| Publication |
2006.
|
| Summary/Abstract |
The NARA Treaty looked to a strengthened Australia-Japan relationship, which foreign ministers of both countries celebrated this year. Events of the mid 1980s, however, demonstrated how an adverse turn in economic circumstances can stress even a strong bilateral relationship. The two countries were then at opposite points in their economic cycles, Japan almost too successful, with the high yen putting pressure on Japan's export industries, steel in particular. Seeking to reduce costs, the steel mills transferred pressure to their Australian suppliers of coal and iron ore, through reductions in prices and volumes. This was unwelcome to an Australian government coping with a recession and worried about balance of payments and unemployment, and led to concerns about equal treatment. Although the minerals trade returned to normal relatively quickly, ambitious investment projects aimed at enhancing the economic relationship did not materialise.
|