Australia Japan
Partners in regional commerce and engagement
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National Library of Australia Cataloguing-in-Publication entry
Author: Jim Gleeson Title: Australia–Japan: Partners in regional commerce and engagement ISBN: 978-1-921156-65-6 Notes: Includes index
Australia–Japan Partners in regional commerce and engagement
Jim Gleeson
ROLL OF HONOUR Major Sponsors BP Shell Footwork/Toll Lend Lease Mitsui BHP
Key Sponsors
Australia & New Zealand Banking Corp
Baker & McKenzie
National Australia Bank
JX Holdings
Meat & Livestock Australia
Woodside
Australia Japan Federation
Focus Publishing
North West Shelf
Mitsubishi Heavy Industries Sojitz Corporation Western Australian Government
Supporting Sponsors Allens Arthur Robinson Clayton Utz Deloitte
ADVISORY GROUP Ms Robyn Archer, AO, Creative Director,
Mr Paul Gallagher, Executive Director, AJBCC
Centenary of Canberra Mr Tim Lester, Partner, AAR Mr Daisaburo Akita, Chairman and Managing Director, Mitsui & Co., Australia
Mr Huw McKay, Senior International Economist, Westpac
Ms Melanie Brock, Regional Manager, MLA, Japan Mr John McBride, AO, Consultant Prof. Jenny Corbett, Prof. of Economics and Executive Director, Australia-Japan Research Centre, Crawford School of Economics and Government,
Mr Murray McLean, Former Australian Ambassador to Japan
ANU College of Asia & the Pacific Mr Philip Porter, Director, Philip Porter Consulting Prof. Peter Drysdale, Professor of Economics and the Head of the East Asian Bureau of Economic
Mr Peter Yates, AM, Chairman of the Royal Institution
Research and East Asia Forum-Crawford School
of Australia and the Australian Science Media Centre
of Economics and Government Mr Craig Peacock, Commissioner, Mr Greg Earl, Asia-Pacific Editor, Australian Financial Review
Government of Western Australia, Tokyo
Table of contents
Roll of Honour Advisory Group
4 4
Part 3 Strong commercial partners
62
Showcase of key business sectors
Forewords
6
Craig Emerson, Australian Minister for Trade and Competitiveness
Part 4 Partners in international engagement
94
Strategic partnerships
Bruce Miller, Australian Ambassador to Japan
Introduction
8
Part 5 Culture and lifestyle
124
Sir Rod Eddington, AO
Cultural ties in sport, food, design, tourism and arts
Part 1 Trusted friends
Business directory 10
148
Australia-Japan businesses
Australia-Japan relationship
Index Part 2 Australia–Japan business
154
A—Z 32
Business collaboration in Asia
|G
FOREWORDS
CRAIG EMERSON
AUSTRALIAN MINISTER FOR TRADE AND COMPETITIVENESS
It gives me great pleasure to introduce Australia-Japan: Partners in Regional Commerce and Engagement, which celebrates the 50th anniversary of the Australia-Japan Business Co-operation Committee and the Japan-Australia Business Co-operation Committee. Japan is Australia’s second-largest two-way trading partner, accounting for nearly 12 per cent of total trade. It is also Australia’s third-largest source of foreign investment, and has been instrumental in the development of many Australian industries. For Japan, Australia is a secure supplier of resources and food, and an important market for vehicle sales and inbound tourists. Australia is also home to more than 70,000 Japanese citizens. It is the third-largest group of Japanese people living outside Japan. The Hon Dr Craig Emerson, MP Australian Minister for Trade and Competitiveness
Australia’s economic partnership with Japan extends well beyond trade in goods and services. I am confident the relationship will continue to evolve as both countries reap the benefits of the monumental economic, strategic and social changes underway in the Asian region during the Asian Century. To examine how best to capitalise on this global shift in economic power, the Australian Government has commissioned a White Paper on Australia in the Asian Century. The project’s aim is to broaden and deepen Australia’s engagement with the fastest-growing region on earth. Japan is a big part of that story, so it follows that Australia’s relationship with Japan can only strengthen further. I am pleased to commend Australia-Japan: Partners in Regional Commerce and Engagement as a timely tribute to the many individuals and businesses whose efforts have helped our two countries to prosper mutually.
