Bert Van Manen (Forde, Liberal Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) acknowledges the importance of the trade and economic relationship between Australia and Japan;

(2) welcomes the sixty year anniversary since the signing of the Australia-Japan Agreement on Commerce;

(3) notes the significant opportunities offered by the Japan-Australia Economic Partnership Agreement for Australian exporters;

(4) recognises and celebrates the significant role of Japanese investment in Australia's economy, noting that this investment is creating and supporting Australian jobs;

(5) notes the ongoing cooperation and commitment between Australia and Japan to open markets and a strong, rules-based global trading system; and

(6) encourages the Australian Government to continue its economic cooperation with Japan to the mutual benefit of both countries, to create jobs and support prosperity in both our nations.

It's with great pleasure that I stand in this House today to speak about the importance and the value of the trade relationship between Australia and Japan. This motion looks to acknowledge the importance of this trade relationship. Importantly, it welcomes the 60th anniversary of the signing of the Australia-Japan Agreement on Commerce, and it looks at the significant opportunities that are offered by this economic partnership for Australian businesses and exporters. It recognises and celebrates the significant role of Japanese investment in the Australian economy, noting that this investment is creating and supporting Australian jobs. It notes the ongoing cooperation and commitment between Australia and Japan to open markets and have a strong, rule based global trading system. It encourages the Australian government to continue its economic cooperation with Japan for the mutual benefit of both countries to create jobs and support prosperity in both of our nations.

The economic relationship between Australia and Japan has been exponentially bolstered over the past five years thanks to the success of the government's economic partnership agreement. This successful program is in part thanks to the tremendous efforts of the government's current and former ministers for trade, tourism and investment who have gone above and beyond to build an ever-strengthening partnership between our two nations. However, the success of the Japan-Australia Economic Partnership Agreement is also in large part thanks to our country's exporters and businesses, who have taken the opportunity to become competitive and to embrace the trade opportunities this agreement with Japan presents.

Japan is a vital and longstanding economic partner for Australia, and over the past decade the country has become a beacon of economic stability. Japan is Australia's second-largest export market and fourth-largest source of foreign investment. In 2017 we marked 60 years of the Australia-Japan agreement on commerce, which has provided tremendous opportunities for our two nations. The 60-year partnership has bound our two countries together, with Japan's investment in Australia underpinning the development of both our economies. It has forged the creation of new industries in Australia, while Japan has prospered from a stable, long-term supply of our natural resources. Our relationship has been further strengthened by the Japan-Australia Economic Partnership Agreement, which came into effect in January 2015. Three years later we're seeing the fruits of its success, with Australian exporters benefiting from improved market access across a wide range of services and products.

Thanks to the Japan-Australia Economic Partnership Agreement, Australia has seen the first significant agriculture producer to have a meaningful trade agreement with Japan, providing our exporters with a competitive advantage in the market. I would like to share with the House just how tremendous the export growth to various Australian industries has been. Beef is our largest agricultural export to Japan, worth some $1.8 billion in 2016, and the rapid tariff reductions have provided significant competitive advantage over our major competitor the United States. Between 2014 and 2016 Australian fresh or chilled beef exports have increased by 22½ per cent, a terrific outcome for our Australian beef farmers. It's a terrific outcome not only for our beef farmers but also for our beef processors, like Teys in my electorate, which employs nearly 800 people. The benefits of these relationships with Japan have ensured 800 people in my electorate of Forde have retained their jobs.

Our wine, dairy and seafood industries are also benefiting greatly, with the agreement providing a competitive advantage over other countries. As an example, in the same period Australia's bottled wine exports increased by 13 per cent, our fresh table grape exports increased by 5,183 per cent, shelled macadamia exports grew by 4.7 per cent, rolled oat exports increased by 99 per cent, fresh or chilled carrot exports increased by nearly 500 per cent and prepared or preserved abalone exports increased by some 86 per cent. We can see from those figures alone the breadth of opportunity that's being provided across Australia through these agreements, and I would like to add another business in my electorate: Frosty Boy, who provide the powder for soft serve ice cream. As they like to say in their slogan, 'Often licked, but never beaten'. They have spoken very positively about the improved access and ability to trade in Japan as a result of these agreements.

Our resources, energy and manufacturing industries have also experienced increases in exports. As an example, Australia's exports of pigments and preparations of titanium oxide have grown by some 31 per cent. In terms of fresh produce, many Australian products have seen growth in their exports to Japan. Sugar, natural honey, chilled and fresh asparagus, oranges, broccoli and shelled almonds have all seen very significant increases over the years.

