A look at economies beyond Australia’s top export markets, sharing insights from the Department of Foreign Affairs and Trade's diplomatic network.
DEPARTMENT OF FOREIGN AFFAIRS AND TRADE • JUNE 2023
Australia – United Kingdom Free Trade Agreement: future growth and more jobs
Championing deeper Southeast Asia ties
Australia-India Economic Cooperation and Trade Agreement boosts market access
DFAT’s flagship trade and investment quarterly
Minister’s foreword
Contents
Building a prosperous future
Building a prosperous future
3
An innovative and progressive free trade agreement
4
Green light for green steel projects in the Pilbara
6
A-UKFTA to be “transformative” for both business and economies
7
I am delighted to introduce the June 2023 issue of Business Envoy , now in its ninth year of bringing news about Australian trade to an increasingly trade-aware and trade-literate community.
Championing deeper economic ties with Southeast Asia
8
Now in force: Australia-India Economic Cooperation and Trade Agreement
10
Reflections on the Australia-USA alliance
12
Australia-United Kingdom Free Trade Agreement: Increasing opportunities for youth and skilled workers
15
40 years of Closer Economic Relations: Growth and expansion across the Tasman
16
Global Insights
18
2
business envoy
Department of Foreign Affairs and Trade
This edition of the Business Envoy provides insights and advice on how traders can take advantage of Australia’s gold-standard free trade deal with the United Kingdom. The agreement entered into force on 31 May 2023 and is already delivering significant benefits to Australian businesses and consumers, including by reducing costs of trade and creating new opportunities to expand our goods and services exports to the UK.
Other topics covered in this issue include the Australia - India Economic Cooperation and Trade Agreement, which entered into force on 29 December 2022. This deal is helping to improve access for Australian businesses into the world’s fastest growing major economy; eliminating tariffs on 90 per cent of Australian exports to India, and supporting our tourism and workforce industries with 1,000 Work and Holiday Program places – many of which will benefit regional and remote Australian communities. Negotiations are moving swiftly to deepen and expand our trade agreement with India, through an ambitious Comprehensive Economic Cooperation Agreement.
You can read here about business leaders who are working to expand and strengthen our global partnerships across Southeast Asia, the United States and New Zealand. Turning back to the Northern Hemisphere – I have been advocating for an ambitious and comprehensive trade agreement with the European Union. This has the potential to be Australia’s most progressive trade deal, delivering significant opportunities for Australian businesses.
Senator The Hon Don Farrell Minister for Trade and Tourism
On the cover:
Prime Minister Anthony Albanese is warmly greeted by UK Prime Minister Rishi Sunak at 10 Downing Street to discuss the Australia-United Kingdom Free Trade Agreement, AUKUS and our efforts to support an open, prosperous and secure
Above left: Meeting with Janusz Wojciechowski, European Commissioner for Agriculture, to promote the benefits of a comprehensive Australia-European Union free trade agreement, December 2022. Above: Visit to Coutume Café in Paris, an Australian success story reimagining the Parisian coffee experience through specialty coffee.
Indo-Pacific region. Image courtesy of the Office of the Prime Minister
3
Department of Foreign Affairs and Trade
business envoy
An innovative and progressive free trade agreement
Q. What does the Australia-UK Free Trade Agreement mean for the bilateral relationship and growing trade and investment links? The Australia-United Kingdom Free Trade Agreement (A-UKFTA), which entered into force on 31 May 2023, marks a historic moment in our partnership. The agreement is a benchmark trade deal, one that delivers benefits for all Australians, including manufacturers, workers, farmers, tradies, innovators, families, and students. The United Kingdom is one of Australia’s major trading partners, with two-way goods trade worth $10 billion in 2022, and two-way services trade worth over $11 billion in 2021-22, making it our second largest services trading partner. The UK is also Australia’s second largest source of investment, amounting to a cumulative total of over $1 trillion in 2022, and is the second largest destination for Australian investment abroad. The enduring strength of Australia- UK relations is underpinned by our rich and vibrant people-to-people links. The agreement not only incorporates several new areas, such as climate change, animal welfare, innovation, and gender, but also enhances pathways for the two-way movement of people and ideas between our countries. Australians will also begin to see the benefits of improved market access for goods and services. Increased investment from the UK, facilitated by key provisions in the agreement, will bring new technologies and services to the Australian market, including in clean energy technology, and foster productive exchanges among industry.