H | AUSTRALIA—JAPAN
BRUCE MILLER AUSTRALIAN AMBASSADOR
The first shipments of coal and wool from Australia to Japan well over a century ago sowed the seeds of an economic relationship that has become one of the most successful in Australia’s history. Australia is now the largest single provider of primary energy to Japan as well as one of its major suppliers of food. At the same time, Japanese demand for Australia’s resources—and the accompanying investment—has contributed enormously to the development of some of our strongest industries. To take advantage of these complementarities, Australia and Japan are seeking to take their economic partnership to a new level by negotiating a free trade agreement. But the relationship between Australia and Japan goes well beyond trade and investment. The growing closeness of our defence co-operation was evident following the Great East Japan Earthquake, when the Australian Defence Force helped Japan in its disaster response efforts. Australia and Japan are also co-operating to address a broad range of
Mr Bruce Miller Australian Ambassador to Japan
challenges in regional and global forums. These include efforts to reduce the threat of wars and natural disasters, enhance the management of the international economy, tackle the problem of climate change, and promote nuclear disarmament and non-proliferation. Ultimately, however, the strength of the relationship between Australia and Japan derives from the goodwill engendered by close people-to-people links. These are reflected in educational exchanges, tourism, business collaboration, grassroots organisations and a myriad of other connections developed over many years. It is my great pleasure to contribute to this important publication, which highlights the remarkable partnership between Australia and Japan. FOREWORD | I
INTRODUCTION
SIR ROD EDDINGTON, AO B. ENG. (HONS) (UWA), M. ENG. SCI. (UWA), HON. LLD (UWA), D. PHIL. (OXON)
The spectrum of bilateral people-to-people, educational, scientific, political and security relationships is as comprehensive as any that Australia enjoys with other nations. Indeed, it exceeds the level of contact enjoyed with most other nations. Sister-state, city and port agreements exceed a in number and thousands of Australians and Japanese regularly interact through the activities of the Australia-Japan ‘friendship’ societies that exist in both countries. There is great mutual respect and trust evident in our communities. We commend the foresight and the courage of the politicians and senior bureaucrats who aspired for this level of contact when they negotiated the Australia-Japan Agreement on Commerce of 1957 and the Basic Treaty on Sir Rod Eddington, AO
Friendship and Co-operation of 1976. Both were unique at the time for one or both of the parties. Much bilateral contact is underpinned by the positive experiences of students and young business people on exchange programs or involved in bilateral commerce. The latter has spanned 150 years. We are familiar with the statistics of the bilateral two-way trade and its above average annual growth over many decades and of Japan being the third-largest foreign direct investor in Australia. The ‘complementarity’ of the bilateral commerce has been remarked upon over the years, as have the benefits of the restructuring of our economy to make Australia a ‘competitive’, ‘safe’ and ‘secure’ supplier of agricultural commodities, energy and mineral resources. Over the 50 years since the establishment of the Australia-Japan Business Co-operation Committee in August 1962 (and of its counterpart, the
J | AUSTRALIA—JAPAN
Japan-Australia Business Co-operation Committee, in February 1963) both nations' economies have changed substantially. Today, Australia and Japan are two ‘services’-dominated, balanced and sophisticated economies. There is broad interaction between Australian and Japanese companies in third markets in Asia, including in Japan’s extensive supply chains and production networks. In recent years, fresh consideration has been given to the unrealised opportunities in bilateral commerce. When added to the reality of an Asia-led globalisation of the world economy, new characteristics are being identified for bilateral commerce. First, whilst existing opportunities in energy, resources and agribusiness trading are not exhausted, the majority of the fresh opportunities are in the ‘services’ and ‘knowledge’ sectors. Second, as an echo of the past, and due to present day sophistication in both economies, many new, world-class complementarities are being recognised, for instance, in infrastructure, financial services, aged and health care, and real estate management. Third, the mutual respect and trust built up over the decades, combined with cultural awareness and many long-standing relationships-turned-friendships, underpin the bilateral willingness to explore new ventures and collaborations. Against a backdrop of demographic and structural shifts, the developing economies of Asia have huge catalogues of ‘social’ and ‘economic’ infrastructure that require development, and a significant need to increase their institutions' ability to assist their people to realise their aspirations. The governments of Australia and Japan have a strong record for collaborating in Asia on humanitarian, disaster relief, anti-terrorism and security initiatives, and, via regional financial institutions, for building financial stability mechanisms and contributing to economic development. Therefore, in the ‘Asian century’, it is expected that the existing commercial links will expand to facilitate new ways to undertake collaborative work in Australia, Japan and third countries. The 21st century will be characterised by Australia and Japan engaging with third-country governments and businesses in pursuit of new and exciting outcomes.
INTRODUCTION | K
1 Trusted friends
Australia-Japan relationship
Trusted friendships friends
Words like partnership and affiliation understate the breadth or depth of Australia’s close ties with Japan. Since the signing of the Australia-Japan Agreement on Commerce in 1957, the relationship has blossomed from a mutually profitable arrangement between trading partners to a trusted friendship spanning security and strategic interests, economic objectives, research initiatives and close person-to-person connections. Australia’s friendship with Japan is the cornerstone of its engagement with its Asian neighbours. It is a comprehensive affiliation based on shared values, common interests and a like-minded approach to security challenges. Japan has been Australia’s closest and most consistent friend in Asia for many years. The relationship is central to Australia’s foreign policy objectives and trade priorities. As Japan and Australia have responded to the recent changes taking place in the world, they have grown closer than ever before. The two countries implemented strong economic stimulus packages that increased production and helped to mitigate the effects of the global economic downturn. Their friendship is stronger today than it has been in the past, and shows every sign of continuing to strengthen into the future.
