Transcript No Slide Title

Australia and
New Zealand
Business Prospects
Keith Kirkham – A/Senior Commercial Officer
CS Australia/NZ
Outline
• The Good Story
• The AUSFTA
• Some Key Opportunities
in Australia and New
Zealand
• How to Begin
Differences Obvious & Subtle
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Counter-seasonal
Multicultural with European patterns
Indigenous Supply
Influence in the Region
Misconceptions
This Country Is a Continent
Australia Population
Density
Australia is
the 7th most
urbanized
country in
the world.
More than 80% of population
in this ring
The Good Story
• Strong, Resilient
Economy
• Ease of Doing
Business
• Purchasing Power
• A-US Free Trade
Agreement
The Economy
• 15th year expansion
• Low Inflation/Low
unemployment
• High Capacity
Utilization and Capex
• Forecast 3.25%
growth
America’s Strong Trade
Position
• American exports to
Australia $17.7 billion
in 2006
• U.S. trade surplus
with Australia approx
US$8 billion
• U.S. is major foreign
supplier;15.2% of the
import market
The Market Drivers:
Australia
• Commodity Prices:
strong Asian demand
• Infrastructure
spending to add
capacity
• Trading partner
growth
Role of Resources
Aus Mining Capacity
Aus Adding Capacity
Drought
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Shaving almost 1% off GDP growth
During high commodity prices
Crop yields 50% or less than normal
Water use and major projects
“Suddenly, I’m Thirsty…”
Market Drivers: New
Zealand
• Commodity Prices (e.g.
dairy)
• F/X
• Trading Partners’
Economies
• In Migration
• Tourism
New Zealand Risks
• Oil prices
• Strong NZ $ drags
export economy
• Highly Leveraged
consumers shift
demand from
consumer to
industrial spending
Australia Risks
• Oil prices
• Continued Drought
• Labor shortage/wage
inflation
Strong A$ and NZ$ Effects
• Drags export growth
and revenue in F/X
sensitive areas
• Increases U.S. exporter
price advantage, Aussie
and Kiwi purchasing
power
Ease of Doing Business
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Sophisticated Market
World Class infrastructure
Politically stable
Excellent IPR regime
Transparent processes
Technology intensive
Purchasing Power
Purchasing Power: Getting
Richer Quicker
• Terms of trade rose 13%
• Real Gross Domestic
Income (GDI) 5.2%
• National income growth
among highest in the
developed world (higher
than US or Japan)
Australia-U.S. Free Trade
Agreement
Major Benefits for U.S. Companies
– Tariff Reduction
• eliminated on 99% of manufactured goods
• eliminated all agricultural tariffs, distilled spirits
– Intellectual Property (strengthened protection)
– Access to Australian Government procurement
– Investment access improved
AUSFTA vs NAFTA
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Like NAFTA
– Uses rules of origin and
calculations for regional
value
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Unlike NAFTA
– Onus on importer not
exporter
– No prescribed certificate
form
Qualifying U.S. Goods
An Originating Good Must Be:
1. Wholly obtained or produced entirely in the United
States (e.g vegetables harvested in U.S.)
2. Produced in the United States wholly from other
originating materials from either Australia or the
United States; or
3. Produced in the United States partly from nonoriginating materials, but meeting the requirements of
the origin rules
Australia Financial Services
• Total turnover in financial
markets A$68.9 billion,
• Largest, most liquid stock
market in Asia-Pacific, after
Japan
• Australia's investment fund
asset pool the largest in Asia,
4th largest in the world
• Funds under management
reached A$839 (US$648) billion
in March 2005; and will reach
A$2.5 trillion by 2015.
Opportunities
Australia
Infrastructure Projects
Medical Devices
Information Technology
Services
Construction Machinery
Oil and Gas Field Machinery
Water Technologies
New Zealand
Infrastructure Projects
Power Generation/Electricity
Supply Chain technologies
(RFID)
Agricultural applications
Food Processing and
Packaging
Agribusiness Opportunity –
Fieldays 2007
• New Zealand Fieldays 115,000
visitors and 1,000 exhibitors.
• U.S. Pavilion
• Event runs June 13 – 16, 2007
Hamilton, New Zealand
• CS New Zealand’s Webinars
• www.fieldays.co.nz
New Zealand Agriculture
Dairy
15%
Forest
12%
Other
48%
Meat
25%
Other
Meat
Forest
Dairy
How to Begin
• Assess Market
• Determine Modifications to Product
Business Model if Necessary
• Determine Appropriate Scale
• Market Entry Plan; Find Distributor
• Promotional Opportunities (e.g. trade
shows)
Due Diligence Advised
Contact Us
U.S. Commercial Service
U.S. Consulate General
19-29 Martin Place, 59 MLC Centre
Sydney NSW 2000
http://www.BuyUSA.gov/australia
Tel. 61-2-9373-9205 Fax. 61-2-9221-0573