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U.S. Department of State
Australia 1996 Country Commercial Guide
Office of the Coordinator
AUSTRALIA
1996 COUNTRY COMMERCIAL GUIDE
TABLE OF CONTENTS
CHAPTER I: EXECUTIVE SUMMARY
CHAPTER II: ECONOMIC TRENDS AND OUTLOOK
A. MAJOR TRENDS AND OUTLOOK
B. PRINCIPAL GROWTH SECTORS
1. MINING AND ENERGY RESOURCES
2. AGRICULTURAL RESOURCES
3. VALUE ADDED PROCESSING, MANUFACTURING
4. HIGH TECH INDUSTRY
5. SERVICES
6. TOURISM
C. GOVERNMENT ROLE IN THE ECONOMY
1. BUDGET PRIORITIES
2. ECONOMIC REFORMS
D. BALANCE OF PAYMENTS SITUATION
E. INFRASTRUCTURE SITUATION
1. OVERVIEW
2. AIR TRANSPORT
3 ELECTIONS; AND ORIENTATION OF MAJOR POLITICAL PARTIES
CHAPTER IV: MARKETING U.S. PRODUCTS AND SERVICES
A. RETAILING TRENDS
B. DISTRIBUTION AND SALES CHANNELS
C. USE OF AGENTS AND DISTRIBUTORS
D. FINDING A PARTNER - HOW THE U.S. COMMERCIAL SERVICE IN
AUSTRALIA CAN HELP
E. FRANCHISING
F. DIRECT MARKETING
G. JOINT VENTURES AND LICENSING
H. STEPS TO ESTABLISHING AN OFFICE
I. SELLING FACTORS AND TECHNIQUES
J. ADVERTISING AND TRADE PROMOTION THROUGH MAJOR
NEWSPAPERS AND BUSIN ESS JOURNALS
K. PRODUCT PRICING
L. SALES SERVICE AND CUSTOMER SUPPORT
M. SELLING TO THE GOVERNMENT AND LOCAL INDUSTRY
DEVELOPMENT ENCOURAGEMENT
N. PROTECTING YOUR PRODUCT FROM INTELLECTUAL PROPERTY
RIGHTS INFRINGEMENT
O. NEED FOR A LOCAL ATTORNEY
CHAPTER V: LEADING SECTORS FOR U.S. EXPORTS AND INVESTMENT
A. EXPORTS
1. COMPUTER SOFTWARE (CSF)
2. COMPUTERS AND PERIPHERALS (CPT)
3. MEDICAL EQUIPMENT (MED)
4. AUTOMOTIVE PARTS AND SERVICE EQUIPMENT (APS)
5. EDUCATION AND TRAINING SERVICES (EDS)
6. TELECOMMUNICATIONS EQUIPMENT (TEL)
7. TELECOMMUNICATIONS SERVICES (TES)
8. HEALTHCARE SERVICES (MCS)
9. DEFENSE EQUIPMENT (DFN)
10. SECURITY AND SAFETY EQUIPMENT (SEC)
11. AIRCRAFT AND PARTS (AIR)
12. LABORATORY AND SCIENTIFIC EQUIPMENT (LAB)
13. BIO-TECHNOLOGY (BTC)
14. FOOD PROCESSING/PACKAGING EQUIPMENT (FPP)
15. CONSTRUCTION EQUIPMENT (CON)
B. AGRICULTURAL SECTORS
1. FROZEN VEGETABLES
2. BEVERAGE BASES
3. SNACK FOODS
C. SIGNIFICANT INVESTMENT OPPORTUNITIES
1. PRIVATIZATION
2. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS
BY SECTOR/BY STATE
a. AIR TRANSPORT
b. RAIL/ROAD TRANSPORT
c. SEA TRANSPORT
d. TELECOMMUNICATIONS
e. ENERGY
f. WATER AND SEWERAGE
g. BUILDING AND CONSTRUCTION
3. OPPORTUNITIES ARISING FROM MULTILATERAL
DEVELOPMENT BANK-FUNDED PROJECTS
4. OUTWARD FOREIGN DIRECT INVESTMENT
CHAPTER VI: TRADE REGULATIONS AND STANDARDS
A. TRADE BARRIERS
1. TARIFF
2. NON-TARIFF BARRIERS
3. IMPORT TAXES
B. CUSTOMS VALUATION
C. IMPORT LICENSES
D. EXPORT CONTROLS
E. IMPORT/EXPORT DOCUMENTATION
F. TEMPORARY ENTRY
G. LABELING, MARKING REQUIREMENTS
H. PROHIBITED IMPORTS
1. PHYTOSANITARY RESTRICTIONS AFFECTING IMPORTS
OF FRESH FRUITS AND VEGETABLES
I. STANDARDS (E.G. ISO 9000 USAGE)
J. FREE TRADE ZONES/WAREHOUSES
K. SPECIAL IMPORT PROVISIONS
L. MEMBERSHIP IN FREE TRADE ARRANGEMENTS
CHAPTER VII: INVESTMENT CLIMATE
A. OPENNESS TO FOREIGN INVESTMENT/INVESTMENT BARRIERS
B. CONVERSION AND TRANSFER POLICIES
C. EXPROPRIATION AND COMPENSATION
D. DISPUTE SETTLEMENT
. ROAD/RAIL TRANSPORT
4. SEA TRANSPORT
5. TELECOMMUNICATIONS
6. ENERGY
7. WATER AND SEWERAGE
8. BUILDING AND CONSTRUCTION
CHAPTER III: POLITICAL ENVIRONMENT
A. NATURE OF POLITICAL RELATIONSHIP WITH THE UNITED STATES
B. MAJOR POLITICAL ISSUES AFFECTING BUSINESS CLIMATE
C. A BRIEF SYNOPSIS OF THE AUSTRALIAN POLITICAL SYSTEM;
SCHEDULE FOR
1. INVESTMENT DISPUTES
2. COMMERCIAL DISPUTES
3. POLITICAL VIOLENCE AFFECTING INVESTMENT
E. POLITICAL VIOLENCE AFFECTING INVESTMENT
F. PERFORMANCE REQUIREMENTS AND INCENTIVES TO SUPPORT
LOCAL INDUSTRY DEVELOPMENT
1. SELLING TO THE GOVERNMENT
2. BOUNTIES
3. FIXED TERM ARRANGEMENTS FOR INFORMATION
TECHNOLOGY AND TELECOMMUNICATIONS COMPANIES
4. RESTRICTED SYSTEMS INTEGRATION PANEL
5. GOVERNMENT BUSINESS ENTERPRISES
6. LOCAL INDUSTRY DEVELOPMENT IMPACT
7. EXPORT MARKET DEVELOPMENT SCHEME GRANTS
G. RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
H. PROTECTION OF PROPERTY RIGHTS
1. PATENTS, TRADE SECRETS, DESIGNS
2. TRADE NAMES AND MARKS, PARALLEL IMPORTS
I. REGULATORY SYSTEM: LAWS, PROCEDURES AND TAXES
J. FOREIGN INVESTMENT REVIEW BOARD
K. BILATERAL INVESTMENT AGREEMENTS
L. OPIC AND OTHER INVESTMENT INSURANCE PROGRAMS
M. LABOR
1. WORK FORCE CHARACTERISTICS
2. LABOR RELATIONS
N. FOREIGN TRADE ZONES AND FREE PORTS
O. CAPITAL OUTFLOW POLICY
P. MAJOR FOREIGN INVESTORS
CHAPTER VIII: TRADE AND PROJECT FINANCING
A. BRIEF DESCRIPTION OF THE BANKING SYSTEM
B. FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
C. GENERAL FINANCING AVAILABILITY
D. HOW TO FINANCE EXPORTS AND METHODS OF PAYMENT
E. TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE
(COMMERCIAL, BILATERAL, MULTILATERAL AND LOCAL SOURCES)
F. PROJECT FINANCING AVAILABLE
G. LIST OF BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS
CHAPTER IX: BUSINESS TRAVEL
A. BUSINESS TRAVEL
B. BUSINESS CUSTOMS
C. TRAVEL ADVISORY AND VISAS
D. HOLIDAYS
E. BUSINESS INFRASTRUCTURE
CHAPTER X: APPENDICES
APPENDIX A: AUSTRALIA COUNTRY DATA
1. POPULATION
2. POPULATION GROWTH RATE (%)
3. RELIGION(S)
4. GOVERNMENT SYSTEM
5. LANGUAGE(S)
6. WORK WEEK
APPENDIX B: AUSTRALIAN DOMESTIC ECONOMY STATISTICS FOR
1994, 1995, 1996
1. GDP
2. GDP GROWTH RATE (%)
3. GDP PER CAPITA
4. GOVERNMENT SPENDING AS A % OF GDP
5. INFLATION (%)
6. UNEMPLOYMENT RATE (%)
7. FOREIGN EXCHANGE RESERVES
8. AVERAGE EXCHANGE RATE FOR USD1.00
9. NET FOREIGN DEBT
10. DEBT SERVICE RATIO (%)
11. U.S. ECONOMIC MILITARY/ASSISTANCE
APPENDIX C: U.S. AND AUSTRALIAN TRADE STATISTICS FOR
1994, 1995, 1996
PART I: GOODS AND SERVICES TRADE STATISTICS
1. TOTAL AUSTRALIA EXPORTS (G&S)
2. TOTAL AUSTRALIA IMPORTS (G&S)
3. AUSTRALIA'S EXPORTS OF MERCHANDISE GOODS
4. AUSTRALIA'S IMPORTS OF MERCHANDISE GOODS
5. U.S. SHARE OF MERCHANDISE IMPORTS (PERCENT)
6. AUSTRALIA'S IMPORTS OF MANUFACTURED GOODS
7. U.S. SHARE OF MANUFACTURED IMPORTS (PERCENT)
8. MANUFACTURED GOODS TRADE BALANCE WITH U.S.
9. TRADE BALANCE WITH THREE LEADING PARTNERS 1994
10. PRINCIPAL U.S. EXPORTS TO AUSTRALIA 1994
11. PRINCIPAL U.S. IMPORTS FROM AUSTRALIA 1994
PART II: AGRICULTURAL TRADE STATISTICS
1. AUSTRALIAN AGRICULTURAL IMPORTS
2. AGRICULTURAL TRADE BALANCE WITH U.S.
3. AGRICULTURAL TRADE BALANCE WITH 3 TOP PARTNERS
4. PRINCIPAL AUSTRALIAN EXPORTS TO THE U.S.
5. PRINCIPAL AUSTRALIAN IMPORTS FROM THE U.S.
APPENDIX D: FOREIGN DIRECT INVESTMENT STATISTICS
1. TABLE 1: FOREIGN DIRECT INVESTMENT IN AUSTRALIA
2. TABLE 2: STOCK OF FOREIGN DIRECT INVESTMENT IN AUSTRALIA
AT FYE BY SELECTED COUNTRIES
3. TABLE 3: STOCK OF FOREIGN DIRECT INVESTMENT IN AUSTRALIA
AT FYE BY INDUSTRY
4. TABLE 4: TOTAL EXPECTED INVESTMENT BY COUNTRY OF
INVESTOR AND INDUSTRY SECTOR
5. TABLE 5: AUSTRALIAN FOREIGN DIRECT INVESTMENT ABROAD
APPENDIX E: KEY CONTACTS IN THE U.S. AND AUSTRALIA
1. U.S. GOVERNMENT OFFICES IN AUSTRALIA
2. AMCHAM AND BILATERAL BUSINESS COUNCILS
3. KEY AUSTRALIAN TRADE ORGANIZATIONS AND
INDUSTRY ASSOCIATIONS
4. KEY AUSTRALIAN GOVERNMENT OFFICES
5. SOURCES OF MARKET RESEARCH AND BUSINESS
FACILITATION SERVICES
6. COMMERCIAL BANKS IN AUSTRALIA
7. NEWSPAPERS, PERIODICALS AND BUSINESS DIRECTORIES
APPENDIX F: MARKET RESEARCH 1995 - 1996
1. KEY INDUSTRY SECTOR MARKET RESEARCH
2. AGRICULTURAL MARKET RESEARCH
APPENDIX G: 1996 TRADE EVENT SCHEDULE
CHAPTER I: EXECUTIVE SUMMARY:
This Country Commercial Guide (CCG) presents a comprehensive look at
Australia's commercial environment through economic, political and
market analyses.
The CCGs were established by recommendation of the Trade Promotion
Coordinating Committee (TPCC), a multi-agency task force, to consolidate
various reporting documents prepared for the U.S. business community.
Country Commercial Guides are prepared annually at U.S. Embassies
through the combined efforts of several U.S. Government agencies.
The United States Mission regards the commercial environment in
Australia as exceptionally "friendly", attractive to American business
and with room for more of the same. With the United States' only
significant bilateral trade surplus in Asia ($7+ billion), and with
American names commonplace in the market, Australia's receptivity to
U.S. goods and services is well-documented. Moreover, Australian
willingness to give "new" things a try recommends the country as a good
market in which to test the international appeal of a product or
service. The well-developed media and advertising sectors, combined
with the use of English, can mean that copy and other promotional
material require little adjustment. The countries' relatively
comparable positions on the scale of technology implementation can mean
that, if an offering finds the American market "ready", it will probably
find that of Australia ready as well.
To these factors, one should add that of geography. While location, in
the high-tech world of the majority of American exporters, may not be as
important as in real estate, new-to-Asia/Pacific companies should
consider that Australia is physically closer to many emerging markets
than is the United States.
This fact will not mean the same to every firm, but it well behooves any
U.S. business initiating relationships with ASEAN or Indian Ocean
markets to consider whether headquartering part of their regional
operations in Australia makes business sense. The roster of American
and other companies that have done so is impressive. Those same new
companies might also look at Australia as a source of like-minded
potential joint-venturers.
The similarities in the economies of Australia and the U.S. are
striking. Among them are: the current account situation; a chronic
trade deficit; a low savings rate; declining union membership; an ever
more important service sector; a strong focus on the Asia/Pacific
Region; ready acceptance of innovations in product and marketing; the
availability of a major money center; and privatization as a watchword.
To these, a similar language further contributes to the "at home"
feeling, as do the many familiar marquee corporate names.
To help cope with a budget deficit, the Labor government raised the
company tax from 33 to 36 percent, and is forecasting a modest surplus
for 1995/96. With one notable exception, the states in Australia are
also in the red. A trade account deficit sounds familiar to most
Americans, although the bilateral side of the ledger is distinctly in
the United States' favor. As in North America, the service sector is
gaining in importance, and that of manufacturing declining, although it
is not a zero sum situation. At this writing, the savings rate in
Australia is about 2.5%, lower even than the U.S. level. While these
similarities have some negative connotations, most Americans will find
compensating comfort in the ease with which day-to-day business life
progresses. Many familiar products and service providers are at hand
and, as in the United States, firms are encouraged to look toward Asian
markets as the source of business growth.
The similarities make it easy to assume that the business environments
are identical. They are not. Perhaps the most striking variance is the
different role of government, and attitudes toward that role, in the
conduct of day-to-day business. In Australia, the Federal and State
governments have traditionally been more overt players in the economy
than their American counterparts. While privatization, and an evolving
philosophy toward what government's role should be, are narrowing the
gap, in general, American managers will find that they have to take
officialdom into account to a greater degree here than they do at home.
The Australian economy is more dependent than that of the United States
on commodity exports and, consequently, is subject to more precipitous
changes of direction. It is hoped that moves to broaden the economic
base will put an end to the boom and bust tradition. The distances that
businesses must cope with in both countries are similar, though what
lies between any two points in terms of population centers and
customers, is apt to be very different. Networking is no less crucial
in Australia than in the U.S. in getting business done, but there seems
to be a greater importance attached to the "old boy" network.
In summary, Australia's is as competitive a marketplace as any, but one
of opportunity for American companies, where barriers both formal and
informal are few, where innovation is welcome, and where one might find
an attractive port of entry to Asia.
Country Commercial Guides are available on the National Trade Data Bank
on CD-ROM or through the Internet. Please contact STAT-USA at 1-800-
STAT-USA for more information. To locate Country Commercial Guides via
the Internet, please use the following World Wide Web address:
WWW.STAT-USA.GOV. CCGs also can be ordered in hard copy or on diskette
from the National Technical Information Service (NTIS) at 1-800-553-
NTIS.
CHAPTER II: ECONOMIC TRENDS AND OUTLOOK
A. MAJOR TRENDS AND OUTLOOK
The Australian economy is enjoying a period of sustained, moderate
growth. Over the 1994 calendar year, real gross domestic product grew
5.1 percent, due mainly to a significant rebound in business investment.
In the 1995 calendar year, real average GDP growth is expected to slow
to 4.2 percent. This is due to a consolidation in the business sector,
and the moderating effects of a tightening of monetary policy in late
1994. Growth in the mid-3 percent level is expected in the medium-term
thereafter. Australia currently is well-positioned for continued solid
economic growth, with very little in the way of unfavorable indicators.
With increasing links to the dynamic economies in the region, and a
continuation of economic reform, Australia's trade and investment
climate will be attractive for the foreseeable future.
The economic recovery over the past two-three years has effectively
thrown off most of the lingering effects of the severe recession of
1990-92. During that period, weak world demand, combined with
government efforts to rein in an overheating economy, saw company
profits tumble and economic conditions sour. The recovery, initially,
was relatively weak, with considerable stimulus from the Government
failing to have any effect. This was especially prevalent in the labor
market, with Australia posting unemployment levels not seen since the
Great Depression.
However, a significant drop in mortgage interest rates soon led to a
housing boom, with finance approvals rising to record highs. As the
main locomotive force for the recovery, private dwelling investment
pulled the economy forward, assisted by strong exports and low
inflation. It was not until mid-1994 that the housing boom began to
subside.
Fortunately, at that stage, business investment began its resurgence.
The Federal Government predicted in its May, 1994 Budget that business
investment would rise by an unprecedented 14.5 percent, with plant and
equipment outlay forecast to rise an even higher 18.5 percent.
Commentators were at first skeptical, despite signs of strengthening
business confidence and profit.
It is now apparent that even these optimistic forecasts have been
exceeded. For the 1994-95 financial year, business investment is
estimated to have grown by 18 percent, with plant and equipment
investment up 23 percent on the year before. Higher mortgage interest
rates have had an opposite effect on private dwelling investment, which
is estimated to have grown only 4 percent in FY 1994-95, with a 13
percent decline predicted for the following financial year. This is
indicative of the fact that consumer interest rates are currently around
their highest real values in Australian history.
Economists agree that the threat of economic overheating has now
subsided, and more substantial forces are at work to assist economic
growth. Export performance continues to strengthen as global demand
firms, and the Australian farm sector is once again expected to make a
significant contribution to economic growth as drought and seasonal
conditions improve. Employment also will be assisted by positive
economic growth, with the unemployment rate slowly returning to pre-
recession levels. Inflation is predicted to remain relatively low, with
only moderate upward pressure from wages and the effect of a weaker
currency.
Australia's main concern is its high external deficit, driven by
continued foreign borrowing, and a high domestic propensity to consume
imported goods. The current account deficit is forecast to change
little over the next year, as the gains from stronger net exports are
eroded by higher debt service payments. Despite a significant reduction
in the Federal Government's Budget deficit for FY 1995-96, Australia's
balance of payments will continue to weigh down a buoyant economy.
B. PRINCIPAL GROWTH SECTORS
1. MINING AND ENERGY RESOURCES
Australia's mineral and energy resource sector is vast, with great
potential for expansion. Australia is the world's largest producer of
alumina, bauxite and mineral sands, and among the top producers of lead,
zinc, nickel, gold and uranium. In addition, Australia is easily the
world's largest exporter of coal, its second largest exporter of iron
ore, and is a major regional exporter of liquefied natural gas.
Australia's resource sector provides around 5 percent of production-
based GDP, and almost half of the nation's merchandise export earnings,
and offers attractive opportunities for American investors and vendors
of mining machinery, equipment and technology.
2. AGRICULTURAL RESOURCES
Australian agriculture suffered from a massive drought in the eastern
winter grain belt in 1994, which saw a reduction in the gross value of
farm production of over four percent, and a loss in Australia's export
grain earnings. This consisted of a large decrease in the value of crop
output, coupled with a slight increase in the gross value of livestock.
Farm income, as measured by the net value of farm production, decreased
by 36 percent, as compared with the previous year.
An excellent pattern of autumn rains throughout most of the drought
affected areas has caused great optimism, with the net value of farm
production tipped to increase by around 49 percent. Widespread rains
have boosted pasture growth and the prospects for all sectors of
livestock production, while the planting of winter grains has increased
dramatically from 1994. Follow-up rains, however, still will be
necessary for the 1995 crop to reach its full potential.
The more positive agronomic and climatic conditions for the agricultural
sector are coupled with favorable world prices for most major crops
produced by Australia. Wheat prices are expected to remain strong as
demand from China, coupled with crop problems in North America, point to
a tight supply and demand picture. Cotton is at record high price
levels, although Australia's ability to capitalize on them is hampered
by frequent shortages of water. The rise in international dairy prices,
which grew steadily throughout the first half of 1995, is expected to
continue, with positive effects on that sector.
3. VALUE ADDED PROCESSING, MANUFACTURING
The Government's economic development strategy focuses on continued
economic reform to encourage expansion of value-added production in the
minerals and agricultural sectors; manufacturing in high-technology
products; and, expansion of the services sector (including services
exports to the region). Manufacturing production has continued to
outpace other sectors in the economy, growing almost 11 percent in 1994.
This is an indication of a growing emphasis on increasing the share of
manufactured goods in Australia's international trade, combined with
stronger economic growth and a resurgence in profitability. The growth
in elaborately transformed manufactures is set to continue, as
Australian firms expand into broader markets, particularly in Asia.
