Trade Talk 28 June 2018
Australia-EU Free Trade Agreement
Prime Minister Malcolm Turnbull and Minister for Trade, Tourism and Investment Steven Ciobo announced last week the launch of negotiations on an FTA with the European Union. A trade agreement with the EU will open the door to a market of half a billion consumers, and GDP of US$17.3 trillion - making it one of Australia's biggest trade agreements once concluded. As a bloc, the EU is Australia's second largest trading partner, third largest export destination, and second largest services market. The EU was Australia's largest source of foreign investment in 2017. The first round of negotiations will be held in Brussels in early July.
EU-Australia FTA: The Business Case
The free trade agreement between Australia and the European Union holds the promise to deliver strengthened political collaboration and increase economic integration. In essence, it aims to facilitate market access for firms and reduce business costs.
Foreign Minister's address at the Australia-China Business Council
In a speech on 19 June, Foreign Minister Bishop reflected on the strength of the comprehensive strategic partnership between Australia and China. She said that despite the occasional disagreement the relationship is robust, with burgeoning people-to-people links, a strong working relationship on international issues, and ever-expanding economic relationship, with two way-trade now at $175 billion.
Trade, Tourism and Investment Minister's address on the China-Australia FTA
Minister Ciobo spoke on 28 June at a UTS-Australia China Relations Institute event in Canberra about the success of ChAFTA since it entered into force two and a half years ago. Despite differences of opinion from time to time, trade and investment continues to grow, with goods exports to China growing 22% last year alone. Australia will continue to be a key economic partner for China.
New direct flights to boost visitor numbers into northern Australia
New direct flight routes between Singapore and Broome, and Shenzhen and Darwin are expected to boost visitor numbers into northern Australia. The Northern Territory Government anticipates the direct route will bring thousands of new Chinese visitors to the Territory, with the potential to deliver $32 million in new visitor expenditure each year.
Foreign Investment Review Board 2016–17 Annual Report
Australia continues to be an attractive destination for foreign investment, with China and the US the top two sources of approved investment. The Foreign Investment Review Board 2016–17 Annual Report shows Chinese investors were the largest source of investment approvals by both value ($38.9 billion) and number (9,714). The US was the second largest source of investment by value, with $26.5 billion worth of approved applications.
Trade negotiations: next frontier for artificial intelligence
The United Nations Conference on Trade and Development is working with the Brazilian International Chamber of Commerce to use artificial intelligence to help trade negotiators. Already being used in the legal field, AI could help reduce the complexity of information and level the playing field between big and small players in trade negotiations.
2018 Lowy Institute Poll
This year's Lowy Institute Poll finds Australians have mixed feelings about our regional economic partners. While more than eight in ten Australia's say that China is 'more of an economic partner' than a 'military threat' almost three-quarters (72%, up from 56% in 2014) say the Australian government is 'allowing too much investment from China'. Closer to home, perceptions of Indonesia are looking up, with a majority of Australians (58%) agreeing that Indonesia is an important economy to Australia.
Farm production value forecast to rise in mixed agricultural outlook
The Australian Bureau of Agricultural and Resource Economics and Sciences estimates the value of farm production will be $61.4 billion in 2018–19, well above the 10-year average of $55 billion. Export earnings for fisheries products are forecast to increase by 1 per cent to $1.6 billion, on the back of an estimated 9 per cent increase in 2017–18. Ongoing risks to the agricultural sector include the persistence of dry conditions beyond winter in eastern Australia, and increasing competition in key export markets.
Australia remained in the top ten global destinations for FDI in 2017
Foreign direct investment (FDI) inflows to Australia, which more than doubled in 2016, maintained their high level at US$46 billion in 2017. According to the United Nations Conference on Trade and Development's (UNCTAD) World Investment Report 2018, Australia remained in the top ten global destinations for FDI.
Women in Export Scholarship winner
Dalene Wray, Managing Director of OBE Organic, an Australian company specialising in organic beef, is this year's winner of the Chief Executive Women Austrade Women in Export Scholarship. OBE Organic has pioneered sustainability and disease management programs, aimed at boosting farmer productivity, improving animal health and welfare and reducing supply chain waste.
New air services agreement boosts ties between Australia and India
Minister Ciobo has announced new Australia-India air services arrangements that will allow Australian and Indian airlines to operate unlimited services between six Australian airports and six Indian airports. These air services arrangements provide a foundation for airlines to increase direct flights between Australia and India, in line with the growing scale and profile of the Indian market over the long term.
Did You Know?
Germany exported more than US $18,000 of goods per capita in 2017 – more than ten times as much per capita as China
Upcoming Trade Events
Beyond China's Tier-1 Cities: Consumer trends and opportunities for premium food and beverage brands
Melbourne, VIC, 3 July 2018
Asialink Business in collaboration with Australia Post and Trade Victoria, is holding a seminar for Australian exporters keen to expand their understanding of the Chinese market outside the increasingly saturated Tier 1 cities.
Australia China Careers Fair Roadshow 2018
Beijing & Shanghai, China, 14-16 July
Austrade and AustCham Shanghai are joining forces to host a Careers Fair Roadshow in China next month. Australian education providers are encouraged to participate.
Celebrating Women in International Business
Perth, WA, 17 July
As proud sponsors of the Women in International Business category at this year's 30th WA Industry & Export Awards, the Department of Foreign Affairs & Trade (WA) invites you to a celebration of women in Western Australia making their mark in global business.
Australian Clean Energy Summit 2018
Sydney, NSW, 31 July – 1 August
The Australian Clean Energy Summit is Australia's most prestigious clean energy event, annually gathering more than 500 delegates from nearly 200 organisations and four continents. It provides a platform for the industry to discuss policy with government, seek financing options for future projects and learn more about the industry's outlook from domestic and international heads of industry.