Trade agreements hold promise
The free trade agreements negotiated by the Federal Government have produced immediate benefits for some established exporters but first-time exporters will need to invest time and effort to see results, a seminar in Adelaide has been told.
Hosted by the Steven Ciobo, Parliamentary Secretary to the Federal Minister for Trade and Investment, the seminar heard from several speakers with experience exporting to Japan and South Korea – with which Australia has free trade agreements (FTAs) – and China, where an FTA is being finalised.
Ciobo encouraged small and medium enterprises not to be intimidated by the size and apparent complexity of markets of Australia’s FTA partners and to seek advice and assistance from the Government’s trade professionals like Austrade.
Austrade state director, international operations, Patrick Kearins, gave some practical insights into the impact that FTAs can have on trade flows and the opportunities for local businesses.
Kearins cited the example of the increase in Chile’s wine sales to Korea following the implementation of an FTA between the two countries in 2004. Australia had, before the Chile-Korea FTA, sold more wine to Korea than its Latin American competitor but Chile has now eclipsed Australia to be the second largest wine exporter to Korea.
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Kearins told about 60 people attending the seminar, held in Belair on Friday, that past experience of other FTAs showed that success in FTA markets would not be an overnight phenomenon for a company that was not yet established in one of the FTA markets.
However, he said that with supply chains becoming shorter with the internet and digital tools facilitating easier and direct access to trading partner contacts, a first time exporter may have to invest several years in offshore marketing before seeing results.
Business development manager at Chalk Hill Wines, Stuart Mossman, told the seminar that the McLaren Vale winery was now selling to Japan as a direct result of the FTA negotiated with that country last year.
He said Chalk Hill Wines was selling to 18 countries around the world, with the spread of markets helping to “de-risk” its export strategy.
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