In the education sector, our universities have been brought closer together, with Japan formally recognising Australian bachelor degrees for entry into postgraduate programs into Japanese institutions. This formal recognition is of great benefit to students, and it makes Australian education services more attractive in Japan.

Not only do these figures show an outstanding result for these industries; importantly, every single one of these industries employs Australian people. That is the great value of these agreements—that these benefits carry forward into the Australian economy and benefit everyday Australians by providing them with job opportunities.

This investment continues to be good for the economy as a whole. These tariff cuts in return also provide tremendous opportunities for Australians. The tariff cuts on Japanese exports to Australia mean we are now paying less for goods and services, including Japanese-made cars, electronics and white goods. The economic agreement between Australia and Japan has resulted in successful outcomes for both countries.

I'd like to finish on a new business that has recently opened in my electorate as a result of this. We've seen one of the great manufacturing companies of Japan open a big new factory in the electorate of Forde, at Yatala. Oji Fibre Solutions have opened a $72 million factory, introducing new technology which will boost fresh food exports and open fresh prospects for food exporters in Queensland, New South Wales and the Northern Territory. The Japanese-owned pulp and paper company is producing food packaging that is tailored to the climatic conditions of specific markets. The packaging technology will help Australian producers ensure the goods dispatched to high-end consumers in Asia arrive in pristine condition. This world market leader in manufacturing of cardboard boxes and specialist packaging is not only helping Australian exporters expand their horizons but also creating local jobs in my electorate of Forde. Without the opportunities created by the Japan-Australia Economic Partnership Agreement, the demand for Oji Fibre's products wouldn't be as great, and we would never see their multimillion-dollar investment in Yatala.

It is heartening to see that the hard work that this government continues to do with these trade agreements, continuing to build these trade relationships with countries around the world, has a direct benefit in many electorates around the country, but in particular in my electorate of Forde. I congratulate the government and the minister for the continuing great work they are doing in this space.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

I thank the member for Forde. Is the motion seconded?

Craig Kelly (Hughes, Liberal Party) Share this | Link to this | Hansard source

I second the motion and I reserve my right to speak.

Luke Gosling (Solomon, Australian Labor Party) Share this | Link to this | Hansard source

Mr Deputy Speaker Mitchell, welcome to 2018. I hope you had a great Christmas. I support this motion and I thank the member for Forde for articulating those good things that are happening between Australia and Japan, both for the benefits that we get in terms of jobs and improvements to our economy and for the great things the people of Japan get as part of our strengthening relationship. I just want to acknowledge the importance of our trade and economic relationship, and add to that the importance of our defence relationship.

Japan is a large economy. It is a large trading partner for us and it is also, as we heard, a very important source of foreign investment. In Darwin, where I'm from, and which I represent, we're very conscious of this. We have a very large gas project, the INPEX project, worth about $40 billion—not a small project at all—the gas from which will be processed and shipped out from the Port of Darwin, and it will literally keep the lights on in Tokyo. The construction phase for that massive facility in Darwin is winding down now—the project is moving into the operational phase—but it has been a big boost for many companies in Darwin and for the people of Darwin and Palmerston, in my electorate. It's a big boost for the energy security of Japan.

We need further investment in the North. Whilst the INPEX project has been great, we can't depend on it; we need to make our own luck and create our own job-producing projects. That's why we look forward to the confirmation of the Darwin City Deal and some form of Commonwealth investment in Darwin. We also need to look at ways that, when there are large projects like the INPEX project coming to town, we can maximise the benefit to the local economy.

There are many opportunities for investment in the Northern Territory, other than in natural gas. We really welcome further Japanese involvement in our many and varied industries in the Top End. We heard a bit from the member about cattle—we've got those. We have natural resources in abundance and we look forward to a deepening and strengthening of our trading relationship with Japan.

But our relationship goes beyond trade and investment. Since the 1950s our relationship with Japan has been broad and deep. Our shared interests in defence, international security, democratic government, humanitarian aid, and disaster response, in which Darwin plays a pivotal role, and our strong ties of cultural exchange, education, and research are but a few of the ways that everyday Australians experience this strong bond.

Darwin, as the capital of northern Australia and the centre of the defence of northern Australia, is part, with the Japanese and our allies, of keeping markets open. Together, we are committed to the rules based order that allows global trade to continue. That's why it is so important that we work closely with Japan and our allies. In Timor-Leste last year I saw firsthand some of that close interaction. There was an exercise involving Timor-Leste, Australia, the US Marines and Japanese defence force personnel, which was fantastic. I note that the anniversary of the bombing of Darwin is coming up on 19 February. We do not forget the loss of Australian lives in World War II, but, in the spirit of the Fujita family, we also look to reconciliation. Our trade and defence ties will get stronger as we move on.

