In This Issue:

News

Market in Focus

Trade Missions

e-link

Upcoming Events:
Victoria
New South Wales
Queensland
South Australia

Edition 117 July 2011

From the Trade Desk

End of financial year creates all sorts of extra work, however as you prepare your year end accounts, use the time to also gather the information required for your Export Market Development Grant Application. Although applications aren't due until November, early applications are usually rewarded with early notification of grant amounts.

While EMDG can be a useful program, there may be other programs suitable for your business and appropriate for your goals. We encourage you to investigate other opportunities using this month's e-link.

Louise McGrath
National Business Development Manager - Trade and Industry Sectors

trade@aigroup.asn.au


News

Aid Review has welcome focus on lifting business engagement
"The Independent Review of Aid Effectiveness released today puts a welcome emphasis on improving the engagement of business in the aid program and the mutual benefits of creating stronger trading partners and opening emerging markets," Australian Industry Group Chief Executive Heather Ridout said today.

"Well designed aid projects which underpin sustained private sector growth contribute greatly to lifting people out of poverty, as developing countries address vulnerabilities including a lack of economic diversity, remoteness from major trade and commercial sectors, and weak governance frameworks.

"The Government's response to the Review recognises the importance of a closer partnership with business in the aid program through the annual dialogue on aid and development. This approach will have the strong support of business which is already deeply engaged in the effective delivery of Australian aid projects. Such involvement is mutually beneficial and frequently leads to improved commercial relationships for Australian companies in recipient countries.

"As well, the focus on improving the skills and economic participation of women in developing economies is an important policy objective and is key to sustained development and growth," Mrs Ridout said.

Anti-dumping measures a positive step
"The new anti-dumping measures announced today by the Federal Government are a positive step to help rebalance the playing field for Australian Industry in the face of illegal trading practices," Australian Industry Group Chief Executive, Heather Ridout, said today.

"These improvements will help create a stronger, more credible and transparent anti-dumping regime for Australia. They are critical for Australian business to effectively combat the predatory sale of under-priced product on the local market and to support the ongoing health of domestic industries.

"These measures, many of which had been sought by Ai Group, are especially important in these patchy economic times where trade exposed businesses in sectors such as manufacturing are under enormous pressure. With the Australian dollar at post-float highs, increased domestic cost pressures and interest rates with an upward bias, locally based businesses can ill-afford the added pressure of competing against dumped product.

"The new measures demonstrate the Government is working well with industry to put in place a strong anti-dumping system. We look forward to the opportunity to actively contribute to strengthening the system through helping implement these constructive measures.
"Australian industry will benefit from additional resources which will assist Customs to more effectively deliver the high quality and timely anti-dumping investigation process which is necessary to challenge illegal dumping.

"In responding to the Productivity Commission's 2009 report and other ongoing discussions, the Government has designed a number of measures to strengthen the system through greater certainty of investigation timeframes and more rigorous appeals processes. Importantly also, it rejected the unnecessary imposition of an additional public interest test. We also support the establishment of the International Trade Remedies Forum to oversee the implementation of the reforms.

"We welcome the Government's close consultation with Ai Group to address business concerns and the need to have a reliable and workable anti-dumping regime. The work of independent Senator Nick Xenophon in this area in support of business should also be noted. It is essential for Australian companies to have a strong anti-dumping system to prevent their market share and growth opportunities from being eroded by unfairly priced competition.

"Australian industry has seen a clear rise in alleged dumping from overseas competitors since the onset of the global financial crisis. To avoid the pitfall of a return to protectionism, already seen in many G-20 nations, it is also welcome that the Government has committed to implementing the measures in a manner consistent with our World Trade Organization obligations.

"When implementing these initial measures, it will also be crucial to address issues such as lack of transparency in foreign accounting practices, elaborate and misleading corporate structures, and currency manipulations.

"Ai Group has continually stated since its initial submission to the Productivity Commission's review, that a rigorous anti-dumping system in Australia is an important and legitimate component of an open economy," Mrs Ridout said.


e-link

GrantsLINK Directory
Find government grants and assistance for individuals, businesses and communities

The GrantsLINK directory has information about federal, state and local government funding programs that can help you:

  • develop solutions to local and national problems
  • fund ideas and initiatives
  • get assistance in times of hardship

Scammers claiming to represent the Australian Government have been targeting Australians.
The Department has identified a cold-call scam operation where the scammer announces themselves as the Australian Government Grants Department and claims ownership of the Government's www.grantslink.gov.au website. For more information go to the Media Release.


