THE much anticipated  Japan-Australia Economic Partnership Agreement (JAEPA) will enter into force on January 15, 2015, opening up two rounds of tariff cuts for Australian exporters to benefit from in the first half of the year.

Australian beef – with exports to Japan last year worth $1.4 billion – is expected to be a major beneficiary with the 38.5 percent tariff to be halved over 15 years, with heavy front-end loading, including an eight percent cut in the first year. This will give Australian exporters a major advantage over the United States – the major competitor.

Australia and Japan exchanged notes in Canberra on December 16, confirming that both countries have completed their domestic processes and are ready to bring JAEPA into force.

“JAEPA will deliver substantial benefits for the Australian economy, and the deal means that our exporters will benefit from an immediate round of tariff cuts by Japan on January 15, followed by a further round of cuts on the April 1, 2015,” Federal Trade and Investment Minister Andrew Robb said.

“Like the back-to-back tariff cuts provided by the Korea-Australia Free Trade Agreement, this will deliver immediate benefits for exporters and significantly enhance their competitive position in the Japanese market.”

Mr Robb said more than 97 percent of Australia’s goods exports to Japan would receive preferential access, or enter duty-free, once the Agreement is fully implemented.

“JAEPA will expand opportunities with our second largest trading partner across a wide range of industries, including agriculture and processed foods, resources, manufacturing and services,” Mr Robb said.

 “This is the most ambitious Free Trade Agreement Japan has concluded with anyone, let alone a major agricultural economy. The Agreement will also support growth in investment from Japan – already our third largest investor – by raising the foreign investment screening threshold for private Japanese investment into Australia,” Mr Robb said.

JAEPA will be the second of three historic trade agreements concluded by the current Federal Government  to enter into force following Korea.

The recently concluded China-Australia Free Trade Agreement (ChAFTA) forms the third in a powerful trifecta of agreements with the major economies of North Asia, Mr Robb said.

He said he hoped ChAFTA would enter into force in the second half of 2015 following completion of domestic legal and parliamentary processes in both countries.

“These three agreements will be transformative for the Australian economy, supporting economic growth, job creation, greater prosperity and higher living standards for Australians,” Mr Robb said.

JAEPA was signed in Canberra on July 8, 2014, during Japanese Prime Minister Abe’s visit to Australia.

http://www.dfat.gov.au/fta/jaepa/

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THE Australia-Korea Foundation (AKF) has welcomed the official start of Australia’s Free Trade Agreement with South Korea (KAFTA) on December 12, saying it will further drive regional ties on many levels.

“This is a significant achievement for both countries,” acting chair of the AKF Board, Mike Manton said.

“Australia and Korea are major regional countries with strong, complementary economies, vibrant cultures and an enduring commitment to supporting peace and prosperity in our region,” Professor Manton said.

“The importance of our relationship increases every year and the implementation of the Free Trade Agreement will further strengthen ties between u.”

Korea is Australia’s third-largest export market with Australian exports of goods and services worth more than $22 billion in 2013-14.

On 12 December, tariffs were eliminated on 84 percent of Korea’s imports, by value, from Australia. There is another tariff cut on January 1, 2015.

On full implementation of KAFTA, 99.8 percent of Australian goods exports will enter Korea duty free,” Prof. Manton said.

The Australia-Korea Foundation has, since its establishment 22 years ago, encouraged deeper relations between Australia and Korea, including promoting greater understanding of Korea by Australians, and showcasing Australian excellence and innovation in Korea.

The Foundation’s annual grant round will open in February 2015.

A KAFTA overview, an outcomes summary, and a guide for exporting and importing goods, including relevant contact details, can be found at: http://dfat.gov.au/fta/kafta

www.dfat.gov.au/akf

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THE Australian pioneers of the round-the-clock gym with no lock-in contracts, Jetts is launching in the United Kingdom and has just opened its first company-owned club in the Netherlands.

Jetts has a further three clubs on track to open in the next six months, marking an export milestone for the group  just seven years after it launched its first club on the Gold Coast. 