Craig Kelly (Hughes, Liberal Party) Share this | Link to this | Hansard source

I'm pleased to rise to support this motion moved by the good member for Forde, who I know has great interest in the people of his electorate and the businesses there, and in creating opportunities for those businesses to export to Japan. Over the past 12 months we've seen the success of our free trade agreement with Japan. Just look at some of the results: frozen beef exports up 32 per cent to $663 million; honey exports up 66 per cent to $1.7 million; mandarin exports up 65.8 per cent to over $8 million; bulk wine exports to Japan up 52 per cent to $3.9 million; shelled almond exports up 55 per cent to $3.6 million; and shelled macadamias up 24 per cent to $2 million. These export sales add wealth to the country. They create wealth, especially in our regional areas. They strengthen them, with income flowing into them, with higher prices—good for the economy and good for the country. Is it any wonder that last year we saw 400,000 new jobs created in this economy? Four hundred thousand is a record. That is because this coalition government understands that the way you create jobs is that you get government out of the way, and you give the private sector opportunities to get in and sell their products and exports.

Amongst all the great news of our increasing exports to Japan is coal. In 2016, Australia exported $11.1 billion worth of coal to Japan. I know that last year we had many members of the Labor Party, especially the soothsayer, the member for Port Adelaide, the man with the great vision of the future, stand there and say that thermal coal exports were in significant decline. 'Substantial decline' was the prediction from the member for Port Adelaide for coal exports. Can you guess what happened to coal exports to Japan last year—remembering that the member for Port Adelaide said that they were in decline? I'm proud to say here in the House today that Australia's coal exports to Japan last year increased by 50 per cent to $16.78 billion. That was an increase of $5.68 billion worth of coal alone—an amazing increase. And yet we had members of the Labor Party, their shadow spokesman for energy, running around in the middle of last year telling all and sundry that thermal coal exports were in decline. Could he have got it more wrong? And is it any wonder? Japan have 45 new coal-fired power stations currently under construction—45—and yet we have zero coal-fired power stations under construction. Japan's economy is going ahead. They understand the importance of low-cost energy, and that is why they are building new coal-fired power stations.

And it's not only Japan that are increasing their consumption of coal. Last year—the numbers are just in—we saw China increase their consumption of coal by 5.2 per cent. We had all the experts in the Labor Party telling us the exports of coal to China were in decline. We saw last year China increase their consumption of coal by 5.2 per cent. To put that in some context: if we took our entire consumption of coal in all of Australia—every single last piece of coal that we burnt and we used to generate electricity—China's increase last year was double what we used. That was just their increase. We've seen the International Energy Agency's forecast for coal demand to increase. They expect the increase of coal for 2022 to be $5.5 billion tonnes, up from the current $5.2 billion tonnes. As the President of the USA said in his State of the Union speech:

… we have ended the war on beautiful, clean coal.

It's about time the Labor Party joined with the rest of the world and realised that coal exports are increasing, not decreasing.

Josh Wilson (Fremantle, Australian Labor Party) Share this | Link to this | Hansard source

I'm glad for the opportunity to speak on this motion about the relationship between Australia and Japan—not about coal, as I understand it. I thank the member for Forde for bringing this topic up for debate. Australia and Japan have a considerable recent history of economic and cultural engagement. It's a tradition that has enriched both countries. It's a relationship that continues to underpin our prosperity in a region of relatively sustained but nevertheless fragile peace and stability.

There's no doubt that Japan and Australia, representing the north and south poles of the eastern Indo-Pacific, have vital work to do, in partnership, if further cooperative, peaceful development is to prevail in our region. From the first recorded export of Australian wool to Japan in 1888 through to the 60th anniversary celebrations of the Australia-Japan Agreement on Commerce last year, ours is a relationship built on a core set of shared values and shared ambitions for a thriving Indo-Pacific region. Since the end of World War II we have worked closely with Japan to establish and promote a number of shared objectives.

From our own distinct perspectives and national interests we have worked together in pursuit of peace, trade, democratic governance and a cooperative rules based international order, but there is much more to be done, as Japan's ambassador to Australia, His Excellency Ambassador Kusaka, said last year in Perth:

Merely drumming up support for democratic values on their own will not gain the support of our fellow neighbours in finding common ground for our interests.

We need to be able to offer a credible economic plan that instills confidence among our neighbours …

I absolutely agree with that. I would go further in saying there's potential for Japan and Australia to work together not just for our mutual trade and broader economic interests but in supporting sustainable development in the Pacific, where our neighbours include some of the poorest and least developed nations.