Dignity and resilience
After being ravaged by the
The ability of the Japanese to transform their country following the devastation of World
unprecedented Allied bombing
War II into one of the world’s leading economic powerhouses with one of the world’s highest
campain that ended World War II,
living standards—a success story unprecedented in modern times—reflects the diligence and
Japan rebuilt itself, creating one of
resilience of the Japanese character. The curiosity and ingenuity of its 60 million-strong, highly
the world's leading economies.
14 | AUSTRALIA—JAPAN
TRUSTED FRIENDS | 15
educated workforce have made Japan a leader of the industrial world. It has created many of the technologies that characterise the technological age in which we live. While Japanese people represent less than two per cent of the world’s population, they account for nearly 10 per cent of global GDP and five per cent of global trade. With a per capita GDP of around $US42,000, Japan will be the engine room of Asian economic development for many years into the future, particularly through its technological innovation and foreign Japan is one of the world's biggest buyers of Australian coal and gas. Australia is a rich market for Japanese manufactured products.
direct investment. Japan is the world’s largest creditor nation, with net foreign assets worth over five per cent of world GDP. Japan is Australia’s second-largest export market, accounting for about one-fifth of our global exports in goods and services. Business, tourism, education and sister-city ties have fostered strong interpersonal links.
Complementary business activities The large gains for both Australia and Japan from the friendship are partly attributable to the fact that their resources are mutually complementary. Japan values Australia as a dependable supplier of energy and strategic resources to fuel its industry, while Australia has a ready appetite for Japanese products. Australia remains Japan’s largest supplier of all forms of energy other than oil. For Japan, the attractiveness of Australia as a supplier of energy and raw materials lies in its proximity and inherent cost advantages, coupled with 16 | AUSTRALIA—JAPAN
its political stability and willingness to accept foreign investment. Today, Australia’s annual exports to Japan are valued at just over $A40 billion, consisting principally of coal, LNG, iron ore, natural gas, beef and dairy products, gold, woodchips, aluminium ingots, alumina, petroleum and petroleum products, and wool. Each year, Japan exports around $A14 billion worth of products to Australia, principally automobiles and automotive parts, general machinery, electrical equipment, rubber products, chemicals, precision machinery, iron and steel products and textile products. As we embrace products like the Apple iPhone or iPod in preference to antecedents such as the Sony Walkman, we can easily forget that most of the components inside an iPhone are made in Japan. Products ranging from Korean consumer electronics to Chinese automobiles are made largely from Japanese components. As iconic Japanese brands in consumer products make way for other market entrants, we can be assured that Japanese manufacturing is as successful now as it ever has been, if rather less conspicuous. Despite attention being diverted to other emerging powers in the region, Japan remains an economic colossus, having a major impact on the global economy. Japan’s economic presence has made a major contribution to many economies around the world, including Australia. Two-way trade between Australia and Japan has tripled over the last 20 years, and the long-term trend remains positive. Japanese direct investment plays a key role in the development of many Australian export industries. Australia is one of the largest recipients of offshore investment by Japanese mutual funds. Similarly, Japan is one of the largest destinations for Australian investment abroad. Japanese investors have become established owners of iconic Australian brands of food and alcoholic beverages as Japanese companies have increased their local and international market shares and built supply chains back to Japan. TRUSTED FRIENDS | 17
Australian Minister for Foreign
Japan’s direct investment in Australia in 2008 was $A36 billion, 16 per cent more than
Affairs Stephen Smith (left),
the $A31 billion invested the previous year, making Japan one of Australia’s fastest growing
Japanese Minister for Foreign
sources of foreign direct investment. According to the Australian Bureau of Statistics, the total
Affairs Katsuya Okada and West
value of direct and indirect Japanese investment in Australia is $A90 billion.
Australian Premier Colin Barnett at the War Memorial in Perth, Western
Joint opportunities in Asia
Australia's capital city. Okada's two-
Australia’s commercial interests with Japan now transcend direct trade and have become
day visit to Australia was the first
regional in nature. Companies from both countries operate and invest in third-country supply
by an official of Japan's then-new
and manufacturing networks. As Japanese business has extended its reach into Asia, Japan
government.
has become a conduit for Australian exports into a vastly extended marketplace. Japanese businesses have created a base in Australia from which to export directly to Asia, with the value of exports to Asian markets (excluding Japan) estimated at $A6 billion. This figure is in addition to $A51 billion worth of Australian exports to Japan. Since the collapse of Japan’s bubble economy in 1990, major structural adjustments have been made, prompting the nation’s biggest corporations to rationalise production and seek less expensive manufacturing bases offshore. As a result, they have established a strong presence internationally, especially in Asia. As an example of this trend, Peter Drysdale from the Crawford School of Economics and Government highlights the increase in the proportion of electronics products that Japanese corporations have manufactured offshore (which rose from 11.4 per cent in 1990 to 45.5 per cent in 2007). He says that the Japanese market is no longer confined to Japan itself. It is a huge international market created by the activities of Japanese business and investors, especially through Asian production networks. This expanding market is buoyed by support from the Japanese government and it has an expanding base in Australian manufacturing, agriculture and services.
