Question

whether the economy of japan have become more or less integrated with Australia in terms of trade in goods and services and discuss some possible reasons for your observed trend？

Answer 1

Japan is the second largest trade partner of An Australia.In 2019 about 240 million dollar importing occurred among these countries.Japan is Australia's largest merchandise export market for coal, LNG, beef, aluminium, cheese and curd, liquefied propane and butane, and animal feed.The Australia-Japan partnership is our closest and most mature relationship in Asia.Which is fundamentally inevitable to both countries' strategic and economic interests. The relationship is supported by a shared loyalty and faithfulness to democracy, strong relation of two countries people,  human rights and the rule of law, as well as same attitude towards international security. These core values are further strengthened through trade and investment ties. In 2019 Japan was Australia's second-largest trading partner, second-largest export market, and second-largest source of foreign direct investment and Japan was Australia's fourth-largest source of goods and service imports, including passenger vehicles, refined petroleum, gold, and goods vehicles.

The commencement of an important trading relationship with Japan just after the Second World War formalised by the 1957 Commerce Agreement , the 1976 Basic Treaty of Friendship and Cooperation (the Nara Treaty) and the the 2007 Joint Declaration on Security Cooperation and the 2015 Japan-Australia Economic Partnership Agreement (JAEPA). Besides, Japan became Australia's largest trading partner in the early 1970's – a position it maintained for 26 years. These are the major reason to develop the Japan -Australian not only trading relation but economic, cultural ,social,defense and political relationship also.,Japanese investment continues to play a significant role in the development of the Australian economy. Today's, Australia is a safe, secure and reliable supplier of food, energy and mineral resources and a world-class center for financial and other services. In the case of  Australian sustainable growth, japan has an essential role .That means Japanese investment has also boosting the rapid expansion of Australia's LNG production,the export industries like iron and ore ,moreover the traditional areas of natural resources to sectors such as financial services, infrastructure, information and communications technology, property, food and agribusiness. JAEPA provide an additional boost Japan's diverse and growing investment in Australia, generating employment growth including in regional Australia. Number of important trade agreement and other socio-economic relationship exist among Australia and japan, which shows the integration between the both countries in terms of trade in goods and services.