Traditionally, Australia's earnings have been based on primary products
- minerals, grains, meats. Today, the government's economic
development strategy focuses on continued macro and microeconomic reform
to encourage expansion of value-added production, particularly in the
minerals and agricultural sectors, and in manufacturing of high-
technology products.
4. HIGH TECH INDUSTRY
Australia, as a nation, has the level of sophistication and buying power
to use hi-tech products in a number of industry sectors. Hi-tech
products are used in industries such as medical, health, communications,
information technology, security and defense. Although Australia has
its own small, but vigorous, high tech industry, particularly in the
fields of information and medical technologies, the U.S. is seen as a
world leader for many hi-tech products, and Australia normally looks
first to the U.S. for purchases.
Australians are keen to maintain a leading technological edge and
continually are updating their technology to avoid obsolescence. This
means that Australian firms often are open to propositions for capital
investment, joint ventures and other strategic alliances, both to
capture a larger share of the Australian market, and to gain a
competitive advantage in developing products for export to other
markets, particularly in the Asia Pacific region.
Information Technology (IT) innovators perceive the opportunities within
the Australian market, and pursue this market zealously with their
products. The average annual growth rate of hi-tech IT products is
expected to be around 20 percent for the duration of the decade. Twenty
IT firms, of which 18 are American, have chosen Australia as their
regional headquarters. Their choice is based on the ease of market
penetration (second largest per capita user of PCs in the world after
the US) and the technical sophistication of the Australian IT market.
With all these considerations, Australia provides a relatively small -
but highly active and attractive -market for hi-tech products from the
U.S.
5. SERVICES
Asia's dramatic regional growth is reshaping global markets, with the
services sector in the lead. Australia's credentials as a regional
platform for the provision of services in support of manufacturing,
processing, support and management in Asia are based on unique
comparative strengths. These include a sophisticated, educated,
anglophone human resource base unequaled in the region; and, the
availability of extensive technology-based support services for both
domestic and international usage. Continued economic vigor, business
profitability, increased foreign investment, and domestic consumer
confidence are expected to sustain increased growth in demand for
services in Australia in the management, commercial, legal, financial,
educational, health and community, recreational and personal areas. The
1994 services sector growth rate was 10.9 percent over 1993.
6. TOURISM
Australia's excellent climate and natural endowments make tourism a
growth sector with continuing potential to attract foreign visitors,
especially from the increasingly affluent countries of North and
Southeast Asia. Accordingly, all of the industry sectors associated
with the provision of tourism facilities, products and services should
prosper.
The tourist industry is a vital component of the services sector,
contributing greatly to overall GDP. The industry grew by 7 percent in
1993, and by 3 percent in 1994, with tourist accommodation receipts
totaling over $2.8 billion.
Excluding airline passenger earnings, the Bureau of Economic Analysis
(BEA) estimates that Australian tourists contributed US$1.4 billion to
the U.S. economy in 1994. The BEA forecasts increases of 2.8 percent in
1995, and 5 percent in 1996. In 1994, over 400,000 Australians came to
the U.S. for business and/or pleasure. While this number is lower than
in previous years, due partly to the lingering effects of recession on
consumer spending, Australian Bureau of Statistics data confirms that
the U.S. remains the number one long-haul destination for Australian
travelers, with 31 percent of market share. The U.S. Travel and Tourism
Agency forecasts an increase in Australian visitor arrivals over the
next four years - with growth in the 6-7 percent range each year through
1998.
Many investors, both domestic and abroad, already have gotten into the
action, with considerable tourism infrastructure expansion taking place,
particularly on the Queensland coast. Other major developments are
associated with the 2000 Olympics in Sydney.
C. GOVERNMENT ROLE IN THE ECONOMY
1. BUDGET PRIORITIES
The Commonwealth Government uses both fiscal and monetary policy to
influence the economy. Previously, in an effort to overcome the effects
of the early-1990s recession, the Government undertook an expansive (and
expensive) program of fiscal stimulus, aimed mainly at the labor market.
The results, at least initially, were disappointing from the perspective
of cutting unemployment. Combined with a subsequent easing of monetary
policy, however, economic growth responded strongly.
With the recovery complete, the Government is now reducing the amount of
fiscal and monetary stimulus it injects into the economy. In the recent
FY 1995-96 Budget, the Government announced a reduction in this program
of expenditures. This, combined with an increase in official interest
rates of 2.75 percent in the latter half of 1994, has reduced the chance
of economic overheating.
The Government also has responded to calls to reduce its budget deficit.
The FY 1995-96 budget announced a $9.5 billion turnaround in the Budget
balance to a surplus of around $500 million. Although some commentators
are skeptical of the Government's ability to deliver the surplus, its
efforts to achieve this result are significant.
Official interest rates are perceived as being at, or near, their peak,
with the possibility of an easing of monetary policy when the Federal
election is announced. The current government has the option to call an
election any time before mid-1996, and will do so when it believes
economic and social factors are ripe.
2. ECONOMIC REFORMS
Australia commenced a basic reorientation of its economy more than 10
years ago, and is transforming itself from an inward-looking, import-
substitution country to an internationally competitive, export-oriented
one. Key reforms include the unilateral reduction of high tariffs and
other protective barriers; floating the Australian dollar exchange rate;
deregulating the financial services sector (including a decision in late
1992 to allow liberal access for foreign bank branches); rationalizing
and reducing the number of trade unions; efforts to restructure the
highly centralized system of industrial relations and labor bargaining;
better integration of the State economies into a national federal
system; improvement and standardization of the national infrastructure;
and privatizing many government-owned services and some public
utilities.
The ultimate goal is for Australia to become a competitive producer and
exporter, not just of traditional farm and mineral commodities, but of a
diversified mix of value-added manufactured products, services and
technologies. While progress has been made on this economic reform
agenda (such as in the oligopolistic telecommunications market, now
responsive to competition), much remains to be done. Herein, lie some
of the most promising opportunities for American business and
investment.
While the near-term outlook is for continued economic expansion,
Australia's longer-term prospects depend heavily on continued
fundamental economic reform. There is a general consensus among the
major political parties, management and labor on the necessary features
of this reform, but significant divergence of views on the methods, pace
and degree of change required.
D. BALANCE OF PAYMENTS SITUATION
Both Australian imports and exports are set to grow strongly in coming
years. The Government, in recent economic forecasts, has predicted that
export growth will eclipse import growth in the 1995-96 financial year.
This reverses the trend of the past few years, as higher economic growth
saw a boom in the consumption of imported goods. A return to a
merchandise trade surplus would be a welcome development, especially in
helping to deal with the current account deficit.
Trade is important for Australia: merchandise exports in 1994 totalled
$47.7 billion, about one fifth of the nation's gross domestic product.
Australia imported $50.1 billion worth of merchandise goods in 1994,
resulting in a balance of trade deficit of $2.3 billion. This follows a
surplus of around $300 million the year before, and reflects the growing
level of imports as the economic recovery promotes domestic demand.
Nevertheless, Australia's growing export orientation is one of the
country's success stories and will continue as a major factor
contributing to the nation's economic health.
In 1994, around 60 percent of Australia's exports went to Asia, with
East Asia being the fastest growing regional market for both exports and
imports. Japan is Australia's largest trading partner, taking around 25
percent of Australian merchandise exports ($11.8 billion in 1994), and
supplying 17.8 percent of its imports ($8.9 billion in 1994).
Australia's major exports to Japan are coal, iron ore, and meat.
The United States is Australia's second largest trading partner, but has
been relegated to fourth among its export markets; China/Hong Kong is
second; and, South Korea third. The U.S. remains, however, Australia's
single largest source of merchandise imports ($10.9 billion in 1994).
Of Australia's top five trading partners, the U.S. is the only country
to consistently run a bilateral trade surplus with Australia. The
surplus reached $7+ billion in 1994.
The composition of Australia's exports has been changing gradually over
the past two decades, to reflect the increasingly value-added direction
of Australian industry. Manufactured exports have grown at an average
rate of around 13 percent per annum over the last five years. Within
manufactures, elaborately transformed manufactures (ETMs) have shown the
best performance -- in the last five years their share of total exports
has increased from around 16 percent to 22 percent. Australia's
emerging ETM exports also have an increasingly diverse base. They
include such items as high-speed ferries, telecommunications equipment,
and motor vehicles.
Compared to recent years, growth in ETM exports slowed slightly in 1994.
Increasing by 9.8 percent, the value of Australia's ETM exports reached
$10.5 billion. Simply transformed manufactures (STMs) have grown at a
slower rate during the last decade, although, in 1994, their performance
strengthened (up by 9.6 percent). Primary products, although they have
experienced very low growth in the past few years, remain the dominant
export sector in value terms. In 1994, they comprised 58 percent of
total merchandise exports.
Assisting the improvement in rural exports in the coming year is the
promise of more favorable weather conditions, following the nation's
severe drought. Grain crops are expected to improve considerably, while
other rural export commodities will benefit from improving global
demand. The Government has predicted that the rural sector again will
play a significant part in Australia's export earnings in the coming
years, supporting a slight decline in non-rural earnings growth. Coal
and iron ore exports will remain the big money earners, with Japanese
buyers paying higher prices after years of difficult price negotiations.
Australia has a net deficit for trade in services, despite having one of
the most prosperous and vibrant tourism sectors in the world. The
services deficit for 1994 totalled $578 million, due mainly to shipment
outflows. Australia has relatively few shipping lines. Therefore, net
costs for freight and insurance regularly exceed $2 billion each year.
Other net debits include "miscellaneous" services, such as advertising,
computing, and education and training.
Net income remains the single most expensive item on Australia's current
account. In 1994, the net income deficit totalled $12.1 billion, by far
the largest component in the overall current account deficit of $15.7
billion. Most of the income deficit comes from debt service payments,
resulting from Australia's high level of foreign debt. Australia's
vulnerability to foreign interest rate increases and currency movements
tends to exacerbate this problem. Net foreign debt at year-end 1994 was
$119.3 billion.
The Current Account Deficit (CAD) remains Australia's foremost economic
constraint. The Government has forecast that, in nominal terms, the CAD
will remain unchanged from FY 1994-95 to FY 1995-96, at A$27 billion --
this is despite a projected improvement in the trade balance. Higher
global interest rates will increase the nation's debt servicing burden,
which accounts for most of the CAD. The Government has announced a new
compulsory retirement scheme to boost national savings, which will
reduce the CAD over the long-term. However, in the short- to medium-
term, Australia's external financial balance will continue to be a
significant policy restraint.
E. INFRASTRUCTURE SITUATION
1. OVERVIEW
See Chapter V.C.1,2 for Information on Opportunities in Major
Infrastructure Development Projects.
Geographically, Australia is similar in size to the U.S. Despite its
small population and vast land mass, the country has well developed,
nation-wide air, road, rail, port and telecommunications infrastructure
networks comparable to those in other industrialized countries. With
its highly urbanized population along the east and southern coasts, yet
with critical goods and services needed throughout the country,
nationwide infrastructure systems support the needs of the people to
live, to conduct business, and to distribute goods throughout densely
populated metropolitan areas, in more isolated country towns, and to
remote areas.
Privatization and corporatization of government-owned facilities and
services is an integral part of the Australian federal and state
governments' economic reform programs. Major project activity is
dominated by infrastructure developments and privatization of facilities
formerly run by federal, state and local governments. Demand for
further infrastructure development is due to population growth, changing
demographic patterns, increased environmental awareness, and a
cumulative obsolescence of existing infrastructure facilities.
In 1992, the Federal Government began a series of initiatives designed
to encourage private sector investment in infrastructure projects.
Roads, railways, ports, airports and utilities are all slated for
corporatization, commercialization, or privatization.
The Federal Government took the lead by first corporatizing, then
privatizing, a number of its facilities and functions.
Planned reforms in the public utility areas (electricity, natural gas,
telecommunications) should yield increased competition and efficiency
improvements in those sectors. Plans are drawn, but not implemented, to
establish a national electricity grid to balance power generation,
distribution and demand among the states.
Greater participation by the private sector has relieved the pressure on
fiscal policy, produced operational efficiencies, stimulated competition
and spurred the growth of capital markets. As traditional government-
owned and -operated institutions strive to restructure themselves in
pursuit of competitive operational effectiveness and efficiency,
opportunities are being created for management and operations
consultants, particularly those with leading-edge U.S.-based expertise,
to provide advice and assistance in the reinvention process.
Private sector involvement also has produced engineering achievements
such as the Sydney Harbor tunnel, prefabricated and sunk in sections;
the Glebe Island Bridge in Sydney, which will be one of the world's
largest cable bridges when completed in 1996; and the excavation of the
Sydney Opera House parking garage to 100 feet below the harbor.
The Government's push towards more efficient and improved infrastructure
has seen a number of significant reforms that will facilitate growth in
those sectors dependent on transport. Australia has no notable
transport infrastructure bottlenecks affecting sales/distribution of
goods. As most of the population lives on the east coast, transport
infrastructure is most concentrated there, although major mining
projects throughout Australia have necessitated a nation-wide road, rail
and port infrastructure network.
An important factor in Australian goods and service distribution is the
distance goods must be transported. When long distances are involved,
transportation costs can be a significant component of the selling
price. Recent reforms in the transport and goods handling industries
are increasing efficiency and improving services while reducing costs.
Competition between modes of transport acts to constrain prices. Even
so, port inefficiencies still exist, and rail remains expensive. The
transportation sector remains a major focus for microeconomic reform.
Government entities in the process of privatization or corporatization
include: Australian National Railways; the remaining 75 percent of the
air carrier Qantas; the Office of Defence Production; the Government
Aircraft Factories; the Federal Airports Corporation; and the Australian
Industry Development Corporation. AUSSAT, the Australian satellite, was
sold to Optus Communications, the Commonwealth Bank was partially
floated (with the full sale slated for the next financial year), and the
naval Dockyard in Melbourne was sold. The Government has also announced
its intention to sell the Australian National Line, major Australian
airports, and to open up some postal services to competition.
2. AIR TRANSPORT
Air transport is used extensively. Australia has 440 airports,
including the major international gateways of Sydney, Melbourne,
Brisbane, Perth and Cairns. International passenger and cargo flights
are frequent and reliable.
Air is used extensively for lighter cargo, small high value items, and
for urgent needs. An extensive network of air cargo operators,
including a number of familiar international companies, offer a full
range of services for all types of cargo, and process all related
documentation relating to importation and clearance of goods, as well as
on-delivery to regional centers. Around 170,000 tonnes of cargo is
flown annually into Australia.
International passenger and cargo flights are frequent and reliable,
with a wide range of international carriers and routes to choose from.
Domestic air fares have fallen in real terms by about 20% since 1990,
and service standards and flight frequency have improved on the 50
busiest domestic routes. Landing charges at Australia's major airports
are among the lowest in the world.
The national airport system has been reassessed by the Federal
Government. In the May, 1994 Federal Budget, the Government announced
its intention to sell all of the nation's major airports to encourage
competition arising from privatization. This should see a wide range of
efficiency improvements in the airport system, which, in turn, will
complement other transport sectors. However, detailed financial
analyses of selling schemes have not been made, and the proposal remains
controversial.
3. ROAD/RAIL TRANSPORT
With its huge landmass and small population - and, therefore, its
limited tax base - the extensiveness of Australia's modern national,
state and local road system is quite remarkable. Road funding
continues to feature prominently in both State and Federal Government
budgets, presumably due to the high profile the need for good roads
holds in the eyes of the voting public. Australia's road transport
industry is relatively efficient, and approaches world best practice.
The majority of inter-state goods transport is by road. Centralized
charging and administration for heavy vehicles, and an increase in
weight limitations for six-axle trucks is estimated to have increased
productivity by 25 percent in recent years.
A 24,000 mile network of railroads competes with road transport. Rail
transport is the preferred mode to Perth, in Western Australia, for the
transportation of freight from Eastern ports, and for the bulk transport
of Australia's mineral exports.
Traditionally, rail transport has lagged behind international best
practice. In the last century, before Federation of the States into the
Commonwealth, each state government established its own different gauge
railway to encourage its own industries. Cargo had to be transferred at
state boundaries. The National Rail Corporation Limited (NR),
established in 1993 between the Federal and State Governments of New
South Wales and Victoria, operates the interstate rail freight business
in Australia, in competition with road transport.
The Australian Federal Government's "One Nation" rail infrastructure
upgrade has at last overcome the problem. The completion of the first
standard gauge rail line from Brisbane to Perth (via Sydney, Melbourne
and Adelaide) in June, 1995, was heralded politically as a new era in
rail freight transport.
The ability to track a coal train from Queensland to South Australia is
a symbolic step in Australia's reform agenda. NR's monopoly over
freight transport may be short-lived. Both private companies and state
rail authorities are interested in competing with NR in this market,
using the new standard gauge track. Long term benefits will include
substantial reduction in travel times, and a reduction in the costs of
running trains.
4. SEA TRANSPORT
Australia is serviced by major shipping lines transporting goods world
wide, to and from the major ports of Sydney, Brisbane, Melbourne,
Adelaide and Fremantle. The shipping industry is undergoing
significant changes. Australia has had a well-deserved reputation for
wharf problems characterized by high cost, inefficiency, poor labor and
management practices, and industrial disputes. Some port operations,
such as bulk loading and discharge, have improved, due in part to labor
practice reforms, but problems persist.
General and containerized cargo is handled by one of two stevedoring
companies. Initially, wharf reform resulted in faster container
handling rates at levels, in the more efficient terminals, comparable
with Australia's trading partners. There was approximately 45 percent
improvement in ship turnaround time and substantial reductions in truck
queues and waiting time. Waterfront charges fell by 25 percent between
1990-1992. However, in the last twelve months, there appears to have
been a marked decline in wharf productivity, and reform remains an issue
between government, management, and the unions.
Australia has developed an array of modern, deep water ports to handle
its expanding minerals export trade. Major shipping lines visiting
Australian ports include Australian National Line, Blue Star, Columbus,
Contship Container Lines, Fesco, Five Star, Hapag-Lloyd, Hetherington
Kingsbury, Maersk, Nedlloyd, NYK, Ocean Star, P&O, Patrick Sleigh
Shipping, Swire, Union Bulkships and Wilhelmsen, making around 15,000
calls per annum, and discharging 32 million tonnes of cargo.
5. TELECOMMUNICATIONS
Australia has state-of-the-art international and domestic
telecommunications services, and one of the highest per capita use of
fixed and mobile telephones and facsimile machines in the world. Annual
sales in 1994 reached $12 billion.
There is a single land-based network operated by Telstra and covering
most of coastal and nearby coastal Australia, where the majority of
Australia's 18 million people reside. Much of the mainstream traffic
along this network is by fiber optic cable, with copper cable in
residential areas. Outlying regions are reached by mobile satellite
connection, sometimes using solar power for base stations. This network
currently is upgrading from analog to digital.
Presently, there are three mobile phone operators with more than 1.6
million subscribers using an analog AMPS and digital GSM. Analog AMPS
will be phased out by the year 2000, when digital GSM takes over.
International calls connect to anywhere in the world through Telstra and
Optus switches based in Sydney. Users also can subscribe through local
agencies to use Callback companies, most of which are located in the
United States.
A variety of services are available, mainly from Telstra including ISDN,
Frame Relay, EMail, voice messaging, faxstream, and more.
6. ENERGY
The Australian State Governments are developing billion-dollar
strategies to meet further energy demands that will involve significant
new infrastructure developments over the next decade.
The electricity supply industry in Australia has capacity of 36GW and an
annual income of around $9 billion. The Federal Government and State
Premiers have agreed on the need to reform the nation's electricity
generation, transmission and distribution systems. Reform includes some
privatization, reorganization, and improved central organization, based
on the proposition that competition will accelerate further gains in
productivity and efficiency. Total generating capacity in the
Australian electricity industry is just under 36.5MW dominated by large
coal-fired power stations, since low cost coal is relatively abundant.
Coal is the dominant fuel source, accounting for 72.9% of primary energy
consumption, followed by hydro 20.3%, and natural gas 5.6%, with a
small, but important, fraction of electricity being generated from other
sources. The move to gas-fired power generation is becoming an
important issue in the States of Western Australia, Victoria, South
Australian and Queensland, where an abundance of natural gas fields
occur.
Electricity reform is Australia-wide, but most advanced in Victoria.
Generation and distribution businesses in Victoria have all been
separated into a number of independent entities, and earmarked for sale.
Generation and supply will become increasingly subject to competition.
Five distribution businesses are to be sold before the end of 1995, and
possibly one power station. While other States are undertaking reform
at differing paces, the need to disaggregate generation, transmission,
and distribution functions has been accepted almost universally.
Reform in the Australian gas sector has centered around transmission and
distribution. It is envisaged that a national gas market with
transnational interconnection will result in a competitive supply market
and create efficiencies on a similar scale to those expected to be
achieved through the National Grid for electricity. The Gas & Fuel
Corporation of Victoria has been disaggregated in preparation for a
future sale. Corporatization of Western Australia's gas transmission
and distribution functions has occurred, and changes are expected in New
South Wales with the introduction of a competitive environment for the
supply of natural gas. Queensland's Government has released its ADols
2.5 billion energy strategy which will involve significant
infrastructure for electricity and gas, coupled with energy conservation
measures, and renewable energy.
Pipeline reforms have been instigated to encourage supply competition,
especially in the area of gas. Government sales of gas pipelines in New
South Wales (Moomba-to-Sydney), South Australia (Pipeline Authority of
South Australia), and Western Australia (Bunbury to Perth) are all part
of the new regime to create open access and supply competition.
Attractive investment opportunities will become available as the
industry is rationalized and reformed. There is no shortage of
potential trade buyers for assets in any of the electricity or gas
utility industries. Both domestic and international companies have
expressed interest in acquiring Australian utilities, which are ripe for
considerable efficiency gains, and which will provide large, stable cash
flows.