18 | AUSTRALIA—JAPAN
The major realignments taking place in the world are transforming Asia into the world’s centre of economic gravity. For the first time, Australians find themselves in the region that will become the centre of global affairs. Asia is home to the world’s two most populous countries, the world’s largest holders of foreign exchange reserves, two of the world’s top three economies and three of the world’s five largest militaries. The countries of South East Asia, despite the 1997 and 2008 financial crises, have continued to grow strongly. According to a recent study, Asia will account for around 45 per cent of global GDP by 2020, one-third of global trade and nearly one-quarter of global military spending. Much of the history of the 21st century will be written and shaped in our neighbourhood. Mirroring the remarkable development
Above: Emeritus Professor Peter Drysdale
of Australia and Japan’s trade relations is the evolution of our
says the Japanese market has been spread
defence and security ties. The Australia-Japan Joint Foreign
worldwide by the activities of multinational
and Defence Ministerial Consultations, the so-called “2+2”
Japanese companies and investors.
meeting, is the only formal foreign and defence strategic
Top: Royal Australian Air Force Wing Commander
dialogue that Australia has in Asia. It is a product of the
Paul Carpenter receives a gift from a member
Japan-Australia Joint Declaration on Security Co-operation,
of the Japan Air Self-Defense Force. Following
which was the first such document that Japan signed with
World War II, Australia was the first country (other
any country other than the United States. Former prime
than the US) with which Japan made a joint
ministers John Howard and Junichiro Koizumi signed the
declaration on security co-operation.
TRUSTED FRIENDS | 19
Japanese-Australian relationships have developed well beyond banking and finance to include security, investments and a burgeoning number of personal exchanges.
20 | AUSTRALIA—JAPAN
Australia-Japan Trade and Economic Framework in July
expansion in bilateral trade and enabled Australia-Japan
2003, when John Howard visited Japan.
relations to develop into a multifaceted alliance spanning
Under this framework, the two countries jointly researched the liberalisation of trade and investment, and at the
politics, security, investments and personal exchanges. From the treaty in 1957, through to joint efforts to
Prime Ministers' meeting in Tokyo in April 2005, the two
establish APEC in the 1980s under Bob Hawke’s leadership,
leaders agreed to investigate the potential advantages and
and to their security co-operation, the developments in
disadvantages of an FTA.
Australia’s friendship with Japan have paved the way for its
In a speech at the Australia-Japan conference dinner on 11 February 2010, Australian Defence Minister Stephen
engagement with the region. In 1974, Japan and Australia signed the Cultural
Smith identified five major areas of Australia-Japan co-
Agreement, and the two countries have conducted various
operation. Together, they are working through the G20 to
cultural exchange programs, involving academics, teachers,
revitalise the global economy, enhance the nations’ economic
students, researchers, artists and athletes as well as a variety
relationship through the conclusion of a comprehensive free
of exhibitions and performances, primarily through the
trade agreement, apply their growing defence partnership
Japan Foundation and the Australia-Japan Foundation.
to tackling problems in regional and international security,
In 1976, Australia and Japan signed the Basic Treaty of
advance nuclear non-proliferation and disarmament, and
Friendship and Co-operation, also known as the Nara Treaty.
increase bilateral collaboration in science, technology and
This alliance became the basis of the non-economic ties that
innovation to find ways to combat climate change.
bind Australia and Japan. It provided a framework under which many areas of co-operation could develop, including
Firmly established relationship
political and cultural links. It promoted a non-discriminatory
Following the termination of the Allied occupation of Japan,
approach to immigration and investment, and improved the
diplomatic relations between Australia and Japan were re-
security of Japan’s supply of resources.
established in 1952, with Haruhiko Nishi being appointed
Just as the 1957 Agreement on Commerce enabled
Japanese ambassador to Australia. On 6 July 1957, the
Australia’s and Japan’s trade relations to blossom, the 1976
signing of the Australia-Japan Agreement on Commerce
Treaty of Friendship and Co-operation set the stage for
set the stage for dramatic growth in trade and economic
rapid expansion in investment. The treaty offered a stable
integration between the two countries and became the
framework for the growth of both trade and investment and
basis of the strong bilateral partnership that allowed other
a much closer political relationship. A tangible outcome of
links to develop. The agreement was signed despite residual
the treaty was the Working Holiday Program, the first signed
tensions between the former World War II adversaries,
by either country, that allowed young people from Japan and
and it cemented Japan’s emerging position in Australia as
Australia to enjoy extended working holidays of up to one
an important export market and source of manufactured
year in each other’s country.
