Laki Kondylas Australian Trade Commission District Manager - Arizona

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1 Trade and Investment with Australia Laki Kondylas Australian Trade Commission District Manager - Arizona

2 Who is Austrade? The Australian Trade Commission is the Australian Government s export and international business facilitation agency Extensive network in Australia and overseas: - Australia: 18 offices plus a network of 43 TradeStart offices (including 18 TradeStart Extensions) and 8 Export Hubs - Overseas: 119 overseas locations in 62 countries Austrade provides the following services: - Advice on how to prepare for export Coaching - Export capability assessment and export advice tailored to individual business needs - Export Market Development Grants (EMDG) and information on export financing - Selecting markets and market entry strategy - Buyer/partner identification and selection - On-the-ground support in-market - Proactive help in identifying new export opportunities

3 Austrade s Australian network

4 Austrade s global network

5 Austrade Network in the USA

6 A Land of Opportunity

7 Country Comparison Land Mass 9.3 million sq km Land Mass 7.7 million sq km Population 290 million Population 20 million GDP US$ 10,500+ billion GDP Per Capita US$ 39, 922 # of States 50 + District of Colombia # of Supermarkets 41,932 # of Toy Stores 17, 866 # of airports 14, 801 GDP US$ 530+ billion GDP Per Capita US$ 26, 537 # of States Territories # of Supermarkets 3,775 # of Toy Stores 763 # of airports 444

8 Two-Way Trade 2005: Two way trade in goods and services of US$32.8 billion Exports Australian exports to the United States were worth $US 10.8 billion 1. Services 2. Meat 3. Alcoholic Beverages Imports Australian imports from the United States were worth $US 22 billion 1. Services 2. Aircraft and Parts 3. Measuring Instruments

9 Australia as a Market for the US Number 2 market for US construction machinery Number 2 market for US farm equipment Number 6 market for US large passenger aircraft Number 6 market for US auto goods Number 10 market for US telecoms equipment

10 Investment Australia is the eighth largest foreign direct investor in the United States, with assets valued at $US 125 billion (2003) The United States is the number one destination for Australian investment abroad. The United States is the largest foreign direct investor in Australia, with assets valued at $US 183 billion (2003) US owned companies employ 329,000 in Australia. Australia is the #11 destination for US direct investment abroad.

11 US Investment in Australia Unique geographic and time zone advantages, cultural affinity with Asia and American/European business environment make Australia a perfect business bridge to ASIA Over US$150 billion invested in Australia US accounts for 45% of total FDI Mid American companies with investments in Australia include Boeing, Caterpillar, Sara Lee, Kraft, Jon Deere

12 The AUSFTA 1 January 2005: AUSFTA entered into force Formal framework to expand two-way trade by: Reducing tariffs Increasing specific quotas Easing market restrictions Streamlining investment processes Living Document Creates on-going framework for improving trade Benefits for both countries

13 Benefits for US Exporters Tariff Reductions 99 % of tariff lines covering industrial and consumer goods eliminated Improved access for service providers Intellectual Property (strengthened protection) Opens all Australian state & federal govt procurement Investment access improved Immediate benefits to auto, chemicals, plastics, construction, electrical, fabricated metal, paper and wood industries

14 Benefits for US Importers Reduction or elimination of over 5000 tariffs (with more to come) and increased quota for some products Agriculture: 66% of tariff lines now zero Dairy: 15-25% reduction in most cheese tariffs Automotive: All tariffs on autos and parts eliminated Seafood: 48 items now tariff free

15 Live Examples Australia second largest export market Tariffs to zero 5-15% price advantage over main EU and Northern Asian competitors

16 Live Examples DISTILLED SPIRITS Australia is 4 th largest export market for US distilled spirits Tariff cut to zero on 1 January 2005 Gives immediate advantage over main Japanese and EU spirits competitors Distinctive products provision mean that only products from USA able to use the names bourbon, Kentucky bourbon and Tennessee whiskey in Australian market

17 Suncoast Gold Macadamias Case Studies Reduction of tariff from day 1 (zero by 2008) The United States is the largest market for macadamias in the world. They consume half of the world s production so the drop in tariff through the AUSFTA has made a very significant difference to our exports Agrilink Reduction of tariff from day 1 on soil moisture probes With the AUSFTA, we have experienced tariff reductions on our products, which essentially translates to a % reduction on list price A significant saving we can pass onto our customers and enough to make us competitive in the US market against similar products

18 THANK YOU Laki Kondylas District Manager - Arizona Ph:

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