Strategies implemented will ensure the environmentally responsible
development of the States' energy resources, and offer great potential
for U.S. investors and suppliers of technology. Huge energy savings
from natural gas are set to fuel an Australian minerals and industrial
boom to rival those of 1960 and 1980. Renewable energy continues, as in
most industrialized countries, to have economic constraints, even when
technically feasible. Because of the need to supply power to remote
areas, because of favorable sun, wind and mini/micro hydro regimes, and
because of evolving reforms that would allow generators to sell excess
power to the distributors, there is potential on a case-by-case basis.
Conservation technologies also hold promise.
Plant upgrades will provide opportunity for the installation of new
technology, particularly clean coal and other environmental
technologies. Further, as Australian coal is exported to the major
Asian industrial nations, technology adapted to the characteristics of
Australian coal should see increased opportunity in coal-importing
nations throughout the region.
7. WATER AND SEWERAGE
Australia's water supply and sewerage treatment infrastructure is well
established, and systems are being expanded to meet demand caused by
industrialization and urbanization. Public environmental concerns are
moving federal, state and local governments, and industry from an
emphasis simply on the supply of water toward a greater focus on
resource usage, water quality and pollution control. While some
technologies for water treatment and sewerage systems are well
established, this sector is now subject to significant technological
change as the sewage to be treated becomes chemically more complex due
to pollutants, and as more stringent standards are imposed on effluent
discharges to protect the recipient land or water body.
8. CONSTRUCTION
Engineering and non-residential construction is expected to continue
steady overall growth, with activity forecast at US$15 billion for 1995,
and US$15.5 billion for 1996. Construction companies are looking at
Government-financed infrastructure projects such as new road, rail,
airport, and waterfront links. Industrial, hotel, and retail
construction sectors have strong growth prospects over the next two
years, although some reduction in office building prospects is likely,
once outstanding projects are completed (except in Queensland where the
office vacancy rate is lower).
After a few boom years, a less positive outlook is seen for the
residential construction market, with a decline in new housing starts of
about 13 percent estimated for 1995/96 over 1994/95, and a lowering of
consumer confidence under the weight of higher interest rates. However,
the renovations and additions market (representing approximately 40
percent of the total residential market) is growing strongly and is
expected to continue to do so throughout the next two years.
SYDNEY OLYMPICS: The Sydney 2000 Olympics is projected to create more
than US$1.42 billion of building activity in Australia before the end of
the decade, with construction of sporting venues, accommodation, and
other Olympic facilities. One of the strong features of Sydney's bid
for the 2000 Olympics was the advanced stage of facilities and
infrastructure planning.
Part of the New South Wales Government strategy for a successful Games
is the involvement of domestic and international private sector
organizations as equity participants in the provision of sporting venues
and facilities. The planned Sydney Olympic Games developments form part
of a larger plan for urban renewal in the Sydney area. The completed
redevelopment of Sydney's Darling Harbor, the City West redevelopment,
and the Homebush Bay Olympic site all will contribute to the plan by
providing Olympic facilities whose use will extend into the next
century.
CHAPTER III: POLITICAL ENVIRONMENT
A. NATURE OF THE POLITICAL RELATIONSHIP WITH THE UNITED STATES:
ALLIES WITH COMMON INTERESTS FOR THE FUTURE
The United States and Australia have been close allies for over 50
years, during which Australia has been the southern link in the
structure of Asia-Pacific strategic alliances. The Australian
Government contributes to mutual security and regional stability by
hosting key joint defense facilities and ship visits, participating in a
range of exercises and exchanges with U.S. forces, and fostering
regional security dialogue. In addition, the two governments cooperate
in worldwide non-proliferation, arms control, and peacekeeping efforts.
Like the United States, Australia is a leading advocate of trade and
investment liberalization. Because of common interests and convictions,
the two countries work together on many global issues (e.g., U.N.
reform, promoting democracy and human rights, protecting the
environment, and enhancing the multilateral trading system and the new
World Trade Organization).
In recent years, U.S. export subsidies for wheat and other agricultural
commodities have generated periodic friction. But these concerns are
being attenuated because of agreement during GATT's Uruguay Round on
substantial world-wide reductions in agricultural-export subsidies.
B. MAJOR POLITICAL ISSUES AFFECTING THE BUSINESS CLIMATE
A POLITICAL CONSENSUS FOR PROGRESS AND CHANGE
There are no major political issues that detract from the business
climate or the stability of the bilateral trading relationship with the
United States. All of Australia's major political parties seek to
promote growth and encourage investment, including investment from
abroad. Although there are differences in approach, both leading
parties strongly support Australia's internal economic restructuring to
transform the country into a globally competitive trading nation.
Other policy directions that attract equally universal support include
Australia's desire to define itself as a part of the dynamic Asia-
Pacific region, as well as efforts to upgrade its mix of exports in
order to reduce reliance on basic commodities and increase sales of
value-added products. There is also broad political approval for
federal and state government programs to corporatize and privatize
public services so as to reach world quality standards, and for labor
and work force reforms aimed at the world's "best practice".
C. BRIEF SYNOPSIS OF POLITICAL SYSTEM, SCHEDULE FOR ELECTIONS, AND
ORIENTATION OF MAJOR POLITICAL PARTIES
A LONGSTANDING PARLIAMENTARY DEMOCRACY COMBINING ECONOMIC AND SOCIAL
PROGRESS WITH POLITICAL STABILITY
Australia has a federal system of government, and a long history as a
multiparty parliamentary democracy. There is no written Bill of Rights,
but fundamental rights are ensured by law and respected in practice.
The Commonwealth (federal) government and the six state governments
operate under written constitutions that draw on the British tradition
of a Cabinet Government, led by a Prime Minister, which is responsible
to a majority in Parliament's lower house. The Federal Constitution,
however, also contains some elements that resemble American practice
(e.g., a Senate, in which each state has equal representation). The
Head of State is Queen Elizabeth II, the reigning British monarch, but
she exercises her functions through personal representatives who live in
Australia (i.e., Australian citizens who serve as the Governor-General
of Australia, and the Governors of the six states). Australians are
debating whether their country should become a republic, give up ties
with the Queen, revise the constitution, and adopt a new flag.
Members of the Federal House of Representatives are elected for three
years, and national elections were last held in March, 1993. Lower-
house elections, thus, are due no later than mid-1996, but earlier
scheduling is a matter of discretion. (The Prime Minister may recommend
that the House be dissolved at any time, and the Governor-General
traditionally follows such advice.) Current political commentary
focuses on two likely "windows" for national elections: August-October,
1995, and March-May, 1996.
Members of the Senate are elected for six years. June 30, 1996 is the
next date on which Senators' terms expire, and a regular election for
half the members of the Senate is due before that time, but no earlier
than July, 1995.
Under complex conditions specified in the federal Constitution -- in
essence, extended deadlock between the House and Senate -- both houses
may be dissolved simultaneously, so that ensuing national elections
would involve all seats in Parliament. This "double dissolution" is
unusual, and has occurred only six times since the Constitution entered
into effect (1901).
All major parties support the U.S.-Australia alliance and stress the
importance of close relations between Australia and the United States.
Thus, this longstanding and stable pattern is essentially unaffected by
the outcome of national elections.
The ruling Australian Labor Party (ALP) maintains close ties to the
trade union movement and has held office since 1983. During that
period, the government has carried out major restructuring of the
economy (e.g., floating the Australian dollar, cutting tariffs by
substantial amounts, reducing and simplifying regulations that affect
business). Liberalizing trade and enhancing economic integration with
Asia-Pacific countries are major tenets of the ALP and, in particular,
of the incumbent Prime Minister, Paul Keating.
The opposition Liberal-National Coalition is often described to
Americans as the more "conservative" party. It upholds traditional
social values and stresses the importance of a free market,
entrepreneurial approach to economic growth (i.e., it promotes an
updated version of the classical liberalism originated by Adam Smith).
The Liberal Party is the senior partner, holding 79 of the Coalition's
101 seats in the current Parliament. The National Party is identified
closely with the interests of farmers, and its supporters reside mainly
in rural areas.
Two minor parties, the Australian Democrats and the Western Australia
"Greens", are represented only in the Senate but have political and
media effects that are disproportionate to their numbers. They take
highly visible stands on various economic, political, environmental, and
social issues, challenging the major parties to respond in ways that
meet their concerns.
CHAPTER IV: MARKETING U.S. PRODUCTS AND SERVICES
Market entry strategies for U.S. firms are straightforward. They
include exporting of products and services through the use of
agent/distributorships, license/technology transfers, franchise
arrangements, joint ventures, strategic alliances, and wholly owned
subsidiaries/branches. As Australia restructures economically, there
are significant opportunities to participate in major public-funded
projects and to win major infrastructure and services projects available
through public sector divestment and privatization.
A. RETAILING TRENDS
Contemporary Australian retailing, while still predominantly
characterized by specialty shops and department stores with high
markups, is being transformed rapidly by the introduction of superstores
and warehouse sales outlets. While Australians remain quality conscious
buyers, their consumer appetites are just becoming whetted by discount
buying.
Opportunities are ripe in almost every consumer product sector adaptable
to discount sales - from building supply, to automotive accessories,
toys, books, records and tapes, household goods, and household linen.
Over sixty, large American-style outlets have opened throughout the
country. With record sales far surpassing expectations, retailers are
planning over 100 more superstores to satisfy demand. Because of
similar Australian/U.S. consumer preferences, and high per capita
consumer buying power, many U.S. chains are considering setting up
operations in Australia. To hold their market share, established stores
are being forced to re-examine their pricing policies, and to stage more
frequent, and severe, markdown promotions and sales.
B. DISTRIBUTION AND SALES CHANNELS
Australia's extensive distribution and sales channels are comparable to
those in other industrialized countries. Channels of distribution are
through direct sales, use of distributors or agents, and also through
direct investment. Financing of exports is effected through open
account, commercial bills of exchange (sight and time drafts), letters
of credit, and cash in advance. Foreign exchange is readily available
to the Australian importer through the local banks. There are virtually
no exchange controls or import licensing required for imports of goods
and services. Both direct and indirect foreign investment is encouraged
with only minimal requirements for government review in certain sectors,
e.g., residential housing and media.
C. USE OF AGENTS AND DISTRIBUTORS
U.S. businesses marketing their products in Australia usually establish
relationships with sales agents, distributors, franchisees, and
licensees.
1. Sales Agents
Sales agents or representatives solicit business for the foreign
company, and serve as a conduit for purchase agreements. In most cases,
a sales agent does not have the power to negotiate terms, or to finalize
the sales contract. Instead, the sales representative forwards the
contract to the foreign company, which either accepts or rejects it. It
should be noted, however, that because the sales representative is
considered to be an agent of the foreign corporation, under the general
laws of agency, the foreign corporation may be bound by the acts of its
agent.
Agents assume a number of duties and obligations once a representation
contract with a foreign company is finalized, including adherence to the
principal's instructions, good faith in the interest of the principal,
and maintenance of proper accounts. The agent retains the right to
remuneration, and the right to an indemnity for liabilities or for
losses incurred due to improper termination. However, there is no
precedent for required indemnity payments in Australian law. Parties
may stipulate specific causes for termination in the agreement. Either
party may terminate the agreement upon receipt of reasonable notice of
termination. Although no specific time period exists which defines a
"reasonable notice period", courts may take into consideration the
nature and length of the contract when determining whether reasonable
notice was given.
2. Distributors
A distributor acts as an independent contractor, purchasing products
from the foreign corporation and distributing them to wholesale buyers
or, on occasion, to retailers. Generally, the foreign corporation
cannot restrain the distributor from selling competitors' products.
However, because the distributor is not considered to be an agent of the
foreign corporation, it is not bound by the acts of the distributor. It
is common practice for Australian distributors to ask for exclusive
geographic rights to market a foreign corporation's products. Because
of the size of the market, these rights are often for several states or
even nation-wide.
Parties are free to choose between Australian and foreign (in this case
U.S.) law governing the contract when drafting an agreement. However,
the choice of foreign law does not preclude application of mandatory
provisions of Australian law. Without a stipulation of law, Australian
courts will apply the law of the jurisdiction where the agent or
distributor works (i.e., Australian federal law, and appropriate state
and local law). Therefore, notification of agent appointments should be
submitted in writing to satisfy various state jurisdictional laws,
especially when they last for more than one year or include terms for
commissioning the agent. Either fixed or indefinite-term contracts may
be employed. However, repeated renewal of fixed-term contracts will not
cause the contract to achieve indefinite-term status.
D. FINDING A PARTNER - HOW THE U.S. COMMERCIAL SERVICE (CS)
IN AUSTRALIA CAN HELP
CS Australia provides a range of business facilitation services to help
American companies identify potential partners. All services are
arranged by the U.S. company contacting its local U.S. Department of
Commerce District Office in the United States. Business Facilitation
Services include:
1. Agent Distributor Search (ADS)
CS Australia will locate, screen, and assess Australian agents,
distributors, and representatives for U.S. companies. After an
investigation that determines there is potential interest in a product,
CS Australia will send the U.S. firm contact information on companies
that have reviewed the product literature and expressed interest in
representing the firm in Australia. U.S. companies then contact the
potential representatives directly.
2. Gold Key Service (GKS)
Designed to make a U.S. company representative's visit to Australia more
productive, the GKS provides a combination of many services, such as
market orientation briefings, market research, agent distributor search
and screening, introductions to potential partners, and assistance in
developing a sound market strategy and an effective follow-up plan.
3. Customized Market Analysis (CMA)
Formerly called the Customized Sales Survey (CSS), a CMA provides a
quick and accurate assessment of how an American product will sell in
Australia. Especially valuable for first-time exporters with few
Australian contacts and limited overseas expertise, a CMA provides
current data to make marketing decisions without large travel,
investigative, and other expenses associated with overseas product
research.
4. Participation in Catalog Exhibitions
CS Australia takes booth space in selected Trade Shows and runs separate
catalog exhibitions in association with a variety of trade promotion
events, conferences, symposia etc. U.S. firms are invited to
participate either directly, or by providing catalogs for display.
5. Introduction to Australia
CS Australia has developed a new market entry program called
"Introduction to Australia", which offers U.S. firms an effective, yet
very inexpensive, way to test the Australian market. Through this
program, CS Australia contacts American firms in a specific industry
sector, and invites the companies to participate by completing an
application form and forwarding copies of product literature. A special
mailing then is sent to hundreds of local agents, distributors,
wholesalers, and end-users in that particular industry. Interested
respondents are sent product literature. The U.S. participants are
advised of the names of the local companies that requested their
catalogs so they can follow-up directly.
6. Participation in Trade Missions
CS Australia organizes and supports trade missions sponsored by the
Department of Commerce and by State Governments.
7. Trade Events
CS Australia organizes U.S. booths and support for companies
participating in Trade Shows and Exhibitions in Australia. (See
Appendix E for full Trade Event Schedule.)
8. Trade Opportunities Program (TOP)
This program provides U.S. suppliers with credible, complete, and timely
trade leads gathered by CS Australia. The trade leads may be requests
for representation, manufactured goods, services, investment, joint
ventures, licensing, or foreign government procurement bids.
Opportunities are publicized by the Department of Commerce through the
NTDB and other avenues.
9. Market Research and Reporting
FCS Australia reports continually on industry sector developments, major
projects, program and policy developments. These reports are available
through the Department of Commerce and the NTDB (see Appendix D for a
list of available documents).
10. Commercial News USA
This monthly publication provides summary information on new U.S.
products being offered to the export market. CS Australia distributes
the publication free of charge to over 1,600 potential agents and
distributors throughout Australia. Interested companies contact the
U.S. firm directly.
E. FRANCHISING
Franchising is changing the face of the Australian retail industry.
Increasing at a rate of 15 percent a year since 1991, and representing
11 percent of the country's gross domestic product, this rapidly
growing, dynamic field had a turnover of nearly US$32 billion in FY
1993-94 with a workforce of 280,000. This gives Australia the highest
rate of franchised business per capita in the world, with an estimated
26,000 franchise outlets, accounting for nearly 25 percent of all
retailing. Furthermore, franchises have a very high survival rate.
Opportunities exist now for new investment.
It should be noted that although franchising is booming under the
present voluntary Code of Practice (introduced in 1993), the Federal
Government is considering a tougher regulatory policy following the
release in May, 1995, of the Gardini Report that examined the operation
of the Code. The Code does not yet apply to foreign franchisors selling
a master franchise in Australia. Further information is available from
the Franchisors' Association of Australia and New Zealand Ltd. (See
Appendix E.3.)
F. DIRECT MARKETING
Australia's direct marketing industry (mail order catalogs, direct mail,
direct response advertising, and telephone marketing) is estimated at
US$3.5 billion. Although the industry still can be considered at the
early stage of take-off when compared to the U.S., there is increased
consumer understanding and acceptance of contemporary direct marketing
(in contrast to the old-style catalog supply sales). The reduction of
import duties on many goods, and the introduction of new postal and
telephone infrastructure services to support the industry, are
contributing to good growth for direct marketing in Australia. The
realization of pay television also will carry with it advanced direct
marketing techniques.
Despite the untapped potential of an affluent consumer market with a
taste for American goods, few of the big U.S. mail order companies have
yet entered this market in a systematic way. A local company, Myer
Direct (a subsidiary of the Myer-Grace Bros. department store chain) is
presently the only mail order service that is comparable with those in
the U.S. Myer Direct's turnover of about US$ 870 million has grown from
nothing six years ago, and now reaches 2.5 percent of the group's total
sales. New market entries include a leading Australian fashion
retailer, a cosmetics company, and a high-quality lifestyle magazine.
There are some specific mail order catalogues, for example, scholastic
books, collectibles, thermal underwear, health and outdoor lifestyle
products. There are also a variety of cheap to medium-priced and
independently sourced products (anything from electric toothbrushes to
home fitness centers, pocket spellers, personal breath analyzers, and
more) sold through mail flyers and on television. These moves are
indicators of the future.
G. JOINT VENTURES AND LICENSING
1. JOINT VENTURES
Joint ventures are a common feature of Australia's commercial and legal
environment. While there are some differences in the treatment of joint
ventures between Australia and the U.S., they are similar enough for
U.S. investors to understand easily. They include:
a) Unincorporated Joint Ventures may, in colloquial terms, be described
as "contractual joint ventures" that do not create a separate corporate
entity, and which lack equity capital, i.e., no shares are allotted for
the consideration of a payment of money or money in kind. Such joint
ventures look much like partnerships - because partnerships are also
forms of contractual association that do not create a separate corporate
entity or equity capital.
b) Incorporated Joint Ventures are companies. The shareholders in the
company are the joint venture participants. Unlike in an unincorporated
joint venture or partnership, the shareholders have no rights in
relation to the company's assets, and they can participate in the
profits (distributed as dividends), but not in losses.
c) Unit Trusts are devices that enable the separation of legal and
beneficial interests in assets and the income derived therefrom. In a
joint venture situation, the participants wish to insure that their
entitlements are fixed rather than discretionary. A unit trust is a
configuration where the entitlement of beneficiaries is expressed in
units relative to the total number of fixed units.
d) Limited Partnerships are creations of statute. They remain a
partnership at general law and, therefore, do not give rise to the
existence of a separate legal entity. A limited partnership structure
requires at least one general partner to have unlimited liability and
limited partners who have liability limited to the extent of their
investment in the partnership. They are used rarely in Australia.
e) Hybrid Forms are forms of joint venture comprising elements of each
of the preceding. They can also be created to suit the needs of the
particular participants. For example, one participant in an
unincorporated joint venture could be the trustee of a unit trust, while
one shareholder in an incorporated joint venture could also be the
trustee of a unit trust.
2. LICENSING
On the whole, there are few legal and administrative requirements
governing the field of licensing in Australia. Exclusive licenses of
patents, copyrights and other statutory rights require compliance with
minor formalities. The Trade Mark Act in Australia provides for the
registration of licensees or "users" as they are called in the
legislation.
A license agreement involving an Australian licensee should contain the
usual terms one would find in a license in the United States. These
include: type of license being granted (i.e., sole, exclusive or non-
exclusive); territory being covered; license fee or royalty; licensee's
duties and obligations; period of grant and field of use of the
technology involved; maintenance of quality control; ownership of rights
in improvements and innovations made by the licensee; warranties and
indemnities; technical assistance and confidentiality; sub-licensing and
assignments, and termination.
Prior to entering into a licensing agreement, both firms should
ascertain that the product or service name to be licensed is not already
registered to another company in Australia. This relatively simple, but
essential, check closes a door to potential legal problems about brand
names, names of services, etc., and protects the product or service from
litigation under the Trade Practices Act.
H. STEPS TO ESTABLISHING AN OFFICE
Business rules are set by the Federal Government and administered by the
Australian Securities Commission (ASC). The requirements for starting a
business are identical in each state, and the same rules apply for local
and overseas companies.
Because Australian business practices are similar to those in the United
States, it is easy for foreign investors, either in partnership with
local companies or on their own account, to set up a business in
Australia. A foreign company has a wide range of business structures
from which to choose. The most common forms of business organizations
are: representative offices; branches of parent companies;
subsidiaries; sole traders; partnerships; trusts; companies; and joint
ventures. Overseas investors may set up an operation as any of these,
irrespective of the business structure they have elsewhere.
Most significant businesses operating in Australia are incorporated as
private or public companies. Under the Corporations Law the entity is
registered automatically as an Australian company enabling it to conduct
business throughout Australia without further registration in individual
states or territories. Local companies may be fully controlled by
foreign owners.
All registered companies must conform to Australian company law
administered by the ASC, including: accounting; financial statements;
annual returns; auditing and general meeting requirements; and the
necessity to maintain a registered office open to the public.
While the procedure to establish an office is fairly straightforward, as
in the U.S. it often is done best with expert legal and financial advice
readily available from Australian and multinational service providers.
Fees for company registration are in the order of US$350.
