(Update) Japan, Australia Sign EPA Free Trade Deal

Canberra, July 8 (Jiji Press)--Japanese Prime Minister Shinzo Abe and his Australian counterpart, Tony Abbott, signed a bilateral economic partnership agreement for free trade on Tuesday. The two leaders also concluded a deal on the joint development of defense equipment. The signing of the two agreements took place after their meeting in the Australian capital. The Japan-Australia EPA is of "historical significance in deepening the bilateral relationship," Japan's Abe said at a joint press conference. Japan and Australia aim to put the trade pact into effect in 2015 after completing domestic procedures. Under the EPA, Japan will open up more of its market to Australia by lowering its beef tariff rates from the current 38.5 pct in stages and introducing duty-free import quotas for Australian cheese. Australia will immediately scrap its tariffs on Japanese passenger cars with engine displacements of between 1,500 c.c. and 3,000 c.c. Japan hopes that the trade deal with Australia will help strengthen its position in trade talks with the United States being held as part of Trans-Pacific Partnership negotiations for regional free trade, officials say. At their meeting, Abe and Abbott agreed to work together to achieve a comprehensive, high-level and well-balanced TPP. In connection with the joint development of defense equipment, Australia has shown an interest in Japanese technologies related to submarines. The two countries are expected to start joint research on fluid dynamics as early as fiscal 2015. In a joint statement, the two leaders said they will start talks aimed at concluding a pact on conducting joint exercises by the Japanese Self-Defense Forces and the Australian military in the two countries. With China's increasing maritime presence in mind, the two leaders "opposed any unilateral attempt to alter the status quo in the East and South China Seas by the use of force or coercion," the statement said. The leaders also agreed that they would meet annually, alternately in Australia and Japan, to promote the bilateral relationship. Australia is the 14th partner with which Japan has an EPA deal. Australia is also Japan's fourth largest trading partner country, after China, South Korea and the United States, all of which do not have EPAs with Japan. Under the EPA with Australia, tariffs will be eliminated for more than 88 pct of all trade items over 10 years, higher than the liberalization rates for any other Japanese bilateral EPAs. END