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 • AUGUST 2024
Free trade agreements: vital to Australia’s continued economic growth
A year in force: the gold-standard Australia–UK FTA
Australia’s new roadmap for economic engagement with India
Landmark global treaty protects First Nations intellectual property
New trade rules for the digital economy
DFAT’s flagship trade and investment quarterly
Contents
Minister’s Foreword
2
Minister’s Foreword
Status of current FTA negotiations with the UAE and India Australia’s new roadmap for economic engagement with India A year in force: the gold- standard Australia–UK FTA Trade 2040 Taskforce: supporting Australia’s trade policy agenda Indo–Pacific Economic Framework delivers new agreements Thiess: first to participate in the Skills Development Exchange under FTA with Indonesia Indonesia’s halal law: changes for Australian business Fintech collaboration between Australia and Thailand Green Economy collaboration grants for Australian and Singaporean companies Southeast Asia Business Exchange’s first mission to Singapore and Malaysia Resources for Australian importers and exporters
Navigating Australia’s trade and investment partnerships
4
5
6
8
9
10
11
12
13
The August 2024 edition of Business Envoy is a showcase of Australia’s trade agreements and the benefits they deliver for Australian businesses, consumers, and communities.
One in four Australian jobs relate to trade. We have 18 free trade agreements across 30 economies, which support nearly 80 per cent of Australia’s international trade and deliver benefits for thousands of Australian businesses all over the world. Australia recently welcomed the conclusion of a landmark treaty that recognises Indigenous peoples’ traditional knowledge in the international intellectual property system and lays the groundwork for more First Nations exporters to share their top-notch products with the world. Our Government is proud to deliver on our commitment to represent Australian First Nations interests in our trade and economic policy on the global stage.
14
15
Australia’s free trade agreement network
16
Parliamentary Inquiry into FTAs 18
Global protection for First Nations property rights Sustainable agriculture grants promoting stronger engagement with Chinese industry Renewed interest in the PACER Plus agreement Australian Aid: helping Australia and the Indo-Pacific to prosper
19
20
22
23
Critical Minerals: the building blocks for a Future Made in Australia
24
World Hydrogen Summit 2024: Australian hydrogen in focus Yindjibarndi: First Nations leaders on the path to net zero “Ten years of growth is about to begin”: Australia and Papua New Guinea
26
27
28
On the cover:
Navigating Australia’s network of free trade agreements. See page 16 for your copy of the map.
Global Insights
30
2
business envoy
Department of Foreign Affairs and Trade
0482
The Australian Government also remains focused on delivering on more trade diversification opportunities for business, with negotiations progressing on a free trade agreement with the United Arab Emirates, and our next trade agreement with India. Earlier this year, we were thrilled to launch the new Centre of Australia– India Relations HQ in Parramatta Sydney, along with consultations on a future Australia–India economic roadmap. The new headquarters will help government, business, universities, and cultural and community groups involved in Indian-Australian communities to drive new partnerships and trade opportunities between our countries. In June, I also signed three landmark agreements under the Indo–Pacific Economic Framework in Singapore. These agreements will unlock trade and investment opportunities to support the global transition to net zero and underline our commitment to the Indo–Pacific region.
In May, we celebrated the first anniversary of our most ambitious trade agreement to date, the Australia–United Kingdom free trade agreement, entering into force. Over the last year we’ve seen strong growth in Australian exports of beef, sheep meat, honey, chocolate, auto parts and medical devices to the UK. Our trade agreement with the UK is also helping streamline processes for professionals working in both countries – making it easier for citizens to travel, work and share their world-class skills and experience with each other. Applications are currently open for our pilot Innovation and Early Careers Skills Exchange, which will support skilled UK and Australian professionals for streamlined visas to live and work in Australia and the UK. In April, I had the pleasure of welcoming the Chinese trade minister to Australia – an important visit in the stabilisation of our relationship. Over the last two years we’ve seen nearly AUD20 billion of trade impediments on Australian exports lifted. This has been an enormous relief for our miners, farmers and exporters, who continue to rely on this important overseas market.
The critical minerals sector is set to be a big winner from the Government’s Future Made in Australia bill. This will help Australian businesses move up the value chain, creating more jobs at home, with more exports around the world. Our Government will keep standing with Australian businesses to help them sell their world-class products and services to the world. You can access our free online export advice through the Go Global Toolkit at export.business.gov.au or the Free Trade Agreement Portal at ftaportal.dfat.gov.au to explore new markets. This edition of Business Envoy showcases just a sample of your successes and I hope you enjoy reading it. Senator The Hon Don Farrell Minister for Trade and Tourism
Senator the Hon Don Farrell, Minister for Trade and Tourism participates in the signing ceremony for IPEF Agreements during the Indo-Pacific Economic Framework (IPEF) ministerial meeting at the Sands Expo & Convention Centre in Singapore on 6 June 2024. See page 9.
3
Department of Foreign Affairs and Trade
business envoy
Status of current FTA negotiations with the UAE and India
Our negotiations continue at an intensive pace on both the Australia– UAE Comprehensive Economic Partnership
Agreement (CEPA) and the Australia–
India Comprehensive Economic Cooperation Agreement (CECA).
