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Japan and Australia agree trade deal

8 April 2014 Last updated at 02:45 BST

Japan and Australia have reached an agreement over a trade deal that will lower tariffs between the two nations.

Australian Prime Minister Tony Abbott and Japanese Prime Minister Shinzo Abe confirmed a basic agreement and are aiming to signing a deal soon.

The deal will have numerous benefits, including lowering the price of imported Japanese cars in Australia, and a boost to exports of Australian beef to Japan.

Shane Oliver, chief economist from AMP Capital, explained to Rico Hizon some of the advantages of the deal.

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