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Wanted: Your Australian products and services
Do you have the right product fit for China, Japan or Korea and need to understand the best way to get it there?
Let us show you the exact steps to take your Aussie products to the world, make more money and manage your business better, so you can spend more time doing the things you love.
See the presentation from Australian Business Solutions Group Brisbane Event. Free-trade agreements – What they mean and how to unleash opportunities for business seminar. This breakfast event was designed for businesses looking to export to Asia, with a strong focus on China.
What You’ll Learn:
Breaking down what the Free Trade Agreements mean for business
Define the size of opportunity in China, Korea and Japan by top industries
Steps involved in getting your product/service overseas – strategy, marketing, legal, recruitment and finance
China case study – Export Growth China program and how businesses benefit
With a combined population of close to 1.5 billion people, Japan, China and Korea’s new Free Trade Agreements with Australia opens up a world of new consumers for Australian products and services.
Representing 65 times the size of the Australian market, are you making the most of this opportunity?
5. Where could your business
really go?
• Better customer experience
• Grow brand awareness and market share
• Enter new markets
• Secure the right talent and skills to achieve growth
• Create a strong employer/employee relationship to drive
productivity
• Reduce workplace risk and legal liabilities
6. Today’s agenda
> Official welcome
Greg Williamson, Queensland State Manager
> FTAs: What they mean & defining the size of
opportunity in China, Korea, and Japan
Ian Bennett, Senior Manager, International Trade
> Export Growth China program
Paula Martin, GM, Consulting & Solutions
Sara Cheng, Manager, Greater China Region
> Access to finance
Greg Williamson, Queensland State Manager
> Panel discussion
> Close
7. Trade Connection
We are closely connected to the international
chamber network of 6 million businesses
connected via 12,000 chambers from 130
countries
10. Our International Trade Team
17 experienced trade specialists
China, India, Middle East and South East Asia
Comprehensive international trade consulting
services
Export documentation – i.e. Certificates of Origin
Unique Export Readiness diagnostic
Trade events and trade missions
Business interpretation services – i.e. overseas
missions
Trade knowledge centre
11. Australia’s Export DestinationsAustralia's top 10 export markets (A$ million)
Goods Services Total % share Rank
China 77,973 6,662 84,635 28.1 1
Japan 46,481 2,101 48,582 16.1 2
Republic of
Korea
19,116 1,698 20,814 6.9 3
United States 9,022 5,507 14,529 4.8 4
India 11,418 1,844 13,262 4.4 5
New Zealand 7,309 3,559 10,868 3.6 6
Spore 6,420 3,584 10,004 3.3 7
UK 5,520 3,927 9,447 3.1 8
Taiwan 7,531 647 8,178 2.7 9
Malaysia 5,197 1,663 6,860 2.3 10
TOTAL 249,088 52,411 301,499
Based on DFAT STARS database, ABS catalogues 5368.0 (Sep 2014) and unpublished ABS data.
12. Australia’s Top Exports
Iron ore & concentrates
Coal
Gold
Education-related travel services
Natural gas
Personal travel (excl. education)
services
Crude petroleum
Wheat
Aluminium ores
Copper ores & concentrates
Beef
Business travel services
Professional services
Technical & other business svcs
Medicaments (incl veterinary)
Aluminium
Copper
Refined petroleum
Cotton
Meat (excl beef)
Wool & other animal hair
Passenger transport services
Oil-seeds & oleaginous fruits, soft
Other transport services
Alcoholic beverages
15. Australian FTAs In Progress
FTA Status
Australia-China FTA Not yet in force
Australia-Gulf Cooperation Council (GCC)
Australia-India Comprehensive Economic
Cooperation Agreement
Indonesia-Australia Comprehensive
Economic Partnership Agreement
Trans-Pacific Partnership Agreement
Regional Comprehensive Economic
Partnership
(ASEAN, Australia, China, India, Japan, Republic
of Korea and New Zealand)
Pacific Agreement on Closer Economic
Relations (PACER)
Trade in Services Agreement
17. JAEPA
JAEPA equals the best commitments Japan has
made in any of its other trade agreements.
