The nations of the Gulf Cooperation Council (GCC) and Egypt have impressive trade relationships with Australia. The UAE and Australia shared an $8 billion two-way trade in goods and services in 2015-16, including a $3 billion trade in services that was 8.7 per cent higher over the year. Australia and Saudi Arabia also recorded a $2.8 billion two way trade and in goods and services
Australia’s strong capability in health research and mining will be on display in the Middle East and North Africa region during the Australia Unlimited MENA 2017 (AU MENA) trade mission this month. The Australian Trade and Investment Commission (Austrade) will host its annual Australia Unlimited MENA roadshow from 11-19 March and several leading Australian universities, mining, and healthcare companies will be represented
Australia’s dynamic health research expertise will be profiled during the fifth AU MENA campaign using the theme “collaborate to innovate.” For the first time, Austrade’s mining mission will be a focus of the roadshow, which will promote the bilateral trade, investment and cultural ties that exist between Australia and the MENA region. Major activities will take place in UAE and Saudi Arabia, and there will be associated programmes in Kuwait, Qatar, Oman and Egypt
Australia’s ambassador to the UAE, Arthur Spyrou, said Australia’s mining companies had a lot to offer the MENA region in terms of developing a broad range of projects beyond the energy sector. “Australia is one of the world’s leading mining nations, with a particular expertise in the mining technologies and services that help to keep the world’s mines operational,” Mr Spyrou said. “At a time when many nations in the MENA region are exploring the potential of their mineral deposits this represents a good opportunity to talk about needs and capability.
Through a series of high profile forums, targeted roundtables, and official meetings, AU MENA will provide introductions between Australian companies and key government officials, industry stakeholders, and projects in United Arab Emirates, Saudi Arabia, and Egypt
Gerard Seeber, Senior Trade and Investment Commissioner and Consul General to the UAE, said another focus this year was how Australian healthcare service firms can help MENA countries cope with growing demand. “Australia’s proven expertise in healthcare is well-positioned to assist the MENA region as the public and private sector work to develop a local medical tourism industry and try to prevent the spread of lifestyle illnesses such as diabetes and cardiovascular disease,” Mr Seeber said
By 2020, spending in the GCC alone on healthcare will reach $69 billion. It is estimated that by 2020 there will be a shortage of 15,000 physicians and 1.8 million nurses and midwives. “So the need to enhance skill levels in the healthcare sector also offers clear opportunities for Australian education and training providers,” Mr Seeber said
This year, AU MENA will also encompass a programme for Dairy Australia. The Australian dairy industry has had a healthy relationship with the GCC market, with 11 per cent of total dairy exports making its way into the region. 57 per cent of the GCC’s total dairy consumption was met through imports.
The Australian Bureau of Agricultural and Resource Economics and Sciences (Abares) has released its annual outlook report in conjunction with its annual conference in Canberra. The report finds that 2016-17 is set to be a bumper year for agriculture mostly off the back of exceptional growing conditions. It’s a report that highlights the importance of the right environment for agricultural production and also how susceptible agriculture is to the impact of climate change.
One of the more unusual aspects of last week’s GDP figures was that the leader of the pack over the past year has not been the mining industry.
For the first time since September 2008, and for only the fourth time in the past 20 years, the agricultural industry was the biggest contributor to annual GDP growth:
The reality is it has been a very long time since Australia has ridden on the sheep’s back (or on top of a silo full of wheat).
Over the past 40 years, the agriculture and forestry industry has contributed just 2% of Australia’s GDP growth – the third lowest of any industry.That does not mean the industry is unimportant, but perhaps it does show how we do view the industry through an historical and cultural lens that we don’t, for example, with the accommodation and food services industry, despite the two industries contributing a similar level of value added into the economy.The agricultural industry however remains a good representation of the Australian economy to the extent that it remains captive to world prices, the value of the Australian dollar and the vicissitudes of weather and climate.
According to the Abares report, good weather and rising world prices in the second half of 2016 will see the gross value of Australian farm production increase by 8.3% in 2016–17 to a record $63.8bn.
Abares director, Peter Gooday noted that even though the forecast is for production to fall slightly in 2017-18 to $61.3bn, that would still see it 17.3% higher than the average of the five years to 2015-16.
