What to expect in 2024 – Logistics and Supply Chain
Simplified New Zealand Export Trends and Insights for 2024
By Carole Giles – TradeWindow Origin Product Manager
A Robust Economic Partnership
Japan’s standing as the world’s third-largest economy underlines its importance as a key trading partner for Australia. Not only is Japan Australia’s second-largest source of foreign investment, but it also ranks as the third-largest trading partner, reflecting a deep and multifaceted economic relationship. In 2020, the two-way goods and services trade between the nations was valued at A$66.3 billion, illustrating the scale of their economic engagement.
Key Exports and Investments
Australia’s major exports to Japan have traditionally been natural resources. These include gas, coal, iron ore, copper, and aluminium – addressing Japan’s diverse industrial needs. On the investment front, the scenario is equally promising. By 2021, the stock of Australian investment in Japan was valued at an impressive A$112 billion, indicative of a strong and growing economic partnership.
Trade Agreements Strengthening Ties
Both Japan and Australia are signatories to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP), further solidifying their trade relations. The Japan-Australia Economic Partnership Agreement (JAEPA), in effect since January 2015, is a cornerstone in this relationship, offering Australian exporters increased access and supporting mutual investment.
Export Figures and Market Potential
Reflecting this robust partnership, Japan’s exports to Australia reached US$16.52 billion, while Australia’s exports to Japan were an impressive US$52.52 billion in 2022. These figures highlight the scale of trade and the potential for growth and diversification in this partnership.
The Japanese economy offers a diverse marketplace where Australian exporters can explore a variety of opportunities. Japanese importers and consumers value high-quality products and services, relying on Australia for goods including food, energy, and minerals.
Whilst COVID-19 has had a significant impact on the shipping industry and global economy, Japan has shown strong resilience and potential to recover.
According to the World Bank, Japan had a Gross National Income (GNI) per capita of $48,470 in 2022, placing it among the higher-income countries of the world. This positions Japanese consumers with higher levels of disposable income. The Japanese market views Australia as a safe, secure, and reliable supplier and trading partner.
In terms of export times, sea freight to and from the major Japanese ports (Tokyo, Nagoya and Osaka) and Australia will differ, but a shipment can take:
- as little as 18 days to/from Sydney; and
- as little as 22 days to/from Fremantle.
Air freight, on the other hand, can take less than 24 hours!
The Japanese market represents a significant share of Australia’s export economy, but there is a lot more potential for opportunity. This is where TradeWindow Origin’s new digital JAEPA Certificate of Origin service could be a game-changer for Australian exporters looking to leverage this lucrative market. This innovative solution streamlines the certification process for Australian goods exported to Japan, ensuring compliance with JAEPA. With a 24/7 operation, this digital certificate of origin service operates efficiency and reliability, aligning perfectly with the dynamic nature of the Australia-Japan trade relationship.
Ready to explore how you could tap into market opportunities in Japan via the Japan-Australia Economic Partnership Agreement?
Visit us at TradeWindow Origin to find out more.