Application forms are available from ASC Business Centers which operate
in each state and territory. (See Appendix E.4)
I. SELLING FACTORS/TECHNIQUES
While Americans find it easy to do business in Australia because of the
similarities in cultural and business practices, to understand the
market better, there are some precautions to be observed, and some key
selling factors to be considered. Australians are very quality
conscious. The principles that apply to all sales methods are: product
quality, company integrity, and good ongoing service. With a history of
geographic isolation, and reliance on imported manufactured goods,
Australians are very sensitive to product reliability and assurances of
back-up product service, where necessary.
1. Market Research
Before entering the market, U.S. firms should evaluate their proposed
selling technique thoroughly to ensure that it is responsive to market
demand in Australia for their product, technology, or service. An
effective way to evaluate the situation is to do some basic market
research, followed by a personal visit. There is no substitute for a
first-hand look. Refer to the Section D, above, on the U.S. Commercial
Service's Australian market entry assistance programs.
2. Common Sales Arrangements
The use of agents and distributors is the most common way for U.S.
companies to sell products in Australia, as discussed in more detail in
Section B., above. Because of market size, it is common practice for
Australian distributors to ask for exclusive geographic and/or product
rights.
Franchising, licensing, joint ventures, and direct marketing, as
discussed in Sections E.-G., above, are all good alternative market
entry techniques. These methods entail more investment and commitment
than simply appointing an agent or distributor, but they may be more
appropriate in the long run.
J. ADVERTISING AND TRADE PROMOTION THROUGH MAJOR NEWSPAPERS
AND BUSINESS JOURNALS
U.S. companies can promote their products in the major newspapers of
each Australian state and/or national and state trade and industry
magazines. The Commercial Service in Australia publicizes Trade
Missions and Seminars by advertising in the financial sections of the
major newspapers, in industry magazines, and in newsletters of
associations. It also compiles industry-specific mailing lists, sourced
from a variety of business directories, both print and electronic, to
send material by post or faxstream, using automated mailing list
products and search techniques.
(Contact information for leading newspapers, periodicals and business
directories is found in Appendix E.11)
K. PRODUCT PRICING
Australia is a free enterprise economy, and basic market factors of
supply and demand apply in product pricing. When adopting pricing
methods, exporters should be aware of inherent local market
characteristics. In order to complete successfully in this small, but
generally highly competitive market, U.S. exporters to Australia must be
prepared to offer flexible prices, with, perhaps, lower than usual
profit margins, and for smaller minimum quantities. Some factors to
consider are:
1. SELLING COSTS AND PRICE COMPETITIVENESS
There are important elements for U.S. firms to bear in mind when pricing
products for export to Australia. To structure prices competitively,
suppliers should consider all the cost elements imported products have
to bear. The key factors are freight rates, handling charges, import
tariffs, marketing costs such as advertising and trade promotion, sales
tax, plus agent or distributor commissions of up to 30 percent.
Imports from competing European nations and some Asian nations including
Japan, face the same tariff rates as those from the United States.
Tariff rates on imports from nations designated as developing countries
are five percent less. Sea freight shipping costs from the U.S. to
Australia are high when compared with those from Asia, and even from
Europe. Sales tax is applied to most imported and locally made products
at the wholesale level. This can make a difference to the end price of
imported products, where sales tax is applied at a nominal wholesale
value. If this nominal wholesale value is more than the mark-up
generally applied by local manufacturers, imported products may be
outpriced.
2. VOLUME BUYING/SELLING AND DISCOUNT PRICING
Australian wholesalers and retailers traditionally have sought the
highest markup the market would bear, rather than thinking of volume
buying or selling. This pattern is changing as open markets and the
influx of franchisers and other high-volume businesses have alerted the
increasingly cost-conscious consumer to competitive discount sales and
services. Suppliers need to be able to deliver quality products and/or
services at attractive prices. To compete successfully, exporters
should consider granting maximum wholesale discounts, preferably based
on marginal export pricing. However, what is seen as volume buying to
the Australian buyer, may only be a small order to the U.S. exporter.
3. INDUSTRIAL PRICING
Australians respect the concept of "value for money". Factors of price,
quality, reliability and support in the way of service, are prime
considerations when selling industrial products or capital equipment.
While price is certainly a major factor, a purchaser may decide to pay
more for a piece of equipment known to be of better quality and more
reliable than a competing product. However, U.S. exporters still must
be prepared to negotiate on price, or other aspects of the purchase.
In general, Australians are conservative when purchasing capital
equipment to upgrade their manufacturing processes. They take time to
make purchasing decisions, weighing them carefully against their
perceived pay off - to increase bottom line profits. If the bottom line
does not appear to offer much gain, they may simply defer their
purchase. Constrictive labor agreements sometimes deter a manufacturer
from investing in equipment that would result in operational
efficiencies because resultant labor savings could not be translated
into bottom line profit. While labor reform is changing this situation
in many plants, union restrictions can still be a real constraint.
4. PRICE CONTROLS
There is little formal price control. The Federal Government has
established a Prices Surveillance Authority (PSA) to examine the pricing
systems of companies and authorities that have a major impact on the
economy, and which have few market competitors.
Certain industries are required to notify the PSA of any proposed price
increases. These include oil and petrol, steel mill products, beer,
cigarettes, glass containers, harbor towage, such as tug boats, and
steel welded pipes.
The PSA makes pricing recommendations, and endeavors to mobilize
community pressure by publicizing pricing cases. There have been cases
where companies surveyed have adjusted their prices downward as a result
of the PSA's recommendations. Recent PSA studies have included
biscuits, tea, instand coffee, banks and credit cards, cement, breakfast
cereals, steel mill products and book prices.
The PSA has little effect on the overall conduct of business, which
generally responds well to market forces. It is moving generally toward
monitoring prices in the public (government) sector, and is doing less
in the corporate sector, due to increasing private sector competition.
State governments also can set price controls, but do so rarely.
L. SALES SERVICE AND CUSTOMER SUPPORT
Generally, doing business in Australia is simple for U.S. exporters,
when compared with other foreign markets. Culture, language and
business practices are remarkably common. However, subtle cultural
differences do exist that can either invigorate or undermine a business
relationship. In their dealings, both Americans and Australians are
wise to take the time and effort to confirm that their perceptions and
expectations about roles and expectations are consistent with those of
their counterparts.
Depending on the product or service to be exported, Australian
agents/distributors expect support from their U.S. suppliers. Examples
of this support include product warranty for a specified time, training,
advertising, and promotion.
Timely delivery of goods, including spare parts, is expected and is
rarely a problem, as major U.S. freight forwarders have offices in
Australia. Air freight is used commonly for smaller items. Shipping
schedules are reliable. Where necessary, U.S. firms should ensure that
their representatives can service the imported equipment or that there
are service arrangements in place.
M. SELLING TO THE GOVERNMENT AND LOCAL INDUSTRY DEVELOPMENT
ENCOURAGEMENT
While Australia's government procurement regime generally is considered
to be well documented and fair, with few restrictions to foreign
bidders, there are a number of qualitative decision factors relating to
local industrial development. It is very important for U.S. bidders on
major public sector projects to understand, and to take these factors
into account, in their bid structuring. This applies particularly to
their consideration of whether to team with Australian industry
partners, or to go it alone. A more detailed discussion of some of
these factors is in Chapter VII, Investment Climate, Section F:
Performance Requirements and Incentives in Support of Local Industry
Development.
Australia has not yet signed the GATT Government Procurement Code, which
means that it is not bound by conditions prohibiting specification of
locally-made product in tenders. However, with the conclusion of the
Uruguay Round, the GOA is reviewing the Code.
Although the Federal Government has abandoned the Civil Offset Program,
it actively encourages local industry participation. A 1994 policy
statement, strengthened its efforts to use government procurement policy
to encourage local industry development. However, it stops short of
directing its agencies to give preference to local suppliers. Bidders
and purchasing agencies are required to submit separate industry impact
statements.
Federal information technology projects involving systems integration
purchases over $0.7 million are sourced from members of a Restricted
Systems Integration Panel (RSIP) comprised of 20-25 private companies
selected by the Government. Although panel membership is not closed,
access for domestic or foreign firms is dependent on government-
determined eligibility. The U.S. Government and the Australian
Information Industry Association strongly oppose the RSIP, regarding it
as having the potential to hinder open competition.
Foreign information technology companies with annual sales to the
Australian Government of between $7 and $30 million "are encouraged" to
enter into fixed-term arrangements. Those with sales greater than $30
million are encouraged to participate in the Partnership for Development
Program, requiring them to meet local research and development,
investment, export, and local content targets. Since 1992, this scheme
has been extended progressively to telecommunications companies.
Some Australian purchasing preferences still exist in State Government
procurements. These mostly are holdovers from the times when offsets
were a significant feature of both Federal and State Government
procurement. The States now are following the Federal lead in
dismantling offsets as their perceived benefits have been discredited.
However, as in Federal procurement, the States actively encourage local
industry develop activities as components of major procurements.
N. PROTECTING YOUR PRODUCT FROM INTELLECTUAL PROPERTY RIGHTS (IPR)
INFRINGEMENT
Copyrights, patents, trademarks, industrial designs and integrated
circuits are protected under Australian law; and, Australia is a member
of the major global intellectual property protection organizations and
conventions. American patent holders planning extensive sales or
manufacturing in Australia should not assume that a U.S. patent provides
comparable protection in Australia, and should seek legal advice as to
the advisability of registering their patent under Australian law.
For a full discussion of Intellectual Property Rights. (See Chapter
VII, Investment Climate, H.)
Copyrights are protected under the Copyright Act of 1968 for the life of
the author, plus 50 years. Parallel importation of overseas sound
recordings is not allowed and regarded as an infringement of copyright
except in the case of an individual importing product for his own use.
Conversely, limited parallel importation is permitted for books in cases
where the original editions are not made available in Australia in a
timely fashion. In the case of computer software, both industry and the
Copyright Law Review Committee (CLRC) agree that parallel imports of
legal copies of computer software should be permitted. However, a
decision will not be made until 1996 on the issue, because of the need
to determine the best means of preventing imports of pirated software
into Australia. (See Chapter V. A. 1.)
Patents are available for inventions in all fields of technology under
the Patent Act of 1990. Trade secrets are protected by registration
under the Designs Act for one year, with extensions. Trade names and
marks may be protected for seven years and renewed at will by
registration under the Trademark Act of 1955. Once used, trade names
and marks may also, without registration, be protected by common law.
The Australian Patent, Trademarks and Designs Office of the Australian
Industrial Property Organization handles inquiries regarding laws,
regulations and procedures applicable to patents, trademarks, other
industrial property rights protection, and copyrights. (See Appendix
E.4., for contact information)
O. NEED FOR A LOCAL ATTORNEY
As in the United States, in Australia it is common practice - and good
business sense - to retain the services of a reputable attorney familiar
with local business conditions, local law, and regulations. Legal
expertise is needed to execute legal documentation, interpret laws and
regulations, and ameliorate disputes. Most businesses also use the
services of a professional accounting firm.
Many well-known local and international law and accounting firms
practice in Australia, some with offices throughout Asia and the United
States. The Commercial Service in Australia and the American Chamber of
Commerce maintain lists of law and accounting firms, as do legal and
accounting associations.
CHAPTER V: LEADING SECTORS FOR U.S. PRODUCTS AND INVESTMENTS
("BEST PROSPECTS")
Best Export Prospect Sectors at a Glance:
1. COMPUTER SOFTWARE (CSF)
2. COMPUTERS & PERIPHERALS (CPT)
3. MEDICAL EQUIPMENT (MED)
4. AUTOMOTIVE PARTS & ACCESSORIES (APS)
5. EDUCATION & TRAINING SERVICES (EDS)
6. TELECOMMUNICATIONS EQUIPMENT (TEL)
7. TELECOMMUNICATIONS SERVICES (TES)
8. HEALTH CARE SERVICES (HCS)
9. DEFENSE EQUIPMENT (DFN)
10. SAFETY & SECURITY EQUIPMENT (SEC)
11. AIRCRAFT & PARTS (AIR; APG; AVS)
12. LABORATORY & SCIENTIFIC EQUIPMENT (LAB)
13. BIOTECHNOLOGY (BTC)
14. FOOD PROCESSING/PACKAGING EQUIPMENT (FPP)
15. CONSTRUCTION EQUIPMENT (ENGINEERING AND NON-
RESIDENTIAL (CON)
A. EXPORTS
All statistics are calculated using the following conversion rates:
1994 USD1 = AUD 1.35
1995 USD1 = AUD 1.37
1996 USD1 = AUD 1.30
RANK: 1 - COMPUTER SOFTWARE (CSF)
a) Growth Potential for U.S. Exports
The Computer Software market accounts for over 20 percent of the
Information Technology (IT) industry. It is one of the fastest growing
sectors of IT, with an estimated growth rate of around 13.5 percent over
the next twelve months. The software category comprises three parts:
Solutions, 45 percent of total market size; Tools, 28 percent; and
Systems, 27 percent.
While hardware performance improvements have been of considerable
importance in overall IT industry growth in Australia, software has been
the real key to the increased capability of computer systems generally.
As the range of software applications and tools continues to grow, the
opportunities for U.S. software developers/exporters will increase in
Australia.
b) Competitiveness of U.S. Exports
U.S. imports dominate the overall packaged software market, as well as
the major growth areas, including: client/server application solutions;
client/server database management systems and application development
tools; client/server oriented systems management software; middleware
software for connectivity and inter-operability in client/server
environments; UNIX-based tools, solutions and, to lesser extent, systems
management software.
c) Major Local and Third Country Competitors
The software market is regarded as the most diverse and fragmented of
any IT market segment, with hundreds of multinationals and domestic
vendors vying for market share. Very few players are leaders in more
than one of the systems/utilities, application tools, and application
solutions sub-sectors.
Local companies, historically, have excelled in the development of
applications software. The concentration of domestic developers and
multinational suppliers of packaged software has meant that the market
has been consistently strong. As business moves to computerize more
complex applications, this growth is expected to be sustained.
Total imports vary according to the software category. Imports
represent 56 percent of Solutions; 97 percent of Tools; and, 98 percent
of Systems.
d) Regulatory/Demand Issues Impacting Market
Import Tariffs: There is no duty imposed on imported computer software.
However, the carrying medium (diskette, CD) is subject to 22 percent
sales tax.
Intellectual Property: Computer software has copyright protection. The
parallel importing of software (imports other than by the licensed
distributor) is not permitted, and is treated as an infringement of
copyright. The issue has been reviewed recently by the Copyright Law
Review Committee (CLRC) and the Prices Surveillance Authority (PSA),
both of which concluded that parallel imports of legal copies of
computer software should be permitted. However, the two organizations
had different views about the best means of curtailing imports of
pirated software. A decision will be made in 1996.
e) Most Promising Sub-Sectors
Opportunities for new players are almost totally within the domain of
application solutions, as tools and systems software is already
dominated by foreign developers. In the solutions marketplace, existing
(legacy) application solutions are being migrated (converted, replaced)
and integrated with new types of "information access" applications on
the desktop.
Best prospects by major end-users include:
- BANKING (customer information systems and service
applications);
- INSURANCE (especially investment and superannuation);
- MANUFACTURING (fully integrated solutions);
- WHOLESALE (logistics, warehousing, routing, inventory
management, forecasting);
- RETAIL (integrated management systems);
- ACCOUNTING (planning, analysis, EIS systems);
- SERVICES (workflow-style, multimedia, and integrated
technology and advanced solutions).
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE 1,277 1,421 1,620
B. TOTAL LOCAL PRODUCTION 294 327 373
C. TOTAL EXPORTS 166 185 211
D. TOTAL IMPORTS 1,149 1,279 1,458
E. IMPORTS FROM THE U.S. 1,124 1,250 1,426
The above figures are unofficial estimates.
RANK: 2 - COMPUTERS & PERIPHERALS (CPT)
a) Growth Potential for U.S. Exports
The Australian computer hardware market represents 40 percent of the
Information Technology (IT) industry. Australia ranks as second top per
capita user of personal computers (PCs) and laptops in the world (after
the U.S.), with the ratio of one pc/single-user computer for every 6.3
Australians. There are an estimated 2.75 million business computers and
30 supercomputers in Australia. PCs account for over 70 percent of
computer hardware sales in Australia, and experience around 10 percent
average annual growth rate. The extremely high penetration of PCs in
business, government, and the home consumer segment is a result of the
users' desire to connect PCs in networks, and to link existing networks
to other networks. As in the U.S., much of the growth is driven by the
notebook category, and the move to single-user systems linked through
data communications.
Single-user systems (PCs, single-user workstations, associated
peripherals), which account for over 71 percent of the hardware market,
has a high growth rate because of the growing demand for computer power
at an individual user level; the increase in networking; and the high
acceptance of single-user platforms.
Data communications hardware (network interface cards, hubs, bridges,
routers, modems, multiplexers, packet switching equipment), which
accounts for over 13 percent of the hardware market is growing at a high
rate due to the growing demand for networking of PCs and mid-range
server systems.
The multi-user systems market (mainframe, mid-range systems, associated
peripherals), which represents 15 percent of the total hardware market,
is declining due to the decreased costs of multi-user systems equipment,
and the shift to lower-value, networked architectures.
b) Competitiveness of U.S. Exports
American products are well regarded and received in Australia. They
dominate the local market, despite competition from Japan (particularly
Fujitsu and Toshiba). The major U.S. hardware suppliers are represented
in Australia already, and some are involved in local manufacturing.
Attractive attributes of Australia for computer hardware firms include
Australia's strategic regional location in the Asian time zones; an
advanced IT skills base; and the availability of a highly skilled,
English-speaking and multicultural IT workforce.
c) Major Local and Third Country Competitors
The domestic industry consists mainly of small companies, aiming for
niche markets. There is a reasonable amount of assembly work undertaken
in Australia, using imported components.
Multinationals from Europe and Asia also are represented. According to
IDC, the Australian market is a microcosm of the U.S. market.
Therefore, Australia is often used as a testing ground for some products
from European and Japanese vendors, providing Australia with early
access to the latest technology.
The leading multinational vendors include the multi-user suppliers such
as IBM, Digital Equipment Corp, Fujitsu, and HP; and leading PC vendors
such as Apple Computer, Compaq Computer Corp, and Toshiba.
d) Regulatory/Demand Issues Impacting Market:
Import Tariffs: Imports classified as computer hardware are duty free.
Telecommunications components are not. Therefore, as computer and
telecommunications technologies increasingly converge, the tariff
anomaly is becoming an issue, and is currently the subject of a federal
inquiry.
The Bounty Scheme: A bounty, paid at the rate of 8 percent of factory
cost, is available to domestic producers of eligible hardware. The
scheme has been in effect since 1984 (at a rate of 25 percent of factory
cost), is scheduled to expire in December, 1995, but may be extended
until June, 1996. In accordance with government policy to remove
protection, the rate of bounty has been reduced in tandem with general
reductions in assistance to Australian industry. However, there is a
steady increase in the number of firms (including many multinationals)
claiming the bounty, including many firms undertaking low value-added
assembly work. Multinationals that have established their regional
headquarters and manufacturing or assembly work in Australia are
benefiting from this scheme. See Chapter VII, F.2. on bounties.
e) Most Promising Sub-Sectors:
Strong growth in sales of single-user systems between 1993 and 1998,
driven by increasing demand for notebook computers in the business
market, and by increasing demand in the home consumer market is
forecast.
Technology trends in Australia include: interactive multimedia; printers
with scanning capabilities; client/server computing (desktop systems,
networking hardware); mobile computing (PCs).
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE 3,882 4,658 5,590
B. TOTAL LOCAL PRODUCTION 1,153 1,379 1,660
C. TOTAL EXPORTS 765 918 1,101
D. TOTAL IMPORTS 3,494 4,192 5,031
E. IMPORTS FROM THE U.S. 1,500 1,845 2,264
The above figures are unofficial estimates.
RANK: 3 - MEDICAL EQUIPMENT (MED)
a) Growth Potential for U.S. Exports
U.S. products enjoy a major share of the Australian market for imports
of medical equipment (56%). Growth, however, is likely to remain
relatively static in the short term due to budgetary constraints imposed
by government on public hospitals. The major end-users of medical
equipment are public hospitals (56%), followed by private hospitals
(21%), other professional outlets (10%), retail (6%), other (7%). In
1992, there were 705 public hospitals, 320 private hospitals and 79 day
hospitals in Australia. This represents 1,104 hospitals with a total of
78,811 beds, or 4.5 beds per 1000 population.
b) Competitiveness of U.S. Exports
American medical equipment is traditionally well-received in Australia
due to its perceived high quality and usually competitive pricing. U.S.
equipment dominates imports, followed by Europe with 33% (mainly from
Germany), and Japan (8%).
c) Major Local and Third Country Competitors
A number of U.S. firms have Australian subsidiaries including Baxter
Healthcare, Becton Dickinson, Johnson & Johnson Medical Pty. Ltd.,
Abbott Laboratories, Bard and William Cook. The Pacific Dunlop group is
the major Australian producer of medical equipment. The Telectronics
(pacemakers) and Ansell (consumables) divisions both now manufacture
off-shore. The Nucleus division products include ECG monitors, and
defibrillators. Most other Australian manufacturers are smaller firms
producing medical furniture, wheelchairs, orthopaedic and rehabilitation
equipment, pacemakers and consumables.
d) Regulatory/Demand Issues Impacting Market
Currently, medical equipment from all sources may require approval from
the Australian Therapeutic Goods Administration before it can be
marketed in Australia. Europe and Australia are well advanced towards
signing a Mutual Recognition Agreement (MRA) on conformity assessment in
a number of industry sectors, including medical devices and
pharmaceuticals. This means, in effect, that goods originating in the
European Union will be able to be assessed for conformity to Australian
requirements in Europe, thereby eliminating the need for additional and,
in part, duplicative evaluation by Australian authorities. The new
medical devices agreement may become effective from early 1996 and, when
finalized, may provide a market entry advantage for European companies.