The figures in the Abares 2017 Outlook highlight the exceptionally strong production of wheat, barley, and industrial crops like cotton and sugar cane in 2016-17:And while forecasting is hard enough without having to throw in the quirks of whether or not rain and sunshine occur at the right time in the right amounts, Abares suggests 2016-17 is to be a bit of a peak, with farm production not to reach these heights again this decade:
The report suggests the main reason for the decline is an assumed return to average seasonal conditions in 2017-18.
The report estimates that while there is a small forecast rise in the volume of livestock production, it would be offset by a fall in the volume of grain and oilseed production from its record high in 2016–17.
Agriculture continues to punch above its weight is on the export front – accounting for around 13% of the value of all our exports.
As the deputy prime minister and minister for agriculture and water resources, Barnaby Joyce told parliament last week, we now have record beef and sheep prices, and wool is at a price not seen since the 1980s. Prices for wheat and barley, however fell:
The impact of the Australian dollar is crucial in agricultural exports.
Abares notes that the depreciation of the Australian dollar relative to the US dollar from 2013 increased the competitiveness of Australian exports – because most rural commodities are bought and sold in US dollars.
The RBA’s index of commodity price shows that while rural prices have fallen since 2011, the falling value of our dollar meant the prices in Australian dollar terms actually held up:In effect farmers were getting more Australian dollars for their produce, even while they were getting less in US dollar terms.
Abares notes that the total real value of Australian agricultural exports increased for seven consecutive years from 2008–09 to 2014–15.
They attribute this growth to the global demand for food, particularly from Asian countries, that has seen an increase in our exports to Asia and also to productivity growth among farm production.
On this score it is worth noting that over the past 20 years, only the wholesale trade industry has seen greater improvements in productivity than the agriculture industry:Farming in 1997 is akin to the dark ages compared to how it is done now with much more efficient equipment and methods.
Abares expects export to overall hold up in 2017-18 – with some falls offset by improvement in other commodities:The Abares Outlook report makes for good reading for the government. While they can take no credit for good weather and high world prices, the outlook does frequently make positive mention of the various free trade agreements that have been recently entered into by Australia.But the forecasts for the next five years highlight that even with increased access to China markets, production is expected to remain flat. The report also notes that it estimates are “subject to significant climate effects” and that “in the two decades to 2014–15, climate conditions deteriorated across many grain-growing regions.”
The report also notes that farmers have begun adapting to the impact of climate change, noting that “anecdotal evidence suggests that farmers have adopted a variety of management practices, including conservation tillage, to exploit summer soil moisture in anticipation of reduced winter rainfall.”
At the annual Abares Outlook conference beginning today in Canberra, one session will discuss “climate change: recent effects on crop yield and productivity.”
It should make for an interesting discussion, because above else, the Abares report shows that even with more open markets, and strong prices, the industry remains hostage to the sun and rain.
HÀ NỘI — The opportunities for Việt Nam to tap the Australian market are huge if businesses create competitive products up to international standards, experts have said.
According to the Ministry of Industry and Trade, Việt Nam and Australia enjoy favourable conditions to boost economic and trade ties.
Two-way trade reached US$5.26 billion in 2016, a year-on-year increase of 6.5 per cent.
The Vietnamese trade office in Australia said Việt Nam posted a trade surplus of about US$480 million in 2016.
Growth was seen in cameras and spare parts, iron and steel products, apparel and footwear materials, computers, electronic products and components, and interior decoration.
Australia has demand for Vietnamese staples such as garment-textiles, footwear, seafood, and timber products.
It also imports Vietnamese lychees, which have enjoyed a surge in export turnover over the past two years.
The Vietnamese trade office in Australia noted that Australian consumers are open to imported goods and they care about quality, appearance and price.
The most urgent thing to do is to popularise Vietnamese products and connect businesses with the market.
Australian importers do not accept products which fail to meet their quality standards and they attach great importance to long-term business partnerships.
Robert Chua, an Australian market consultant, said import demand in Australia is huge but Vietnamese products are not strong enough to dominate the market.
In fact, Australia imports various products from Asia-Pacific countries, including Việt Nam, especially footwear and garment-textiles.
Therefore, it is essential to improve the quality management of manufacturing factories and abide by global criteria on plant protection drugs, dyes and food additives, experts suggested.
Businesses could invite quality control experts and skilled workers from Australia to work in Việt Nam to popularise locally-made products, they advised.