Strong outcome for
Under JAEPA, both governments will support
work towards enhanced mutual recognition of
professional qualifications.
Beef
Fruit
Vegetables
Nuts
Wine
Seafood
Processed food and
other commodities
18. JAEPA
Beef: Rapid tariff reductions providing significant
competitive advantage over our major
competitor - United States.
Wine: Elimination of the 15% tariff on bottled
wine over 7 years.
Tariff on bulk wine eliminated immediately.
Cheese: Duty-free quotas for Australian cheese.
19. JAEPA
Dairy: Immediate and preferential duty-free
access.
Fruit, Vegetables, Nuts & Juice: Fast tariff
elimination on the majority.
Seafood: Tariffs on lobsters, crustaceans and
shellfish immediately eliminated.
20. KAFTA
A major market.
Best terms Korea has agreed with any trading
partner.
Australian exporters have improved market
access in goods and services, and investment
protections.
84% of exports to Korea will enter duty free.
Duty free rises to 99.8% on full implementation.
Australia will remove remaining tariffs on Korean
goods on entry when in force or over several
years.
21. KAFTA
Beef: Progressive elimination of the 40% tariff
over 15 years.
Cheese, butter and infant formula: Duty free
quotas.
Wine: 15% tariff eliminated immediately.
Pharmaceutical products: Tariff-free entry
(incl. vitamins).
22. KAFTA
Mandarins: 144% Tariff will be eliminated over
18 years (April to September each year).
Excluded from FTA: Rice, unhulled barley, milk
powders, condensed milk, some abalone, apples,
pears.
Agricultural Safeguard Measures:
Year, Trigger Level (MT), Safeguard Duty (%).
23. KAFTA
Automotive parts: 8% tariffs eliminated
immediately.
Australian services exporters: Best terms
Korea has agreed with any trading partner.
Law Firms, Education, Engineering,
Accountants, Telecomms providers and
Financial Services: All get concessions.
.
24. KAFTA – Not-So-Good News
Agreement is 1,700+ pages long.
Contains 4,000+ separate product specific rules.
Another set of “origin rules”.
26. ChAFTA
Harnesses the opportunities of China’s changing
economy.
Services – Best positioned to leverage emerging
opportunities stemming from middle class
expansion.
27. ChAFTA – Not Yet In Force
Covers:
Agriculture and food
Resources, Energy and Manufacturing
Services
Legal services
Financial services
Telecommunications services
Tourism and travel-related services
Health and aged care services
Education services + plus more sectors
28. ChAFTA
Includes chapter on intellectual property that
reaffirms the parties’ existing international
obligations.
Contains commitment to negotiate a reciprocal
agreement on government procurement.
29. TPP - Trans-Pacific
Partnership Agreement
The Trans-Pacific Partnership Agreement (TPP) is
one possible pathway toward realising the vision
of a free trade area of the Asia-Pacific.
Currently, 12 parties negotiating the TPP.
8 already have an FTA:
Brunei, Chile, Japan , Vietnam, United
States, Singapore, New Zealand, Malaysia.
3 new countries: Canada, Mexico, Peru
30. Will it happen?
If so, when?
What’s been negotiated?
What are the benefits for Australia?
What have we given away?
This is just the beginning of an even more
complicated “Noodle bowl”
TPP - Trans-Pacific
Partnership Agreement
31. All Is Not Lost!
We have a “TRIAGE” department!
Our team of experts know how to help you
through and “un-noodle” the bowl.
They issue all the certificates you need for your
exports to be compliant with Australia's FTAs.
Used our services to obtain your certificates and
face a problem at destination port?
We can assist with interactions with
foreign customs authorities, DFAT and others.