goods. Japan overtook the United Kingdom as Australia’s
The first Australia-Japan conference was held in Australia
largest export market in 1966, a status the UK had held
in 2001. It was established to bring together leaders in
for more than 40 years. The agreement ushered in a 50-year
their fields from both countries to discuss all aspects of TRUSTED FRIENDS | 21
the Australia-Japan relationship, including political and economic co-operation, education, science, the media, the arts and culture. Few people present at the 2001 conference would have predicted that Australia and Japan would now be negotiating a free trade agreement or holding annual joint meetings of Foreign Affairs and Defence ministers. On 16 July 2003, the Australian and Japanese prime ministers signed a trade and economic agreement, which committed the two countries to pursuing closer economic The 2005 World Expo in Alchi, Japan,
ties. The agreement promotes liberalisation of trade and investment through co-operation
emphasised the many attractions of
in matters concerning customs and quarantine, and the mutual recognition of professional
the Australian way of life.
qualifications. Other areas that fall within the scope of the agreement are food, e-commerce and regulation of the securities industry. In 2007, Australia and Japan signed a joint declaration on security co-operation, which was the first issued by Japan with another country other than the United States.
Increasing knowledge, creating value Austrade officers based in Japan believe that most future growth and interaction between the Australian and Japanese economies will occur in those sectors that are most knowledgeintensive or add the most value, such as the life sciences, information technology, nanotechnology, aerospace and environmental technologies. Services account for 75 to 80 per cent of Australia and Japan's domestic economies. As Australia moved ahead of Japan to deregulate and reform its service sector, Australian service operators became comparatively more efficient. As a result, Australian service providers now are in a strong position to sell 22 | AUSTRALIA—JAPAN
Sydney's central business district rises beside one of the greatest natural harbours – and most famous bridges – in the world.
their services to Japanese customers. Service sectors in which
these sectors via joint ventures or acquisitions, providing
Australian companies appear to be more competitive include
considerable scope for it to partner with Australian firms
government services, professional services such as legal and
providing financial services, legal services and engineering.
accounting, medical and aged care services, real-estate and
On a visit to Japan in 2008, former prime minister Rudd
property services, vocational training, recreational, music and
identified financial services as the ‘fourth pillar’ of Australia’s
performing arts and hospitality services.
relationship with Japan, noting that it constituted only eight
Concerning Japan's long-term social, cultural and demographic trends, Austrade believes that Japanese consumers will spend more time on leisure and recreation.
per cent of two-way trade between the two countries and highlighting the potential for growth. Negotiations toward an Australia-Japan free trade
There are potential opportunities in recreational sports,
agreement include discussions on a pathway to enable
hobbies, pets, arts and entertainment, and in health and
professional and financial services companies to establish
lifestyle related areas such as aromatherapy and nutrition.
themselves in Japan.
Australia is an internationally competitive provider of
A 2009 OECD report identified Japan as the world’s
banking services, financial services and infrastructure
fifth-largest aid donor. When the value of loans is included,
services and has important regional advantages. Although
it is the second largest. Its total aid disbursements in 2007
the provision of Australian services in countries such as
reached $US7.7 billion, reflecting its deep interest in the
China, Singapore and Malaysia has been strong, the provision
economic and political security of Asia.
of these services in Asia as a whole has been limited, and there is considerable growth potential. The international competitiveness of Japanese service consultancies suffers from the closed nature of Japan’s domestic market and the predominance of English in these
Japan supports infrastructure development and the transfer of knowledge in the region through official development assistance (ODA) and supports private sector investment and trade through loans for large-scale projects. Japan is the second largest contributor to the United
areas. A recent Austrade report points out that, traditionally,
Nations. Over the past 50 years, Japan has helped to create a
Japan has preferred to expand its international activities in
better world, with a foreign policy agenda squarely aimed at TRUSTED FRIENDS | 23
promoting global peace and prosperity. It has been a clear voice on the world stage for the non-proliferation of nuclear weapons. It is a major provider of development assistance around the globe. These co-operative relationships are implemented through economic partnership arrangements and, more recently, through public-private partnerships (PPPs)—an area where Australia has considerable experience and expertise. The Sydney Harbour Tunnel was one such PPP collaboration between Australia and Japan, and there is considerable scope for Australian companies to engage in further collaborations of this type with Japanese entities. By co-ordinating its ODA with investment and trade, Japan has contributed significantly to South East Asia’s strong economic development—and Australia is poised to become an active participant. As Peter Drysdale of the Crawford School of Economics has observed, “Given the focus of Japan’s aid program on Asia, and Japan’s recognition of Australian experience in the Pacific as well as Asia, Australia’s share of these [development procurement] contracts and its participation in development studies consultancies could be significantly increased.” The Australian automotive sector is one of Australia's largest export industries.