Government procurement opportunities will also be expanded in each other’s markets. The agreement includes world-class provisions to support increased digital trade and contains Australia’s first ever chapter dedicated to innovation in an FTA. Trade agreements like the A-UKFTA create and increase trade and investment options for Australian companies. Diversifying trade remains the prerogative of individual businesses, but the government can support that trade diversification in different ways. Free trade agreements are a vital component of trade diversification, and the A-UKFTA demonstrates a commitment to creating more of those diverse opportunities. Q. Trade and the Australian economy – how does this agreement benefit Australian businesses and Australia more broadly? With the entry into force of this comprehensive agreement, there will be no tariffs on over 99 per cent of Australian goods exports to the UK, opening up new export opportunities including for the agriculture sector. Along with Australian agricultural exports of wine, beef and sheep meat, opportunities for manufactured products such as auto parts, electrical equipment, and cosmetic products will be enhanced. The A-UKFTA will deliver unprecedented benefits to Australian businesses and create new, well-paying jobs. Savings for Australian households of about $200 million a year will be made as tariffs on imports from the UK are eliminated. After five years, all UK imports will enter Australia duty free, helping ease cost-of- living pressures for families and reducing input costs for Australian
businesses. We know that trade is important to Australia’s prosperity. One in four Australian jobs is connected to international trade, and free trade agreements like the A-UKFTA are a driver for that prosperity to be shared as widely as possible across the Australian community. Q. How have shifting national priorities affected the work of reaching an agreement? Since the early days of negotiating free trade agreements, the areas under negotiation have expanded. Beyond tariffs, trade agreements now cover emerging areas such as digital trade, environment, labour, and the green economy. Complementary economic initiatives covering areas such as cooperation on critical minerals can also be discussed and pursued alongside the FTA. In all our trade agreements, our priority is to build in strong rules and standards that will benefit Australia, as well as our trade partners. This includes those areas such as digital trade, clean and renewable energy, and in economic resilience. Our objective is to also make trade as efficient and seamless as we can.
4
business envoy
Department of Foreign Affairs and Trade
As Australia’s Deputy High Commissioner to the United Kingdom since January 2023, Elisabeth Bowes is best placed to report on outcomes from the Australia-UK Free Trade Agreement (A-UKFTA). Previously, she was First Assistant Secretary of the Free Trade Agreements and Stakeholder Engagement Division, and Chief Negotiator of the A-UKFTA at commencement in mid-2020.
Q. Has negotiating with an economy that is a longstanding partner made things easier? The UK and Australia have a modern and enduring partnership underpinned by our common political and legal systems, shared values, strong people-to-people links, closely aligned strategic outlook, and substantial trade and investment links. Our likeminded interests enabled us to negotiate one of the most comprehensive, innovative, and ambitious free trade agreements, with strong commitments and new provisions in a range of areas: environment (including climate change), gender equality, innovation, and labour. Strong political will to conclude this agreement, the UK’s first truly new agreement post-Brexit, also facilitated the negotiations.
Q. What are some key achievements and benefits from the negotiations?
The A-UKFTA also identifies areas for close cooperation on climate change and environmental protection, including to help deliver both countries’ commitment to addressing climate change and supporting the transition to net zero, clean energy technologies and low carbon economies. Both countries have also agreed to provisions in the FTA that will facilitate cooperation on women’s economic empowerment, innovation and animal welfare issues. Q. Where can people go for advice and information about this and other free trade agreements? DFAT’s “Trade and Investment” page dfat.gov.au/trade/trade-and- investment sets out information on market access, the benefits of foreign investment, and making the most of each and every one of Australia’s FTAs, including with the UK. It holds information such as case studies and trade statistics. Our FTA Portal is a great resource for traders to compare FTAs for specific products and of course, DFAT works incredibly closely with Austrade to support Australian companies looking to take advantage of the opportunities under the FTA.
The A-UKFTA is a win-win agreement, with balanced
outcomes for both Australia and the UK. As well as comprehensive outcomes across areas such as goods, services and investment, the agreement has measures to grow trade and investment opportunities for First Nations businesses, with commitments to help protect Indigenous copyright
and intellectual property. An example of this is expanded
reciprocity arrangements for resale rights of First Nations art products. Australia’s deep people-to-people links with the UK allowed us to achieve meaningful outcomes in labour mobility and to attract talented and skilled professionals to work and live in both countries. This is signified through new and streamlined visa arrangements for business professionals, and expansion of working holiday and youth mobility programs. An exciting pilot under the Innovation and Early Careers Skills Exchange will help facilitate more ideas and talent into the Australian economy.