32. Export Documentation issued
by ABSG
Certificate of Australian Origin
Declaration of Origin
JEAPA, KAFTA, TAFTA , AANZFTA & Chile-
Australia FTA
Various Certificates incl. Certificate of Free Sale/
Manufacture/Analyses etc.
Export Docs Certification
VISA Letter Authorization for Saudi Arabia
ATA Carnet
36. GDP: US$9.240 trillion
US$6,807GDP per capita
GDP growth: 7.7%
1.35 billion Population
Trade with Australia: AUD$150.9 billion
Source: The World Bank
Snapshot: The Chinese economy
40. Services
Lifestyle services
Education for children,
vocational training
Aged care, nursing homes
Tourism
Professional services: project
management, advanced
technology
Products
Food and beverage
Health products
Products for children
Home decoration and
renovation
Fashion, Jewellery and
accessories
What is in demand in China?
41. Removal of tariffs to increase market competitiveness of
Australian products
Removal/reduction of investment barriers for Australian
service companies to set up operation in China
Simplified procedure to facilitate products entry into China
Impact of FTA for Australia
42. Regulation
Language barriers
Culture
Size
Diversity
Why aren’t more businesses
exporting?
43. Low risk
Low cost
Fully supported
What is Export Growth China
47. Actively driving buyer interest in
China through:
Catalogue launches
China Website
Social media e.g. WeChat
Ongoing events
Conduct roadshows throughout
China
Shanghai Mart promotions and
events
Promotion of Products and/or
Services
600 mln registered
users
438 mln monthly active
users
WeChat dominates
mobile messaging in
China with 82% of the
market
Is emerging as the new
giant in China social
media
49. Dedicated team based in China
Proactive targeting of potential buyers
Engaging current distribution networks
Utilising established connections
Active Buyer Matching
50. A comprehensive report will be prepared
detailing:
Market insights and intelligence
Product /service feedback
Any potential opportunities
A list of interested buyers
Market report
51. Export Growth Pricing for Showroom – ex GST
Step 1: Program
Registration
$4500 Program Registration Fee (includes x1 SKU) ($4950 Inc. GST)
Program includes: Translation services, 1xSKU on display, diagnostic
report, Buyer matching, Buyer matching report for 6 months
Step 2:
Select your product
space
Standard space
dimensions
450x450x450mm
$500 ($550 inc.
GST)
Sml Product Space
450 x 450 x 450mm
$750 ($825 Inc.
GST)
Med Product Space
450 x 900 x
450mm or
900 x 450 x
450mm
POA. Starting
from $1000
(Plus GST)
Lge Product
Space
$1000
Service
($1100 Inc.
GST)
(Onscreen
Only)
Step 3:
Select number of
SKU’s
$250 per additional SKU ($275 Inc. GST)
Step 4: Total Cost Step 1 + Step 2 + Step 3 = Program Cost
Renewal Charges: Renewal Fee $1000 ($1100 Inc. GST)
(Includes existing SKU’s)
Plus any new or alterations
to SKU’s
$250 per SKU ($275 Inc.
GST)
Investment
54. Research shows:
30% of SMEs feel that they
have missed out on an
opportunity due to a lack of
credit.
Of the SMEs rejected for a
loan:
55% felt rejection
significantly constrained
firm growth
21% felt that it
significantly increased the
chances of bankruptcy
18% had to lay off staff
55. Common
mistakes that
may hurt your
application
1. Asking for more than
needed
2. Rushing
3. Using business assets as
security
4. Inflating value
5. Credit history
56. How do you
prepare for
success?
1. Know your business plan
2. Shop around
3. Give yourself time to do
some homework
4. Timing
5. Find a specialist
6. Find the right tools
7. The interview
57. Meet Our Panel
Sara Cheng
Manager
Greater China Region
Alana Paterson
Special Counsel
Lawyers & Advisors
Greg Williamson
Queensland State Manager
Ian Bennett
Senior Manager
International Trade