Identifying then realising potential While the provision of Australian construction services in Japan and other parts of Asia is in its infancy, there are signs of growth and there is strong potential in this area. Several Australian companies have made successful bids for major construction projects across Asia. For example, Leighton Holdings
24 | AUSTRALIA—JAPAN
has completed transport and other infrastructure projects in Asia, including
The value of Australian automotive
the very fast train project in Taiwan in 2007. John Holland has been making
exports to Japan exceeds that of
strong gains in infrastructure work in the oil and gas and resources sectors,
traditional commodities such as
and some architectural companies have worked on key urban construction
wheat, wool and beef.
projects in Indonesia and China. The Australian automotive sector is one of the country’s largest export industries, exceeding traditional commodities such as wheat, wool and beef, while automotive imports make Australia the world’s third-largest market for passenger cars manufactured in Japan. At the epicentre of this vibrant industry is Toyota Australia, the most successful of the three local car producers, and the largest exporter of passenger vehicles from Australia. On a visit to the Toyota head office in Nagoya in June 2008, former prime minister Kevin Rudd announced the provision of $A35 million from the new Green Car Innovation Fund as an incentive to assemble cars at Toyota’s Altona factory in Melbourne. The Victorian government matched the amount, and Toyota now builds 10,000 hybrid Camry vehicles per year at the plant. Indicative of the expanding collaboration in this sector, Toyota invested $A125 million in a new engine plant in Melbourne to build new petrol-powered Camrys. Exports of new vehicles now exceed 160,000 units, nearly half of domestic production. The industry is increasingly reliant on markets the Middle East, the United States and New Zealand, although there are opportunities for growth in emerging markets such as China, Russia and India. Following the financial support provided to Toyota’s subsidiaries in Thailand by the TRUSTED FRIENDS | 25
parent company and the Thai government in the wake of
Australia and Japan are negotiating a free trade agreement
the Asian financial crisis of 1997, imports to Australia from
(FTA) that would create significant economic benefits for
Toyota Thailand have become the fastest growing segment
both counttries. Negotiations have been underway since
of the Australian automotive industry. Peter Drysdale of the
2007 (as at February 2012, 14 rounds had been held). While
Crawford School of Economics believes that, as no reciprocal
agriculture is a sensitive area for Japan in the negotiations,
access rights have been granted for Australian automotive
an FTA could help strengthen food trade relations, helping
products entering Thailand, the Australian government’s
Japan to realise its food security objectives and providing
partnership with Toyota can be a means of providing a more
export opportunities for Australia.
balanced trade flow in this area. IBIS World forecasts exports from the Australian car
Surveys conducted by Austrade and JETRO emphasise the need for Australian companies establishing businesses
industry will expand by an average 4.8 per cent per annum
in Japan to ensure they have sufficient capital, resources and
over the next five years, reaching $A5.4 billion.
information, and they are fully prepared for the difficulties
In the area of agricultural food products, Japan is
generally encountered whilst developing new and unfamiliar
Australia’s largest export market, accounting for 20 per cent
markets. They need to overcome intangible barriers, such
of total exports, providing $A22 billion in export revenue. In
as a lack of knowledge of the local business environment,
2008, Japan imported 22 per cent of its wheat, 40 per cent of
and have adequate resources to sustain their presence in the
its sugar, 89 per cent of its beef and 37 per cent of its natural
market. Co-operation between governments and businesses
cheese from Australia.
of both countries can assist in smoothing the way to
Many Japanese food companies have created a supply
profitable trade.
chain to their local markets. These include Kirin Australia’s barley malt production in Perth, Snow Brand’s dairy
Mutual interest and trust
processing facilities in Victoria, and Nippon Meat Packers’
According to a recent survey conducted by Japan’s Ministry
feedlots and processing facilities in Queensland and New
of Foreign Affairs, 70 per cent of Australians believe that
South Wales. Nippon Ham, Japan’s largest meat processor,
Australia and Japan should be closer in every respect, 70
has joint ventures in Australia and several other countries
per cent believe that Japan-Australia relations are good
which export processed meat products to Japan.
or excellent and 80 per cent believe that Australia should
Japanese companies play a major role in the Australian food
encourage more Japanese to come to Australia. The same pool
and beverage industry, and the products are sold mainly in
revealed that fewer than 10 per cent were aware that Japan is
Australia and Japan. There is considerable scope for Australian
one of Australia’s largest export markets.
beer, dairy products, animal feed, wine and other beverages to
A Lowy Institute survey published in 2007 found that
be distributed through Japanese subsidiaries in Asia.
Australians trusted Japan “to act responsibly in the world”
In supplying the Japanese domestic market with
more than any other country. The familiarity and trust that
agricultural food products, Japanese companies have the
Australians have for Japanese companies suggest there are
advantage of expertise in Japanese regulations concerning
opportunities for Australia and Japan to strengthen bilateral
additives and food labelling.
co-operation in trade and investment in the region.
26 | AUSTRALIA—JAPAN
Toyota i-REAL personal mobility concept car: Japan is a world leader in the design and production of futuristic vehicles of all types.