Links dfat.gov.au/trade/agreements/in-force/aukfta
ftaportal.dfat.gov.au
5
Department of Foreign Affairs and Trade
business envoy
Green light for green steel projects in the Pilbara
The Western Australian Government has approved land allocations for green steel and green industrial projects in the state’s Pilbara region. Land in the Ashburton and Boodarie Strategic Industrial Areas has been allocated to companies including South Korean steelmaking giant POSCO and Fortescue Metals Group.
The development is expected to contribute to the diversification of WA’s economy and create new jobs. Growing a local advanced manufacturing industry is regarded as crucial to WA’s economic future. The POSCO and Fortescue land allocations were part of a larger package that provided land to projects to produce renewable energy, green hydrogen, ammonia, methanol, lithium hydroxide and lithium sulphate. These land allocations exemplify the type of international trade and investment partnerships needed to deliver Australia’s commitment to reach carbon net zero by 2050.
POSCO has been buying Australian iron ore and coal for 50 years and is one of the largest private customers of Australian exports. At its site, POSCO plans to use green hydrogen to produce a type of iron pellet known as hot briquetted iron. These pellets can then be processed through renewable electric steel furnaces to produce green steel. POSCO announced in December 2022 that it planned to invest US$40 billion in environmental projects in Australia before 2040, including US$12 billion on green steel production. These investments will form part of POSCO’s efforts to fulfil its net zero pledge. POSCO aims to reduce emissions by 10 per cent by 2030, 50 per cent by 2040, and achieve net zero by 2050 through use of hydrogen and renewable energy in steel production.
Fortescue Metals Group intends to develop a fully integrated green iron production facility as part of a Green Products Precinct at their Boodarie land grant. Fortescue Metals Group has significant interests in green iron production, including a December 2022 memorandum of understanding signed with voestalpine, Mitsubishi Corporation, and Primetals Technologies. It aims to design and engineer an industrial-scale prototype plant in Linz, Austria. Fortescue Metals Group is also conducting research into the technologies needed to produce high-purity green iron ore though its subsidiary, Fortescue Future Industries.
6
business envoy
Department of Foreign Affairs and Trade
A-UKFTA to be “transformative” for both business and economies
Informed Solutions is a multi-Queen’s Award for Innovation international provider of technology, complex data analytics, systems integration services and enterprise platform solutions that support large-scale digital transformation. Seth Finegan is Informed Solutions’ UK CEO and a longstanding champion of free trade.
“Our work involves applying geographic information systems and AI systems to land and environmental quality management. That work started in Scotland; we then took that work and did a whole-of-government project in NSW to create an environmental data management platform – which we then brought back to work with Scotland Natural Heritage so that they can use satellite data and AI to help manage sensitive areas.” The to-and-fro between Australia and Scotland is a great example of how the A-UKFTA will enable companies to share innovation and share ideas.
“We’ve been keen to see an FTA that’s designed for a knowledge economy,” Seth says. “It will be one that not only facilitates what business is done, but how business is done. Exchanging not just intellectual property, but the in-person presence of workers themselves. “It’s hugely exciting and I think it will be transformative for our business and our economies as well.”
“We’re both nations that love to innovate, that love to be
creative, and I know from personal experience that when we have staff coming from Australia to work here, or we take teams and put them out to work in Sydney or Canberra, they click really easily and really early on because they share that spark and interest to do something good with technology,” Seth says.
Seth Finegan
7
Department of Foreign Affairs and Trade
business envoy
Championing deeper economic ties with Southeast Asia
Nicholas Moore Australia’s Special Envoy for Southeast Asia
Australia’s strong economic growth after World War II was driven by waves of development across Asia, particularly Japan, Korea and China. Now Southeast Asia is rapidly developing and providing similar opportunities, with new industries adding to the story – notably renewable energy and digital technologies.
Southeast Asia is home to a growing, youthful and dynamic cohort of markets. When we look at Australia’s two-way trade with the 10 member countries of the Association of Southeast Asian Nations (ASEAN), this passed AUD150 billion in 2021-22, representing more than 14 per cent
of Australia’s overall trade. This is greater than our two- way trade with Japan or the United States.
The consumer class in Southeast Asia is increasing, with greater purchasing power. In Indonesia, the Philippines, Malaysia and Vietnam, immense growth is set for the next few decades. By 2040, across most Southeast Asian economies, there could be almost 26 million households with more than USD35,000 in disposable income.
Australia’s Special Envoy for Southeast Asia, Nicholas Moore, is leading the development of the Australian Government’s Southeast Asia Economic Strategy to 2040. The strategy aims to bring greater momentum to our engagement with the region by identifying current and emerging opportunities for Australian business across key regional markets to grow our two-way trade and investment relationships.