My home state of Western Australia has been at the forefront of the trading relationship between our two countries, with state representative offices in both Kobe and Tokyo, the latter of which recently celebrated its 40th year of operation. Japan is WA's second largest export market, and the value of those traded goods increased 11 per cent last year alone to reach $15.7 billion. Japan is also Western Australia's largest source of imports.

My electorate of Fremantle benefits directly from the strong relationship via both tourism and international students, and the City of Fremantle maintains a vital connection with its sister city of Yokosuka, a key port to the south of Tokyo which I've been fortunate enough to visit. The cities of Fremantle and Cockburn within my electorate are active participants in the Mayors for Peace initiative, which started in Japan in the aftermath of the dropping of atomic bombs on Hiroshima and Nagasaki. It was a great privilege in my former role as deputy mayor of Fremantle to join a delegation of Anangu artists from South Australia to install the first Australian sculpture in the Nagasaki Peace Park in 2017.

We must not forget, whenever we talk about trade and economic cooperation, that the precondition of commerce is peace. Indeed, at a time of uncertainty and volatility across the world, including some worrying instabilities in our region, it is crucial that we honour and strengthen country-to-country relationships that are founded on principles that support dialogue and cooperation. At a time when some nations are responding to domestic economic challenges by taking a closed approach to borders and trade, and in some cases slipping towards authoritarian models or modes of governance, the Australia-Japan relationship stands as an example of openness based on robust, democratic institutions and adherence to the rules based international order. It stands as a clear demonstration of the synergies that can be gained when countries, despite their historic, cultural and linguistic differences, work together on the basis of respect and understanding to expand common ground rather than retreat to opposing positions.

As we mark the 60th anniversary of the Australia-Japan Agreement on Commerce, we should remember there was nothing preordained about the quickly formed and substantial nature of our relationship after World War II. The fact that we've overcome what might be reasonably have been regarded as cultural and historical obstacles should be a reminder that we can keep working together even in areas where we take a different starting position. We have a shared interest in rules based and rigorous fisheries management and ocean protection, but a clear difference when it comes to whaling. I believe that ultimately we will reach a common position on that issue. We have a shared interest and even some common experience in respect of atomic weapons, and I believe there's more we can do together towards the cause of nuclear disarmament. As a member of this place I hope that I can join with others in the parliament to support a strong Australia-Japan relationship. That relationship should continue to deepen as we cooperate further in the Indo-Pacific region.

Madeleine King (Brand, Australian Labor Party) Share this | Link to this | Hansard source

I'm very pleased to be able to rise here today on our first day back in the parliament to speak on this commendable motion brought forward by the member for Forde. It acknowledges, among other things, the importance of the trade and economic relationship between Australia and Japan. I also take this opportunity to acknowledge the historical settlement of Japanese people in Australia, particularly in Western Australia. There is undoubtedly a troubled history between our two nations, and Japan and Australia have a most grave shared experience of conflict and war that is to be acknowledged, but we must never allow the past to hold captive our future peace and prosperity. I, for one, have been a frequent visitor to Japan since discovering the ski fields of Hokkaido—not to mention the fine Japanese food and their excellent whisky. I, along with many Australians, make my way to Japan for the occasional dose of snow. More recently, we've tended to visit the old towns in the snow such as Nozawa Onsen, in Honshu, in the Nagano prefecture. It's a beautiful village steeped in tradition, surrounded by beautiful terrain and shared with us visitors by most-welcoming people.

People from Japan first settled as residents in WA in 1879 in Cossack, in WA's north-west. Japanese people participated in a wide variety of trades and labour around that time. Principally, they were engaged in the pearling industry in Broome. By the early 1900s, Broome was the world's largest pearling centre. Testament to the contribution of Japanese divers to that industry there are 900 graves in the Japanese cemetery in Broome, principally those of men who died diving for pearls or from the effects of that risky trade. Today Broome continues to hold the Shinju Matsuri Festival, the Festival of the Pearl, and celebrates the wonderful multicultural population of that industry. I acknowledge the comments earlier by the member for Solomon regarding Mr Fujita. It's a story of reconciliation and hope for a better future together, which we have now realised with the remarkable trade and relationship we enjoy with Japan.

In regard to trade Japan was WA's second-largest export market in 2016-17, accounting for 30 per cent of the state's total merchandise exports. The value of WA's exports to Japan rose 11 per cent in that year, from $14.2 billion to $15.7 billion. Petroleum, mainly liquefied natural gas, accounted for 54.9 per cent of exports to Japan in 2016-17, and the value of that export rose by 3.6 per cent, from $8.3 billion to $8.6 billion, over the last two years. And, of course, we continue to export iron ore to Japan out of Western Australia.