Minister of Industry and Trade Trần Tuấn Anh called on the two sides to exert efforts to drive bilateral trade forward, on par with their economic potential and comprehensive partnership.
The enforcement of the free trade agreement between ASEAN, Australia and New Zealand has helped increase Việt Nam-Australia trade ties, creating a significant milestone in the two countries’ relationship, he added.
The Ministry of Industry and Trade will entrust its Import-Export Department to address difficulties via a hotline and simplify administrative procedures as well as promulgate documents to highlight opportunities and challenges from free trade agreements for businesses to help them boost exports, he said.
Since Việt Nam and Australia normalised relations in 1973, bilateral ties have been reinforced by external affairs, trade, and economy.
Bilateral rapport has developed since the two nations set up a comprehensive partnership in 2009, especially in economy and trade. — VNS
Source:Viet Nam News
Embraer displayed a Legacy 450 at Avalon, near Melbourne, in the superlight type’s first appearance at the show. The aircraft was accompanied by a Phenom 300, which entered service in Australia in January.
Over the period 2011-2016, the country’s business jet market has been stable, reaching 191 aircraft in 2016, says Claudio Camelier, Embraer Executive Jets’ vice-president sales, Asia-Pacific and Middle East. This comprises 59 large-cabin, 48 midsize and 84 light jets. The large-cabin category has increased and the medium sector fallen in recent years, he says.Embraer has just six business jets flying in Australia today: three Phenom 100s, a Phenom 300, a Legacy 500 and a Legacy 600, with Camelier saying Australian operators typically favour pre-owned aircraft.“In the near future we are not going to see a big shift in this behaviour: it will remain stable, with some new aircraft,” he predicts. To support the country’s fleet, Embraer has established a service centre network with bases in Brisbane, Melbourne, Perth and Sydney.
Gulfstream sent a G280, G550 and G650ER to Avalon. The company’s commitment to the local market is demonstrated by its appointment last year of a permanent field service representative in Sydney, and a parts facility in Melbourne.
The airframer is optimistic of further growth in the Australian market, where it boasts an inventory of 16 aircraft – about one-third of which are ultra-long-range G650s.
“We will continue to see the G650 fleet growing here,” says Roger Sperry, regional senior vice-president, international sales, Asia-Pacific, who adds that the G280 is also gaining interest thanks to its 8h endurance, which puts Singapore in reach from the Australian east coast.
Avalon meanwhile marked the Australian debut of Dassault’s flagship Falcon 8X, which the airframer displayed alongside a large-cabin 2000LXS.
Dassault says it has had a presence in Australia since 1967, when its first aircraft – a midsize Falcon 20 – entered service. Flight Fleets Analyzer shows an inventory of nine Falcon jets in the country: three 2000s, two 900s, two 20s, a 7X and a 50EX.
Manufacturers are also readying for a decision from Canberra on how to replace the two leased Boeing Business Jets and three Bombardier Challenger 604s operated by the Royal Australian Air Force’s 34 Sqn for governmental and VIP transport missions. The tender closed last year, with airframers talking to potential local partners on teaming arrangements.
The first round of negotiations on Peru-India trade agreement is going to take place during the initial six months of 2017, said Edgar Vasquez, Vice Minister of Foreign Trade, Peru.
“Peru can be a very attractive destination for investors from India as the country has a predictable, stable and transparent regime for international investors,” he said while addressing a session jointly organised by Federation of Indian Chambers of Commerce and Industry (FICCI) and Embassy of Peru in India on Wednesday in New Delhi.
“There are many sectors that are opened by Peru government for trade and investment, he added.
Speaking at the session, Ashok Das, Joint Secretary (LAC) in the External Affairs Ministry, said that both the countries were having negotiations on a framework to strengthen trade and investment ties as there was huge potential to promote bilateral relations.
Though the trade figures between the nations have been impressive the numbers could rise considerably once the trade pact comes into place, he added.
Das said that the two countries could also look for joint projects possibilities in bilateral and multilateral contracts while adding that active mechanisms are in place for periodically exchanging ideas between the sides.
In September last year, Peru and India concluded a joint feasibility study for a pact in trade in goods & services, investment and bilateral cooperation. The study showed the potential to expand bilateral trade between the two countries. It also found out that the two economies were complementary.
Source:The Dollar Business