8
business envoy
Department of Foreign Affairs and Trade
Bolstering our trade and investment ties is central to the Government’s commitment to strengthen the connections and partnerships between Australia and our region, and advance our shared interests in a secure, prosperous and stable region.
Our Southeast Asia Economic Strategy to 2040, led by Nicholas Moore, will map out further export and investment opportunities matching Australian capabilities across key sectors in the region.
Senator the Hon Penny Wong Minister for Foreign Affairs
Senator the Hon Don Farrell Minister for Trade and Tourism
The region is a significant consumer of Australia’s energy, agricultural products, minerals and education. Its countries are vibrant, innovative and digitised. With half the population under the age of 30, Southeast Asia is also home to the world’s fastest growing online market for goods and services. Against this backdrop, now is the time to focus our efforts to strengthen our two-way trade and investment with Southeast Asia. While our quality Australian products, services and expertise are valued in Southeast Asia, more can be done – especially on investment. This has been a key focus of my recent consultations with businesses and other important stakeholders in Australia and our region to help inform the Australian Government’s Southeast Asia Economic Strategy to 2040.
The strategy will consider how emerging regional trends will impact Southeast Asian economies over the next two decades, and where Australia is best placed to respond. Importantly, we are not just looking to boost Australia’s trade and investment to the region. We are also seeking to increase imports and investment from the region to Australia. Successful long-term trade and investment can only be built on deep understanding and trust, and central to that are our people-to- people links. One in two Australians are either born overseas or have parents who were born overseas, and many are from our region. In addition, we have many more people living across Southeast Asia who have studied or worked in Australia. Many Australians have made their home in the region too.
Australia’s universities consistently rank among the world’s best and are a vast resource of research and innovation. They are a good example of how our services sector can contribute to capability building across the region. If Australian businesses can harness our skills, capability and investment to seize the economic opportunities Southeast Asia offers, then both our nation and region will prosper. You can find more information about the Southeast Asia Economic Strategy to 2040 at dfat.gov.au/ southeastasiaeconomicstrategy
9
Department of Foreign Affairs and Trade
business envoy
Now in force: Australia-India Economic Cooperation and Trade Agreement
The time is ripe to enter the Indian market! India is the world’s fastest growing large economy, with a GDP of $4.3 trillion and a market of nearly 1.5 billion people.
Access to this vibrant market has been boosted by the Australia-India Economic Cooperation and Trade Agreement (ECTA). ECTA entered into force on 29 December 2022, immediately eliminating tariffs on 85 per cent of Australian goods exports (by value) to India. A further 5.5 per cent of goods exports benefited from a double tariff cut (one on entry into force and another on 1 January 2023). Tariffs on these products will be phased to zero by 1 January 2028, making 90.5 per cent of goods exports to India tariff-free. In addition, very high tariffs of up to 150 per cent on some agriculture products have been substantially reduced.
In ECTA’s first month alone, Australian businesses claimed ECTA’s lower tariffs on over $2.5 billion worth of Australian exports to India. ECTA is the first FTA India has concluded with a developed economy outside of Asia. This provides Australian businesses with a valuable first-mover advantage into the Indian market. India is currently negotiating FTAs with the UK, Canada and the EU. Many Australian businesses are already taking advantage of this competitive position. For more information on business opportunities under ECTA, visit: dfat.gov.au/trade/agreements/ in-force/australia-india-ecta/ outcomes.
Australian lamb exporter, Mulwarra Export, will benefit from the elimination of India’s 30 per cent tariff on imported lamb. This will lower entry prices for Australian lamb and help increase exports. It should also help Mulwarra diversify into five-star restaurants and high-end retailers in India.
WA’s largest lobster exporter, Geraldton Fishermen’s Cooperative, secured a distributor in India in anticipation of the elimination on day one of India’s 30 per cent tariff on fresh rock lobster, and phased elimination of the 30 per cent tariff on frozen rock lobster by 1 January 2028.
Australian citrus exporter Nutrano hopes to increase
Australian services exporters, like Global Study Partners, will capitalise on the certainty and predictability of ECTA services outcomes while expanding their operations in India.
export volumes to the Indian market, taking advantage of India’s demand for Australia’s clean, green produce.
