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Free Trade Agreements:
What they mean and how to unleash
opportunities for business
Australian Business Solutions Group
WELCOME
Greg Williamson
Queensland State Manager
Australian Business Solutions Group
Nationwide presence
Australian Business Solutions Group has a
nationwide presence across Australia serving
60,000 clients.
Experts in Business
for Business
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
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
Trade Connection
We are closely connected to the international
chamber network of 6 million businesses
connected via 12,000 chambers from 130
countries
Sample tables
FREE TRADE AGREEMENTS:
WHAT THEY MEAN FOR
BUSINESS
Ian Bennett
Senior Manager, International Trade
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
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Based on DFAT STARS database, ABS catalogues 5368.0 (Sep 2014) and unpublished ABS data.
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
The “Noodle Bowl”
Australian FTAs
 ASEAN-Australia-New Zealand FTA
 Australia-Chile FTA
 Australia-New Zealand Closer Economic
Relations
 Australia-United States FTA
 Malaysia-Australia FTA
 Singapore-Australia FTA
 Thailand-Australia FTA
 Australia-Korea FTA
 Australia-Japan FTA
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
TAFTA vs AANZFTA
Country
Base
Rate
(2005
MFN)
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
2025
and
subseq
uent
years
Brunei 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Burma
(Myanmar) 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 5.0% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Cambodia 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 5.0% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Indonesia 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 18.8%
Laos 40.0% 40.0% 40.0% 35.0% 35.0% 30.0% 30.0% 25.0% 25.0% 20.0% 20.0% 20.0% 10.0% 10.0% 5.0% 0.0% 0.0% 0.0%
Malaysia 5.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Philippines 10.0% 7.0% 5.0% 3.0% 3.0% 3.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Singapore 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Thailand
(AANZFTA) 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Thailand
(TAFTA)
30.0% 18.0% 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Vietnam 40.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 7.0% 5.0% 5.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
HS Code: 0805.20
Description: Mandarins
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
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.
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.
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.
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).
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 (%).
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.
.
KAFTA – Not-So-Good News
 Agreement is 1,700+ pages long.
 Contains 4,000+ separate product specific rules.
 Another set of “origin rules”.
Korea’s FTAs
In effect:
 Korea-Chile
FTA
 Korea-
Singapore FTA
 Korea-EFTA
FTA
 Korea-ASEAN
FTA
 Korea-India
CEPA
 Korea-EU FTA
 Korea-Peru FTA
 Korea-U.S. FTA
Under negotiation:
 Korea-Canada FTA
 Korea-Mexico FTA
 Korea-GCC FTA
 Korea-Australia FTA
 Korea-New Zealand FTA
 Korea-China FTA
 Korea-Vietnam FTA
 Korea-Indonesia FTA
 Korea-China-Japan FTA
 RCEP (Reg. Partnership)
 Korea-Japan FTA
Concluded:
 Korea-Turkey
 Korea-Colombia
ChAFTA
 Harnesses the opportunities of China’s changing
economy.
 Services – Best positioned to leverage emerging
opportunities stemming from middle class
expansion.
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
ChAFTA
 Includes chapter on intellectual property that
reaffirms the parties’ existing international
obligations.
 Contains commitment to negotiate a reciprocal
agreement on government procurement.
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
 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
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.
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
EXPORT GROWTH CHINA
PROGRAM
Paula Martin
General Manager, Consulting & Solutions
Sara Cheng
Manager, Greater China Region
Australia in the
Asian Century
GDP: US$9.240 trillion
US$6,807GDP per capita
GDP growth: 7.7%
1.35 billion Population
Trade with Australia: AUD$150.9 billion
Source: The World Bank
Snapshot: The Chinese economy
China’s GDP per capita
0
10
20
30
40
50
60
70
80
90
100
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
Import from China
Export to China
AU$ bn
Source: Australian Statistics Bureau 2013
Australia – China Bilateral Trade
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?
 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
 Regulation
 Language barriers
 Culture
 Size
 Diversity
Why aren’t more businesses
exporting?
