The Australian horticultural industry can now gear up for reduced tariffs in its second-largest export market, with the free trade with Japan ratified as of today (Jan. 15).

The Australian Horticultural Exporters' Association (AHEA) said fruit and vegetable exports to the East Asian nation reached AUD$56 million (US$45.66 million) in 2013-14, and while shipments were dominated by citrus and asparagus, there was "huge" potential to expand Australia's produce portfolio in Japan.

The group expects additional fruit volumes in the coming years as a result of an opening for table grape exporters, who will see their 7.8% in-season tariff cut over seven years, and the 10% off-season tariff eliminated over 10 years.

In other crops, Japan has agreed to eliminate grapefruit, orange and mandarin tariffs over five, 10 and 15 years respectively.

"Orange tariffs during the peak of Australia's season (June to September) are currently 16 per cent and mandarin tariffs are 17 per cent. The grapefruit tariff of 10 per cent will be eliminated in five years," AHEA said.

"Asparagus also gains some wins under the JAEPA with some 82 per cent of export volumes destined to Japan."

The organization said a second round of tariff cuts will also be taking place on April 1.

AHEA chairman David Minnis said Australia's proximity and taste offered a strong point of difference in the Japanese market.

"The AHEA and industry alike are delighted that the JAEPA has been ratified. Australia and Japan have a long trading history," he said.

"Australian horticultural produce are already known for high quality, safety and counter seasonal fruit and vegetables.

"Whilst technical market access issues still remain, the AHEA commends both governments in bringing together this timely reduction in tariffs. This enables Australia to take advantage of the strong potential in this market."

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