ECTA
10
business envoy
Department of Foreign Affairs and Trade
Australia and India have resumed negotiations for an ambitious Comprehensive Economic Cooperation Agreement (CECA) which will build on ECTA and address broader cross-cutting issues, such as digital trade, government procurement and new areas of cooperation. Prime Minister Albanese and Prime Minister Modi have called for swift negotiations and an early conclusion of an ambitious CECA, to realise the full potential of the bilateral economic relationship. Submissions from interested stakeholders are welcome – visit Australia-India Trade Negotiations - Make a Submission | Australian Government Department of Foreign Affairs and Trade (dfat.gov.au)’
11
Department of Foreign Affairs and Trade
business envoy
Reflections on the Australia-USA alliance
An interview with the Hon Arthur Sinodinos AO, Australia’s Ambassador to the United States of America from February 2020 until February 2023.
Q. Your time in Washington as Australia’s Ambassador to the US, beginning in February 2020, was shaped by significant events including the COVID-19 pandemic, the change in US administration and the announcement of AUKUS. What are some of your key reflections navigating a dynamic and challenging environment over the past three years? If you had said to me before I arrived there would be a once- in-a-century pandemic, a deep economic recession, Black Lives Matter protests in the summer, an election that ended in a riot at the Capitol in 2021 and then Russia invading Ukraine, I would have said it would not be possible to have so many Black Swan events. This has reminded me that change is the only constant. We must accept that disruption will occur. We can see this for example in the Indo-Pacific, where geostrategic
Major announcements on AUKUS will give further definition not only to the optimal pathway for nuclear-powered submarines, but also the advanced capabilities of Pillar 2, including areas like AI, machine learning, cyber, quantum, hypersonics and electronic warfare. We see AUKUS as a way to deepen collaboration not just on capability, but also information-sharing and integration of our industrial bases. So, it’s a very exciting development and it shows that the relationship between Australia and the US is getting stronger and stronger. Q. What do you see as some of the key opportunities in the bilateral trade and investment relationship over the next few years – and does AUSFTA have a role to play in this? AUSFTA has been critical to how Australia does business in the US and has underpinned a significant expansion in two-way trade and investment. We are adding to the trade and investment relationship, and we see major opportunities as the US looks to re-orient supply chains in light of the pandemic and changing geostrategic circumstances. Australia has the opportunity to be a partner of choice for the US in many critical areas, particularly those where economics and national security overlap.
One that is becoming increasingly important is critical minerals: this has become an area of strategic interest and the US has launched several initiatives, including the Indo-Pacific Economic Framework and the Mineral Security Partnership to create more secure supply chains among trusted allies and partners. Australia stands in very good stead to be part of this process, because we have the capacity to complement America’s clean energy goals whilst promoting Australia’s capacity to produce and process the critical minerals which are so important to electric vehicles, batteries and magnets. We launched our Critical Minerals Prospectus in December, showcasing 55 investment-ready Australian critical minerals projects that have the potential to address forecast production shortfalls, build supply chain security and deliver progress on the net zero future – and we have a government that is prepared to back the industry and promote greater value-added processing in Australia. We are also working with the US in a number of areas of critical and emerging technologies, both in terms of rules and standards in the context of the Quad and working with the US to establish greater integration of our industrial bases. AUKUS will be very important to that process.
circumstances are bringing America and Australia closer
together, and this has been typified by the announcement of the AUKUS capability pact between Australia, the USA and the UK. AUKUS will strengthen our capacity to project power in our own region, and will make, we believe, an important contribution towards stabilisation in the Indo-Pacific.
12
business envoy
Department of Foreign Affairs and Trade
Q. Among the Australian business people who have made it in the US, what do you think sets them apart from those who have been less successful? What sets apart the Australians here in the US is their resilience, ingenuity and commitment to their workers, their customers and their communities. I’ve seen this from very small local businesses to those with national and international reach. I was so impressed with the number of Australian businesses that held on during the pandemic and adapted, were able to survive, and now are thriving. I take every opportunity when talking to American counterparts to remind them that Australian businesses based in the US have created more than 150,000 well- paying jobs. While no doubt the FTA has made this easier in some ways, what really sets Australians apart in the US is their willingness to take risks, their capacity for innovation and their determination to look forward and be optimistic. Australia is a formidable agent of change and is highly regarded on the global innovation stage, but we have the ongoing challenge in the US of needing to persistently demonstrate the capacity and innovation that Australia can bring to the table. We have a lot to build on and I’m really excited about the future possibilities in innovation and trade.