 Low risk
 Low cost
 Fully supported
What is Export Growth China
Export Growth China program
Assessment of Company
Readiness
 Export experience
 Marketing
 Budget
 Resources
 Strategy / Planning / Vision
 China specific export & business
experience
 Company background and ‘story’
 Trademarks
OPTIONS
Present
solution
Export Readiness Report
Assessment of
Offering Readiness
 Regulations
 Branding & Design
 Qualities
 Current market
 USP
Technology Enabled Showroom
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
Kick off: China Roadshow
 Dedicated team based in China
 Proactive targeting of potential buyers
 Engaging current distribution networks
 Utilising established connections
Active Buyer Matching
A comprehensive report will be prepared
detailing:
Market insights and intelligence
Product /service feedback
Any potential opportunities
A list of interested buyers
Market report
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
Now
April
July - Dec
Chamber
member
applications
Commence
first round of
road shows
in China
Officially
launch the
first rotation
Timeline
ACCESS TO FINANCE
Greg Williamson
Queensland State Manager
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
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
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
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
Q&A
Email: absg@australianbusiness.com.au
MORE QUESTIONS?
THANK YOU

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Free-trade agreements – What they mean and how to unleash opportunities for your business Brisbane Exporting Business

  • 1. Free Trade Agreements: What they mean and how to unleash opportunities for business Australian Business Solutions Group
  • 2. WELCOME Greg Williamson Queensland State Manager Australian Business Solutions Group
  • 3. Nationwide presence Australian Business Solutions Group has a nationwide presence across Australia serving 60,000 clients.
  • 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
  • 9. FREE TRADE AGREEMENTS: WHAT THEY MEAN FOR BUSINESS Ian Bennett Senior Manager, International Trade
  • 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
  • 14. Australian FTAs  ASEAN-Australia-New Zealand FTA  Australia-Chile FTA  Australia-New Zealand Closer Economic Relations  Australia-United States FTA  Malaysia-Australia FTA  Singapore-Australia FTA  Thailand-Australia FTA  Australia-Korea FTA  Australia-Japan FTA
  • 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
  • 16. TAFTA vs AANZFTA Country Base Rate (2005 MFN) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 and subseq uent years Brunei 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Burma (Myanmar) 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 15.0% 10.0% 10.0% 5.0% 5.0% 5.0% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0% Cambodia 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 7.0% 5.0% 5.0% 0.0% 0.0% 0.0% 0.0% 0.0% Indonesia 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0% 18.8% Laos 40.0% 40.0% 40.0% 35.0% 35.0% 30.0% 30.0% 25.0% 25.0% 20.0% 20.0% 20.0% 10.0% 10.0% 5.0% 0.0% 0.0% 0.0% Malaysia 5.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Philippines 10.0% 7.0% 5.0% 3.0% 3.0% 3.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Singapore 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Thailand (AANZFTA) 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Thailand (TAFTA) 30.0% 18.0% 15.0% 12.0% 9.0% 6.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Vietnam 40.0% 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 7.0% 5.0% 5.0% 3.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% HS Code: 0805.20 Description: Mandarins
  • 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”.
  • 25. Korea’s FTAs In effect:  Korea-Chile FTA  Korea- Singapore FTA  Korea-EFTA FTA  Korea-ASEAN FTA  Korea-India CEPA  Korea-EU FTA  Korea-Peru FTA  Korea-U.S. FTA Under negotiation:  Korea-Canada FTA  Korea-Mexico FTA  Korea-GCC FTA  Korea-Australia FTA  Korea-New Zealand FTA  Korea-China FTA  Korea-Vietnam FTA  Korea-Indonesia FTA  Korea-China-Japan FTA  RCEP (Reg. Partnership)  Korea-Japan FTA Concluded:  Korea-Turkey  Korea-Colombia
  • 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
  • 33. EXPORT GROWTH CHINA PROGRAM Paula Martin General Manager, Consulting & Solutions Sara Cheng Manager, Greater China Region
  • 34.
  • 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
  • 39.
  • 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
  • 45. Assessment of Company Readiness  Export experience  Marketing  Budget  Resources  Strategy / Planning / Vision  China specific export & business experience  Company background and ‘story’  Trademarks OPTIONS Present solution Export Readiness Report Assessment of Offering Readiness  Regulations  Branding & Design  Qualities  Current market  USP
  • 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
  • 48. Kick off: China Roadshow
  • 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
  • 52. Now April July - Dec Chamber member applications Commence first round of road shows in China Officially launch the first rotation Timeline
  • 53. ACCESS TO FINANCE Greg Williamson Queensland State Manager
  • 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
  • 58. Q&A