free-trade agreements – what they mean and how to unleash opportunities for your business brisbane...
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Free Trade Agreements: What they mean and how to unleash opportunities for businessAustralian Business Solutions Group
WELCOMEGreg Williamson
Queensland State Manager
Australian Business Solutions Group
Nationwide presenceAustralian Business Solutions Group has a nationwide presence across Australia serving 60,000 clients.
Experts in Business for Business
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
Today’s agenda > Official welcome
Greg Williamson, Queensland State Manager
> FTAs: What they mean & defining the size of opportunity in China, Korea, and JapanIan 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
Trade Connection
We are closely connected to the international
chamber network of 6 million businesses connected via 12,000 chambers from 130 countries
Sample tables
FREE TRADE AGREEMENTS:WHAT THEY MEAN FOR BUSINESSIan Bennett
Senior Manager, International Trade
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
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Based on DFAT STARS database, ABS catalogues 5368.0 (Sep 2014) and unpublished ABS data.
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
The “Noodle Bowl”
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
Australian FTAs In ProgressFTA 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
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: 0805.20Description: Mandarins
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
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.
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.
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.
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).
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 (%).
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.
.
KAFTA – Not-So-Good News
Agreement is 1,700+ pages long.
Contains 4,000+ separate product specific rules.
Another set of “origin rules”.
Korea’s FTAsIn 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
ChAFTA
Harnesses the opportunities of China’s changing economy.
Services – Best positioned to leverage emerging opportunities stemming from middle class expansion.
ChAFTA – Not Yet In ForceCovers:
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
ChAFTA Includes chapter on intellectual property that
reaffirms the parties’ existing international obligations.
Contains commitment to negotiate a reciprocal agreement on government procurement.
TPP - Trans-PacificPartnership 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
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-PacificPartnership Agreement
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.
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
EXPORT GROWTH CHINA PROGRAM Paula Martin
General Manager, Consulting & Solutions
Sara Cheng
Manager, Greater China Region
Australia in the Asian Century
GDP: US$9.240 trillion
US$6,807GDP per capita
GDP growth: 7.7%
1.35 billion Population
Trade with Australia: AUD$150.9 billion
Source: The World Bank
Snapshot: The Chinese economy
China’s GDP per capita
0
10
20
30
40
50
60
70
80
90
100
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
Import from China
Export to China
AU$ bn
Source: Australian Statistics Bureau 2013
Australia – China Bilateral Trade
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?
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
Regulation
Language barriers
Culture
Size
Diversity
Why aren’t more businesses exporting?
Low risk
Low cost
Fully supported
What is Export Growth China
Export Growth China program
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
Technology Enabled Showroom
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
Kick off: China Roadshow
Dedicated team based in China
Proactive targeting of potential buyers
Engaging current distribution networks
Utilising established connections
Active Buyer Matching
A comprehensive report will be prepared detailing:
Market insights and intelligence
Product /service feedback
Any potential opportunities
A list of interested buyers
Market report
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
spaceStandard space
dimensions 450x450x450mm
$500 ($550 inc. GST)
Sml Product Space 450 x 450 x 450mm
$750 ($825 Inc. GST)Med Product Space450 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
Now
April
July - Dec
Chamber member applications
Commence first round of road shows in China
Officially launch the first rotation
Timeline
ACCESS TO FINANCE
Greg Williamson
Queensland State Manager
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
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
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
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
Q&A
THANK YOU
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