Q. The US is taking steps to re-engage in the region, how is Australia working with the US to support this? For Australia, a strong US presence in the Indo-Pacific is indispensable to peace and prosperity and a stable equilibrium, so I really welcome President Biden’s leadership in taking steps to promote US trade and economic
Q. The Australia-US alliance is enduring and multifaceted. Climate impact is an example of an issue that may further broaden our two countries’ relationship. What are your thoughts about the future of the alliance? I’m very optimistic about the future of the alliance. On the defence and security side, our relationship is getting closer and closer. AUKUS will further cement that relationship in terms of capability and our capacity to work together and to integrate our industrial bases. More broadly, climate is emerging as an area for more high-level cooperation with the US. Last year we entered into a net zero partnership with the US, and Prime Minister Albanese made it clear in his first meeting with President Biden that he wanted to make climate the third pillar of the alliance. To this end we worked with our agencies in Canberra to develop an agenda for a climate leaders’ statement issued on 25 May 2023. We are demonstrating our credibility in this area by actions we have taken in relation to a legislative emissions reduction target of 43 per cent below 2005 levels by 2030 and net zero by 2050, complemented by concrete measures to reduce emissions. This all comes at a time when the US has made its largest ever commitment to climate action through the Inflation Reduction Act, so we’re confident that the Australia-US alliance affords both our nations an opportunity to show global leadership in addressing the climate crisis.
engagement in the region. The failure of the TPP to get
support at the last minute in the US was interpreted in the region as the US withdrawing from trade and economic engagement, even though this engagement is central to its capacity to contribute to peace, prosperity and stability in the region. President Biden has convened several summits with Pacific Island leaders and with Southeast Asian leaders, which have resulted in significant initiatives which will have ongoing trade and investment benefits to the region. He has also promulgated an Indo- Pacific Economic Framework, which will cover trade, supply chains, decarbonisation of infrastructure, and tax and governance issues. That framework provides a flexible way for the US to engage with different countries in the region, particularly Southeast Asia, on the issues that matter to them the most and will make a long-term contribution to their economic growth and development.
The Australia-United States Joint Statement, 20 May 2023 can be found at: pm.gov.au/media/australia-united-states-climate-critical-minerals-and-clean-energy-transformation-compact
13
Department of Foreign Affairs and Trade
business envoy
For insights into new and existing markets, export news, updates on Australia’s free trade agreements, benefits of trade to your business, statistics on trade and economics and opportunities to engage with government on trade and investment issues.
follow us at @DFAT_TRADETALK You can also engage with DFAT Trade teams at trade@dfat.gov.au
Australia-United Kingdom Free Trade Agreement: Increasing opportunities for youth and skilled workers
Innovation and Early Careers Skills Exchange Pilot (IECSEP) IECSEP will provide Australian employers with an opportunity to access early-career and innovative professionals from the UK through two new visa pathways. Tertiary qualified UK citizens, aged 21 to 45 and early in their career, can live and work in Australia for up to one year. Highly experienced and skilled UK citizens with a demonstrated contribution to innovation can live and work in Australia for up to three years. IECSEP will open for applications on 25 September 2023. Places will be limited. If the IECSEP sounds right for your business, talk with your UK partners about possible staff transfers under IECSEP, or talk directly with suitably qualified potential applicants in the UK. For more information on how to apply visit dfat.gov. au/publications/trade-and- investment/benefits-tech- entrepreneurs-and-innovators/ iecsep.
A-UKFTA entered into force on 31 May 2023 with enhanced
1 July 2024, be granted up to three Working Holiday visas without the requirement to undertake any specified work. Service Supplier (Global Business Mobility) Visa A-UKFTA allows more Australian professionals across a range of sectors to access the UK market. Access to the UK’s Service Supplier (Global Business Mobility) visa pathway has been expanded to include not only Australian professionals employed by overseas companies but also self- employed Australian professionals. They will now be able to provide their services in the UK for up to one year. The visa is subject to occupation lists, but includes such sectors as IT, finance, health, engineering, journalism, entertainment, and the arts. For further information on the UK’s Global Business Mobility visa, see: gov.uk/government/publications/ global-business-mobility- eligible-occupations-and-codes/ global-business-mobility-eligible- occupations-and-codes)
opportunities for skilled professionals and young people to live and work in each country. A-UKFTA enables skills transfers and deepens the already strong people-to-people links between Australia and the UK. Here are three key mobility outcomes from the FTA. Working Holiday Maker Visa and Youth Mobility Scheme From 31 January 2024, Australians up to 35 years of age (up from 30) will be able to apply for a UK Youth Mobility visa, and stay for a maximum of three years (up from two years). Similarly, from 1 July 2023, UK citizens up to 35 years of age will be able to apply for a Working Holiday visa and, from
15
Department of Foreign Affairs and Trade
business envoy
40 years of Closer Economic Relations: Growth and expansion across the Tasman
The relationship between Australia and New Zealand is one of long and enduring friendship. It is built on cultural ties, family links, good-natured rivalry and strong trading partnerships.