Trade Missions

Outgoing Missions


Mining Equipment and Services Business Mission to Peru and Colombia
12 - 16 September, 2011

This Mission is designed to provide a cost-effective entry to the Latin American Mining market and expose mission members to one of the world's fastest growing economies and provide a comprehensive business-matching program for mission participants to identify real project opportunities and local partners as required for market access.

EXTEMIN is the most important mining conference in Peru and worldwide due to tremendous growth and importance of the Peruvian mining sector. Peru is ranked number one in Latin America in all metals except for copper and is ranked third globally for mining exploration investment after Canada and Australia.
EXTEMIN has been a vital contributor to the successful market entry and expansion strategies of many Australian companies into this region. Australia is recognised as a quality supplier to this mining industry and participation in the Australian National Pavilion at EXTEMIN is an ideal way to develop your opportunities in Peru and wider Latin America.
For the first time, the Australian National Pavilion will be divided into three main sections (safety, environment and productivity). Companies will be able to elect a section of the Australian pavilion that most reflects the benefit to the customer. These sections will help Austrade market Australia's expertise and capability in these critical areas of a mine operation and ultimately market your company's solution more effectively.

For more information and to register your interest, please contact Louise McGrath at louise.mcgrath@aigroup.asn.au

Australia – China 2.0 Trade Mission to China
4 - 9 August, 2011

For the first time, China has become Australia's largest two-way trading partner with total trade growing 23.6% to over $100 billion in 2010.

In recognition of the opportunities this growing relationship has to offer, a joint ministerial trade mission by Foreign Affairs Minister Kevin Rudd and Trade Minister Craig Emerson will visit China from 4 to 9 August. The Australia-China 2.0 Mission will travel with a group of business people to five cities: Changsha, Chengdu, Chongqing, Guangzhou and Wuhan.

The Austrade-managed mission is designed to help Australian businesses expand their links with China's booming regional or second-tier cities. China's burgeoning middle class is creating increased demand for consumer products and services. China's old export led growth model is giving way to a greater emphasis on domestic consumption, sustainability and the environment.

Australian service-based businesses are encouraged to join mission: Architecture, design, green technology, urban planning, water and air quality and waste management, clean energy, infrastructure and logistics, education and financial and professional services.

For more information and to register, please click here.


Market in Focus - Chile

Why Chile?

  • Chile is Australia's third largest trading partner in Latin America;
  • It has a population of 16.6 million, a GDP of US$164 billion;
  • Chile's relatively open business environment has made it an ideal base for Australian companies looking to expand into Latin America;
  • It is Latin America's most stable and transparent commercial environment;
  • There are currently around 120 Australian companies actively trading with Chile;
  • The Governments of Australia and Chile have concluded negotiations for a free trade agreement, which will be the first for Australia with a Latin American market.

Chile is known for its macroeconomic stability and for being a country open to foreign investments, its recent economic success has been built on the exportation of copper (the world's largest exporter), as well as agriculture, forestry and fish (salmon).

Chile has an extensive network of Free Trade Agreements (FTAs) and has continued its strong push to engage economically with the Asia Pacific region and to build strategic alliances along the eastern seaboard of South America. In the second half of 2006 it concluded FTAs with Japan, Colombia and Peru, commenced negotiations with Australia in 2007, and began preparing to negotiate FTAs with Thailand, Malaysia and Vietnam. Chile already has preferential trade agreements with 54 countries including with nine APEC members (USA, Canada, South Korea, Mexico, New Zealand, Singapore, Brunei, China and Peru). Chile also has an association agreement with the EU, including an FTA element which entered into effect in 2003. In 2007, Chile commenced services and investment negotiations with China, building on already completed FTA negotiations on goods.

Australia's FTA with Chile offers Australian exporters opportunities across the board which will be particularly valuable in services and investment areas, including:

  • Mining and energy technology and services, engineering and consulting services, franchising and services, education and training, information technology, tourism and infrastructure.
  • Other areas that will benefit include energy (coal, LNG, renewable energy), agriculture (dairy, meat, ovine and bovine genetics, production technologies) and food and beverages including wine.

