-
Watch Video
-
Related
John Key has delivered a blunt message to the host of the Apec world leaders' meeting which begins in Yokohama tomorrow.
Japan is one of the most protectionist countries in the world, but is showing some interest in joining the Trans Pacific Partnership negotiations on free trade.
The Prime Minister says Japan must open up its markets to New Zealand's farmgoods or it won't be welcome at the free trade table.
Japanese consumers are presently blocked from buying Kiwi agricultural products in Japan, in a heavily protected market.
Japan is still one of the world's biggest economies but Key believes its star is fading.
"They have had 20 years where they haven't grown. They are now the third-largest economy in the world; for a long time they were second and I think the Japanese administration themselves realise they have to do something to ignite their economy," Key said.
Japan sells its goods all over the world but countries trying to export agricultural goods, including dairy, into Japanese stores are faced with taxes and barriers.
ONE News political editor Guyon Espiner is in Japan and saw first-hand the type of prices charged for New Zealand products because of those tariffs.
He said Japanese butter is expensive enough at around $20, but a New Zealand exporter would be hit with a tariff upwards of 500%.
"If you export $1000 worth of butter into Japan it'd cost you $5000 just to get it here and then you'd have to try to make a profit after that," Espiner said.
Japan is now considering opening up its economy with tentative moves to join the Trans Pacific Partnership free trade agreement which includes New Zealand and the United States.
Even though agriculture is just 1.5% of the economy in Japan, the farming lobby is strong and there is plenty of opposition to free trade.
"We'd like to see them inside the tent but if they are going to be there we'd like to see a high quality comprehensive agreement. We don't want them being a sea anchor that slows us down," Key told ONE News.
Countries including New Zealand are now hoping that as host of Apec the pressure is on Japan not just to host free trade talks but to practise free trade as well.