TRUSTED FRIENDS | 27
A poll by the Japanese government broadcaster, NHK,
of September 2010, six states and 101 cities in Australia
in 2009 showed that, of Japan’s international partners,
had sister relationships with Japan. Most Japanese who
Australia is the only country in which Japanese trust and
come to Australia do so on short-term visits as tourists and
interest have been rising over the last decade.
businesspeople (Japan is Australia's third-largest source of
The diverse relationship between the Japanese and
tourists). In the 2009 calendar year, Japan was the source of
Australian people includes co-operation between Australian
approximately 355,000 visitors (Tourism Australia). In 2008,
and Japanese lifesavers on Japanese beaches, participation
212,000 Australians visited Japan (Japan National Tourist
by Australian artists in Japanese rural regeneration projects,
Organisation).
125,000 Japanese visitors to the unique indigenous art
As of the end of 2009, there were 71,000 Japanese
contained in the “Emily” exhibition of 2008, and the
residents in Australia and just over 10,000 Australian
collaboration between Australian and Japanese musicians to
residents in Japan. During that year, 90,000 people travelled
create a unique blend of jazz. Links created through tourism
to Australia for educational purposes, 16,000 of which
have spawned a recent increase in the numbers of Australian
studied full-time in Australia. These links were further
visitors to Hokkaido and Nagano to enjoy the snow.
enhanced by the Working Holiday Program, which was
Strong people-to-people links include students who spend time on homestay programs, learning the language and culture of the other country. Much of this activity has flourished because Japanese is
initiated between Japan and Australia on 1 December 1980. In 2006, the Australia-Japan Year of Exchange commemorated the 30th anniversary of Basic Treaty of Friendship and Co-operation between Japan and Australia,
taught widely in Australian schools. It has long been one
and was marked by a variety of events to expand bilateral
of the most popular foreign languages studied in Australia,
ties. Today, people-to-people links are enhanced by
with over 360,000 students. In recognition of this fact, the
16 Australia-Japan and 46 Japan-Australia societies.
Australian government has committed $A62 million to
These add a grassroots dimension to the relationship,
the teaching of Asian languages in Australia. There are 658
which includes countless community relationships,
sister school relationships between Australia and Japan. As
university programs, school programs and exchanges.
28 | AUSTRALIA—JAPAN
The Japanese business community in Australia, represented by the Australia-Japan Business Co-operation Committee (AJBCC) and its Japanese counterpart, the
private levels to jointly realise the very significant economic opportunities that exist for both countries in Asia. The Australia-Japan friendship is one of closeness and
Japan-Australia Business Co-operation Committee
vital importance. It has a strong record of achievement in
(JABCC), has held conferences in Australia and Japan
collaboration in a range of bilateral areas. More importantly,
annually since 1963. The last meeting ran over three
it is a relationship that is full of potential, through which
days in Kyoto in October 2011, and was attended by 235
Australia and Japan can co-operate to meet the challenges of
delegates representing business leaders, former diplomats
a rapidly changing world.
and others from Australia and Japan. Titles of participants’ presentations included “Strengthening the Japan-Australia relationship to balance the growth of China and India” and “Sustainable growth—the challenges for the Japanese and Australian economies”. The next conference, the commemorative 50th event, is to be held in Sydney in October 2012. Conferences such as these represent a remarkable diplomatic achievement and indicate the value that both sides place in the friendship. While the governments of Australia and Japan are supportive of such events, it is the broader business and private communities that have ensured their success. They add a vital dimension to our friendship with Japan. Australia and Japan can now employ the deep sense of familiarity and goodwill they have developed at public and TRUSTED FRIENDS | 29
Business directory Australia-Japan business
PARTNER COMPANIES
