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

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View more at www.australianbusiness.com.au

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?

Published in: Business
  • For more information on how you can receive help exporting your products and services to China, Korea and Japan visit www.australianbusiness.com.au
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Free-trade agreements – What they mean and how to unleash opportunities for your business Brisbane Exporting Business

  1. 1. Free Trade Agreements: What they mean and how to unleash opportunities for business Australian Business Solutions Group
  2. 2. WELCOME Greg Williamson Queensland State Manager Australian Business Solutions Group
  3. 3. Nationwide presence Australian Business Solutions Group has a nationwide presence across Australia serving 60,000 clients.
  4. 4. Experts in Business for Business
  5. 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. 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. 7. Trade Connection We are closely connected to the international chamber network of 6 million businesses connected via 12,000 chambers from 130 countries
  8. 8. Sample tables
  9. 9. FREE TRADE AGREEMENTS: WHAT THEY MEAN FOR BUSINESS Ian Bennett Senior Manager, International Trade
  10. 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. 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. 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
  13. 13. The “Noodle Bowl”
  14. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 26. ChAFTA  Harnesses the opportunities of China’s changing economy.  Services – Best positioned to leverage emerging opportunities stemming from middle class expansion.
  27. 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. 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. 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. 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. 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. 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. 33. EXPORT GROWTH CHINA PROGRAM Paula Martin General Manager, Consulting & Solutions Sara Cheng Manager, Greater China Region
  34. 34. Australia in the Asian Century
  35. 35. GDP: US$9.240 trillion US$6,807GDP per capita GDP growth: 7.7% 1.35 billion Population Trade with Australia: AUD$150.9 billion Source: The World Bank Snapshot: The Chinese economy
  36. 36. China’s GDP per capita
  37. 37. 0 10 20 30 40 50 60 70 80 90 100 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Import from China Export to China AU$ bn Source: Australian Statistics Bureau 2013 Australia – China Bilateral Trade
  38. 38. 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?
  39. 39.  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
  40. 40.  Regulation  Language barriers  Culture  Size  Diversity Why aren’t more businesses exporting?
  41. 41.  Low risk  Low cost  Fully supported What is Export Growth China
  42. 42. Export Growth China program
  43. 43. 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
  44. 44. Technology Enabled Showroom
  45. 45. 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
  46. 46. Kick off: China Roadshow
  47. 47.  Dedicated team based in China  Proactive targeting of potential buyers  Engaging current distribution networks  Utilising established connections Active Buyer Matching
  48. 48. A comprehensive report will be prepared detailing: Market insights and intelligence Product /service feedback Any potential opportunities A list of interested buyers Market report
  49. 49. 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
  50. 50. Now April July - Dec Chamber member applications Commence first round of road shows in China Officially launch the first rotation Timeline
  51. 51. ACCESS TO FINANCE Greg Williamson Queensland State Manager
  52. 52. 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
  53. 53. 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
  54. 54. 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
  55. 55. 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
  56. 56. Q&A
  57. 57. Email: absg@australianbusiness.com.au MORE QUESTIONS?
  58. 58. THANK YOU

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