The United Arab Emirates (UAE) is Australia’s largest trade and investment partner in the Middle East. With AUD9.94 billion in two- way goods and services trade in 2023, the UAE is Australia’s 17th largest goods export market. Key Australian exports to the UAE include alumina, meat, oil seeds and higher education. The UAE is also an increasingly important investment partner, particularly on our energy transition journey, with total UAE investment in Australia worth AUD12.6 billion in 2022. Through CEPA we are aiming for a high quality, modern trade agreement which is expected to build upon already strong links and open new opportunities across goods, services, digital trade and investment amongst other areas. Stakeholder engagement and feedback is an important part of the negotiating process and we continue to encourage written submissions on CEPA through the DFAT website: dfat.gov.au/trade/agreements/ negotiations/australia-uae- comprehensive-economic- partnership-agreement-cepa
With India, negotiations are focused on progressing an ambitious Comprehensive
The Australia- India Economic and Trade Agreement (ECTA) is a stepping- stone towards a full Australia-India Comprehensive Economic Cooperation Agreement (CECA). Under ECTA which entered into force on 29 December 2022, over 85 per cent of Australian goods exports by value to India are now tariff free, rising to 90 per cent by 1 January 2026, and high tariffs have been reduced on some further agricultural products. In addition, 96 per cent of imports from India are now tariff free, rising to 100 per cent by 1 January 2026. Australian businesses and consumers can already take advantage of these opportunities which help secure access to the fast-growing Indian market of over 1.4 billion people and gives Australian businesses opportunities for trade diversification.
Economic Cooperation Agreement (CECA) that will build on market access outcomes under the Australia–India Economic and Trade Agreement (ECTA), (dfat.gov.au/trade/agreements/ in-force/australia-india-ecta) and address broader cross- cutting issues, such as digital trade, government procurement and new areas of cooperation. If successfully concluded, CECA will increase Australia’s access to the Indian market of over 1.4 billion people and the world’s fastest growing major economy, with a GDP of AUD5.5 trillion. It will provide Australian exporters valuable new opportunities for trade diversification. DFAT negotiators continue to speak to a wide range of stakeholders and hear from business, peak bodies and civil society in order to get the best deal for Australia. We continue to welcome submissions through the DFAT website: dfat. gov.au/trade/agreements/ negotiations/aifta/australia- india-comprehensive-economic- cooperation-agreement
4
business envoy
Department of Foreign Affairs and Trade
Australia’s new roadmap for economic engagement with India
The Australian Government launched consultations on a new roadmap for economic engagement between Australia and India in May at the Centre for Australia India Relations headquarters in Parramatta, western Sydney. The roadmap will look to forge new areas of cooperation beyond those set out in the landmark Indian Economic Strategy, written by former DFAT Secretary Peter Varghese in 2018. The roadmap will focus and accelerate our work to engage economically with India. It will bolster broad efforts to secure a more prosperous region surrounding Australia and India, and build on existing work and negotiations towards a Comprehensive Economic Cooperation Agreement. Topics such as net zero transition are on the table. Australia is well positioned to benefit from India’s growth story as well as contribute to it. India’s economy is growing at pace and is on track to be the world’s third largest by 2030. In 2023 India was
Australia’s fourth largest export market. Businesses, individuals and community
organisations are invited to meet with the roadmap taskforce as it consults across Australia. Part of the taskforce’s role will be to harmonise efforts between levels of government and the business and broader community.
Further information, available along with other country and trade information, is at dfat.gov.au/geo/india
5
business envoy Department of Foreign Affairs and Trade
Department of Foreign Affairs and Trade business envoy
A year in force: the gold-standard Australia–UK FTA
The historic Australia–UK Free Trade Agreement (A–UKFTA), which had its one-year anniversary of entry into force in May, deepens the enduring trade and people-to- people links between Australia and the United Kingdom. The A–UKFTA’s elimination of 99 per cent of UK tariffs on Australian goods is creating opportunities in the UK market for Australian exporters. By 2028, all imports from the UK will be duty-free. At the same time, the FTA’s innovative visa programs, designed for youth, early career professionals and demonstrated innovators, are improving the flow of people, their skills and their ideas, allowing businesses and organisations from both countries to make use of this talent.
The A–UKFTA broke new ground for FTAs. The world’s first dedicated Innovation Chapter established a Strategic Innovation Dialogue, to ensure that collaboration between Australian and the UK keeps pace with technological developments. The A–UKFTA also helped establish stronger resale rights allowing Australian artists, including First Nations people, to secure royalties for their works re-sold in the UK. You can find out more about how you and your business can benefit from the A–UKFTA through the DFAT webpage dfat.gov.au/trade/agreements/ in-force/aukfta or through the FTA Portal ftaportal.dfat.gov.au for specific products.
The A–UKFTA is helping build stronger links in professional services sectors. The Legal Services Regulatory Dialogue, established under the agreement, brings together industry representatives to look into regulatory issues that affect trade in legal services between our two countries. A–UKFTA’s framework for streamlining licensing processes for qualified professionals is credited with facilitating a mutual recognition agreement (MRA) between the Architects Accreditation Council of Australia and its United Kingdom and New Zealand counterparts, making it easier for architects to register across the three countries.