Joining Jetts with more than 20 years experience in the industry, Kenny McAndrew has been appointed to head up operations in the UK and join the existing European Jetts team based in Holland.

Jetts’ commitment to evolving its model to suit local conditions was marked by Jetts executive director, Adrian McFedries, relocating to the Netherlands to start building a foundation for Europe.

“Members have embraced the Jetts brand with open arms and we are excited to be providing even more members the freedom to workout on their own terms,” Jetts CEO Martin Oliver said.

“Jetts has a proud history of being a game changer in the fitness industry with our no lock-in contract, 24/7 offer. Our complete focus is on creating the most customer-centric offer in the market, and we recognised Europe and the UK as a market where we can make waves.”

The expansion into Europe and Jetts launch in the UK is the result of two years of research and planning, with the decision to first move into the Netherlands based on a number of factors.

“Sixtreen percent of the population in the Netherlands are members of a commercial gym compared to 13 percent in Australia, so the pool of potential customers is quite large,” Mr Oliver said.

“The Dutch industry is still dominated by older underinvested chains with a traditional fitness model of big clubs, lock-in contracts and limited opening hours, so we see a strong need for a very customer-centric offer,” he said.

“Our work in New Zealand has taught us what it takes to be successful in a new country, so we’re applying a similar approach as we march into Europe. The product and value proposition has to be right, but the team on the ground is equally important.”

Both Mr Oliver and Mr McAndrew possess a strong understanding of the UK market, having worked together during Mr Oliver’s time as managing director of Cannons Health Clubs.

“We are fortunate to have a great leader in Kenny and a dedicated European and UK team who are passionate about the brand and what we stand for,” Mr Oliver said.

“Coupled with a depth of understanding of the product and the market from the Australian support team, this will be the key to our success internationally.”

Mr Oliver said Jetts’ success domestically was driven by the ongoing strong demand from customers for a gym that provides a high standard of customer service, and great value for money. Since opening their first club on the Gold Coast in 2007, the group has opened 250 clubs across Australia, New Zealand, the Netherlands and is now moving into the UK.

The group currently has more than 250,000 members.  Further international expansion is planned for the Australian-owned brand, with an entry into Asia in mid to late 2015.

“Europe, the UK and Asia provides Jetts with long term growth options but we will take a ‘one club, one country at a time’ approach to international expansion,” Mr Oliver said.

“We know our business model works but we have no ambition to be racing around the globe expanding for the sake of growth. When we look back in 20 years’ time, we want to see that we inspired people to live a better life through our brand, and international expansion plays a big part in seeing that vision come to reality.”

www.jetts.com.au

www.facebook.com/jettsfitness

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AUSTRALIA’s tourism industries continue to grow, in spite of the restrictive Australian dollar, reaching $30 billion throughout last year with eight key markets recording record arrivals.

Trade and Investment Minister Andrew Robb this month welcomed the release of International Visitor Survey data showing tourism exports had climbed to more than $30 billion a year. 

Tourism Research Australia’s International Visitor Survey for the year ending June 2014 revealed record arrivals from eight of Australia’s key markets: New Zealand, USA, China, Singapore, Malaysia, Hong Kong, India and Germany.

Mr Robb said these figures come at a time when there is a reported $20 billion worth of prospective investment in new Australian tourism infrastructure at the high-quality end of the market.

“Tourism Australia has received record levels of funding, tourism is a national investment priority, the Passenger Movement Charge has been frozen and the Carbon Tax has been abolished,” Mr Robb said.

“Tourism is one of our great strengths and, under the Abbott Government, the industry is finally receiving the attention it deserves. We are pursuing an aggressive investment agenda to ensure we develop the infrastructure required to cater for the growing international demand,” Mr Robb said.

He said the Federal Government was also providing $43 million for a new Tourism Demand-Driver Infrastructure Programme; $10 million in new funding for the Australia-China Approved Destination Status (ADS) scheme; and $2 million to support the staging of Australia Week in China (AWIC) again in 2016.

Tourism Research Australia’s International Visitor Survey is available at www.tra.gov.au

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