The U.S. and Australia do not yet have a similar agreement.
e) Most Promising Sub-Sectors
Capital equipment, diagnostics products, sophisticated consumable items
such as cardiac catheters.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE 795 787 847
B. TOTAL LOCAL PRODUCTION 333 345 371
C. TOTAL EXPORTS 185 208 223
D. TOTAL IMPORTS 647 650 699
E. IMPORTS FROM THE U.S. 320 335 375
The above figures are unofficial estimates.
RANK: 4 - AUTOMOTIVE PARTS & ACCESSORIES (APS)
a) Growth Potential for U.S. Exports
Prospects for U.S. Automotive Parts and Accessories in Australia
continue to improve with U.S. exports presently holding 26% of the total
import market, second only to Japan.
b) Competitiveness of U.S. Exports
Australia has one of the highest vehicle ownership rates in the world,
with 10.5 million vehicles registered in 1994 in a country with a
population of about 18 million. Australians also keep their cars for a
long time - the median vehicle age is 9.4 years - guaranteeing a healthy
market for replacement parts and accessories.
The automotive parts and accessories market is extremely active and
competitive. Importers and distributors are always searching for new
products to add to existing product ranges. U.S. exporters must be
prepared to make sales of relatively small numbers (compared with the
U.S.), and at competitive prices. U.S. companies, such as Monroe,
Federal Mogul, Eaton, Cummins, and Echlin, have offices and elaborate
distribution systems in Australia. However, there is still room for
more players. U.S. exporters are encouraged to look to this lucrative
market.
The yen's high present rate is forcing some companies to consider
servicing replacement parts elsewhere, including the U.S. This is not
so with original equipment manufacturer (OEM) exports to Australia,
which are not expected to change much in the foreseeable future.
c) Major Local and Third Country Competitors
Japan is the major competitor to U.S. exports, followed by Taiwan and
Korea. Often, however, parts from these countries do not compete
directly with parts from the U.S., as many are vehicle-specific.
d) Regulatory/Demand Issues Impacting Market
In most cases today, replacement parts must adhere to the ISO 9002
quality standard. Manufacturers of OEM parts must be accredited with a
quality standard known as QS9000, which originated in the United States,
and which incorporates the ISO 9000, and other requirements. The four
Australian car manufacturers, General Motors, Ford, Mitsubishi and
Toyota, recently agreed to this common standard, which replaces the
international quality ratings of their own companies. As QS9000 has
been announced only recently, a transition period applies whereby OEM's
have until December, 1997 to come into compliance and must, until they
receive QS9000 accreditation, have been accredited with individual
quality rating by the particular car maker. QS9000 also is being
adopted by Ford and Holden commercial vehicles, but not by other
commercial vehicle (mainly heavy duty trucks) assemblers yet in
Australia.
Import tariffs remain at about 15%. Some U.S. products may be less
saleable on the Australian market due to Australia's Design Rules
(ADR's), that most affect external fixtures such as headlights,
indicator lights and mirrors. Increasingly, replacement parts must
adhere to the ISO 9002 quality standard.
e) Most Promising Sub-Sectors
U.S. products that are competitive include performance springs, shock
absorbers, carburetors, brake components, gear boxes and gear box
components, and a wide variety of parts and accessories.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE 3,853 4,317 4,750
B. TOTAL LOCAL PRODUCTION 2,115 2,368 2,700
C. TOTAL EXPORTS 668 804 950
D. TOTAL IMPORTS 2,406 2,753 3,000
E. IMPORTS FROM THE U.S. 626 721 810
The above figures are unofficial estimates.
RANK: 5 - EDUCATION & TRAINING SERVICES (EDS)
a) Growth Potential for U.S. Exports
The vocational education and training market is extremely diverse. The
increasing demand for training - in particular, information technology,
literacy and numeracy, professional and personal development - coupled
with Australia's open market policy, and America's well known expertise
in the field, translates into real opportunities for the US exporter of
training services and expertise.
The following major developments have enhanced opportunities in an open
training market:
- increased allocation of funds to competitive tendering
(More than A$12 million was made available for open tender in 1994,
increasing to A$21 million in 1995.);
- policies to encourage participation from private enterprises in
tendering for training courses ;
- an increase in registered private providers to around 1,000;
- access for private providers to publicly recognized credentials;
- access to publicly-developed courses and materials for private and
industry providers in some States and Territories;
- increased industry investment in structured training;
- encouragement of joint government/industry projects;
In 1995, enterprises (or group training companies on behalf of
enterprises) will be able to choose, in consultation with employees, the
most appropriate publicly-funded, off-the-job training for apprentices
and trainees.
b) Competitiveness of U.S. Exports
American expertise in the training field is recognized in Australia and
well received, provided the training material/presentation is adapted to
Australian style English and culture, including Australian
language/spelling and weights/measures. Australia looks to U.S.
expertise, in industrial training, computer training, motivational and
personal development skills, and on-off site seminars, as well as for
textbooks and manuals. Americans are seen as leading in more
theoretical training, and as prolific writers, developing instruments
and models for the training industry. With the exception of one-time
seminars and training in sales, it is most common for U.S. training
programs to be conducted by local trainers, not expatriates.
c) Major Local and Third Country Competitors
Within the private training sector of the market, there are over 4,500
companies and individuals registered with the Australian Institute of
Training and Development (the largest Australian association for private
trainers and training companies). There are other, smaller training
associations as well.
The training market is led by Australian training providers, with very
few third country training establishments. With the exception of a
couple of Swiss and French hotel management schools, and foreign
language trainers, such as the Goethe Institute, l'Alliance Francaise,
Dante Alighieri Society and several Japanese language/culture schools,
there are no readily identifiable registered third country training
companies offering industry, business or computer training.
d) Regulatory/Demand Issues Impacting Market
The Australian government's process of structural micro-economic reform
includes education and training in industry to address technological and
structural change. The goal is to develop a multi-skilled and efficient
workforce. Once seen as a social policy issue, vocational education now
is regarded as an economic necessity. The Australian Federal Government
has contributed to the expansion of the training industry through
legislation and budget allocations.
The growing need of all employees, both old and new, to be conversant
with constantly evolving technology ensures that the need for efficient
training programs will be an ongoing one. Approximately 75 percent of
the existing workforce is expected still to be in the employment pool at
the turn of the century. However, only 30 percent of the skills and
knowledge they possess will be applicable in the year 2000.
e) Most Promising Sub-Sectors
Industrial/Factory Training (including communication skills/literacy;
collaborative quality management; preparation for multi-skilling and new
technologies, particularly in the computerized workplace; and total
quality management);
Business/Office Training (including report writing for the services
sector; speech and language consultancy; customized videos, and training
programs; computer skills, especially word processing and spreadsheet;
marketing/sales skills; and management training); and,
Information Technology Training (including networking skills; desktop
applications; UNIX skills; and training in Microsoft's window NT).
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL SALES 3,800 4,200 4,700
B. SALES BY LOCAL FIRMS* 3,610 3,990 4,420
C. SALES BY LOCAL FIRMS* n/a n/a n/a
D. SALES BY FOREIGN-
OWNED FIRMS* 190 210 280
E. SALES BY US-OWNED FIRMS* 100 110 190
* NB: the above figures are based on sales by the training provider
(usually a local firm/trainer), rather than by the country of origin of
the training program/courseware.
The above figures are unofficial estimates.
RANK: 6 - TELECOMMUNICATIONS EQUIPMENT (TEL)
a) Growth Potential for U.S. Exports
U.S. exports of telecommunications equipment to Australia have the
potential to grow at about 20% annually. Telecommunications products
must be broken into two sectors, namely network equipment, and Customer
Premises Equipment (CPE) such as telephone handsets.
Australia has three telecommunications carriers, the government-owned
corporation of Telstra, and privately-owned Optus and Vodaphone.
Telstra is presently the only nation-wide carrier for local calls, while
Telecom MobileNet, which is part of Telstra, Optus and Vodaphone all
compete for mobile phone services. The Australian telecommunications
market as a whole was valued at $12 billion in 1994, with Telstra
accounting for $9.5 billion sales revenue. Almost every Australian
household has a telephone, and there are an estimated 1.6 million mobile
phone users in a population of 18 million.
b) Competitiveness of U.S. Exports
During the past year, the highly competitive Australian
telecommunications equipment market has shifted somewhat for products
from the U.S., with opportunities for advanced network equipment gaining
ground and those for CPE, such as handsets and mobile phones, losing
some. This relates directly to the declining import of analog mobile
phones from the U.S. as the European GSM digital standard begins to take
over, and more phones come from Europe.
U.S. products, including advanced network equipment such as ATM
switches, call processing and managing equipment, modems and routers,
are highly competitive in Australia. A number of U.S. companies
including Scientific Atlanta, ADC Communications, Digital Equipment and
North American company Nortel, have contracts to supply network
equipment to telecommunications and Pay (Cable) TV operators.
c) Major Local and Third Country Competitors
Major network equipment competitors include Ericsson of Sweden, and
Alcatel of France. There are also many quality local suppliers, most of
which are subsidiaries of international companies including Ericsson and
Alcatel. Motorola is a major player, with products coming from the U.S.
and Europe.
d) Regulatory/Demand Issues Impacting Market
Industry Development Arrangements (IDA's) apply to CPE, requiring some
local content of the CPE itself, a related telecommunications product,
or requiring R & D on the part of the IDA participant. CPE suppliers
are less limited than previously by joining federal government programs
such as Fixed Term Arrangements (FTA's) or Partnerships For Development
(PFD's), which more generally require the participant to provide a local
content that is agreed to jointly.
CPE and products that connect to the customer side of the network must
be approved by the telecommunications regulator, Austel. Austel-
approved testing houses are located in Australia, Europe and the U.S.
Telecommunications competition is expected to increase after June 30,
1997, when the present industry program ends, and doors are expected to
open for additional carriers and private operators. The market for U.S.
products is expected to expand further as Cable TV operators lay their
foundations, which for some, include the intention to operate local
telephone calls along their Cable TV lines. This would be possible only
after July 1, 1997.
e) Most Promising Sub-Sectors
Digital Network Equipment, routers, mobile phones.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE 1,678 2,043 2,349
B. TOTAL LOCAL PRODUCTION 1,022 1,213 1,395
C. TOTAL EXPORTS 270 378 435
D. TOTAL IMPORTS 926 1,208 1,389
E. IMPORTS FROM THE U.S. 276 337 400
The above figures are unofficial estimates.
RANK: 7 - TELECOMMUNICATIONS SERVICES (TES)
a) Growth Potential for U.S. Exports
U.S. exports of Telecommunications Services are expected to grow by 15-
20% annually. After June 30, 1997, easing of restrictive Federal
government conditions imposed on the telecommunications services
industry will encourage growth further in a more free market
environment. These conditions relate to the general areas of class
licenses and international switching. Details are still under
consideration by the government.
b) Competitiveness of U.S. Exports
U.S. exports are extremely competitive, presently holding approximately
50% of total sales. Major players include AT&T, U.S. Sprint, MCI, and a
host of international Callback suppliers.
c) Major Local and Third Country Competitors
The rest of the market share is held by prominent local companies such
as AAP Telecommunications and Anixcorp, and by international firms
including Singcomm, BT Australia, Telecom New Zealand, and more recently
Telecom Italia.
d) Regulatory/Demand Issues Impacting Market
Presently there are two types of service providers - simple re-sellers
of excess network capacity - and, value-added service providers who
provide voice and data services including EMail, Frame Relay, Voice
Mail, Callback, enhanced fax services, and more. Simple re-sellers may
set up business at any time after arranging for the lease of excess
network capacity, usually from Telstra, Australia's dominant
telecommunications operator. Value-added service providers must apply
to the telecommunications regulator, Austel, for an International
Service Provider's Class License prior to establishing a service. This
is a relatively simple procedure.
The telecommunications service industry presently is limited in that all
international services must use an existing carrier's international
switch. This is expected to change, allowing more open international
access after June 30, 1997. Telstra and Optus are the only two carriers
that now have international switches.
e) Most Promising Sub-Sectors
There are numerous simple re-sellers, and as of February 1, 1995, there
were 46 holders of International Service Providers Class Licenses. The
growth of Callback services has mushroomed during the past 12 months,
with at least 15 representatives of mostly U.S.-based callback companies
active in Australia. This market is expected to peak during the next 12
months. Other growth areas include Frame Relay, Electronic messaging,
and EMail.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL SALES 1,201 1,364 1,569
B. TOTAL SALES BY LOCAL FIRMS 488 531 611
C. TOTAL EXPORTS BY LOCAL FIRMS 300 341 392
D. TOTAL SALES BY FOREIGN-OWNED FIRMS 1,013 1,174 1,350
E. SALES BY U.S.-OWNED FIRMS 638 682 784
The above statistics are unofficial estimates.
RANK: 8 - HEALTH CARE SERVICES (HCS)
a) Growth Potential for U.S. Exports
In 1993, health expenditure by Australian governments and individuals
was A$35 billion, an average of A$1,944 per person. This represented
8.6% of gross domestic product, an increase of 0.8 percentage points
from recent years. Preliminary figures for 1994 health expenditure are
38 billion which is 8.8 percent of GDP. For the period 1975 to 1993
there was an average annual increase of 2 percent spent per year on
health. This was due partly to the ageing of the population, and partly
because of greater use of health services by people of all ages. Health
expenditure has grown at a relatively steady rate, and is much less
dependent on the business cycle than are other sectors of the economy.
b) Competitiveness of U.S. Exports
Statistics on Health Care Services are limited. However, U.S. products
and services are accepted readily in this market. There are 320 private
hospitals in Australia. There is only one foreign-owned hospital group,
Australian Medical Enterprises, whose parent company is Tenet, a
recently formed company in the U.S., following the amalgamation of NME
and AMI hospital groups. Australian Medical Enterprises operates nine
hospitals in Australia with 636 beds. Earlier this year, the Victorian
State Government signed a contract worth A$160 million with the U.S.
subsidiary, Integraph Australia, to provide Melbourne's emergency
services with a centralized communication system.
c) Major Local and Third Country Competitors
The majority of health care services are provided by state governments,
with religious and other charitable institutions fulfilling a
substantial subsidiary role. This is changing as all state governments
are in the process of privatizing parts of their health care sectors.
The companies involved in this process largely are locally-based.
d) Regulatory/Demand Issues Impacting Market
Both Federal and State Governments have policies that require Public
Hospitals to operate within a limited budget. All governments are
privatizing hospital services where they can, e.g. food, cleaning and
waste disposal services. Approval from the various State Departments of
Health is required for health care services.
e) Most Promising Sub-Sectors
Because of the state governments' privatization policies, at present,
the market is in a state of flux. U.S. firms should seek niche markets,
such as computer software with medical applications - hospital
management systems, patient tracking systems, software packages for
general practitioners, and remote area diagnostic systems.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL SALES 8,273 8,204 9,453
B. TOTAL SALES BY LOCAL FIRMS 8,162 8,095 9,337
C. TOTAL EXPORTS BY LOCAL FIRMS 189 190 206
D. SALES BY FOREIGN-OWNED FIRMS 300 299 322
E. SALES BY U.S.-OWNED FIRMS 264 263 282
The above figures are unofficial estimates.
RANK: 9 - DEFENSE EQUIPMENT (DFN)
a. Growth Potential for U.S. Exports
The most recent Australian Defense White Paper, "Defending Australia"
(November 1994), contains three main defense priorities for the
Australian Government: To increase public recognition of the tasks
performed by the defense forces; to emphasize investment in high
technology capabilities; and to continue to pursue a more effective
partnership between defense and Australian (and New Zealand) industry.
A closer dialogue is developing between defense and industry in
Australia. Those firms willing to take part in the consultative process
early in the life of projects will be best placed in the bidding
process. The White Paper forecasts that defense spending will be
sustained at 2% of GDP over the next few years to meet the objectives of
the White Paper, and beyond that, modest real increases will be needed.
b. Competitiveness of U.S. Exports
The U.S. has advanced technology in most areas, and enjoys a strong
position in the market, particularly with regard to air assets, combat
systems, and information technology. Early consultation, particularly
with the military, is essential. Commitment to the market - especially
demonstrated commitment - is very important.
The Commercial Service in Australia follows developments in the defense
section closely, and publishes a quarterly newsletter "Defense Focus".
(See Appendix E.4.)
c. Major Local and Third Country Competitors
There is constant and capable competition from local companies, as well
as from British, Swedish, French, Israeli, Italian and German.
Indonesia recently began making overtures with a STOL aircraft.
Domestic production of strategically important goods and services is
supplied largely from six industry sectors - information technology
(IT); electronics and communications; shipbuilding and repair;
aerospace; ordnance; and vehicles. In electronics and communications,
defense demand for software development and systems integration has
caused a local industry-wide expansion; shipbuilding and repair is
sustained almost solely by defense requirements; in aerospace, defense
has played a significant role in supporting local industry; ordnance is
supplied to defense by Australian Defense Industries, at a premium if
strategically justifiable; and, vehicle requirements are met by a mix of
import and local production.
d. Local Regulatory/Demand Issues Impacting Market
There are no barriers to selling general items through a local
distributor on a regular commercial basis. However, there are important
purchasing policies and procedures applying to defense purchases with
which suppliers should be familiar before submitting a tender. This
information is available readily from the Department of Defence.
e. Most Promising Sub-sectors
Sensors for detection, definition, target tracking and acquisition,
electronic self-protection and surveillance. Precision weapons, UAVs,
submarine-launched missiles, AEW&C, and, increasingly, upgrades are
considered to be most promising.
In the most recent list of major capital equipment projects proposed by
the Department of Defence for government funding, the highest value
prospects are: offshore patrol combatants; AEW&C; the soldier as a
combat system; ground-based air defense weapons system; tactical
airlift; frigate progressive upgrade; lead-in-fighter; field vehicles &
trailers; naval helicopters; aerial reconnaissance and surveillance;
F/A-18 upgrade; HF radio modernization; space based surveillance;
infantry mobility vehicles; and heavyweight torpedoes.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE
(capital budget) 2,757 3,070 3,150
B. TOTAL LOCAL PRODUCTION 1,797 1,995 2,016
C. TOTAL EXPORTS 60 75 90
D. TOTAL IMPORTS 960 1,075 1,134
E. IMPORTS FROM U.S. 670 750 790
The above figures are unofficial estimates.
RANK: 10 - SAFETY & SECURITY EQUIPMENT (SEC)
a. Growth Potential for U.S. Exports
Prospects for U.S. companies in the Australian security and safety
industry remain encouraging with the steady demand for state of the art
products in surveillance equipment, perimeter control and monitoring,
identification devices, access control equipment, electromagnetic locks,
digital signal processing CCTVs, and computer security systems. Market
growth is around 5% per annum.
b. Competitiveness of U.S. Exports
Australia is a mature market for safety and security equipment and
systems. There is indigenous production and research, combined with
imports from the U.S., Europe and Japan. The U.S. is in a strong
position, supplying needed equipment such as access control systems,
closed circuit television systems, general alarm systems, security
doors, etc. The Australian Security Industry Association Limited
(ASIAL) maintains close contact with its U.S. counterpart. With the
advances in processor technology, the market is likely to become
increasingly competitive. As U.S. military technology becomes
decontrolled further and/or becomes commercially available, the market
for these technologies - as in the U.S. - will grow for civilian safety
and security applications.
c. Major Local and Third Country Competitors
Japan is a major competitor in CCTV and video systems. Local
manufacturers pose a significant challenge in the marketplace for most
types of safety and security equipment. Countries with a reputation for
quality of manufacture enjoy stronger positions because of the need for
reliability in this type of equipment.
d. Regulatory/Demand Issues Impacting Market
Incapacitating or repellent sprays are illegal in Australia, preventing
the use of mace-type and Oleoresin Capsicum sprays, which are popular in
the U.S. There are strict firearm laws in all Australian States
restricting possession of firearms, concealable weapons and electronic
stun devices.
e. Most Promising Sub Sectors
Personal protection items such as stab and needle-proof gloves and non-
ceramic body armor; computer network security systems; neural network
computing systems; environmental monitoring; surveillance systems.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE 806 847 897
B. TOTAL LOCAL PRODUCTION 260 282 302
C. TOTAL EXPORTS 50 55 62
D. TOTAL IMPORTS 596 620 655
E. IMPORTS FROM THE U.S. 355 365 380
The above figures are unofficial estimates.
RANK: 11 - AIRCRAFT AND PARTS (AIR; APG; AVS)
a. Growth Potential for U.S. Products
Prospects for the aviation market are good in Australia due to the
soundly based general aviation market; the commitment of the Government
to a modern, well equipped air force; and, its determination to promote
Australia as an international hub for the Asia-Pacific region.
Australia's population of just under 18 million is clustered in six
major urban areas remote from one another; its agricultural community
extends over vast distances; and access to regional neighbors is by air.
Australians travel by commercial aircraft routinely and often. In
addition, Australia has one of the highest per capita uses of light
aircraft in the world.
The market is fairly small by world standards. Aviation industry
turnover is estimated to be about one percent of that of the U.S.
However, it is a highly diversified and fairly deregulated market,
facilitating imports. There are around 9,500 aircraft registered in
Australia, representing 150 different manufacturers and a wide range of
models. Almost all aircraft, and many of the associated parts and
accessories, are imported. The U.S. holds market share of up to 90 per
cent in some subsectors. The market is relatively constant. Annual
growth in the number of aircraft over the past five years has varied
between one and two per cent, and is expected to grow by between 2 and 3
per cent per annum until 2000. As there is no indigenous aircraft
production, market demand is driven by the need for maintenance,
replacements, retrofitting, spare parts and service.
b. Competitiveness of U.S. Exports
American corporations can maximize business through sole
distributorships. Multiple distributors tend to compete strongly with
each other in the market and thereby reduce profitability. Factors that
give a competitive edge are product performance and functional ability,
after-sales service and spares. Good distribution is a prerequisite for
new entrants, along with competitive price, quality and reliability.
c. Major Local and Third Country Competitors
Australian firms are not offered incentives to manufacture locally.