6
Innovation and Early Careers Skills Exchange Pilot (IECSEP) is open for applications IECSEP provides a new opportunity for early- career and innovative UK citizens to take their next career step in Australia in any industry. The Early Careers stream offers a 12-month visa for tertiary qualified applicants aged 21-45, who have a minimum 3 months in their current role. The Innovation stream has no age cap, and offers a three-year visa for highly skilled and experienced applicants, with a demonstrated contribution to innovation in any professional field. To be eligible, all IECSEP applicants must have a job offer in Australia, but Australian employers do not need to sponsor IECSEP participants, and labour market testing is not required. IECSEP applicants can apply from the UK, or in Australia, if they are already working in Australia on a valid visa. IECSEP provides a flexible solution that can support a range of staffing needs, such as intra-corporate and graduate transfers from the UK to Australia, international secondments or placements, as well as supporting recruitment of skilled workers from the UK. IECSEP is open for applications now. To apply or find out more, visit dfat.gov.au/iecsep
Australian export growth under A-UKFTA now that tariffs have reduced to zero Trade figures released by the Australian Bureau of Statistics show strong growth in bilateral merchandise trade in the first year of the A-UKFTA. Here are just four of the highlights: Australian agricultural exports
Beef: up 418% and an AUD54 million change
Sheep meat: up 25% and an AUD25 million change
Australian industrial exports
Primary cells and batteries: up 162% and valued at AUD16.8 million
Motor vehicle parts: up 82 % and valued at AUD45.9 million Stay up-to-date with trade statistics at abs.gov.au/statistics/economy/international- trade/international-trade-goods/latest-release
Phoebe Preece recently received a 12-month visa under the Early Careers stream of the A-UKFTA’s Innovation and Early Careers Skills Exchange Pilot. Originally from Shrewsbury in the UK, IECSEP gave Phoebe the opportunity to continue in her Perth-based role as a recruitment specialist with people2people, a recruitment business with offices in the UK and Australia. With its simple application process, Phoebe and her employer both appreciated the way that IECSEP has made it easier for UK citizens, like herself, to take their next career steps in Australia. With no business sponsorship or labour market testing requirements, IECSEP makes it easier for skilled people from the UK to work in Australia, and makes it easier for UK businesses to transfer employees into the Australian marketplace.
7
Department of Foreign Affairs and Trade
business envoy
Trade 2040 Taskforce: supporting Australia’s trade policy agenda
In May 2024 Trade and Tourism Minister Don Farrell convened a senior group of influential business, union, community and government representatives for the second meeting of the Trade 2040 Taskforce
The taskforce advises the Australian Government on its trade policy to 2040. Members discussed how Australia will work with trading partners in support of the Government’s AUD22.7 billion Future Made in Australia package. They were joined by Australia’s Special Envoy for Southeast Asia, Nicholas Moore, to discuss opportunities to take forward recommendations in the Invested: Australia’s Southeast Asia Economic Strategy to 2040 report. The Government has committed AUD4.4 million over two years from 2024–25 to continue funding for the taskforce and support trade diversification. This includes support for the Department of Foreign Affairs and Trade (DFAT) to undertake a comprehensive review of our Southeast Asian FTAs to develop recommendations for Government to modernise and enhance these trade agreements. To help inform the review process DFAT will invite submissions from across the private sector and the Australian community.
DFAT will also be running an AUD1.75 million grants program to support trade and investment exposed industries identify opportunities to liberalise and facilitate trade and investment in Southeast Asia. These efforts will ensure our Southeast Asian FTAs remain fit for purpose. Recognising the important role professional services play in underpinning broader trade and investment, DFAT will also provide AUD250,000 over two years (2024–25 and 2025–26) in grant funding to facilitate mutual recognition agreement (MRA) negotiations between Australian and Southeast Asian professional services bodies. Further information is available at dfat.gov.au/trade
Australia’s Special Envoy to Southeast Asia Nicholas Moore with Senator the Hon Don Farrell, Minister for Trade and Tourism and Deputy Secretary, Trade and Investment Group George Mina at the Trade 2040 Taskforce meeting May 2024
8
business envoy
Department of Foreign Affairs and Trade
Indo–Pacific Economic Framework delivers new agreements
In June, Trade Minister Don Farrell travelled to Singapore to sign three landmark Indo–Pacific Economic Framework (IPEF) agreements at the IPEF Ministerial Meeting – the IPEF Clean Economy Agreement, IPEF Fair Economy Agreement and IPEF Overarching Agreement. These agreements will formally bring together IPEF member countries to unlock green trade and investment to support the net zero transition, and enhance anti-corruption and anti- tax-evasion efforts.
The Clean Economy Investor Forum focused on climate technology and sustainable agriculture and included investor-business matching, high-level panel discussions and networking sessions. The forum was an opportunity to further advance Australia’s work in IPEF, including the IPEF Catalytic Capital Fund and the Cooperative Work Programs under the Clean Economy Agreement. DFAT is working to deliver a wide range of technical assistance and capacity building projects for Official Development Assistance (ODA) eligible IPEF countries by administering the AUD25 million IPEF Fund for Technical Assistance and Economic Cooperation (IFTAEC).
The ministerial meeting occurred alongside the inaugural IPEF Clean Economy Investor Forum, where Mr Farrell led a senior Australian investor delegation to deepen economic engagement in our region. The Australian delegation of investors represented AUD2.5 trillion of assets under management and was the first outbound investor mission under Invested: Australia’s Southeast Asia Economic Strategy to 2040 .