Allens Arthur Robinson Level 28, Deutsche Bank Place, 126 Phillip Street (Corner of Hunter & Phillip Streets), Sydney NSW 2000, Australia Tel: +61 2 9230 4000 Fax: +61 2 9230 5333 Email: japanservices@aar.com.au www.aar.com.au
Australia and New Zealand Banking Group Limited 833 Collins Street, Docklands Victoria 3008, Australia Tel: +61 3 9683 9999 For online enquiries visit: www.anz.com/common/forms/Online-Enquiry www.anz.com
Baker & McKenzie Level 27 AMP Centre 50 Bridge Street, Sydney NSW 2000
Level 19, 181 William Street, Melbourne VIC 3000
Tel Sydney: +61 2 9225 0200
Tel Melbourne: +61 3 9617 4200
Fax Sydney: +61 2 9225 1595
Fax Melbourne: +61 3 9614 2103
Email Sydney: ben.mclaughlin@bakermckenzie.com Email Melbourne: richard.lustig@bakermckenzie.com www.bakermckenzie.com
Baker & McKenzie The Prudential Tower, 10th Floor, 2-13-10 Nagatacho, Chiyoda-ku, Tokyo 100-0014, Japan Tel: +81 3 5157 2700 Fax: +81 3 5157 2900 Email: anne.hung@bakermckenzie.com paul.davis@bakermckenzie.com www.bakermckenzie.com
PARTNER COMPANIES | 3
PARTNER COMPANIES
BHP Billiton Limited 180 Lonsdale Street, Melbourne VIC 3000, Australia Tel +61 1300 55 47 57 Fax +61 3 9609 3015 www.bhpbilliton.com
BP BP Developments Australia Pty Ltd Level 8, QV1 Building, 250 St Georges Terrace, Perth WA 6000, Australia Tel +61 8 9420 1801 Fax +61 8 9420 1818 www.bp.com.au
Clayton Utz Level 28, Riparian Plaza, 71 Eagle Street, Brisbane QLD 4000, Australia Level 15, 1 Bligh Street, Sydney NSW 2000, Australia Tel: Brisbane +61 7 3292 7000
Tel: Sydney +61 2 9353 5992
Fax: Brisbane +61 7 3221 9669
Fax: Sydney +61 2 8220 6700
Emails: ahay@claytonutz.com
hkano@claytonutz.com
www.claytonutz.com
Deloitte MS Shibaura Building 4-13-23, Shibaura, Minato-ku, Tokyo 108-8530, Japan Level, 9 Grosvenor Place, 225 George Street, Sydney NSW 2000, Australia Tel Japan: +81 3 3457 7321
Tel Australia: +61 2 9322 7000
Fax Japan: +81 3 3457 7426
Fax Australia: +61 2 9322 7001
www.deloitte.com/japan
www.deloitte.com.au
4 | AUSTRALIA—JAPAN
JX Holdings, Inc. 6-3 Otemachi 2-chome, Chiyoda-ku, Tokyo, Japan Tel: +81 3 6275 5002 Fax: +81 3 3276 1248 Email: jxhdinformation@hd.jx-group.co.jp www.hd.jx-group.co.jp/english/
Lend Lease 3F Akasaka Enokizaka Mori Building, 1-7-1 Akasaka, Minato-ku, Tokyo 107-0052, Japan Tel: +81 3 6866 5600 Fax: +81 3 6866 5607 Email: bd.japan@lendlease.com www. lendlease.com
Mitsubishi Heavy Industries, Ltd. 16–5, Konan 2-chome, Minato-ku, Tokyo 108-8215, Japan Level 6, 160 Queen Street, Melbourne VIC 3000, Australia Tel Japan: + 81 3 6716 3111
Tel Australia: +61 3 9670 9799
Fax Japan: +81 3 6716 5800
Fax Australia: +61 3 9670 4197
www.mhi.co.jp/en/
Mitsui Level 46, Gateway Building, 1 Macquarie Place, Sydney NSW 2000, Australia 2–1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-0004, Japan Tel Australia: +61 2 9256 9500
Tel Japan: +81 3 3285 1111
Fax Australia: +61 2 9251 1788
Fax Japan: +81 3 3285-9819
www.mitsui.com/au www.mitsui.com/jp
PARTNER COMPANIES | 5
PARTNER COMPANIES
MLA Meat & Livestock Australia 12th Floor World Trade Centre Building, 2-4-1 Hamamatsucho Minato-ku Tokyo 105-6112 , Japan Tel: +81 3 3435 6300 Fax: +81-3-3438-1677 Email: mbrock@mla.com.au www.aussiebeef.jp
NAB National Australia Bank Limited 800 Bourke Street, Docklands VIC 3008, Australia Tel: +61 3 8641 9083 www.nabgroup.com
North West Shelf Australia LNG Level 16, Alluvion, 58 Mounts Bay Road, Perth WA 6000, Australia Tel: +61 8 9213 4670 Fax: +61 8 9213 4671 www.nwsalng.com
Shell Upstream Australia 2 Victoria Avenue, Perth WA 6000, Australia Tel: +61 8 9338 6000 Fax: +61 8 9338 6691 www.shell.com.au
6 | AUSTRALIA—JAPAN
Sojitz Corporation 1–20, Akasaka 6-chome, Minato-ku, Tokyo 107-8655, Japan Tel: +81-3-5520-5000 Fax: +81-3-5520-2390 Email: http://www.sojitz.com/en/contact/index.html www.sojitz.com/en
Toll Level 7, 380 St Kilda Road, Melbourne VIC 3004, Australia Level 5, NF Esaka Building 1-13-41, Esaka-cho, Suita-city, Osaka 564-0063, Japan Tel: Aust. +61 3 9694 2888 | Japan +81 6 6380 3021 Fax: Aust. +61 3 9694 2880 | Japan +81 6 6380 3071 Aust: www.toll.com.au | Japan: www.tollexpressjapan.com
Western Australia Government— North Asia Agency 13F Fukoku Seimei Building, 2-2-2 Uchisaiwaicho, Chiyoda-ku, Tokyo 100-0011, Japan Tel: +813 5157 8281 Fax: +813 5157 8286 Email: wa.tokyo@wajapan.net www.wajapan.net
Woodside Woodside Plaza, 240 St Georges Terrace, Perth WA 6000, Australia Tel: +61 8 9348 4000 Fax: +61 8 9214 2777 Email: companyinfo@woodside.com.au www.woodside.com.au
PARTNER COMPANIES | 7
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Australia–Japan