Australia and New Zealand were predominantly sources of
and raw materials for Japan. In 1990 Australia accounted
percent of total Japanese imports, a share that held
steady in the late 1980s, while New Zealand accounted for
1 percent. Because they provided raw materials, both
trade surpluses with Japan. Australia was the largest
supplier of coal, iron ore, wool, and sugar to Japan in
New Zealand was the second largest supplier of wool.
Resource development projects in Australia attracted
capital, as did trade protectionism by necessitating local
production for the Australian market. Investments in
totaled US$8.1 billion in 1988, accounting for 4.4 percent
Japanese direct investment abroad. But, because of the
reach of Japan's foreign investment, this share had been
down from 5.9 percent in 1980. During the 1980s, Japanese
estate investment increased in Australia, particularly in
resort area known as the Gold Coast, where Japanese
strong enough to create some resentment.
The trade of both Australia and New Zealand had shifted
from other Commonwealth of Nations countries toward Asia.
particular had emerged as the leading trading partner for
countries. Faced with growing interdependence with Asia,
joined Japan in actively calling for greater consultation
cooperation among Pacific nations. Still, Australia and
faced quotas, high tariffs, and unusual standards barriers
exporting agricultural products, including beef, butter,
apples, to Japan.
Data as of January 1994