In May, DFAT and AUSTRAC delivered a financial intelligence analyst course for officials from ODA-eligible IPEF member countries (Fiji, India, Philippines, Malaysia, and Thailand) for building regional capability to collect and analyse financial reports and information to combat corruption and financial crime. This capacity-building workshop is one of many projects to be delivered through IFTAEC, with several initiatives in the pipeline for the next three years. See dfat.gov.au/ipef for more.
9
Department of Foreign Affairs and Trade
business envoy
Thiess: first to participate in the Skills Development Exchange under FTA with Indonesia
On 16 April 1934, then a small farming and roadworks company, Thiess Bros began operating in rural Australia. Ninety years later, it has grown across seven countries and three continents, with more than 15,000 employees – to be at the forefront of sustainable mining services. Thiess entered the Indonesian market in 1988 in a joint venture with PT Mintekindo Utama Indo in Kalimantan. Today it is in five provinces and has more than 5,700 employees. From the beginning, Thiess took a long-term view of its engagement in Indonesia. It is considered a market leader in its commitment to local skills development and supporting women in the mining industry. In 1992, Thiess established the Thiess Indonesia Training Centre in Balikpapan (eastern Kalimantan) to skill up the local workforce and overcome labour shortages through an apprenticeship program. The program accepts young Indonesians, 70 per cent from less privileged schools near Thiess’s operations in Indonesia, and provides them with Australian TAFE-equivalent qualifications. To date, more than 1,500 Indonesians have gone through the program – a benefit not just to Thiess but the economy more broadly. Thiess recently sent a team of Indonesian mechanics to its operations in Chile, showcasing its global mobility. Many more Indonesian mechanics are expected to support other regions worldwide in the future.
Thiess is committed to many community engagement programs. One is a partnership with the International River Foundation (IRF). The IRF and Thiess are working on a project on a tributary of the Mahakam River in Indonesia, aiming to achieve Sustainable Development Goal 6, Clean Water
In January 2024, Thiess became the first organisation to participate in DFAT’s Skills Development Exchange Pilot. An initiative under the Indonesia-Australia Comprehensive Economic Partnership Agreement, the Skills Development Exchange allowed Thiess to send 12 apprentices to work on a site in Australia’s Bowen Basin mining region for six months. “Leveraging the skills and potential of our people not only enhances their personal growth but significantly boosts our operational effectiveness across markets,” said Cluny Randell, Thiess Group Executive – Asia. In recent years, Thiess has been promoting women in the mining and energy sector. As a member of the Australian Government supported Indonesia Business Coalition for Women Empowerment, Thiess’s efforts to employ women and develop them to take on more senior positions stands out amongst its peers. Jeffrey Kounang, President Director Indonesia said, “We are proud that 10 per cent of our people are women, up from 2 per cent in 2018 when we started in the journey of increasing female participation.” Thiess aims to reach 36 per cent female participation by 2030. Big news for Thiess in Indonesia has been the new Rebuild Center in Kabil Industrial Estate, Batam Island, which was opened in January 2024. The Rebuild Center is strategically located near Singapore, and serves as a dynamic hub for rebuilding Thiess mining trucks. Australian Ambassador Penny Williams remarked at the launch, “The Thiess Batam Rebuild Center is an excellent example of deepening investment and building capacity between Australia and Indonesia, in a way that brings the benefit to local communities.”
and Sanitation, for the river tributary and its community.
Thiess’s long-term engagement and continued expansion in Indonesia showcases the opportunities that are to be had in Indonesia and Southeast Asia – one of the fastest and most dynamic regions in the world – and right on our doorstep. For more on IA-CEPA’s Skills Development Exchange Pilot, go to: dfat.gov.au/trade/agreements/ in-force/iacepa/outcomes- documents/outcomes-skills- development/skills-development- exchange
Indonesia is one of the fastest growing markets in the Indo-Pacific, with increased opportunities for Australian goods and services exporters. In 2022-23, total two-way trade in goods and services with Indonesia was worth AUD26.2 billion, making Indonesia our 13th largest trading partner. IA-CEPA, which entered into force on 5 July 2020, provides Australian and Indonesian businesses an opportunity to expand and diversify this economic partnership. See dfat.gov.au/trade/agreements/ in-force/iacepa/indonesia-australia- comprehensive-economic-partnership- agreement.
10
business envoy
Department of Foreign Affairs and Trade
Indonesia’s halal law: changes for Australian business
Indonesia is introducing a new halal regulatory regime for products in or entering the Indonesian market. Many Australian businesses will need to prepare to meet the new requirements, and the new regime presents significant changes for many Australian exporters.
Mandatory requirements will be phased in for cosmetics, pharmaceuticals, medical devices, clothing, and appliances from October 2026 to October 2034.
There is a new Indonesian regulatory authority for halal certification, the Halal Product Assurance Organising Body (known as BPJPH after its Indonesian acronym). The scope of goods requiring mandatory halal certification is significantly expanded to include goods not historically within the scope of halal regulations. Businesses will now be required to separate halal and non-halal products during production, processing, storage and transportation. There will be new labelling specifications for halal and non-halal products. From 17 October 2024, requirements under the halal law will become mandatory for all food and beverage products, with limited exemptions.
Australia is also seeking arrangements to recognise existing halal certification systems such as the Australian Government Authorised Halal Program (AGAHP) for halal red meat exports. Where to find information Please visit our dedicated information page on Indonesia’s Halal Law, dfat.gov.au/geo/ indonesia/complying-indonesian- halal-requirements. It is updated as new information becomes available. The page includes a recording of an introductory webinar on the Halal Law. You can contact us at NTB@dfat.gov.au, including to sign up for upcoming webinars.