Therefore, competition from local manufacturers for much of this
equipment is negligible. However, there are some niche areas, such as
ground-based guidance systems, where local expertise poses strong
competition.
Third country competitors include the U.K. (British Aerospace); France
(Thomson, Airbus); Sweden (CelsiusTech), and Japan (Sony, Matsushita).
d. Regulatory/Demand Issues Impacting Market
Australia is a signatory to the international Civil Aviation
Organization (ICAO), and has adopted the U.S. Airworthiness Codes and
the Operational and Airworthiness Regulations, which are published in
the Air Navigation Order (ANO). The U.S. Technical Standards Order
(TSO) is accepted in Australia. Due to the lack of local production,
there is no import duty or sales tax on most imported aviation and
avionics products.
e. Most Promising Sub-sectors
Defense:
In the breakdown of potential major capital equipment projects proposed
for funding by the Australian Department of Defence, a number of
projects present opportunities for the inclusion of avionics, aviation,
or ground support equipment. For example, GPS/Navstar for forces general
aviation; aerial surveillance and fire support equipment; an AEW&C
system; a lead-in fighter/trainer aircraft; tactical air defense radars;
upgrades of communications, radar and navigation equipment in military
aircraft.
Civil:
GPS has experienced recent growth rates approaching 15 percent annually.
Former Chairman of the Civil Aviation Authority, Dick Smith, predicts
that the demand will move toward GPS with ground-based reference. Fuel
management systems linked to GPS, which enable close management of fuel
loads and fuel consumption projections and usage, are likely to be the
next best prospect subsector because of the usefulness in general
aviation cost control.
The Traffic Alert Collision Avoidance System may have potential,
although Australia does not now regulate this requirement.
General aviation is moving towards the installation of data storage
devices (equivalent to ramdrives) to accept database overlays that are
provided internationally by Jeppeson.
Aircraft radios currently are in strong demand in the north of
Australia.
DATA TABLE (Millions USD)
1994 1995 1996
TOTAL MARKET SIZE 730 745 756
TOTAL LOCAL PRODUCTION 70 75 82
TOTAL EXPORTS (INCL. REEXP.) 20 30 38
TOTAL IMPORTS 680 695 710
IMPORTS FROM U.S. 538 545 554
The above figures are unofficial estimates.
RANK: 12 - LABORATORY & SCIENTIFIC EQUIPMENT (LAB)
a. Growth Potential for U.S. Exports
In common with most industrialised economies, the Australian scientific
sector is focusing increasingly on applied research aimed at improving
economic output. The introduction by the GOA of Cooperative Research
Centres (CRCs), with the purpose of merging the research and managerial
talents of universities, government research organizations, and industry
to produce industry-specific results has reinforced this trend. In the
1995 Australian Budget, $US 100 million was allocated to 61 CRCs, with
particular attention being paid to energy and mineral research, medical
and health, food and agriculture, and manufacturing industries. In this
climate, the market for U.S.- manufactured sophisticated scientific
equipment will continue to grow significantly.
b. Competitiveness of U.S. Exports
Most laboratory equipment is imported, with U.S. products having a high
acceptance on technical and cultural grounds. There is no significant
price advantage or disadvantage attached to U.S. products, when compared
with third country suppliers.
c. Major Local and Third Country Competitors
Although Australia traditionally has been a highly inventive nation,
with many new scientific patents being awarded to Australian
researchers, the local manufacturing sector is slow to take advantage of
these developments. Much local manufacture is conducted by subsidiaries
of multi-national corporations. Apart from the U.S., the main suppliers
to the Australian market are Germany, the U.K. and Japan.
d. Local Regulatory/Demand Issues Impacting Market
The market for laboratory equipment is growing at approximately 6%
annually. The National Association of Testing Authorities (NATA)
estimates there are more than 10,000 laboratories in Australia. Of
these more than 25% are NATA certified, comprising laboratories from the
medical, wool, construction materials, minerals and energy research
areas. U.S. suppliers should be particularly aware of the requirement
that equipment conform to Australian electrical standards.
e. Most promising sub-sectors
The Australian laboratory equipment market is scientifically
sophisticated, with a demand for the latest technology in analytical and
monitoring instruments and systems. The most promising areas include
energy and mineral research, medical and health, food and agriculture,
and materials testing equipment.
DATA TABLE (Millions USD)
1994 1995 1996
TOTAL MARKET SIZE 962 1,133 1,216
LOCAL PRODUCTION 321 337 352
EXPORTS (INCL. RE-EXPORTS) 178 189 201
TOTAL IMPORTS 819 985 1,062
IMPORTS FROM U.S. 316 341 382
The above figures are unofficial estimates.
RANK: 13 - BIOTECHNOLOGY (BTC)
a. Growth Potential for U.S. Exports
The Australian biotechnology industry is experiencing steady growth for
biological products (12 percent annually), with significant (but
immeasurable) increases in research, development and commercialization
activities over the past three years. Future growth of the biotechnology
sector in Australia will be based on specialized products and related
R&D funding made available by federal and state agencies and private
enterprises. Australia is not in a position to challenge multinational
companies, but rather to work with them to bring their products to
market. Australia's strength in scientific research puts it in a
leading position to participate in the exploitation of what is a
resurgent domestic biotechnology industry. The industry is undergoing a
transition towards increased commercialization, and is uniquely placed
for rapid growth in development, given the right impetus from
international, market-oriented partners.
b. Competitiveness of U.S. Exports
Because of Australia's advanced state of development in this industry
sector, only the latest, top quality biotechnology products and R&D
skills are in demand. As such, the U.S. stands in a leading position to
maintain its competitive edge over European rivals. The U.S. has more
enterprises and scientists and engineers involved in biotechnology R&D;
it has an enviable industrial base; a strong basic research capability
in biomedical sciences; and, excellent research universities. As these
strengths are well known, local industry prefers to draw from U.S.
resources as a first choice. The favorable rate of exchange between the
U.S. And Australia adds further impetus for prospective buyers, despite
the practice of price cutting by suppliers anxious to penetrate the
market.
c. Major Local and Third Country Competitors
Though not large in numbers, Australia has a comprehensive, albeit
compact, resource base of professionals engaged in biotechnology
activities. There are an estimated 60 manufacturers of biotechnology
products and 36 importers and distributors, with an extensive number of
companies providing support services to the industry. The market for
traditional biological products is so well supplied by local
manufacturers that there is little room left for any effective
competition from the U.S. or third country suppliers. Opportunities,
however, do exist for non-traditional biological products (such as amino
compounds, diagnostic reagents, blood fractions, antisera, cell and
tissue culture, hormones, monoclonal antibodies and diagnostic kits for
human and animal use). The U.S. is the leading supplier in this field.
While this position is being held comfortably, some challenges are
emerging from Germany, France and Sweden.
d. Regulatory/Demand Issues Impacting Market
There are no major impediments to market entry, nor are there
difficulties in product distribution. Some requirements, such as
stringent certification standards and acceptance of testing data, are
perceived by those engaged in biological pharmaceutical trade to be non-
tariff barriers. U.S. origin products, however, enjoy more
acceptability than do those from other European sources. While product
approval must be obtained from various regulatory bodies, overall, the
government has acted to provide an internationally competitive
regulatory environment for biotechnology. Approvals of biological
products originating from the U.S. usually are granted readily because
Australian regulations are based on U.S. requirements. In addition to
regulatory compliance, it is imperative that intellectual and/or
industrial property protection be sought for any R&D work undertaken.
In other words, "patent or perish".
e. Most Promising Sub-Sectors
Present trends for product development that would lend themselves best
to commercial opportunities are in the areas of manufacturing
technology, agriculture- and rural-based manufacturing, the environment,
and medical science and technology. In the field of biological products,
the following items continue to be in demand: enzymes and amino acids;
primary metabolites; emulsifiers; antiparasitic vaccines; peptides and
antibodies; cultures; kits for production of monoclonal antibodies; and
diagnostic reagents and kits.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE 905 940 965
B. TOTAL LOCAL PRODUCTION 466 545 615
C. TOTAL EXPORTS 402 494 575
D. TOTAL IMPORTS 841 889 939
E. IMPORTS FROM THE U.S. 112 118 126
The above figures are unofficial estimates.
RANK: 14 - FOOD PROCESSING/PACKAGING EQUIPMENT (FPP)
a. Growth Potential for U.S. Exports
With predictions that by 2000, Asia will have nearly as many affluent
consumers (230 million) as the U.S. or Western Europe, the growing Asian
processed food markets are seen as very lucrative for Australian food
processors. Exports of highly processed foods to Asia are expected to
play a major role in an Australian export goal of US$ 4.9 billion by
2000. New processing facilities, packaging techniques, and more
sophisticated market skills will be required to meet this potential and
to remain competitive. Export growth in both the food processing and
packaging sectors is expected to drive Australian based-firms to invest
heavily in new plant and equipment. This investment in capital
expenditure, estimated to be growing at 12-15 percent annually for both
domestic and export requirements, represents a key growth market for
exports of technologically advanced U.S. equipment and American direct
investment will be welcomed.
b. Competitiveness of U.S. Exports
Some Australian industry sources interviewed expressed the opinion that
U.S. food processors had gained U.S. market share through merger and
acquisition activities, and not through technological improvement of
their basic food processing and packaging equipment. This was cited as
a contrast to the European competitors who were regarded to be striving
constantly to improve their equipment offerings. Whether or not this
opinion has merit, it is interesting to note that, compared with other
technology sectors, such as telecommunications or computers, U.S. market
share in the food processing and packaging sectors is relatively small,
at 20 percent. While U.S. equipment is top-rated on functionality,
reliability and price competitiveness, European equipment, which is
sleeker and more modern in design, often wins the final bid.
c. Major Local and Third Country Competitors
There is a relatively small number of major domestically owned food
processing companies, but there are several well- established packaging
firms. Significant competition comes from European imports that are
favored as more reliable and technologically advanced. The leading food
processing and packaging suppliers in Australia are: Germany, with
around 25 percent market share; Italy, following the U.S. with 19
percent; Japan, with 6 percent; and Switzerland, with 5 percent. Other
players in niche segments are the U.K., Sweden and the Netherlands. A
major contributing factor to the relatively low U.S. market share is
that U.S. firms generally are unaware of sales potential in Australia,
and haven't marketed themselves vigorously enough.
d. Regulatory/Demand Issues Impacting Market
American exports are free to enter Australia and there are no hidden
barriers to entry through non-tariff trade barriers or difficulties in
distribution. Australia has a clearly defined tariff policy that
applies to the importation of capital goods from developed and
developing countries. A sales tax of 21 percent is levied on the value
of imported goods. However, depending on the relationship of the
importer to the end customer via the distribution channel, the importer
is not necessarily responsible for paying this tax.
e. Most Promising Sub-Sectors
Most promising sub-sectors that have been identified include: food
scanners, printers, robotics, software, consulting, microwaves, ultra
high temperature and extended shelf life packaging, and biotechnology.
Additional equipment includes packaging machinery, weighing machinery,
dairy machinery (especially milk preparation for packaging), milling,
sorting and grading machinery; and machinery for the industrial
preparation or manufacture of food and drink, especially new packaging
techniques and processing technology.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE 168 192 216
B. TOTAL LOCAL PRODUCTION 40 46 51
C. TOTAL EXPORTS 83 97 109
D. TOTAL IMPORTS 211 243 269
E. IMPORTS FROM THE U.S. 43 50 54
The above figures are unofficial estimates.
RANK: 15 - CONSTRUCTION EQUIPMENT (ENGINEERING AND NON-RESIDENTIAL
(CON)
a. Growth Potential for U.S. Exports
With the Australian economy again rapidly expanding, the outlook for the
construction industry (engineering and non-residential) is for a return
to steady overall growth. Engineering construction activity for year
ended June, 1995, is estimated at US$8.7 billion, and forecast at US$8.9
billion for 1996. Infrastructure accounts for about 80 percent of all
engineering construction work. A number of longer-term programs are
being undertaken by State Government authorities. The balance is
construction for mining and industry. Further growth in heavy
industrial construction is expected, although not across such a wide
range of industrial activity as in the past.
The non-residential construction industry is on course for a period of
sustained overall growth. Activity for the fiscal year ended June,
1995, is estimated at US$6.45 billion, with US$6.8 billion forecast for
1996. Hotel, retail, and industrial sectors are expected to maintain
strong growth, particularly in South Australia, New South Wales, and
Queensland. However, counter to the overall trend, some reduction in
office building prospects is likely once outstanding projects are
completed (except in Queensland where the office vacancy rate is lower).
Government construction growth is expected to be limited as all levels
of Government attempt to reduce their budget deficits.
Logically, the market for construction equipment depends on the state of
the construction industry and, accordingly, the outlook for this
subsector is good. Imports dominate the Australian market and the U.S.
has a 32 percent market share. Imports from the U.S. for 1995 are
estimated at US$172.2 million, with US$193.6 million estimated for 1996.
Due to increased construction activity (both private and public), new
opportunities are emerging and creating room for new U.S. entrants to
the Australian market. While three recent interest rate rises totalling
2.75 percent may affect confidence in some building sectors, these are
not expected to have a great effect on the construction industry in the
longer term.
b. Competitiveness of U.S. Exports
In the import market, the U.S. competes actively with Japan, which has a
market share of 39 percent. The market image of U.S. manufacturers is
good, and their spare parts support is considered to be the best in the
world. However, there is a wider range of Japanese-made equipment
available, some more technologically advanced than American, and Japan
currently holds the number one sales position in this market.
c. Major Local and Third Country Competitors
Australia is strongly dependent on imports, which account for
approximately 90 percent of the entire market. Domestic production
largely comprises attachments such as buckets, tractor tires, wheels and
rims, and cabs. Caterpillar is the only international company
manufacturing equipment in Australia. Local firm Favelle Favco Cranes
Pty. Ltd. designs and manufactures very heavy cranes (tower, offshore,
and special application cranes). Mobile cranes under 15 tons capacity
are also manufactured in Australia, principally by Franna Cranes.
Major Japanese suppliers are Komatsu, Hitachi, Kobelco, Kawaski, Kato,
and Furuka. Germany has an import share of seven percent, the main
supplier being Liebherr. The United Kingdom has a market share of six
percent, led by JCB and MF Industrial. Korean firms such as Daiwoo,
Hyundai, and Samsung are starting to make inroads into this market.
d. Local Regulatory/Demand Issues Impacting Market
No tariff or other non-tariff barriers exist for imported construction
equipment. Import licenses are no longer obligatory for all used
earthmoving equipment and replacement parts. This requirement was
removed in 1990, enabling used equipment to penetrate the Australian
market with greater ease.
e. Most Promising Sub-Sectors
Hydraulic excavators, wheel loaders/articulated four-wheel drive front
end loaders, and backhoe loaders are considered to have the best
prospects. These three categories currently comprise 75 percent of the
total market for construction equipment and should have further growth
potential.
DATA TABLE (Millions USD)
1994 1995 1996
A. TOTAL MARKET SIZE * 419.8 458.3 513.1
B. TOTAL LOCAL PRODUCTION * 31.5 32.8 35.5
C. TOTAL EXPORTS * 60.2 65.6 73.6
D. TOTAL IMPORTS 448.4 588.6 549.4
E. IMPORTS FROM THE U.S. 158.0 172.2 193.6
The above figures are unofficial estimates.
* Local production figures are lower than exports because some firms
operating in Australia tend to import complete units, or add to, and
then re-export, using Australia as a springboard to Pacific Island
regions. Consequently, the total market figures are also lower than
imports because of this re-export activity.
B. AGRICULTURE BEST PROSPECTS
Australia has educated, affluent consumers, willing to try new products.
The population has a growing number of newly arrived immigrants from all
over the world, bringing with them expanded and diverse dietary tastes.
Foreign travel is relatively common, especially by the generation now
entering the work force, and these consumers have broadened their
culinary horizons. Australian demographics are similar to those in the
United States, with a large number of two income families and a
consequent need for more highly processed and consumer-ready foods.
Ownership of microwave ovens also is very widespread. Australian
consumers are oriented towards the same factors that U.S. consumers seek
- freshness, wholesomeness and healthy lifestyles. To a large extent,
they are prepared to pay extra for these qualities.
Not surprisingly, given Australia's large agricultural base, market
prospects for U.S. food products are best in areas drawing on innovative
products, economies of scale, and the U.S. position as a counter-
seasonal supplier of fresh product. Total exports of U.S. food,
forestry and fishery products reached almost $500 million in 1994, yet
another record. The nature of commodities exported from the United
States has changed in recent years, moving towards increased levels of
intermediate and consumer- oriented food products.
The United States faces competition in this market from European and
Canadian suppliers, as well as from speciality suppliers in other Asian
countries. Domestic production also is well established, and growing in
product lines. There is considerable foreign investment in the
Australian food sector, with many large multinational companies present.
The Australian dollar tends to track closely movements of the U.S.
dollar, so recent swings in exchange rates should favor U.S. exporters
over European competitors.
In the bulk commodity area, Australia has had to import significant
quantities of feed grains, oilseeds and oilseed meal and other prepared
animal feedstuffs in response to severely reduced domestic
availabilities after a severe drought. Imports of these commodities in
1995 should exceed the levels of 1994, and reach around U.S. $150
million. With the return of rain, imports of these commodities should
fall back in 1 1994 1995 1996
996 to a more normal level of around U.S. $50 million. In the longer
run, changes in the domestic feeding industry will open up prospects for
increased trade in these products. But, this will require additional
time, and reform in the domestic grain industry.
BEST PROSPECT SECTORS FOR U.S. EXPORTERS TO AUSTRALIA
(figures in metric tons and US$1000)
EXCHANGE RATE: 1994 A$1.36 = US$1.00
1995 A$1.37 = US$1.00
1996 A$1.30 = US$1.00
RANK: 1 FROZEN VEGETABLES
1994 1995 1996
a. TOTAL MARKET SIZE (MT) 305,619 318,000 334,000
b. LOCAL PRODUCTION (MT) 271,430 279,430 290,000
c. TOTAL EXPORTS (US$) 4,900 5,047 5,551
d. TOTAL IMPORTS (US$) 25,124 26,128 27,173
e. TOTAL IMPORTS FROM U.S.(US$) 3,205 3,526 4,000
RANK: 2 BEVERAGE BASES
a. TOTAL MARKET SIZE (MT) 300,000 312,000 325,000
b. TOTAL LOCAL PRODUCTION (MT) 182,142 187,606 193,234
c. TOTAL EXPORTS (US$) 3,661 3,700 3,811
d. TOTAL IMPORTS (US$) 152,100 158,200 166,100
e. TOTAL IMPORTS FROM U.S. (US$) 113,176 119,000 125,000
RANK: 3 SNACK FOODS
a. TOTAL MARKET SIZE(US$) 480,000 500,000 520,000
b. TOTAL LOCAL PRODUCTION NOT AVAILABLE
c. TOTAL EXPORTS (US$) 35,557 36,624 37,700
d. TOTAL IMPORTS (US$) 67,685 70,392 73,208
e. TOTAL IMPORTS FROM U.S.(US$) 12,303 13,500 14,900
C. SIGNIFICANT INVESTMENT OPPORTUNITIES
1. PRIVATIZATION
Privatization and the accompanying deregulation of government-owned and
-operated enterprises, as well as corporatization, are now a reality at
the federal level, and in every Australian state. As a political
consensus has developed to sell-off public assets, major business and
investment opportunities are emerging. The agenda for asset sales
varies, and invariably tends to reflect each state's financial status.
Between now and 1998, major privatization initiatives are expected in
industries as diverse as financial services, pharmaceutical, prisons,
public utilities (electricity, gas, water, roads), shipping, airlines
and aerospace technology. These federal and state government asset
sales are valued at an estimated US$7.9 billion.
After a long history of government involvement in, and ownership of,
public facilities and services, privatization currently is in vogue at
both the national and state levels in Australia. Over the next few
years, opportunities for U.S. business will include equity participation
in public offerings or private placements; contracting of services
formerly provided by government; and development of infrastructure.
The funds raised or released by privatization will improve government
ability to finance continuing social and economic commitments, or to
retire debt. They also will be used in the revitalization of
Australia's infrastructure.
2. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS
The Commercial Service in Australia monitors closely plans for
privatization, corporatization, upgrades and major infrastructure
development projects and reports opportunities regularly in the National
Trade Data Bank (NTDB).
a. AIR TRANSPORT
Sydney's second airport, at Badgery's Creek in the rapidly
expanding Western Sydney region, has been fast-tracked for development
by the Department of Transport. There is potential for U.S. companies
to supply equipment and systems for the new airport and terminal, to be
operating by the year 2000. The estimated cost is $400 million, plus
associated road and rail infrastructure. The new airport may operate as
a private airport under a Federal Government proposal to sell off its
airports on a phased basis.
The staging in Sydney of the Olympic Games in the year 2000 is expected
to boost air transport movements through airports on the east coast of
Australia, particularly through Sydney, already the major international
gateway. Up to 1.3 million extra tourists are expected as a result of
the 2000 Olympics, stimulating the demand for accommodation and tourism
infastructure.
The Australian airline, Qantas, will be offered for sale in August,
1995, with a float of 1 billion shares in an estimated $1.5 billion
float. British Airways owns 25 per cent of Qantas, and a further 24 per
cent will be available for foreign ownership under recently amended
regulations, 10 percent to a single foreign airline.
b. RAIL/ROAD TRANSPORT
New South Wales
North Coast Road Tollways
The Government has committed to a project to finance, design, construct,
operate and maintain the tollways on the New South Wales north coast
road corridor. Cost is estimated at US$462 million.