It’s no surprise that the Australia-New Zealand Closer Economic Relations (CER) Trade Agreement is Australia’s most liberal FTA. Since 1983, it has led to greater harmonisation, tariff- free trade across the Tasman, and less red-tape for businesses in both countries. This level of integration means greater productivity, lower business costs, exciting innovation and more opportunities for Australian businesses looking to expand internationally.
New Zealand is among Australia’s top ten two-way trading partners, holding its own in a list which includes China, Japan and the United States. With over 18,500 Australian businesses exporting across the Tasman, New Zealand is our second largest export destination. As we celebrate 40 years of partner- ship under the CER, we spoke to the Australian winners of the 2022 Trans-Tasman Innovation and Growth Awards to find out how
trading across the Tasman has helped them meet their business goals.
“Expanding to New Zealand gave us an opportunity to begin exploring what a global strategy could look like for Pleasant State.”
Sian Murray and Ami Bateman, Pleasant State co-founders
16
business envoy
Department of Foreign Affairs and Trade
Pleasant State Winners Sian Murray and Ami Bateman are co-founders of Pleasant State: We create ethical products that make home care a form of self-care. We developed Australia’s first single- use, plastic-free, just-add-water cleaning solution. Think Berocca but for cleaning! What motivated your expansion across the Tasman? We expanded to New Zealand early in the Pleasant State journey, just a few months after we began shipping products. This decision was driven by our customers. We knew from a combination of market research and customer requests that customers in New Zealand wanted sustainable, healthy and well-designed home-care products. Getting our products to those customers was fast and reasonably inexpensive. We have global ambitions for Pleasant State. Expanding across the Tasman was an obvious and relatively seamless starting point. What opportunities does the New Zealand market offer a small business? Expanding to New Zealand gave us the opportunity to consider what a global strategy could look like. It also gave us access to a larger audience. In comparison with the US and UK, the Australian market is small, so the New Zealand market is really helpful. Expanding across the Tasman has allowed us to continue growing our impact, providing us with the opportunity to help even more forward-thinking people switch to our better-for-you products. W hat advice do you have for other Australian businesses looking to trade in New Zealand? Do your research. Before expanding, conduct third- party market research to really understand your potential offshore customers. Left: Pleasant State co-founders Sian Murray and Ami Bateman at a warehouse facility. Image courtesy of Pleasant State Above: Seer Data & Analytics co-founder and CEO, Kristi Mansfield. Image courtesy of Seer Data & Analytics Right: Seer Data & Analytics’ Drag & Drop Data Storytelling Dashboard. Image courtesy of Seer Data & Analytics
Seer Data & Analytics Winner Kristi Mansfield, founder of Seer Data Analytics, outlined the background to the company’s success. Tell us about your company. Our mission is to make data accessible, usable, and shareable for people of all skillsets. We work with not-for-profits, government agencies and policymakers, and local businesses in more than 35 Australian communities, and we are expanding into New Zealand. What challenges did you overcome? Developing data access, sharing and storytelling solutions that are scaleable into new markets is a challenge. We co-designed the platform with our customers to establish Seer Data &Analytics as a trusted data sharing platform that enables ease of use for people of all skillsets. It also enables government and business to share closed data assets with not-for- profits and local communities, to improve decisions and outcomes. What are your business goals? There are many opportunities for cross-border learning, particularly on data access, sharing and data sovereignty. We see good opportunities for alignment with our customers to share learnings and practice models through the platform and our Seer Data Learning Lab. In 2023, we are committed to scaling in Australia and New Zealand. This will set us up to expand into the United States and Europe in 2024.
17
Department of Foreign Affairs and Trade
business envoy
Global Insights Dispatches from the diplomatic network and state and territory offices
Singapore: Tasmanian food and beverages satiate Singapore Australia’s High Commission in Singapore reports major successes for Tasmanian exporters to Singapore in the last months of 2022. A strong contingent of Tasmanian companies participated in Singapore’s Food and Hotels Asia (FHA) expo, which saw the successful launch of a new Tasmanian rock lobster brand, Dragon Tasmania. Several distillers and beverage producers also came away from FHA with new export contracts, including Hartshorn Distillery, Storm + India tea and the Tasmanian Tonic Company. Following FHA, the Tasmanian Premier led a successful trade mission to Singapore to pursue opportunities in food and beverage, education, hospitality and defence.