Steps for Australian businesses and exporters
Businesses can arrange halal certification directly through BPJPH or through an Australian Halal Certification Body (HCB) that has been accredited by BPJPH. Eight Australian HCBs have already been approved by BPJPH. The Australian Government is working closely with Indonesian authorities to ensure accreditation processes for more Australian HCBs are completed ahead of the October deadline.
11
Department of Foreign Affairs and Trade
business envoy
Fintech collaboration between Australia and Thailand
Invested: Australia’s Southeast Asia Economic Strategy to 2040 , launched by Australian Prime Minister Anthony Albanese last year, identified the digital economy as a key sector to boost two-way trade and investment with Thailand.
In April 2024, FinTech Australia and the Thai Fintech Association signed a new memorandum of understanding (MOU) to collaborate and promote fintech capability between Australia and Thailand. Financial technology – or “fintech” – refers to technology and cloud services to improve and automate the delivery and use of financial products and services. Australian Ambassador to Thailand Dr Angela Macdonald PSM said, “Thailand’s fintech sector is one of the fastest growing in Southeast Asia. It has seen significant investment and regulatory support, leading to a boom in innovative solutions for payments, lending and more. Coupled with Australia’s exciting and dynamic fintech landscape, this partnership is a welcome step in digital economy collaboration with Thailand.” Growth has been impressive, as the Australian fintech industry grew from an AUD250 million industry in 2015 to an AUD45 billion industry in 2023.
FinTech Australia is the not-for- profit peak industry body for the Australian fintech sector. FinTech Australia Deputy Chair Mr Brian Collins said, “Thailand and Southeast Asia represent a massive growth opportunity for our local fintech sector. We look forward to further collaborating with the Thai FinTech Association to improve outcomes for both regions.” Australian and Southeast Asian fintech leaders, alongside venture capitalists, corporate innovation and financial services representatives, witnessed the collaboration. As a first step to bring the MOU to life, 16 Australian fintechs pitched into the Thailand market and joined Money20/20 Asia, taking forward partnership and investment opportunities.
The Thailand-Australia Free Trade Agreement (TAFTA) entered into force on 1 January 2005 and was Australia’s third free trade agreement. The agreement has eliminated the majority of Thai tariffs on goods imported from Australia. The reduction of Thailand’s previously high tariff barriers is a significant win for Australian businesses, opening up a range of export opportunities in Southeast Asia’s second-largest economy. More on TAFTA at: dfat.gov.au/trade/agreements/ in-force/tafta/thailand-australia- free-trade-agreement
For more information about business opportunities with
Thailand and Southeast Asia, visit Austrade’s Southeast Asia website austrade.gov.au/asea
12
business envoy
Department of Foreign Affairs and Trade
Green Economy collaboration grants for Australian and Singaporean companies
The Singapore-Australia Free Trade Agreement (SAFTA) is the central pillar of the economic relationship with Singapore, Australia’s largest trade and investment partner in South- East Asia. Singapore is also a party to the ASEAN‑Australia‑New Zealand Free Trade Agreement (AANZFTA), the Regional Comprehensive Partnership Agreement (RCEP), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Go-Green Co-Innovation Program A joint initiative established under the Singapore- Australia Green Economy Agreement GEA
The first group of Australian businesses has been awarded grants totalling AUD2.5 million under the Go Green Co-Innovation Program (GGCIP) – a key initiative of the Green Economy Agreement (GEA) between Australia and Singapore.
Five Australian SMEs each received AUD500,000 in grant funding to support green co- innovation across Australia and Singapore. The projects aim to deliver new or enhanced products, services, or solutions in a range of green sectors such as sustainable aviation fuel, sustainable agribusiness and food, energy reduction solutions, and environmental monitoring analysis and assessment. These businesses and their Singapore partners are now able to develop and deliver cutting- edge innovations in priority green sectors, further boosting momentum under the GEA. The GEA is a first-of-its-kind agreement. Signed in October 2022, it aims to accelerate both countries’ transition to net zero while promoting economic cooperation, boosting trade, and creating business opportunities. It highlights Australia’s net zero ambitions and credentials as an innovative trade partner.
Less than two years on, the GEA is delivering tangible outcomes, through these initial GGCIP grants to the Australian and Singapore small and medium-sized (SME) green economy business community. Prime Minister Anthony Albanese and Singapore Prime Minister Lee Hsien Loong announced the initial recipients of the GGCIP at the Singapore–Australia Annual Leaders Meeting in March 2024. GGCIP is open to Australian SMEs and Singapore businesses seeking to collaborate on the development of products, services or solutions to boost trade and commerce in green sectors. The GGCIP’s second round opened on 25 July 2024. A total of AUD7.5 million in funding is available to Australian SMEs to partner with an eligible Singapore business on a co-innovation project. Eligible Australian SMEs can apply for matched funding of AUD150,000 to 500,000. To learn more, access the information on GrantConnect at help.grants.gov.au/getting- started-with-grantconnect/ find-opportunities/, or contact ggcip@dfat.gov.au.
13
Department of Foreign Affairs and Trade
business envoy
Southeast Asia Business Exchange’s first mission to Singapore and Malaysia
Delivering the inaugural Australia Southeast Asia Business Exchange (SEABX) required multi-agency support and working with partners across the region to ensure we can together boost two-way trade and investment.