Japan was WA's fifth-largest market for agriculture exports last year. Co-operative Bulk Handling, a very proud cooperative venture, has the largest bulk-handling facility for grain in the Southern Hemisphere. That is located at Kwinana Beach, in my electorate. CBH exports 800,000 tonnes of WA growers' grain to the Japanese market per annum, the majority of which is wheat. Japan was also WA's largest export market for cereal straw and hay and the second-largest market for pearl barley. Australia is the first major agricultural exporter to secure a bilateral trade agreement with Japan. There are very significant advantages in this for Western Australia and, for that matter, the whole of Australia. I am very much a keen supporter of that trade agreement. Of course, trade is two way. Japan was WA's largest import market for 2016-17, accounting for 13.7 per cent of the state's total merchandise imports.

I'd like to reflect for a moment on the sister city relationships between Japan and Australia. WA enjoys many sister city relationships. Late last year my home town of Rockingham celebrated the 20th anniversary of its sister city relationship with Ako. I congratulate Mayor Barry Sammels, Deputy Mayor Deb Hamblin and City of Rockingham councillors past and present for their very great efforts to extend this relationship with Ako.

The state of Western Australia has celebrated the 35th anniversary of its sister state relationship with the Hyogo prefecture. I'd like to acknowledge the very important work of Japan's Consul-General in Western Australia, Mr Tatsuo Hirayama. Since arriving in Perth in September 2016, he has been a frequent visitor to Rockingham and is very busy building relationships across Perth and Western Australia. I look forward to visiting Japan in March. I'm participating in the Australian Political Exchange Council program. I very much look forward to learning from those in Japan and the work in the National Diet and to the visits. I thank the House.

Anthony Albanese (Grayndler, Australian Labor Party, Shadow Minister for Tourism) Share this | Link to this | Hansard source

I rise to take the opportunity to contribute to this debate, which acknowledges the importance of the trade and economic relationship between Australia and Japan. In particular, I welcome the 60th anniversary of the signing of the Australia-Japan Agreement on Commerce. Indeed, given the history of World War II, it's quite a remarkable thing that we're recognising that 60 years ago, just after the end of that conflict, Australia and Japan entered into a relationship based upon friendship and, whilst not forgetting the past, acknowledged the need for us to move forward into the future as two peoples in two sovereign nations. Indeed, what a success that relationship has been over the last 60 years! There is no doubt that there is a significant opportunity, moving forward, for that relationship to continue to be strengthened. It is of mutual benefit to our two nations—in terms of job creation and our cooperation in international forums—that our trade relationship has formed the basis of that. It has been of great benefit, Japan being a major importer from Australia of our resources, our agriculture and our technology, which has allowed Japan to be one of the economic success stories of the late 20th century.

Indeed, Japan has played an important role in international forums. Twice as a minister in the previous government I was able to go to Japan, and on a number of occasions I was able to host here in Australia infrastructure delegations from Japan. Japan was critical in forming the MEET, as it was known—the ministerial council on energy and emissions in transport. Japan understood that, in playing an important role in the development of the Kyoto Protocol—the global foundation that came out of the United Nations Framework Convention on Climate Change, held in Kyoto—we need to work cooperatively as an international community to drive down our emissions, and one of the ways we can do that is in the transport sector. That's why Japan has been at the forefront of the development of electric vehicles and zero-emissions transport.

Japan's success in the postwar period has been put down to many things, but one critical factor is the development of high-speed rail. With the Shinkansen, they were ahead of the rest of the world in having the vision of being able to transport large numbers of people in very short periods of time, and they continue to lead the world in that technology. They have much to offer Australia as we seek to develop a high-speed rail network down the east coast. Just as high-speed rail stacks up in Japan, just as it has led to significant economic development along the routes in regional centres in Japan, Australia has much to gain from high-speed rail. So I look forward to continuing to have discussions with executives from the Japanese rail sector on how their knowledge can provide a basis of support for the development of high-speed rail here in Australia. We know that it stacks up, with a return of more than $2 for every dollar of investment between Sydney and Melbourne, and we know that it could be a major factor in developing our regional economies, taking pressure off the capital cities on the east coast.

I commend the resolution to the House and I look forward to strengthening the friendship between Australia and Japan in the future.

Rob Mitchell (McEwen, Australian Labor Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and the resumption of the debate will be made an order of the day for the next day of sitting.