Department of Foreign Affairs and Trade

5. Helping Australia's exporters

Exporting underpins Australia's prosperity. One in five Australian jobs depends on exports (one in four in regional Australia) and exports account for over one fifth of our gross domestic product.

The Government has maintained a business environment conducive to export growth - through economic and taxation reforms. And existing and prospective exporters are supported through advice and information, and targeted programs for individual firms.

But the Australian Bureau of Statistics (ABS) estimated there were only 25 000 exporters in Australia in 2001. Just 4 per cent of all businesses. Increasing this number will help us grow our economy. For the businesses themselves, expansion into export offers a far bigger market and the opportunity to learn from international practices.

The Government aims to double the number of Australian exporters by 2006. It is estimated that this would create additional export revenue growth of over 5 per cent a year, and add $40 billion to national income.

The doubling effort is on track. According to the ABS, the number of exporters in Australia in 2001-02 had grown to 31 450 - an increase of around 6,450 exporters over the past year.

The practical steps the Government is taking to increase the number of exporters include:

• a whole-of-government approach, including co-operation with state and territory governments on a range of policy development issues, programs and events
• consultations and alliances with the community and business
• exporter assistance programs, including the New Exporter Development Program, launched in 2002
• fostering an export culture - from the grass roots level of high schools through to programs aimed at bringing established companies into international business.

Whole-of-government approach

National Trade Consultations

Effective export promotion requires a coordinated effort across all levels of government, not just the Commonwealth. At the National Trade Consultations (NTC) in April 2002 the Commonwealth and state and territory governments agreed to cooperate to double the number of Australian exporters and to promote community understanding of the benefits of trade, ensure equitable access to export facilitation services in regional Australia and to develop links with private sector support services for exporters.

Under the agreement - formalised as a Memorandum of Understanding (MOU) - Austrade will work closely with other federal departments and agencies, and with state and territory agencies, to identify and help businesses with export potential. These efforts will build on partnerships developed under Austrade's New Exporter Development Program.

Federal-state cooperation is being facilitated through:

• co-location of Austrade and state government departments in regional centres, including Townsville, Darwin, Parramatta and Wollongong
• developing a joint Austrade/Queensland Department of State Development training program for government business development staff to identify and assist export-ready businesses
• industry programs such as the Australian Technology Showcase in New South Wales and the Queensland Smart State initiative
• workshops and seminars in regional locations arranged by overseas-based Austrade marketing staff in conjunction with other federal agencies, state governments, and private sector organisations. For example, in 2002 Austrade's overseas specialist staff from the biotechnology, ICT and services sectors held a series of seminars, workshops and one-on-one meetings with potential exporters. Also, a group of offshore staff held events in capital cities and regional centres such as Gosford, Newcastle, Ballina and Young about opportunities in the international food service industry.

The NTC meetings during the year also gave state and territory ministers the opportunity to debate and collaborate on key trade developments, including the Australia-Singapore Free Trade Agreement. The ministerial-level meetings are backed by regular consultations with officials and senior business leaders.

National Trade Consultations

Community and business consultations and alliances

The Government consults closely with the community on its bilateral, regional and multilateral trade policy initiatives. It is working closely with industry and community groups to develop Australia's negotiating priorities in the Doha Round negotiations and the free trade agreement (FTA) with the United States. This was also the case in the recently concluded FTA with Singapore. The Government also consults regularly with the business and broader community in relation to its APEC and AFTA-CER Closer Economic Partnership commitments (see Chapter 3).

Community and business consultations

US FTA

Singapore FTA

Trade Policy Advisory Council

The Trade Minister's pre-eminent business advisory group, the Trade Policy Advisory Council (TPAC), ensures the Government's trade policy agenda remains relevant to the interests of Australian business. Through TPAC, business representatives from a range of industry sectors meet with the Minister to discuss trade policy developments and to advise on business perspectives. TPAC met three times in 2002.

For information on the Trade Policy Advisory Council

WTO Advisory Group

With the Doha Development Round Australia’s highest trade policy priority, the Trade Minister chairs the WTO Advisory Group. Drawn from industry, non-government organisations, trade unions and academia, the Advisory Group provides the Government with expert advice on the approaches Australia should take to the Doha Round negotiations, and contributes to the development of a national strategy for an increasingly complex international trade negotiating agenda. Information on the Advisory Group, which was scheduled to meet next on 25 March 2003, along with details of the Government’s other trade consultative mechanisms, is available on the Department of Foreign Affairs and Trade website.

For information on the WTO Advisory Group

Business alliances

Effective cooperation between the Government and the business community is vital to successfully expanding Australia's export base. Through Austrade the Government has secured the support of key private sector organisations. Agreements that build on existing relationships and underline a shared commitment to Australia's trading future have been reached with:

• the Victorian Employers' Chamber of Commerce and Industry (VECCI) - benefiting the Victorian business community in high potential growth sectors such as processed food, ICT and biotechnology
• the Australian Industry Group - bringing together the Ai Group's knowledge of industry in Australia and Austrade's global resources through more than 90 overseas offices. The agreement will focus on Australia's manufacturing sector
• Australian Business Limited - establishing a framework to deliver integrated public/private assistance to businesses accessing new markets.

Assistance for exporters

TradeStart

Funded at $21.5 million over four years, TradeStart is a key part of the Government's strategy to double the number of Australian exporters. TradeStart raises awareness of exporting, ensures that business people outside the major metropolitan centres have access to Austrade's export advisory services, and maximises the benefits of trade for local communities.

