition and Consumer Commission and the Japan Fair Trade Commission through a possible formal cooperation arrangement.
8. Regulatory Cooperation on Securities Markets
Facilitating dialogue on information exchange through a bilateral arrangement between the relevant agencies.
9. Intellectual Property
Establishing a dialogue between experts of IP Australia and the Japan Patent Office to exchange information on mutual exploitation of patent search/examination results.
10. Government Procurement
Facilitating information exchange on government procurement procedures.
11. Construction Business Licences
Further information exchange on issues of mutual interest in the construction sector, including in relation to licences to construct buildings.


ANNEX II

1.A joint study is to be undertaken at the government level to examine the costs and benefits of the liberalisation of trade in goods and services and investment between Australia and Japan.
2.The terms of reference for the joint study are as follows:
(a)to provide an overview of recent trends in bilateral trade and investment, including the key features of the government-level relationship;
(b)to assess recent international trade policy developments and the possible implications for Australia-Japan trade and investment flows, with a particular focus on economic integration arrangements in the Asia-Pacific region;
(c)to identify and to describe existing barriers to trade and investment between Australia and Japan. This would cover goods (tariffs, tariff rate quotas and non-tariff measures), services and investment (pre- and post-establishment conditions on commercial presence, market access, temporary movement of natural persons) and other relevant issues such as government procurement and competition policy and issues which may arise in implementing the cooperative activities set out in Annex I; and
(d)to provide a detailed assessment, at the sector-specific and economy-wide levels, of the implications of the removal, fully and partially, of the barriers to goods and services trade and investment flows. This would include both quantitative data in the form of results drawn from economic modelling and analysis and qualitative material.
3.The joint study will be completed and its findings reported to the Joint Consultative Committee within two years.