Australia-Japan EPA talks begin

Free trade negotiations between Australia and Japan were held in Canberra on April 23 in the hope of establishing a bilateral Economic Partnership Agreement (EPA). This agreement would allow Japan greater access to Australian natural resources such as iron ore, coal and minerals, as well as allowing it to increase exports of cars, electronics and machinery to Australia. Japan, with low self-sufficiency in food and natural resources, has long considered Australia an important trading partner. From an Australian perspective, Japan is its most prominent trading partner.
Though Japanese consumers would benefit greatly from increased trade, Japanese farmers fear they will not be able to compete with their Australian counterparts if tariffs on agricultural produce are lowered or abolished. Consequently, the Japanese Government would be forced into offsetting the price differences at considerable cost. The contentious products include beef, dairy, wheat and sugar; items of particular concern for farmers in Japan's north island of Hokkaido and its south island of Okinawa. Japanese agricultural groups have been lobbying to have their products removed from negotiations but Australian authorities are urging that all products be involved in the EPA process.
The problem for Japanese negotiators is that farmers in Japan generally support the ruling Liberal Democratic Party and it is anticipated that, if a backlash were to occur, their votes could sway the outcome of Upper House elections to be held in July. Some negotiators claim the feared impacts on Japanese farmers are exaggerated, but it remains a sensitive issue for the Japanese Government and will likely prove a sticking point as negotiations continue.