Robb defends Japan trade deal

The historic deal was formally signed when Japanese Prime Minister Shinzo Abe visited Canberra earlier this month, after negotiations concluded in April.

After a speech on global trade and growth at the Peterson Institute for International Economics in Washington DC in the US overnight, Mr Shorten was asked to comment on local perceptions of the final agreement.

He was told US trade groups saw it as a “betrayal” of future negotiations, as it had given Japan an excuse to say ‘Australia didn’t push too hard (on agricultural trade) so why should other countries?’

In response, Mr Shorten said he was “disappointed in agriculture” and expressed empathy with the proposition the JAEPA may hinder future dealings for other nations.

“I certainly can see the argument that because Australia has gone first, has it set the bar for outcomes and given Japan wriggle-room to argue with other nations, ‘well if Australia is happy with this then that sets the benchmark’,” he said.

“I used to be a union negotiator and quite often the first deal that you get up in a round of bargaining in a sector would set the pace.

“So it’s not just trade negotiations, where the first move defines what happens subsequently.”

However, Mr Shorten softened his criticism by saying there were some improvements in the trade agreement.

“As an Australian I’m pleased whenever we can score a deal,” he said.

“But as I said in my speech, incremental-ism by centimetres or inches is far less desirable than big giant steps forward.

“That’s why I think that we must not allow, in our political discourse, the tyranny of low outcomes.

“I believe our challenge is to breathe life into multilateral negotiations.

“I think our other challenge is to draw a line in the sand about reversing into more protectionist measures.”

During a tongue-in-cheek exchange with the host, Mr Shorten also said, “I’m not sure Australia has always got the best deal out of American agriculture”, in terms of trade deals.

A spokesperson for Mr Robb said the JAEPA produced world-first outcomes across a broad range of agriculture and horticulture programs which were outcomes Labor failed to secure in six years of negotiations.

His office also referred to comments from former Labor Trade Minister Craig Emerson, who had also negotiated on the Japan agreement, who praised the final deal after negotiations concluded.

On Twitter, Dr Emerson said, “From what I understand of it, the trade deal with Japan is the best Australia could have achieved”.

Mr Robb’s office also highlighted commentary on the JAEPA by Kurt Campbell - the former US Assistant Secretary of State for East Asia who has been spoken of as a future Secretary of State – who described the agreement as a “massive victory” for Australia.

Mr Campbell also stated that Europe and the US had been trying to get the same kind of agreement from Japan for 30 years.

When the deal was signed earlier this month, Tasmanian Liberal Senator Eric Abetz said the JAEPA was “a great agreement for Australian farmers and the Australian rural community”.

He said Australia was the first major agricultural producer to conclude a substantial trade agreement with Japan.

“As in all such deals, you don’t get everything that you asked for but clearly this is the best agreement that we were able to secure with Japan and it’s the best agreement that any country has achieved with Japan.”

Senator Abetz said the beef industry alone was set to achieve gains of $300-$400 million a year from the JAEPA, “but it goes a lot, lot further than just the beef industry”.

He said tariffs have been eliminated on more than $16 million in nut exports for macadamias, almonds and walnuts, while tariffs will also be removed immediately on carrots and potatoes.

At the time, Mr Robb said if Australia waited for a 100 per cent deal on agriculture, “we would be waiting many more years”.

“We’ve got an outstanding deal on a whole range of agricultural products,” he said.

“This is by far the most ambitious trade deal Japan has ever done.

“On top of that we have struck a deal ahead of all of our competitors.”

Under the JAEPA, tariffs on frozen Australian beef entering Japan are set to drop from 38.5pc to 19.5pc over 18 years - involving an 8pc cut in year one.

The tariffs for chilled beef will fall from 38.5pc to 23.5pc over 15 years - including a 6pc cut in year one.

The Australian red meat industry said independent modelling suggested the JAEPA would benefit Australian beef export sales to the tune of $5.5 billion over 20 years and thereby deliver an increase in the annual gross value of Australian beef production by up to 7pc.