Michael Growder. Assistant Secretary Free Trade Agreement Division Department of Foreign Affairs and Trade
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2 Michael Growder Assistant Secretary Free Trade Agreement Division Department of Foreign Affairs and Trade
3 NORTH ASIA: LEADING MARKETS FOR AUSTRALIA 60% OF AUSTRALIA'S MERCHANDISE EXPORTS 20% OF AUSTRALIA'S SERVICE EXPORTS 39% OF AUSTRALIA'S TOTAL TRADE $257b combined ABS 2014 trade data 3
4 WHAT IS AN FTA? A Free Trade Agreement is an international treaty that reduces or removes cross-border barriers to trade and investment. Free Trade Agreements 4
5 WHAT DO FTAs DO? Better access to key markets; and an improved competitive position for Australia = Benefits for Australian business PLUS more investment attractiveness and more competitive business inputs Free Trade Agreements 5
6 BETTER ACCESS TO MARKETS Australia s North Asia FTAs Eliminate or reduce tariffs on merchandise trade Expand and guarantee access for services trade Enhance business mobility Promote investment Free Trade Agreements 6
7 IMPROVED COMPETITIVE POSITION KAFTA JAEPA ChAFTA Locks-in or improves goods access, and the most advantageous treatment for services into Korea. Delivers significant first mover advantage, especially in agriculture. Secures a competitive edge only a few major economies enjoy. Entered into force on 12 December, Free Trade Agreements Entered into force on 15 January, Expected to enter into force later this year,
8 MORE BENEFITS FOR BUSINESS ALMOST NO TARIFFS KAFTA JAEPA ChAFTA 99.8% 97% 96% of goods exports will enter these three markets with preferential or duty-free access on full implementation Free Trade Agreements 8
9 BETTER ACCESS FOR SERVICES AND INVESTMENT Korea: legal, accounting and engineering services Japan: legal, financial and telecommunications services China: financial, legal, private higher education, aged care, health, telecommunications, tourism services etc and more besides Free Trade Agreements 9
10 PRACTICAL GUIDANCE AND INFORMATION Free Trade Agreements 10
11 EXAMPLE: ACCESSING THE BENEFITS 1? WHAT ARE YOU EXPORTING HOW ARE YOUR GOODS TREATED RULES OF ORIGIN CERTIFY Determine the applicable HS Code Use the HS code to identify the duty rate Does your product meet criteria for Australian origin. Certify your goods with a Certificate of Origin Free Trade Agreements 11
12 HOW AUSTRADE ASSISTS COMPANIES Link Australian capability to market opportunity Provide practical advice and market intelligence Assist with market entry connect buyers and sellers Promote Brand Australia capability in overseas markets FREE TRADE AGREEMENT 12
13 GOVERNMENT ASSISTANCE FOR TRADE - Austrade Export Market Development Grant (EMDG): reimburses up to 50% of eligible export promotion expenses above $5,000, provided that the total expenses are at least $15,000 provides up to 8 grants to each eligible applicant. Export advice and promotion: Trade advisers including 20 TradeStart offices in regional locations Australian Suppliers Directory free online directory on Austrade s website to promote Australian products and services to overseas buyers. 13
14 GOVERNMENT ASSISTANCE FOR TRADE Export Finance and Insurance Corporation (EFIC) Efic supports Australian businesses: operates on a commercial basis and partners with banks to provide financial solutions for Australian SME exporters can assist with access to additional working capital, a bond or guarantee to secure a contract, or finance to establish an overseas direct investment. 14
15 Trans-Pacific Partnership Agreement (TPP) The TPP is a multi-party or regional free trade agreement negotiated by Australia and 11 other countries The TPP will provide: new market access for Australian goods and services new market access for Australian investors other benefits for Australia. For more information: dfat.gov.au/trade/agreements/tpp/ Free Trade Agreements 15
16 A BUSY FORWARD NEGOTIATING AGENDA Image- negotiations, ministers round a table. [DFAT please source image- thanks we will find something and send tomorrow]. 16
17 New FTA materials available Open for Business Government has recently launched a widespread public awareness campaign TV, print, radio, social and digital channels Key site is: Wealth of facts and figures, Importantly, videos, case studies, and testimonials from small businesses across Australia, in all parts of economy. Free Trade Agreements 17
18 CONTACTS: DFAT AUSTRADE Efic
19 We welcome your enquiries
Michael Growder Department of Foreign Affairs and Trade. Brett Hughes Department of Agriculture and Water Resources
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