18
business envoy
Department of Foreign Affairs and Trade
Tokyo: Japan prioritises Australia as a clean energy partner With Russia’s invasion of Ukraine undermining global energy security, Japan is looking to Australia as a stable and secure energy partner. When meeting Prime Minister Kishida in Hiroshima on 21 May, Prime Minister Albanese underscored Australia’s commitment to remaining a reliable supplier of energy to Japan as both economies transition to net zero. Australia’s partnership with Japan presents opportunities for Australian energy exporters, investors in new clean energy technologies and suppliers of critical minerals and iron ore. Hanoi: Digital transformation opportunities Vietnam’s digital economy is expected to grow exponentially
Brisbane: Australia hosts Indo-Pacific Economic Framework negotiations Australian negotiators took part in the third full round of negotiations for the Indo-Pacific Economic Framework (IPEF) in Singapore from 8 to 15 May 2023, following rounds in Indonesia (March), Brisbane (December 2022), and a special round in India (February). IPEF Members made strong progress across all four pillars of the agreement (Trade, Supply Chains, Clean Economy, and Fair Economy), and lay the ground work for a successful ministerial meeting in Detroit on 27 May, including announcement of the first-of-its- kind IPEF Supply Chains Agreement. Further information: https://www. trademinister.gov.au/minister/don- farrell/media-release/ipef-supply- chains-agreement-more-resilient- supply-chains-uncertain-times New Delhi: Australian water tech provider met with enthusiasm
India’s Narayanpur Left Bank Canal. Automating 3,000 kilometres of canals to supply water efficiently to 450,000 hectares of drought-prone farmland, the project exemplifies Australia’s capabilities on sustainable development and climate change. Prime Minister Modi’s January 2023 launch generated intense interest, which Rubicon expects will enhance its expansion efforts in India — supported by DFAT and Austrade. A first for First Nations People Australia’s inaugural Ambassador for First Nations People, Mr Justin Mohamed, has embarked on nationwide engagements with Aboriginal and Torres Strait Islander leaders, businesses and organisations to learn about the diverse perspectives and interests of First Nations people in foreign and trade policy and embed these into the Government’s Agenda. The Ambassador’s meetings to date across Victoria, New South Wales, Western Australia, and Queensland, including the Torres Strait Islands, have reinforced the important roles that First Nations communities can play in solving global challenges, including in climate change, sustainable land and sea management, and inclusive trade and investment.
over the coming years and there is significant scope to
expand cooperation. From 12 to 15 December, Australia hosted a delegation of Vietnamese Government officials to learn about Australia’s experience of digital transformation and e-government. Greater cooperation on digital transformation is a key deliverable under the Australia-Vietnam Enhanced Economic Engagement Strategy.
Australian water technology is transforming irrigation in Karnataka, with India’s Prime
Minister Modi launching the world’s largest automated irrigation project by Rubicon Water. The sun-and- gravity powered technology, which also irrigates the Murray- Darling basin, has modernised
19
Department of Foreign Affairs and Trade
business envoy
Acknowledgements business envoy is DFAT’s flagship quarterly magazine, providing the latest insights into Australia’s open trade and investment agenda. It provides businesses with updates on Australian Government policy, industry news, and expert analysis of the latest global market trends and events. The magazine features news from the Australian Government’s global diplomatic network, DFAT’s state and territory offices, government agencies working with DFAT on trade and investment, as well as industry, non-profit and academic bodies. business envoy is produced in the Trade and Investment Group of the Department of Foreign Affairs and Trade. Any views expressed within are those of DFAT officers and not the views of the Australian Government. DFAT does not guarantee, and accepts no legal liability arising from or connected to, the accuracy, reliability, currency or completeness of any material contained in this publication. DFAT recommends that readers exercise their own skill and care with respect to their use of this publication and should obtain professional advice relevant to their particular circumstances. With the exception of the Commonwealth Coat of Arms and where otherwise noted, all material presented in this publication is provided under a Creative Commons Attribution 3.0 Australia licence. Material in this publication can be shared or adapted for any purpose in accordance with the licence terms available on the Creative Commons website. The Department of Foreign Affairs and Trade acknowledges the traditional owners of country throughout Australia, and their continuing connection to land, sea and community. We pay our respects to them and their cultures, and to elders past, present and emerging.
Contact email: trade@dfat.gov.au
To subscribe to business envoy or receive it as an e-newsletter, visit dfat.gov.au/businessenvoy
For more on DFAT’s engagement with business visit dfat.gov.au/trade
Trade and investment information is a click away.
Page 1 Page 2 Page 3 Page 4 Page 5 Page 6 Page 7 Page 8 Page 9 Page 10 Page 11 Page 12 Page 13 Page 14 Page 15 Page 16 Page 17 Page 18 Page 19 Page 20Made with FlippingBook - Online Brochure Maker