New export opportunities for SMEs
FTAs are thought to remove or lower common barriers to trade, such as tariffs. But the ability to quickly enter new markets because of the FTAs is also a big plus for small businesses as is the removal of licensing requirements and even a reduction in paperwork.
Queensland aquaculture company Ausyfish exports fish larvae to several Asian countries, such as China, Malaysia and Vietnam. Sambell would welcome less red tape and endless amounts of forms he has to fill in, if that is what an FTA would bring.
Such an agreement could help export into China, which has been affected by onerous Chinese health and biological regulations. At the moment Sambell sends the larvae to Hong Kong, for transport into China. He would welcome an FTA if it brought closer cooperation and understanding between Australian and Chinese food authorities.
Another exporter, Denis Tricks of Victorian company Longford Flowers, would also welcome less paperwork. His business exports flowers to Japan. Tricks says tariffs on flowers sent to Japan are not onerous (he is more concerned at the moment about the high value of the Australian dollar against the Japanese yen and high transportation costs) but tariffs are high in other countries. Tricks says he would consider exporting to other Asian markets if those tariffs were reduced.
Here are the free trade agreements the Australian Government is negotiating:
CHINA:
Austrade claims the industries that would benefit from the FTA with China include agriculture, manufacturing, minerals and energy and services.
JAPAN: FTA negotiations with Japan were only announced in December last year, even though Japan has been a strong market for Australian exporters for 40 years.
A free trade agreement would be important to exporters in the food sector as it would seek to lower export duties levied by Japan, as well as lowering restrictions on certain agricultural imports.
MALAYSIA: Dairy products and some horticultural products, processed meat and some seafoods face tariffs of 5–30%, as do some tropical fruits and wine.
Malaysia aims to become a regional hub for halal food. Getting sufficient halal accreditation to satisfy Malaysian authorities has been a challenge for Australian food exporters. Small business would benefit if those types of non-tariff measures were dealt with in FTA negotiations.
GULF COOPERATION COUNCIL:
For example, the region has become the largest market for the export of Australian passenger motor vehicles. It is also an important market for meat and livestock exports (accounting for 33% of Australian exports) and cheese and curd exports (20%).
No comments:
Post a Comment