What would the proposed FTA between Australia and Japan entail? Basic...

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alexloveslouie

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...details/outline? I'm doing an economics assignment about the proposed free trade agreement between australia and japan- while i can find a fair bit of sources arguing we need one, I can't seem to find what this proposed FTA would actually entail.
Basic details/ basic outline would be fantastic! Especially anything in relation to the manufacturing sector.
Thanks heaps :)
 
It includes trade and investment between the two countries. Tariff and non-tariff-barriers will be left out. It will be more than FTA, but cooperation,including the building of East Asian community.
 
Free trade agreements pave the way to trade capital, human resources, and production capabilities. Research the NAFTA (North American Free Trade Agreement).

Basically, what happens is manufacturing sectors move to areas which can provide the lowest cost (labor, raw materials, etc). Also, capital inflows (the movement of money) would be easier.

Free Trade Agreements mean unrestricted trade (no tariff impositions, tax levies, sanctions, etc).

I would think that Japan would benefit from Australia's wealth in natural resources and that Australia would benefit from production manufacturing in Japan.
 
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