Japan and Australia: The Trade Relationship

Abstract

As Australia is one of the few countries in the world that enjoys a trade surplus with Japan, it might reasonably be asked if there is much for Australian policy-makers and business people to be concerned about. Yet when the make-up of this trade is more closely examined, and the historic transformations that have occurred in the value of different commodities on world markets is taken into account, then the picture becomes more complex and the longterm implications for ‘Australia’ become more uncertain and troubling. I shall argue in this chapter that the trade relationship between Australia and Japan is effectively locking Australian-based economic entities and activity into a subordinate and peripheral role in the world economy.