Light Rail
Tenders have closed for the provision of a light rail transit system to
serve near-city suburbs of Sydney. The light rail will service 300
hectares of land adjacent to the central business district, the Sydney
Casino site, residential and retail areas, and a proposed heliport. The
land has been targeted for development under the City West Urban
Strategy plan.
Sydney City-Airport Link
A dedicated rail link between the Sydney central business district and
the international airport is being negotiated between CRI/Transfield and
the New South Wales Government. The project is expected to cost in the
region of US$500 million.
Queensland
Queensland Railways
The Ensham Coal Rail Project will enable efficient transportation of
coal to the port of Gladstone. Stage 1 has been completed, with stages
2 and 3 due for completion 2000. Total project cost is US$105 million.
Victoria
Melbourne City Road Link Project
City Link will connect Melbourne's major arterial roads - Tullamarine
Freeway, West Gate Freeway, and the South-Eastern arterial road. This
US$1.3 billion project, which will involve two tunnels, a new bridge,
demolition of existing buildings, construction of new roads, and
electronic toll equipment, will take five years to complete.
c. SEA TRANSPORT
Queensland
Port of Brisbane Authority
Fisherman Islands port development will double the general cargo and
container berth lengths and improve other facilities, including
efficient road and rail linkages to the port. The project will be under
development until the year 2005.
d. TELECOMMUNICATIONS
The telecommunications carriers of Telstra, Optus and Vodaphone continue
to consolidate their networks by expanding and upgrading. None of these
companies go to public tender for the work. Telstra has announced a
list of "preferred suppliers" from which it sources network equipment
and other infrastructure. Telstra works closely with its preferred
suppliers to implement long-term network strategies. Optus invites
companies to tender privately for future development, normally requiring
the selected company to sign a nondisclosure agreement for some time
after selection. Vodaphone also requests companies to tender privately
for the development of its network infrastructure.
Telstra is the only telecommunications carrier in Australia operating a
public domestic network. It continues to digitize this network,
planning to spend $2.8 billion over 5 years. Telstra also operates an
analog and digital mobile phone network. The analog network is well
established, and will be phased out gradually over five years. The
digital network is under construction, with most major centers having
some digital coverage at this stage. In a venture known as Foxtel,
Telstra, in partnership with Rupert Murdoch's News Ltd., is also
building a cable TV network in major Australian centers. Several other
cable TV networks also are under development.
Optus leases part of Telstra's analog mobile phone network and is
presently constructing its own digital network that will operate
Australia-wide alongside Telstra's. Optus Vision is constructing a
cable TV network using fiber optic cable and digital technology. Optus
hopes to run domestic phone lines along its cable TV service after June
30, 1997, when the present, reasonably restrictive, telecommunications
structure is expected to be liberalized.
Vodaphone is establishing a digital mobile phone system in Australia's
major cities and surrounding areas.
The Federal Government is expected to announce Australia's future
telecommunications industry strategy toward the end of 1995. This, in
turn, should prompt additional telecommunications projects as industry
competition increases.
e. ENERGY
The traditional (state) government-owned utilities in Australia are in
the midst of unprecedented changes. Reforms in electricity, gas, water,
and pipelines are being embraced in almost every State. As part of the
reform process, many assets have been earmarked for sale (both trade
sale and initial public offerings). The following is a brief outline of
the extensive changes occurring in each industry across Australia that
may result in significant investment opportunities. Total value of
sales of utility assets is estimated to be approximately $8.7 billion.
Victoria
Electricity reform in Victoria is the most advanced. Of the five
electricity distribution businesses in Victoria, United Energy, is
expected to be sold via a trade sale by July, 1995, with a subsequent
partial float expected within 12-18 months. The remaining four
businesses will be sold by December, 1995. At least one of the five
generation assets in Victoria will be sold before the end of 1995
(possibly Yallourn W). A trade buyer will purchase the two natural gas
turbine power stations of Jeeralang and Newport D. Power Net Victoria,
and the Victorian Power Exchange also are to be sold.
Following the disaggregation of the Gas and Fuel Corporation of Victoria
into the Gas Transmission Company (high pressure gas pipelines) and
Gascor (distribution and marketing operations) it is likely that the
distribution and marketing activities will be sold. Privatization plans
for GFE Resources Ltd (formerly Gas and Fuel Exploration) were prepared
for a float but it was deferred due to adverse conditions.
Privatization initiatives have been revisited, and sale is expected by
December, 1995. A new 132km gas pipeline between Victoria and New South
wales will be on line by the year 2000.
The Melbourne Water Corporation has been separated into three regional
distribution companies and ultimately will be privatized.
Queensland
The Queensland Government has developed a US$1.8 billion strategy for
meeting future energy demands that will involve significant new
infrastructure developments in both electricity and gas, coupled with a
range of energy conservation measures, and several renewable energy
projects. The Government has separated the generation of electricity
from the transmission and distribution functions. Generation is now
Austa Electric, and transmission and distribution is Queensland
Transmission and Supply Corp. Gas distribution is held by Allgas Energy
Ltd. and the Gas Corporation of Queensland (Boral). There are four gas
pipelines planned for Queensland. Private sector involvement in
generation has been encouraged, and two power stations have been sold -
Gladstone (NRG Australia) and Collinsville (NRG and Transfield). Sithe
Energies is planning a 300-660 MW station, and Energy Equity, a 38MW gas
fired power station.
New South Wales
The new Labor government in New South Wales plans to reform its power
industry. The changes will close most existing electricity distribution
companies. Pacific Power will be split into three competing generator
companies. The number of distribution companies will be slashed from
25, to 7 or 8. The changes will prepare NSW for the start of the
National Electricity Grid connecting NSW, Victoria and South Australia.
A Moomba-to-Sydney pipeline is already under construction.
Western Australia
The State Energy Commission was responsible for both electricity and
gas. Western Power now handles the separation of generation,
transmission and distribution. There are four private generation
companies, BHP-Port Headland, Goldfields Power JV, BP and Mission
Energy, and Pacific Hydro-Lend Lease. AlintaGas handles the separation
of transmission and distribution, and is expected to be privatized
within two years. Eastern Goldfields in building their own pipeline,
but many others are being built by private industrial companies.
South Australia
The State Government has announced its plans to encourage private sector
involvement in the provision of traditional government provided
services, particularly in the electricity and water industries.
Electricity is still provided by the government-owned Electricity Trust
of South Australia. Tenneco recently bought into the South Australia
Pipeline authority with other consortium partners. Government has
issued expressions of interest for the provision of private Build Own
Operate (BOO) water treatment plants.
Northern Territory
The Northern Territory Power and Water Authority (PAWA) is a "one-stop"
utility. It was formed in 1987 as a result of the amalgamation of the
NT Electricity Commission and the NT Water Authority, and is responsible
for the provision of electricity; water and sewage services; water
resource management; and, advisory services. It also manages the
purchase and sale of gas, and investment in NT Gas Pty Ltd and Amadeus
Gas. The PAWA of NT have been proactive in encouraging private sector
involvement in the utility industry. Private sector participants
include NT Gas Pty Ltd (96 per cent AGL, 4 per cemt PAWA); NT Power Pty
Ltd; NT Power Pty. Ltd; AGL Pipelines; Energy Developments Ltd; Energy
Equity Corp Ltd; and Powercorp Pty Ltd.
Tasmania
The Hydro-Electric Commission (HEC) of Tasmania launched a major
commercialization program on March 1, 1992. The HEC has been split into
six business units comprising generation, transmission, retail,
corporate, engineering, and operations support. Construction of large
hydropower stations has been completed. Thus, the State's role in the
future development of generation capacity should diminish. The issue
dominating electricity reform in Tasmania is the ADols 410 million Bass
Link proposal. The Rivers and Water Supply Commission is responsible
for the water industry, and there are no signs of altering this
structure.
Australian Capital Territory (ACT)
The ACT Electricity and Water Authority (ACTEW) was established in 1988.
Its primary functions are to supply and manage electricity and water,
collect and treat sewage, and provide sewage services. There are no
current plans for privatization, but it has operated on a commercial
footing for a number of years.
f. WATER AND SEWERAGE
Australian State Governments are restructuring government-owned water
and sewerage enterprises. For example, Sydney Water has been renamed,
and is in the process of corporatization. Four water filtration plants
are being constructed on a Build Own Operate (BOO) basis by three
consortiums. There are significant opportunities for private sector
participation, as follows:
New South Wales
- US$183 million upgrade of the Warragamba dam, Australia's
largest water dam;
- Continuing upgrade of water treatment plants to improve drinking
water quality and supply
- Upgrade of ocean sewerage outfall plants.
Victoria
- Supply of 900 multi-unit remote onsite water metering systems for
new multi-unit apartment complexes.
Queensland
- US$7.3 million major urban wastewater management study of the
state's rivers and creeks;
- US$163 million allocation of funds for the development of water
infrastructure to meet priority water needs throughout the State.
South Australia
- US$73 million development of water filtration plants;
- US$511 million progressive development scheme up until 2000, covering
the state's water-resource needs, sewage plant upgrade, and mains
network programs.
Western Australia
- the Water Authority of Western Australia has an annual capital works
program of approximately US$185-200 million for water and sewerage
management and upgrade.
G. BUILDING AND CONSTRUCTION
A number of major projects are timed to be completed before the year
2000, with a surge of construction activity expected in Sydney in the
two years leading to the Olympic Games. Hotel, retail, and industrial
construction is expected to maintain strong growth, particularly in
South Australia, New South Wales, and Queensland. Major projects
include:
New South Wales
- Sydney Casino. The Sydney construction and property management company
Leighton Holdings, in conjunction with Las Vegas company Showboat Inc.,
will build, own, and operate Sydney's first Casino. The complex will
include a 350-room five-star hotel, 139 luxury serviced apartments, 14
restaurants, convention facilities, theater, and retail outlets.
Estimated cost: US$729 million. Due for completion in 1997.
- Film Studio Complex. Proposed film studio complex to be built on a
nine hectare site at the Royal Agricultural Showground. The complex is
expected to include at least three sound stages and additional
facilities, e.g. film processing laboratories and post production areas.
- Broadway Regional Shopping Centre. A former department store site
will be transformed into a regional shopping centre incorporating a
supermarket, cinemas, specialty shops, jazz club, and student housing.
Estimated cost: US$109 million. Due for completion early 1997.
- Office/Hotel Complex at General Post Office. Australia Post will add
a 24-level office building and a 16-level 337-room hotel complex to its
General Post Office Building at No. 1 Martin Place. Estimated cost:
US$109-145 million. Due for completion early 1999.
Victoria
- Melbourne Casino. Proposed casino and entertainment complex.
Estimated cost: US$546 million. Due for completion late 1996.
- Exhibition Centre, Southbank, Melbourne. Proposed center of
approximately 30,000 square meters. Estimated cost: US$87 million.
Due for completion late 1995.
- Museum of Victoria. New building to be constructed adjacent to the
present Royal Exhibition Building. Estimated cost: US$182 million.
Due for completion in 2000.
Queensland
- Reef Casino, Cairns. Incorporating a 128-suite five-star hotel.
Estimated cost: US$160 million. Due for completion in 1996.
- Cairns Convention Centre and Hotel. Proposed convention center
consisting of seating for at least 2,500 people, function rooms, and
exhibition facilities; five-star hotel to be built next to the
Convention Centre consisting of eight levels. Estimated cost: US$83
million. Due for completion in 1996.
South Australia
- Westfield Shoppingtown Plazas. Proposed refurbishment and extensions
of existing centers, plus new facilities to include a cinema, department
store, supermarket, and specialty shops. Estimated cost: US$182
million. Due for completion in 1997.
Western Australia
- Port Geographe Marina Resort, Busselton. Proposed resort to be built
around a system of canals consisting of a 200-room hotel, apartments and
houses, 5000 square meters of retail space, and a 300 berth marina.
Estimated cost: US$116 million.
- FAI Residential, Commercial, and Hotel Complex. Estimated cost:
US$218 million. Due for completion around 2001.
H. SYDNEY OLYMPIC GAMES FACILITIES
The New South Wales Government is keen to obtain private sector
involvement in the Sydney 2000 Olympic Games facilities and services.
It is encouraging overseas participation with the aim of identifying and
maximizing opportunities by urging overseas bidders for major contracts
to team with local industry participants. Opportunities include a
number of major Games venues with potential for long-term entertainment,
sporting, exhibition and convention facilities. Direct investment,
ownership and/or management, maintenance and operation of these
facilities are all possible.
Facilities offered for private sector involvement include:
- main Olympic Stadium, for opening and closing ceremonies, track and
field, football, paralympics; proposals requested;
- velodrome, for track cycling and paralympics; proposals requested;
- equestrian center, for dressage, show jumping, and three-day events,
proposals requested;
- baseball and tennis centers; proposals requested;
- shooting center, indoor/outdoor; proposals requested;
- athletes' village international and residential sectors; proposals to
be requested August, 1995.
Under review by the government to determine the mix of public and
private sector investment are: the coliseum, for gymnastics, handball,
volleyball, paralympics; international broadcast center; infrastructure
services; technical officials' village; media villages; and sports halls
for volleyball, handball, badminton, and rhythmic gymnastics. (See
Appendix E.C.)
3. OPPORTUNITIES ARISING FROM MULTILATERAL DEVELOPMENT BANK-FUNDED
PROJECTS
Some of the best business opportunities in the nineties could come from
major contracts in developing markets financed by the multilateral
development banks (MDBs). MDBs support clearly defined projects
designed to foster economic and social progress within their specified
geographic regions. Australia, like the United States, is a donor
nation to the MDBs, not a recipient of funds.
Australian companies are becoming increasingly active in seeking to
become MDB project contractors, for both goods and services. Contracts
are with the banks themselves, or with recipient governments. In Asia,
particularly, Australia has a historical base of involvement, and
projects funded by the Asian Development Bank are of particular
interest. A number of Australian companies are seeking joint ventures
with U.S. firms to bid for some of these projects, as such partnerships
combining knowledge, products, and contacts within the Asia region can
provide greater competitive advantage.
U.S. firms and their subsidiaries are eligible to bid on procurement
opportunities funded by MDBs and are encouraged to investigate the
substantial business opportunities in the Asia-Pacific region through
loans offered by the Asian Development Bank (contact: Senior Commercial
Officer and Liaison to the Asian Development Bank, APO AP 96440; Tel:
632-890-9364; Fax: 632-890-9713).
4. OUTWARD FOREIGN DIRECT INVESTMENT
The Government of the United States acknowledges the contribution that
outward foreign direct investment makes to the U.S. economy. U.S.
foreign direct investment is increasingly viewed as a complement or even
a necessary component of trade. For example, roughly 60 percent of U.S.
exports are sold by American firms that have operations abroad.
Recognizing the benefits that U.S. outward investment brings to the U.S.
economy, the Government of the United States undertakes initiatives,
such as Overseas Private Investment Corporation (OPIC) programs,
investment treaty negotiations and business facilitation programs, that
support U.S. investors.
CHAPTER VI. TRADE REGULATIONS AND STANDARDS
A. TRADE BARRIERS
1. TARIFFS
Australia's long-standing policy of using tariffs to protect its local
industry began changing in the early 1970s, and was accelerated in 1988
by the Federal Government's program of economic reform directed toward
moving the country toward a globally competitive economy. Initially
general in scope, the program now is focused on microeconomic changes to
help business become more competitive. The strategy has three principal
premises: tariffs and other forms of protection must be reduced;
industry must drop its preoccupation with protection and turn its
attention to becoming more competitive; and, improvements must come from
both labor and management.
On a trade-weighted basis, Australian duties on manufactured goods
average just over 4 percent, with 94 percent of its industrial tariff
lines GATT-bound.
In unilateral measures taken in 1991, the Government pledged that,
except for textiles, clothing, and footwear (TCF), and certain
automotive products, all other tariffs will be reduced in stages to 5
percent by 1996. By 2000, apparel and certain finished textile tariffs
will be reduced to 25 percent; footwear, sheeting and certain other
fabrics to 15 percent; and existing non-quota TCF products to 10
percent. Nonetheless, tariff rates do affect competitive pricing of
imported goods.
The tariff rate on passenger motor vehicles and their original equipment
components, currently 27.5 percent, will be reduced in stages to 15
percent by 2000. Tariffs on light commercial and four-wheel drive
vehicles and components will be reduced to 5 percent by 1996.
Replacement components for passenger vehicles will remain at 15 percent
from 1996 until 2000, with special provisions for automobile
manufacturers. Under the terms of the government's export facilitation
scheme, automobile manufacturers may also offset tariffs payable on the
importation of specified automotive products by exporting Australian-
made automotive products.
2. NON-TARIFF BARRIERS
Although Australia became a signatory to the GATT Standards Code on
March 1, 1992 (and has now acceded to the World Trade Organization (WTO)
Agreement on Technical Barriers to Trade), it maintains some restrictive
standards requirements and design rules that have an impact on the free
flow of goods. However, Australian standards are being rewritten in a
number of areas to bring them into conformity with Australia's new
international obligations under various trade agreements.
3. IMPORT TAXES AND SALES TAXES
There are no import taxes in Australia.
The Australian government does, however, impose a tax on the sale of
both domestically manufactured and imported goods. Generally speaking,
for domestic consumption, the tax is imposed on the last wholesale sale.
The wholesaler or manufacturer, upon whom the tax is imposed, can, in
turn, pass the tax on to the retailer who, in turn, passes it to the
consumer. There is no additional retail sales tax imposed at last
retail point of sale. Manufacturers and wholesale merchants are
required to register for sales tax. Importers of goods who are not
manufacturers or wholesalers are not required to register, but are
liable for sales tax on the entry of goods into Australia.
The general rate of this tax is 21% of the sale value (broadly equal to
the fair wholesale value) of the goods. There are a large number of
exempt goods set out in a schedule to the Sales Tax (Exemptions and
Classifications) Act. There are also categories of goods subject to tax
at 11% (household goods) and 31% (luxury goods). Exporters should
clarify with their agent, distributor, or representative the tax level
to be imposed on their goods and take this into consideration in
calculating product pricing.
Australia's anti-dumping legislation defines dumping as occurring when
the FOB price at which goods are exported to Australia (the "export
price") falls below the price at which the same goods are sold
domestically in the country of export. When dumping is found to occur,
dumping duties are imposed on the importer.
Further information on tariffs and anti-dumping regulation can be
obtained from the Australian Customs Service, the Embassy of Australia,
or the Anti-Dumping Authority. (See Appendix E.4.)
B. CUSTOMS VALUATION
The Australian customs valuation system is based on self-assessment,
i.e., the importer is responsible for valuing imports correctly. While
Australian legislation conforms generally with the terms of the GATT
Code on customs valuation, there are important differences. Imported
goods are valued under one of nine different methods of valuation in a
sequence established in the legislation. The first and most common is
the transaction value method. There are alternative methods, e.g.,
where goods are exported to Australia on consignment.
The United States believes that the Australian Customs Act of 1901, as
amended July 1, 1989, is inconsistent with the GATT Agreement on customs
valuation, because its treatment of royalties and buying commissions,
could lead to certain impermissible additions being made to the dutiable
value of merchandise.
The amendment also increases the amount of inland freight that can be
included in the dutiable value of the goods. While not inconsistent
with the GATT Agreement on customs valuation, the amended Australian law
may impair or nullify tariff concessions on products that are exported
on an ex-factory basis. Customs and quota information is available from
the Australian Customs Service. (See Appendix E.4.)
C. IMPORT LICENSES
Australia has phased out its import licensing requirements. Effective
March 1993, import quotas were terminated, except for cheese and curd.
D. EXPORT CONTROLS
Australia exports over one million individual consignments each year,
40% of which are subject to some kind of restriction. Controls are
applied through permits issued by the Department of Defence and licenses
issued by various Government agencies. Export Clearance Numbers are
issued by the Customs Service based on export data lodged by shippers.
Consignments are checked by computer against required permits and
licenses (97% of export consignments are entered electronically). Cargo
may not leave Australian points of departure unless allocated an Export
Clearance Number.
Australia was a member of COCOM until its conclusion, and is a signatory
to the Missile Technology Control Regime. Permits are issued for the
export of military and dual-use goods, and technology as formerly
defined by COCOM, and in keeping with Australia's international
agreements. Revised guidelines were issued in March, 1994.
Australia's controls on exports are documented in the publications
"Australian Controls of the Export of Technology with Civil and Military
Applications" and "Australian Control of Defence and Related Goods - a
Guide for Exporters", available through the Acquisition and Logistics
Branch of the Department of Defence. (See Appendix E.4 for contact
information.)
E. IMPORT/EXPORT DOCUMENTATION
1. IMPORTS
Importers are responsible for obtaining Customs clearance for
consignments of goods above set value limits. The minimum documentation
required includes an air-way bill or bill of lading, invoices, and any
other papers relating to the shipment.
2. EXPORTS
Goods may not be exported until all necessary export permits, including
an Export Clearance number, are obtained from the relevant permit
issuing agency (See Section D. above.)
F. TEMPORARY ENTRY
Goods may be imported into Australia duty free for a temporary period if
they are for display purposes in a trade show certified by the
Australian Customs Service. The ATA Carnet is a special international
customs document accepted in 46 countries, used for temporary
imports/exports, particularly professional equipment and commercial
samples. The Carnet, issued in lieu of the usual customs documents,
eliminates value-added taxes, duties and temporary import bonds.
G. LABELING, MARKING REQUIREMENTS
U.S. suppliers need to be aware of Australian legislation regulating the
packaging, labelling, ingredients, marketing, and sale of specific
products, and of general weights and measures. Legal import and sale of
products packaged and labelled overseas may not be possible without
modification. U.S. exporters should ask their Australian importer to
ensure that products comply with Australian Federal and State Government
labeling regulations.
