Australia

Angus M RobinsonChief Executive, AEEMA

WEF Panel on Trade10th World Electronics Forum, Washington DC

22 September 2004

AUSTRALIA’S Australian Electronics Industry - 2003

Employment 31,500 Wages & Salaries (US$b) 1.0 Turnover (US$b) 6.0 Value Added (US$b) 1.6 Establishments 2,500 Exports (US$b) 2.6 Imports (US$b) 13.3 R&D (US$b) 0.8

AUSTRALIA’SAustralia’s Top 10 Export Destinations - Electronics

Manufactures

Country 2002 – 2003 % (and 10 year trend)

New Zealand 27.7 USA 21.6 China (inc Hong Kong) 6.0 Singapore 5.7 UK 4.4 Germany 3.1 Malaysia 2.4 Japan 2.1 India 1.9 Taiwan 1.6

AUSTRALIA’S

Australia’s Top 10 Import Sources - Electronics

Manufactures

Country 2002 – 2003 % (and 10 year trend)

China 17.5 USA 13.5 Malaysia 10.4 Japan 10.2 Republic of Korea 9.1 Singapore 8.7 Taiwan 7.2 Philippines 2.6 UK 2.2 Thailand 2.2

AUSTRALIA’S

Defence Automotive and Telematics Home Networking Medical Electronics &

Devices Environment Mining Avionics Photonics

Australian Electronics Capability Sectors

AUSTRALIA’S Opportunities to Engage with the Australian Electronics Industry

Product design and prototype development

Microelectronics design network System integration and software

development Contract manufacturing - complex Contract manufacturing - complex

product developm’t & customer supportproduct developm’t & customer support Collaborative R&D Test beds in advanced western markets Technology and product design licencing

AUSTRALIA’S

AUSTRALIA’S COMPETITIVE ADVANTAGE –

CONTRACT ELECTRONICS MANUFACTURING OF COMPLEX

PRODUCTS

Australian contract electronics manufacturers can competitively manage the production of low volume, complex products, particularly prototypes, with high quality, design value add and engineering and fast turn-around.

COST

RIS

KUSA / Europe

AUSTRALIA

ASIA

AUSTRALIA’S Trade Agenda Australian Electronics Industry

Maximise market penetration on the back of negotiated bilateral FTAs – Singapore, Thailand, USA, China and Malaysia

Removal of non-tariff and technical barriers to trade

Removal of Australian Government Tariff Concession Scheme on imported electronic components (3%)

AUSTRALIA’S

Key Non Tariff & Technical Barriers

Customs-related issues: - import tariffs, onerous customs procedures, including customs valuations, other import taxes and charges, rules of origin/certificates of origin, market access quotas

Technical issues - standards and certification: conformance testing and certification requirements

Other internal regulations issues: internal taxes, restrictive import licensing agreements visa requirements and work permits ownership and investment restrictions banking and foreign exchange issues governance and competition-related issues differing processes for obtaining government approvals transparency and fairness in tendering procedures for government

contract and in the award of tenders ineffective enforcement of intellectual property rights

Social or market-related issues: staff recruitment, local business culture

AUSTRALIA’S Australian Trade Policy and the Australian Electronics Industry

Longstanding Closer Economic Relations Agreement with New Zealand

Australian Government commitment to multi-lateral trade liberalisation through the Doha round of WTO

Key bilateral FTAs with Singapore, USA and Thailand Government/industry commitment to feasibility studies

for new FTAs with China and Malaysia Shared commitment to APEC and then potential for

regional trade agreements with ASEAN Shared commitment to studies aimed at strengthening

relationships with Japan and South Korea

AUSTRALIA’S

AEEMA

Committed to Australia’s ICT, electronics and electrical manufacturing

industries

www.aeema.asn.auarobinson@aeema.asn.au

+61 2 62 47 4655