For more information on the Australia Chile FTA visit the Department of Foreign Affairs and Trade website.

Overhead costs are relatively low and the workforce generally well educated. On average foreign SMEs enjoy the most success by finding the right local partner, either through a JV or acquisition.

Major Australian Imports 2006-07 (A$m): Major Australian Imports 2006-07 (A$m):
  • Coal A$94
  • Copper A$97
  • Civil engineering equipment A$21
  • Pulp and waste paper A$57
  • Specialised machinery A$7
  • Non-ferrous base metal waste A$43
  • Transport vehicles A$6
  • Pig iron A$21

Export Opportunities
Opportunities exist for Australian companies in the areas of:

  • Mining (Technology and Services),
  • Energy (Coal, LNG, Renewable Energy - Hydro, Wind and Geothermal),
  • Agribusiness (Ovine and Bovine Genetics, Production Technologies),
  • Food and beverage (specialised),
  • Services (including consulting (engineering, vocational education and corporate training),
  • Information technology,
  • Tourism,
  • Infrastructure (Concessions in Prisons, Hospitals, Coal Fired Processing Plants, Roads, Airports and Ports), and
  • Defence (Spare Parts, Boats, and Technology).

With Chile's growing middle class and Chileans increased disposable income, franchising has emerged as a new area of opportunity for Australian companies in Chile. Already, Australian chain Boost Juice has a Master Franchisee in Chile, and has opened outlets in two of Santiago's largest retail malls, and further plans to open up another twenty outlets across Chile in the next four years. Additionally the general interest in Australian products and services continues to diversify into new areas such as aviation.

Energy
Chile is facing its biggest energy crisis for many years. Until recently the country relied heavily on the supply of natural gas from Argentina but with price freezes and economic growth in Argentina, supply has been reduced to a minimum. The government is committed to diversify energy supply - e.g. LNG, hydro, coal and renewables. There are opportunities for companies in asset management, construction and consultancy. The Chilean government actively supports renewable energy with electricity suppliers being legally obliged to source a portion of their supply from renewable sources. The largest CDM projects have been developed but the next stage of projects should enable smaller project holders to develop projects (bundling) and participate in the CDM market. Opportunities exist for project financing/management, carbon trading and consultancy.

Aquaculture/Biotechnology/Food
The aquaculture and food sectors are growing in Chile at around 135% per year, reaching around U$20 billion in exports. Chile is aiming to become a global food producer by 2015. There are opportunities in biotech, consultancy, new technologies and environmental solutions.

Infrastructure/public works
Chile has one of the most modern and successful road concession programmes in the world. Opportunities exist for asset management, design and consultancy (including PPP/PFI). Santiago's Metro continues to expand.

Environment
Opportunities to sell high-end services and consultancy, particularly to companies that export and have to adhere to strict EU/US technical/corporate governance standards. Also consultancy opportunities for water management and filter/emission control.

Education
The Chilean government has significantly increased public expenditure in education; opportunities exist for English language training/programme consultancy and selling cutting-edge educational products and services.


VICTORIA - Upcoming Events

Ai Group Events:

Australian Industry Group
TraNZ Tasman Workshops

The teams behind the TraNZ Tasman Briefings, EMA (Northern) NZ and the Australian Industry Group have partnered to bring you workshops that provide detailed information on New Zealand Employment Law. These workshops will give you the knowledge you need to understand what Kiwis do and why they do it! Find out what Kiwis mean when they talk about Good Faith, Procedural Fairness and a Personal Grievance. Understanding these three principles will quickly and substantially improve how your business operates in New Zealand.

Date: 5th August, 2011
Venue: 20 Queens Road, Melbourne, 3004
Cost: $598.00 (Ai Group members); $765.00 (non Ai Group members)
Contact: For more information and to register, please click here.

Austrade Events:

Austrade
Women in Global Business Speaker Series
The Women in Global Business program and Westpac invite you to the fifth 'Women in Global Business' Speaker Series. Join us for this half-day seminar to listen to and learn from prominent business women who have succeeded internationally. Case study speakers have been drawn from a variety of industry sectors representing an array of products and services. These women will provide valuable insights and practical advice on how you can enter global markets and expand your business internationally. Hear about the challenges faced and learn how they were overcome by speakers from small and large enterprises.