The SEABX mission at a glance • 22 Australian companies, represented by 23 delegates • Two site visits: onboard Fortescue’s FFI Green Pioneer to see the future of ammonia powered shipping and to Port of Tanjung Pelepas (PTP) in Malaysia • Four networking events hosted in partnership with the Australian High Commissions, fostering valuable connections • 20 business meetings, with Austrade facilitating potential collaborations and partnerships • 60 senior executives from Singapore and Malaysia
convened for three roundtable sessions.
The delegation included representatives from across the maritime value chain: ports, hydrogen and ammonia producers and hydrogen storage specialists; electrification, battery and solar specialists; a shipbuilder; carriers and logistics specialists; a containerisation innovator; civil engineers; and specialist emissions and financial advisory companies, along with university and industry associations. Energy and maritime trade will be a defining feature of our Singapore and Malaysia relationships for the next several decades. Globally, the United Nations has put the annual global spend on maritime decarbonisation over the next decade at around USD36 billion on shipping and USD118 billion on maritime infrastructure.
Assistant Minister for Trade Senator Tim Ayres led the first SEABX mission to Singapore and Malaysia in April 2024. The mission strengthened regional ties and marked the delivery of one of the important recommendations from Invested: Australia’s Southeast Asia Economic Strategy to 2040 . The mission focused on green energy transition in the maritime space, a fast-developing global industry sector in which several high-potential Australian exporters are engaged.
With Malaysia targeting 40 per cent low-carbon fuel penetration for marine transport by 2050 and Singapore aiming for full electric propulsion and net zero fuels for its harbour craft fleet to the same timeline, discussions centred on fuel, vessel and port side technology. Site visit highlights included Fortescue’s Singapore-flagged FFI Green Pioneer in Singapore and Malaysia’s Tanjong Pelepas Port. Both Singapore and Malaysia are important hubs in the region’s maritime landscape. More on SEABX at: austrade.gov.au/asea/aseabx
Visit to Fortescue’s FFI Green Pioneer , the world’s first use of ammonia as a marine bunkering fuel on an ammonia- powered vessel.
14
business envoy
Department of Foreign Affairs and Trade
Resources for Australian importers and exporters
Free trade agreements (FTAs) are a vital part of Australia’s continued economic growth. FTAs are treaties between two or more countries designed to reduce or eliminate certain barriers to trade and investment, and to facilitate stronger trade and commercial ties between participating countries. Australia has 18 FTAs with 30 economies. The Australian Government has put in place a series of resources to assist Australian enterprises to do business internationally through our network of FTAs.
The FTA Portal Through the FTA Portal, Australian importers and exporters of goods and services identify the best-fit international markets for their business, and the requirements that need to be met. Users can compare benefits, tariffs and quotas between bilateral (economy-to-economy) and multilateral (between a group of economies) agreements that service the same market. Visit ftaportal.dfat.gov.au. To further improve the user experience, the portal is currently undergoing an upgrade which will be completed over the coming months. Business Guides These publications are available for each FTA. They can be accessed and downloaded directly through the FTA Portal, or by visiting dfat.gov.au/trade/agreements/ trade-agreements. The guides outline how goods or services will be treated under the FTA; tariff classifications; meeting Rules of Origin (ROO) requirements; preparing a Certificate of Origin; record-keeping; and when to contact other agencies. The guides also contain sample forms and templates. The FTA network Check out Australia’s FTA network map. Your copy is overleaf and can be downloaded at: dfat.gov.au/businessenvoy
Austrade Austrade brings together a range of practical advice and resources to help businesses access the benefits of Australia’s free trade agreements, and works on-the- ground with enterprises. Visit austrade.gov.au/en/how-we- can/help-you Go Global Toolkit Research of the market you wish to export to is essential. Along with information on grants, services and support across government, export.business.gov.au has a “Go Global” guide to exporting. Other resources Export Finance Australia (EFA) exportfinance.gov.au is the government’s export credit agency, providing loans, guarantees, bonds and insurance options that enable businesses to take export-related opportunities. Australian Border Force: abf.gov.au supports the domestic manufacturing industry by administering the Tariff Concession System. Tariff Concession Orders (TCOs) are an Australian Government revenue concession that exists where there are no known Australian manufacturers of goods that are substitutable for imported goods.
