Relationship Between Australia And Japan

Australia’s Trade Links with Japan
What is the link?
The trading relationship between Australia and Japan is Australia’s second biggest trading partner (China being the biggest) and the third biggest foreign investor. The countries share similar values and interests; both countries are built on a democratic, constitutional monarchy with a parliamentary government headed by a Prime Minister and both countries have shared interests in national security. The countries’ economic interests are also very similar; Japan looks to Australia for food such as fresh vegetables and fruit as well as livestock. Japan also looks to Australia for their energy mineral supplies because Japan doesn’t have many natural resources of its own. Japan has a highly industrialised market, so Australia imports cars and
Although there are many advantages of the trading link between Australia and Japan, there are also some negative effects, for the most part there are no disadvantages to the link itself, but people from the economic community have concerns about the Free- Trade Agreement. Some of the issues include; short term unemployment due to the removal of trade barriers, the economies may be more vulnerable to downturns in economic hardship, the link may isolate the countries from trading with other countries (e.g. Australia trading with the US), the link may cause an unfair advantage and therefore weaken other countries imports/ exports and it may become harder for new industries to establish a competitive market. This is why the Free Trade Agreement is still being debated, although it has many advantages, it also has many