Date: 21 July, 2011
Venue: Room 204, Melbourne Convention and Exhibition Centre, 1 Convention Place, South Wharf, MELBOURNE VIC
Cost: $ 65
Contact: For more information and to register, please click here.

AIBC Events:

Australia India Address
Australia and India plan to double trade to $40 billion in the next 4 years. Victoria is targeting $60 million of additional exports to India in the next 2 years. Hear from Victorian Premier, The Honourable Ted Baillieu, MLA., on how your business can seize this explosive growth.

Date: 22 August, 2011
Venue: Grand Ballroom, Sofitel Melbourne on Collins, 25 Collins Street, Melbourne VIC 3000
Contact: For more information and to register, please click here.


NEW SOUTH WALES - Upcoming Events

Ai Group Events:

Australian Industry Group
Confronting the Challenges of Climate Policy and Globalisation - The UK Experience
Ai Group would like to invite you to attend a Sustainable Business Breakfast with keynote speaker, Sir Richard Lambert, former Director-General of the UK's most powerful business association, the Confederation of British Industry (CBI), and a British Business Ambassador.

Date: Tuesday 26 July, 2011
Venue: The Deck, Luna Park, 1 Olympic Drive, Milsons Point NSW 2061
Cost: Ai Group members $65 (inc GST) per person / Non-Ai Group members $95 (inc GST) per person
Contact: For more information and to register, please click here.

Australian Industry Group
TraNZ Tasman Workshops
The teams behind the TraNZ Tasman Briefings, EMA (Northern) NZ and the Australian Industry Group have partnered to bring you workshops that provide detailed information on New Zealand Employment Law. These workshops will give you the knowledge you need to understand what Kiwis do and why they do it! Find out what Kiwis mean when they talk about Good Faith, Procedural Fairness and a Personal Grievance. Understanding these three principles will quickly and substantially improve how your business operates in New Zealand.

Date: 3rd and 4th August, 2011
Venue: Ai Group, 51 Walker Street, North Sydney
Cost: $598.00 (Ai Group members) / $765.00 (non Ai Group members)
Contact: For more information and to register, please click here.

Austrade Events:

Austrade
Women in Global Business Speaker Series
The Women in Global Business program and Westpac invite you to the fifth 'Women in Global Business' Speaker Series. Join us for this half-day seminar to listen to and learn from prominent business women who have succeeded internationally. Case study speakers have been drawn from a variety of industry sectors representing an array of products and services. These women will provide valuable insights and practical advice on how you can enter global markets and expand your business internationally. Hear about the challenges faced and learn how they were overcome by speakers from small and large enterprises.

Date: 20 July, 2011
Venue: Westpac Place, 275 Kent Street, Sydney, NSW
Cost: $ 65
Contact: For more information and to register, please click here.


QUEENSLAND - Upcoming Events

Austrade Events:

Women in Global Business Speaker Series
The Women in Global Business program and Westpac invite you to the fifth 'Women in Global Business' Speaker Series. Join us for this half-day seminar to listen to and learn from prominent business women who have succeeded internationally.
Case study speakers have been drawn from a variety of industry sectors representing an array of products and services. These women will provide valuable insights and practical advice on how you can enter global markets and expand your business internationally. Hear about the challenges faced and learn how they were overcome by speakers from small and large enterprises.

Date: 19 July, 2011
Venue: Undumbi Room, Queensland Parliament House, Corner Alice and William Streets, Brisbane, QLD
Cost: $ 65 per person
Contact: For more information and to register, please click here.


South Australia - Upcoming Events

Austrade Events:

Women in Global Business Speaker Series
The Women in Global Business program and Westpac invite you to the fifth 'Women in Global Business' Speaker Series. Join us for this half-day seminar to listen to and learn from prominent business women who have succeeded internationally. Case study speakers have been drawn from a variety of industry sectors representing an array of products and services. These women will provide valuable insights and practical advice on how you can enter global markets and expand your business internationally. Hear about the challenges faced and learn how they were overcome by speakers from small and large enterprises.

Date: 27 July, 2011
Venue: Crystal Room, Stamford Plaza, Adelaide, SA
Cost: $ 65 per person
Contact: For more information and to register, please click here.



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