15
Department of Foreign Affairs and Trade
business envoy
Australia’s free trade agreement network
Re
United Kingdom 31 May 2023
European Union
RCE
China 20 December 2015
1 January
The Philippines
Myanmar
Laos
India - ECTA* 29 December 2022 India - CECA*
Thailand 1 January 2005
United Arab Emirates
Vietnam
Cambodia
Malaysia 1 January 2013 Singapore 28 July 2003
AA
Brunei Darussalam
Indonesia 5 July 2020
AUSTRALI
LEGE
Regional Comprehensive Economic Partnership Agreement (RCEP) Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
ASEAN-Australia-New Zealand Free Trade Agreement Pacific Agreement on Closer Economic Relations Plus FTAs under consideration: • Gulf Co-operation Council Free Trade Agreement (GCCFTA) (Bahrain, K • Pacific Alliance (Columbia, Chile, Mexico, Peru)
16
business envoy
epublic of Korea 12 December 2014
Canada
Japan 15 January 2015
EP
CPTPP 30 December 2018
United States 1 January 2005
2022
Hong Kong 17 January 2020
Mexico
ANZFTA 1 January 2010
Peru 11 February 2020
Kiribati
Cook Islands
Tuvalu
Vanuatu Solomon Islands Nauru
Tonga Niue Samoa
PACER Plus 13 December 2020
IA
Chile 6 March 2009
New Zealand 1 Jan 1983
END
Bilateral FTA in force
FTA in force
Regional FTA in force
Bilateral FTA under negotiation
Not in force FTA not in force *ECTA in-force, negotiations on CECA underway
Kuwait, Oman, Qatar, Saudi Arabia, United Arab Emirates)
17
Department of Foreign Affairs and Trade
Parliamentary Inquiry into FTAs
The Australian Parliament’s Joint
On 15 May 2024, following a referral from Senator the Hon Don Farrell, Minister for Trade and Tourism the Joint Standing Committee on Trade and Investment Growth resolved to inquire into and report on the understanding and utilisation of benefits available to Australian industry and communities under Free Trade Agreements. The inquiry will focus on the level of awareness and uptake of the benefits available under Australia’s free trade agreements, including the promotion of the benefits of trade, the difficulties faced in accessing the benefits of trade agreements, and how the utilisation of trade agreements is measured. It will also examine the extent to which regional, diaspora and First Nations communities take advantage of trade opportunities, including through free trade agreements, and how these communities can be better engaged to build Australia’s trade. Additional information is available on the Committee’s website: Inquiry into the understanding and utilisation of benefits under Free Trade Agreements – Parliament of Australia aph.gov.au
Standing Committee on Trade and Investment Growth (JSCTIG) Inquiry into the understanding and utilisation of benefits under Free Trade Agreements
18
business envoy
Department of Foreign Affairs and Trade
Global protection for First Nations property rights
More than 20 years ago the World Intellectual Property Organization (WIPO) began to take steps to employ the intellectual property (IP) system to protect Indigenous genetic resources, traditional knowledge and folklore.
Recognising how strongly such a treaty would align with our First Nations policy objectives, Australia participated strongly in negotiations for the Treaty on Intellectual Property, Genetic Resources and Associated Traditional Knowledge (GRATK), advocating for the treaty and developing the negotiating text. The negotiating process had an IP Australia representative in the Main Committee chair at the diplomatic conference in Geneva where the treaty was concluded on 24 May 2024. Australia’s Ambassador for First Nations People, Justin Mohamed, and our Ambassador to the WTO, James Baxter, signed the treaty act. The treaty’s core transparency obligations will deliver meaningful
Genetic resources might include genetic plant, animal, microbial or other material with actual or potential value, such as medicinal plants, agricultural crops and animal breeds.
The treaty, with its global harmonisation of disclosure
requirements, provides Australia’s First Nations peoples with a clearer pathway to benefit from the use of their genetic resources and associated traditional knowledge, and helps ensure certainty for patent applications. It will provide opportunities for meaningful collaboration with Traditional Owners, especially in the fields of science and medicine. The treaty is yet to “enter into force”; this will happen once formal signature and ratification procedures in Australia have concluded and the treaty has been tabled in both houses of parliament. Further information at foreignminister.gov.au/minister/ penny-wong/media-release/ historic-global-agreement- recognising-first-nations-cultural- knowledge
recognition and respect for Indigenous peoples’ genetic resources and traditional knowledge and culture; an
important aspect of the treaty is that it requires the disclosure of the use of First Nations-owned genetic resources, such as plant materials and associated traditional knowledge, when seeking a patent.
19
Department of Foreign Affairs and Trade
business envoy
Sustainable agriculture grants promoting stronger engagement with Chinese industry
As Australia’s largest trading partner, sustained economic engagement with China has helped to stabilise the bilateral and trading relationship, strengthen people-to-people links, and return previously impeded exports to the Chinese market, including bottled wine, barley, and certain meat establishments. The Australian Government’s National Foundation for Australia– China Relations (NFACR) works to strengthen Australian industry engagement with China in a risk-informed manner, including through its annual grants program. The 2023–24 grants round saw 27 organisations across Australia receive a share of over AUD5.7 million, including agricultural-focused peak bodies, supporting timely re-engagement with China at a time of renewed trade opportunities. NFACR’s 2024-2025 grants round is open for applications until 9 September 2024.
Charlie McElhone, General Manager, said “I’d like to underline the enormous benefit it brings for us as Australians because I see that exchange of ideas, that learning, that ability to gain a perspective on a different market. There’s so much value that’s been delivered from the program. Ultimately, the individuals who are the core element of the program, are why it’s been so successful.” Australian Export Grains Innovation Centre (AEGIC) , an initiative of Grains Australia and the Western Australian Government, supports Chinese customers with technical information to optimise the value of Australian barley. An AUD350,000 grant is supporting the centre to build Australian grower relationships and enhance use of Australian barley, re- establishing long-held relationships between Australian industry and Chinese buyers. Prior to the imposition of 80.5 per cent duties on Australian barley exports, China was Australia’s largest barley export market. Removal of the duties in August 2023 resulted in a quick resumption of trade and, by the end of 2023, Australia had exported nearly 3 million tonnes of barley worth AUD1.2 billion.