TradeStart provides access to services under Austrade's New Exporter Development Program, through a national network of export assistance offices. These offices operate as a partnership between Austrade and local entities - including industry associations, regional development organisations, and state and territory governments.

The new TradeStart network, which currently has 49 offices operating in all states and territories, is already helping a large number of Australian exporters. With a focus on helping new exporters on a one-on-one basis to ensure export success, TradeStart is aiming to assist around 800 companies throughout metropolitan and regional Australia this financial year.

For information on TradeStart

The TradeSat video streaming system links Austrade's international Posts to TradeStart and Austrade offices around Australia. The TradeSat system allows Austrade's international and domestic staff to work interactively with Australian exporters - particularly those in rural and regional Australia - via a broadband satellite telecommunications link. During 2002 TradeSat presentations were delivered to locations around Australia, including Food and Beverage opportunities in Singapore', Pacific Markets - win business on your doorstep' and WTO China and Taiwan - Business implications for Australia'.

New Exporter Development Program

Austrade's New Exporter Development Program (NEDP) provides opportunities to exporters in urban and regional areas throughout Australia. The NEDP, established in July 2002, aims to take the exporter from the initial enquiry stage through to successful export. Services are free, and include initial information and advice along with more detailed services such as: coaching; mentoring; intensive workshops; delivering export opportunities; and international experience including assistance in-market for an initial market visit.

These services will be provided by locally based export advisors and Austrade overseas staff, including overseas based specialist staff, who will make targeted visits to Australia for the purpose. Through the TradeStart network, Austrade will also provide intensive workshops, expanded online services, specialised market visit programs and trade missions tailored for new and intending exporters.

Export Advisory and Marketing Unit

Austrade's Export Advisory and Marketing Unit provides initial advice and information to telephone, email, fax and in-person enquirers. Based on previous use, the service expects in 2003 to handle approximately 47 000 individual phone and email contacts and to deliver over 1500 international sales opportunities to Australian companies.

The Export Advisory and Marketing Unit also alerts suitable potential Australian suppliers to export opportunities identified by Austrade's overseas networks. Exporting companies are included in Austrade's Australian Suppliers Database, which serves as an Internet database where potential international customers can find out about Australian goods and services capabilities.

For information on export advisory and marketing services

Export Market Development Grants

The Export Market Development Grants (EMDG) scheme is the Government's primary financial assistance program for exporters. The scheme is designed to encourage small and medium enterprises in Australia to seek and develop export markets. Under the scheme, eligible businesses are reimbursed for a proportion of what they spend on promoting their exports.

In 2001-02, a total of $142.9 million was paid in EMD grants to 3078 recipients. Demand for the scheme continues to grow, with both the number and value of applications rising in 2001-02 and 2002-03.

Amendments to the EMDG Act in June 2002 have made the scheme more attractive to small businesses by increasing the minimum grant payment from $2500 to $5000. This change came into effect for payments made in 2002-03 (i.e. for grant year 2001-02).

An online EMDG eligibility checklist is available on the Austrade website to help exporters applying for a grant. The checklist allows prospective applicants to get an idea of how the program works and suggests ways for them to maximise their chances of a successful application.

For information on EMDG scheme

All performance and processing figures in this section refer to processing of 2000-01 grant year applications only, unless indicated by an asterisk (*). This symbol denotes that the figure or information relates to processing and/or payment of all 2001-02 financial year recipients, including supplementary payments to applicants from previous grant years.

For information on DFAT services to business

Fostering an export culture

Raising community awareness of trade and investment issues and of Australia's place in the global economy is an important Government objective.

During 2002, the Government continued to promote the benefits of trade to the Australian community through production and targeted distribution of a series of plain English' brochures and fact sheets, enhancements to trade information on the Internet, and a wide range of trade advocacy and outreach activities in both metropolitan and regional Australia. State and Territory offices of both the Department of Foreign Affairs and Trade and Austrade played a major role in these efforts.

Trade outreach

The Department of Foreign Affairs and Trade's Trade Advocacy and Outreach unit ensured that trade related publications were available to a wider readership through distribution to Federal, state and local parliamentarians and officials, and through school teachers.

Exporting for the future

Through the Exporting for the Future initiative, Austrade and Department of Foreign Affairs and Trade officials conducted regular workshops and seminars, and participated in field days aimed at improving understanding of the benefits of trade and raising awareness of the potential of overseas markets for Australian businesses. Highlights of the 2002 program were:

• inclusion of teaching and learning resources in school curricula for students from years 9 to 12. In July Mr Vaile launched the second book of school resources, Exporting for the future: resources for years 11 and 12. This material extends the reach of the teaching and learning resources prepared for years 9 and 10 students (launched in 2001 and now being used in over 80 per cent of Australian secondary schools). In addition, 85 training workshops have been held nationally to provide teachers with background information and specific curriculum links.
• an outreach program of visits and presentations to local businesses and community groups by trade officials, including overseas-based Senior Trade Commissioners and DFAT Heads of Mission. Visiting overseas-based Austrade marketing staff also hosted workshops and seminars in regional areas of all Australian states.

The Australian Export Awards

The Australian Export Awards continue to recognise the outstanding export achievements of Australian companies, including new exporters. The 2002 awards saw a number of records set, including the number of total entries (448), several state and category records, a record number of national finalists (72) and the largest ever number of regional entrants (112 - or 25 per cent of all applicants).

Australian Export Awards