Dairy Australia, which celebrates the 25th anniversary of its scholarship program this year, has been integral to building strong and trusted relationships between the Australian and Chinese dairy industries. A grant of AUD430,000 is supporting Dairy Australia to provide immersive technical training to over 300 middle managers from leading Chinese dairy businesses, who, as alumni of the program, have fostered friendships and commercial connections with Australian exporters, dairy farmers and key industry bodies. Program delegates receive comprehensive information about Australian industry including manufacturing methods, product range, food safety protocols and animal welfare and sustainability credentials, cementing confidence in the high standards of Australian dairy products. Managing Director Dr David Nation said ‘We see so many things that benefit both the scholarship program alumni and Australians who have participated over 25 years, and I’d like to recognise the significance of celebrating 25 years of a wonderful partnership – a wonderful program of friendship between Australia and greater China.’
20
business envoy
Department of Foreign Affairs and Trade
Australia Wool Innovation (AWI) received AUD250,000 towards its Australia China Wool Business and Cultural Exchange. The grower-owned AWI, owner of the Woolmark Certification, has more than 150 Chinese manufacturing and brand licensees. This year celebrates more than 55 years of successful wool trade with China, establishing China as Australia’s largest customer, buying over 80 per cent of Australian shorn wool. The Exchange will catalyse re- engagement, address supply chain challenges and opportunities in traceability, sustainability, climate change, innovation and technology. It facilitates rural Australian woolgrower visits to Chinese manufacturers, and reciprocal Chinese industry study tours to Australia showcasing Australia’s high-quality wool and growing practices. NFACR’s annual grants program has supported over 150 Australian organisations with more than AUD25 million to engage China within Australia’s national interest and showcase Australian excellence in priority sectors. NFACR’s 2024-25 grants round is now open for applications, closing midday 9 September 2024. Follow NFACR’s LinkedIn and become a ‘Friend of the Foundation’ for information sessions and more at australiachinafoundation.org.au/ contact.
AEGIC’s program will involve collaboration with Grains Australia, industry participants (breeders, brewers, maltsters, growers), and educational institutions to deliver a series of seminars in China as well as hosting a Chinese industry delegation in Australia, amongst other activities. AEGIC Executive General Manager Ms Courtney Draper said China is a significant market for Australian barley exports. “Chinese customers prefer Australian barley because of its excellent quality and performance for malting, beer brewing, distilling and animal feed,” she said. “Having access to timely technical information from the Australian barley industry is highly appreciated by Chinese customers and increases the likelihood they will choose grain from Australia.” Australian Tourism Export Council (ATEC) will bolster its China Host program with AUD405,000 funding to support over 200 Australian tourism businesses to build capability in hosting Chinese visitors, with a focus on supporting regional SMEs and First Nations businesses. Regions with a wine export industry will receive specific workshops on re-engaging the Chinese market.
The China–Australia Free Trade Agreement (ChAFTA) entered into force on 20 December 2015. ChAFTA is delivering enormous benefits to Australia, enhancing our competitive position in the Chinese market, boosting economic growth and creating jobs. The agreement unlocked significant opportunities for Australia in China, which is Australia’s largest export market for goods and services, accounting for nearly a third of total exports in 2023, and is a steady source of foreign investment. Australian businesses can use ChAFTA to access preferential tariff treatment and improved market access for eligible goods and services. Our re-engagement with China on ChAFTA has included holding the second Joint Commission Meeting on 16 April 2024 and signing a ChAFTA memorandum of understanding during the Chinese Premier’s visit on 17 June 2024. This ongoing engagement enables us to continue cooperating closely to implement the agreement and work together to resolve issues affecting trade. Information on ChAFTA can be found on the DFAT website at dfat.gov.au/chafta. The FTA Portal, ftaportal.dfat.gov.au, can also assist exporters and importers to understand the benefits and requirements of our FTAs, including ChAFTA.
21
Department of Foreign Affairs and Trade
business envoy
Renewed interest in the PACER Plus agreement
PACER Plus (Pacific Agreement on Closer
Ten countries are party to PACER Plus, which entered into force on 13 December 2020: Australia, Cook Islands, Kiribati, New Zealand, Niue, Samoa, Solomon Islands, Tonga, Tuvalu and Vanuatu. PACER Plus establishes comprehensive frameworks around rules of origin, customs procedures, biosecurity measures, standards and conformance issues that create barriers to trade. It also entails a schedule of commitments on tariffs, services, investment, and the presence of temporary workers to supply services. PACER Plus opens commercial avenues for Pacific exporters and investors across a number of sectors. Opportunities are expanding as the agreement facilitates more transparent policies and cultivates broader regional relationships.
Economic Relations Plus) is a development-focused trade agreement that will raise living standards, create jobs, and increase exports in Pacific Island countries, while lowering barriers and providing greater certainty for businesses.
Fiji has recently shown renewed interest in joining PACER Plus. With one of the most robust and diverse economies in the Pacific and its growing status as the primary hub for the intra-regional trade, Fiji’s inclusion in PACER Plus would deliver gains for all members of PACER Plus. Fiji’s niche in high-end garment production and growing presence in services, including back-office processing, also promises to open new markets. For more information see dfat.gov.au/pacer
Container ship and tug boats at King’s Wharf, Suva, Fiji
22
business envoy
Department of Foreign Affairs and Trade
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 20 Page 21 Page 22 Page 23 Page 24 Page 25 Page 26 Page 27 Page 28 Page 29 Page 30 Page 31 Page 32Made with FlippingBook - Online Brochure Maker