H. PROHIBITED IMPORTS
Australia has stringent prohibitions and/or quarantines imposed against
a number of products, particularly those considered to be of potential
public danger, and agricultural products that are considered to have the
potential to introduce contamination or disease. Restricted items
include drugs, steroids, weapons/firearms, heritage items, and cordless
telephones and CB radios (unless they have been approved by the
Department of Communications and the Arts), food, plants and animals and
protected wildlife. (Contact information for Australian Customs is
found in Appendix E.4. Contact information for USDA and the Embassy's
Agricultural Counselor is found in Appendix E. 1 and 10)
1. PHYTOSANITARY RESTRICTIONS AFFECTING IMPORTS OF FRESH FRUIT AND
VEGETABLES
Australia has stringent phytosanitary restrictions affecting imports of
fresh fruit and vegetables and other requirements affecting imports of
meat and poultry products. A phytosanitary barrier to the importation
of fresh and frozen salmon is in the process of being lifted.
Appendix C., Part II contains information on a partial listing of fruits
and vegetables and their import status relative to Australian
phytosanitary import regulations. This list is constantly changing and
U.S. exporters should check with Australian Quarantine officials to make
sure that their product is, or is not, allowed entry to Australia.
All produce should have an Australian import permit and a U.S.
phytosanitary certificate. The import permit can be requested from the
Australian Department of Primary Industries and Energy in Canberra, or
from appropriate State Departments of Agriculture located in the State
capitals. The permit may specify additional import requirements to
those noted below. (See Appendix E. 4. and 10 for contact information.)
When applying for import permits, as much detail as possible should be
provided as to where the product is grown and how it is processed, so
that the appropriate advice on treatments, etc. can be given without
having to request additional information from the U.S. exporter.
Products falling under the Fruit Fly Rule must be accompanied by a
phytosanitary certificate endorsed to indicate that no species of fruit
fly which attacks this product has been trapped within 80 km (50 miles)
of the area of production within the last 12 months.
All meat and poultry products must be accompanied by an Australian
Import Permit and appropriate USDA Animal Health Certificates and must
originate from a plant approved for export to Australia. Appendix C.,
Part II contains further information on requirements.
Livestock imports, with the exception of horses, are limited under
quarantine regulations. Breeder, feeder and slaughter steers may be
imported on quarantine grounds, but all must undergo the same tests as
breeders. U.S. poultry cannot be imported due to phytosanitary
restrictions. Restrictive plant health regulations prohibit or limit
the entry of many fruits.
I. STANDARDS (E.G. ISO 9000 USAGE)
Australia became a signatory to the GATT Standards Code in 1992. Use of
quality standards such as the IS0 9000 series is increasing. Standards
Australia has a Quality Assessment section attached to it and can
provide a list of those companies adhering to the IS0 9000 series.
Australia still has in place some standards that can restrict product
entry. In particular, the Australian standards for telecommunications
Customer Premises Equipment (CPE) such as telephones usually require a
product's modification prior to market entry; automotive parts and
accessories mainly for external positioning on a vehicle, or for
environmental (EPA) compliance, must adhere to Australian Design Rules;
certain medical equipment also must be approved prior to use.
Australian electrical voltage is 220-240 Volts, 50 cycle, meaning
electrical equipment, and machines running on electrical cycles must be
modified or made for use at this higher (than the U.S. and Europe)
voltage level. Alternatively, for electrical equipment, transformers
can be purchased, but this is not common.
Imported consumer products, mainly foodstuffs, should comply with state
packaging regulations. States agree that any product, including
imports, meeting the legal requirements of one state, may be sold in all
other states and territories.
Standards Australia and the American National Standards Institute (ANSI)
in New York have full information on Australian Standards.
J. FREE TRADE ZONES/WAREHOUSES
The only Trade Development Zone (TDZ) in Australia is located in Darwin,
Northern Territory. The Darwin TDZ is concentrating, particularly, on
developing Australia's trading relationships with its Asian neighbors to
the north and west. Since 1986, the TDZ has fostered close working
relationships with other Industrial Estates and Export Processing Zones
within Asia, particularly the Eastern States of Indonesia. Industries
established include manufacturers of: knitted textiles; cardboard and
packaging; color repro-graphics; computer software development; brewery
supplying beer to Asia; fish emulsion and plant food; plastics extrusion
injection blow molding; and engineering-based manufactures. The Zone
also has access to the services of international financial consultants
and customs agents, and other industries are scheduled to be
established. (See Appendix E.4.B for contact information.)
There are no bonded warehouses.
K. SPECIAL IMPORT PROVISIONS
There are no special import provisions in Australia.
L. MEMBERSHIP IN FREE TRADE ARRANGEMENTS
Australia is a key member of the evolving Asia Pacific Economic
Cooperation (APEC) process.
The Australia New Zealand Closer Economic Relations Trade Agreement
(ANZCERTA - usually abbreviated as CER) entered into force in January,
1983. Bilateral trade in all products originating in the two countries
is free of tariffs, quantitative restrictions, anti-dumping measures,
and production subsidies and like measures. A 1988 protocol on trade in
services provides for market liberalization, national and MFN treatment
and free choice of commercial presence. The two countries backed away
from establishing a unified civil aviation market under the CER in 1994.
The merger now underway between Air New Zealand and Ansett may lead to
its creation in 1995.
CHAPTER VII. INVESTMENT CLIMATE
A. OPENNESS TO FOREIGN INVESTMENT
1. ENCOURAGING FOREIGN DIRECT INVESTMENT CONSISTENT WITH NATIONAL GOALS
The Australian Government welcomes foreign investment, and the United
States is the country's largest source of foreign capital. Total U.S.
investment in Australia, including both direct and portfolio investment,
exceeds US$54 billion. Australia's policy, as first enunciated by
former Treasurer John Dawkins in the introduction to a 1992 pamphlet
entitled "Australia's Foreign Investment Policy, a Guide for Investors"
is:
"to encourage foreign direct investment consistent with the needs of the
Australian community, including the expansion of private investment, the
development of internationally competitive and export-oriented
industries and the creation of employment opportunities...Administration
of the policy is based on guidelines rather than inflexible rules; it is
intended to be practical and non-discriminatory."
Takeovers of domestic firms by foreign investors (while occasionally
generating nationalistic public reaction when a cultural icon is
involved, as was the case with a biscuit company recently) generally are
not interfered with. They are treated under the same guidelines as any
other foreign investment.
2. REGULATION IN SOME SECTORS: MEDIA, CIVIL AVIATION, URBAN REAL
ESTATE
The Federal Treasury regulates foreign investment with the assistance of
the Foreign Investment Review Board (FIRB). The Board screens
investment proposals for conformity with Australian law and policy. (See
section I below.) Regulation of foreign investment is based on the
Foreign Acquisitions and Takeovers Act, 1975 (amended in 1989), and on
1991 regulations issued pursuant to the Act. Foreign investment in
three sectors is severely limited.
a. MEDIA: The Broadcasting Services Act of 1992 provides that a
foreign person may not exercise control of a television license, or have
company interests in such a license exceeding 15 percent; and, two or
more foreign persons may not have company interests in such a license
exceeding 20 percent in the aggregate. Foreign investors are limited to
a 20 percent share individually, and a 35 percent share in the
aggregate, of any subscription TV broadcaster. Foreign investment in
mass circulation newspapers is limited. A single foreigner may hold a
minor share of 25 percent, and unrelated foreign interests may hold an
additional 5 percent.
Both the cross-media and foreign ownership limitations have proven
controversial. Some argue they are becoming obsolete as the
distinctions between communications media blur with the arrival of the
information superhighway. However, the Government has stated its
intention to maintain the restrictions.
b. CIVIL AVIATION: Foreign airlines flying to Australia generally can
expect approval to acquire up to 25 percent of the equity in a domestic
carrier individually, or up to 40 percent in the aggregate. All other
foreign investors (including those that do not operate an airline
service to Australia) may acquire up to 100 percent of a domestic
carrier, or establish a new aviation business. In the case of Qantas,
foreign voting equity is restricted to 49 percent, with individual
holdings limited to 25 percent (British Airways currently owns 25
percent of Qantas.) Ansett, Australia's other domestic/international
carrier, is in the process of negotiating with Air New Zealand regarding
the sale of a substantial stake of the Australian airline to the Kiwi
carrier. Many commentators believe that ANZ will be allowed to buy up
to 49 percent of Ansett, thereby forming the first true trans-Tasman
carrier.
c. URBAN REAL ESTATE: The purchase of urban real estate by foreign
interests is regulated closely. Prior to April 1, 1993, Australia
sought to assure 50 percent equity participation by Australians in all
such ventures. Where such participation was not available on reasonable
terms and conditions, however, applications for up to 100 percent
foreign ownership were considered. Effective that date, however, the 50
percent requirement for developed, non-residential, commercial real
estate was abolished. All proposals by foreign investors to acquire
developed residential real estate are to be examined. They normally are
not approved except in the cases of foreign companies buying residences
for their senior executives living in Australia, and of foreign
nationals temporarily resident in Australia for more than twelve months
buying a principal residence for their own use, to be sold upon their
departure.
3. INCENTIVES FOR INVESTMENT
Like the U.S., Australia provides no direct federal tax incentives for
investment in the country. Those incentives which are available apply
equally to foreign and domestic investors. Examples include:
- research and development tax concessions for companies incorporated in
Australia;
- the discretionary grants scheme, which can cover up to 50 percent of
research and development tax losses;
- the national procurement development program, which provides grants to
underwrite the development of Australian products required by the public
sector that have export potential;
- the generic technology scheme, and the advanced manufacturing
technology development program, which provide development grants for
selected new technologies; and,
- the investment promotion program, which encourages investment in
greenfield resource processing projects, and links with global markets.
Each of the state governments has an aggressive investment promotion
program and is willing to negotiate investment incentives on a case-by-
case basis. They often offer concessionary packages to attract
companies to establish themselves in their state.
4. PREFERENTIAL TARIFF ARRANGEMENTS WITH SOME COUNTRIES
Australia traditionally has accorded a uniform 5 percent tariff
preference to developing countries. In addition, it maintains a
preferential arrangement with Pacific Forum Islands, and has bilateral
trade agreements with Papua New Guinea, New Zealand, Malaysia and
Canada. The developing country rate for all but the least developed
countries, including the South Pacific Island Territories, is being
phased out, and will be brought in line with other tariffs in
conjunction with Australia's overall program of tariff reduction.
Products affected are chemicals, plastics, rubber, textiles, clothing
and footwear.
While the 1983 Closer Economic Relations (CER) agreement with New
Zealand continues in force, it does not yet include a formal investment
agreement.
Investors, both foreign and domestic, operating in export-oriented
industries can obtain duty free import privileges on finished goods
under certain conditions. This practice is most visible in the
automobile industry. Several firms in Australia both manufacture and
import vehicles for sale on the domestic market. Two of them, Ford and
Mitsubishi, also export finished vehicles and/or components. These two
companies receive, in accordance with the value of their exports,
exemption from import duties on the equivalent value of finished
vehicles they import for sale here. In effect, they can obtain duty
free import privileges not available to competitors without export
capability. This import duty exemption is available to all auto
importers on a non-discriminatory basis.
5. EFFICIENT CAPITAL MARKETS AND PORTFOLIO INVESTMENT
Australia has a well developed and sophisticated financial market
regulated in accordance with international norms. The stock and
commodities exchanges have corresponding arrangements with other world
exchanges. Credit is allocated on market terms.
B. CONVERSION AND TRANSFER POLICIES
The Australian dollar is a fully convertible currency. The government
does not maintain currency controls or limit remittance, loan and lease
payments. Such payments are processed through standard commercial
channels without governmental interference or delay.
C. EXPROPRIATION AND COMPENSATION
Private property can be expropriated for public purposes in accordance
with established principles of international law. Due process rights
are established and respected, and prompt, adequate and effective
compensation is paid.
D. DISPUTE SETTLEMENT
1. INVESTMENT DISPUTES
Property and contractual rights are enforced through the Australian
court system, which is based on English common law. There have been no
investment disputes involving foreign companies in recent years.
However, in 1994, the Foreign Investment Review Board (FIRB) exercised
its authority to block a proposed investment involving a U.S. firm that
wanted to expand its Australian health care operations. The FIRB based
its decision on concerns regarding the firm's U.S. parent, and legal
difficulties it experienced in the U.S. The FIRB has a history of
interpreting foreign investment regulations flexibly. For example, in
1991, it approved a foreign-led takeover of Australia's second largest
newspaper group, John Fairfax Group Pty., even though post-takeover
foreign ownership totalled 27 percent.
Australia is not a member of the International Center for the Settlement
of Investment Disputes (ICSID).
2. COMMERCIAL DISPUTES
Australia has an established legal and court system for the conduct or
supervision of litigation and arbitration, as well as alternate dispute
processes. The traditional approach to commercial dispute resolution
involves litigation and, more recently, arbitration. Modern methods of
alternative dispute resolution, however, are becoming increasingly
popular. Australia is a world leader in the development and provision of
non-court dispute resolution mechanisms. It is a signatory to all the
major international dispute resolution conventions, and has
organizations which provide international dispute resolution processes.
Dispute resolution clauses are used frequently in contracts between
Australian and U.S. commercial entities. In some areas, such as
construction, clauses are inserted routinely into contracts providing
provide that a dispute resolution process will be used to settle any
disputes that arise. The clauses may specify the particular process to
be used (e.g., mediation, followed by arbitration), or simply state that
should a dispute emerge, the parties will seek the assistance of the
American Arbitration Association and/or the Australian Commercial
Disputes Centre. These clauses are upheld by the courts.
E. POLITICAL VIOLENCE AFFECTING INVESTMENT
Various ethnic groups hold vociferous public protests from time to time
on their special interest issues occurring around the world (e.g.,
Greeks protesting the adoption of the name Macedonia by a former
Yugoslav state), and environmental groups, "greenies", are particularly
tenacious when taking on politicians, polluters, and despoilers (as with
recent protests regarding logging of old growth forest). However, such
protests rarely, if ever, degenerate into violence.
F. PERFORMANCE REQUIREMENTS AND INCENTIVES TO SUPPORT LOCAL INDUSTRY
DEVELOPMENT
1. SELLING TO THE GOVERNMENT (Also see Section IV. M.)
There are no performance requirements affecting investment per se.
Until recently, the GOA had been in the habit of levying performance
requirements and incentives (especially in the form of offsets) on firms
attempting to sell goods to the federal government. Until the end of
1992, it had imposed a 30 percent offset requirement on the cumulative
imported value of products for most government contracts awarded to any
one firm exceeding A$S 2.5 million in any one year, whenever the
imported content of the purchased products exceeded 30 percent.
However, except for defense procurement and the Industrial Development
Arrangements (IDA's) in telecommunications, offsets have not been
required on new contracts for federal level, civilian government
procurement since June 30, 1991. The civil offsets policy was
terminated officially on December 31, 1992. The use of offsets in
defense procurement is being phased out in favor of a policy emphasizing
"Australian Industrial Involvement" and "Through Life Support" concepts.
2. BOUNTIES
Bounties (production assistance) help domestic manufacturers maintain or
increase their market share through price discounting. Bounties are now
in place on the following products (scheduled expiration dates are
indicated in parentheses): shipbuilding (June 30, 1997); computers and
certain computer equipment, including certain circuit boards (December
31, 1995); machine tools and robots (June 30, 1997); and books (December
31, 1997). The bounty on bedsheets, and textile yarns ended on June 30,
1995, after which date 5% customs duty was levied on imported yarns.
All bounties are set at rates which decrease automatically over time.
Eligibility thresholds for most bounties were established (if none
existed), or raised effective July 1, 1991. All bounties are reviewed
before expiration. Some could be extended, as occurred with the bounty
for book publishing in 1993, or converted into tariffs as with yarns.
Australia is not a member of the GATT government procurement code, but
the Government has said it will examine the code for possible adherence
now that the Uruguay Round is complete.
3. SPECIAL ARRANGEMENTS FOR INFORMATION TECHNOLOGY AND
TELECOMMUNICATION COMPANIES
Since 1991, foreign information technology companies with annual sales
to the GOA of US$7-30 million (A$10-40 million) have been asked to enter
into fixed term arrangements (FTAs), and those with sales greater than
US$30 million (A$40 million) to enter into Partnerships for Development
(PDs). The FTA program was originally for overseas firms, and had
minimum threshold of US$7 million (A$10 million). The minimum threshold
has been removed and Australian firms are permitted to participate since
the introduction of the Endorsed Supplier Arrangement. The ESA has
added a step in the procurement process whereby, before access to
government IT business will be considered, firms must undertake long-
term value-adding in Australia and demonstrate a commitment to "world
best practice". Other endorsement criteria relate to "world best
practice" matters, such as reference sites, compliance with government
policies, quality, standards, services, and financial viability. This
may be an obstacle to new firms seeking to enter the market, as it can
prevent firms from testing the market with imports prior to undertaking
a more long-term commitment.
Under FTAs, a foreign company, or its subsidiary, as with local
companies, commits to undertake local industrial development activities
worth 15 percent of its projected amount of government sales over a four
year period.
Under a PD, the headquarters of the foreign firm agrees: to invest 5
percent of its annual local turnover on research and development in
Australia; to export goods and services worth 50 percent of imports (for
hardware companies) or 20 percent of turnover (for software companies);
and to achieve 70 percent local content across all exports within the
seven year life of the PD.
In 1992, this scheme was extended into the telecommunications customer
premises equipment (CPE) sector, replacing, in large measure, the
requirement that suppliers of cellular mobile telephones, PABX, small
business systems, and first telephones have industrial development
arrangements (IDAs) in place before obtaining licenses to connect their
equipment to the public switched network. The IDA program now is
scheduled to be eliminated in June, 1996.
4. RESTRICTED SYSTEMS INTEGRATION PANEL FOR INFORMATION TECHNOLOGY
In 1992, the Government implemented a Restricted Systems Integration
Panel (RSIP) scheme. The RSIP is a panel of 15 private companies,
selected by a government evaluation process through which all
Commonwealth information technology requirements involving systems
integration activity are to be sourced, except for purchases with an
estimated value of less than A$S 1 million. Firms applying for panel
membership are evaluated on "demonstrated competence, commercial
viability, and potential to contribute to government policy objectives,
including expansion into Asian-Pacific markets, particularly those of
North and South-East Asia".
The net effect of the panel could be to hinder non-member participation
in government systems integration contracts. Technically, panel
membership will not be closed. However, access will remain restricted.
In order to be eligible to bid on a contract, a new applicant (domestic
or foreign) would have to demonstrate its eligibility to become a
member; or clearly be able to offer expertise not available within the
panel. However, several U.S. firms were named initial members of the
panel and the U.S. Government and the Australian Information Industry
Association have opposed strongly the panel's establishment, believing
the restrictive nature of the panel membership has the potential to
hinder open competition. However, no complaints have been received from
U.S. industry over the past year.
5. GOVERNMENT BUSINESS ENTERPRISES
A number of qualitative factors are important in procurement decisions
made by the Australian federal and state governments and by Government
Business Enterprises. American companies are advised to consider these
factors seriously in all of their business development and bidding
activities. (See Chapter IV. M.)
Since Australian FY 1993-94, the Australian Government has required
Government Business Enterprises (GBEs are central government-owned
companies such as Telecom and the Civil Aviation Authority) to consider
"industrial development objectives" such as local content and export
potential in their procurement activities. The objective is to allow
"local companies the maximum opportunity to compete for government
business consistent with the commercial objectives of GBEs and the need
to obtain value for money".
The new policy stops well short of directing GBEs to give preference to
local suppliers. However, it does bias them toward buying locally, and
toward favoring one major-project bidder over another if its package of
incentives for the development of local industry is superior to that of
its competitor. The December, 1993, decision of the Civil Aviation
Authority to award the contract for the Australian Advanced Air Traffic
Control System to a French firm, Thomson, rather than to Hughes Aircraft
was made explicitly on that basis.
6. LOCAL INDUSTRY DEVELOPMENT IMPACT
The Federal Government's May, 1994, employment and industry policy
statement strengthens its effort to use government procurement policy to
encourage local industrial development. It requires industry impact
statements to be drafted for procurements of A$10 million or more, and
establishes a two-envelope system for such tenders. Bidders are
required to submit detailed information regarding Australian industrial
development separately (in "envelope 2"), and bids are judged on both
price/product specifications, and on industrial development components.
7. EXPORT MARKET DEVELOPMENT SCHEME GRANTS
Access to Export Market Development Scheme grants is determined, in
part, by the degree of local content contained in the product to be
exported. To qualify, goods manufactured, produced, or assembled in
Australia must contain at least 50 percent local content. Goods
produced outside Australia must have at least 75 percent Australian
content.
G. RIGHT TO PRIVATE OWNERSHIP AND ESTABLISHMENT
As a general rule, foreign firms establishing themselves in Australia
are accorded national treatment. They do not have to seek government
permission to establish and own businesses unless their proposed
activity meets tests established in law and regulation that triggers
notification/review by the Foreign Investment Review Board (FIRB).
These FIRB requirements are a matter of public record and are available
upon request to FIRB. (See I.1. below for discussion of FIRB. See
Appendix E.4. for contacts.)
Firms may, if they wish, seek "naturalization" (conversion to full
Australian, as opposed to foreign, status). To be naturalized, a firm
must be at least 51 percent Australian-owned; its articles of
association must provide that a majority of its board be Australian
citizens; and it must reach an agreement with the Government regarding
the exercise of voting powers in respect of the firm's business in
Australia. The only practical advantage of naturalization is relief
from the requirement that the FIRB be notified of proposed investment
activities.
In general, participation in privatization schemes is regulated in
accordance with overall investment policy. The Qantas privatization,
for example, will be limited by the restrictions on foreign investment
in civil aviation discussed above. Most sectors are uncontrolled and
are open to foreign participation.
As discussed above, Australia maintains percentage limits on foreign
ownership in civil aviation, broadcasting, media, and urban real estate.
H. PROTECTION OF PROPERTY RIGHTS
Patents, trademarks, designs and integrated circuits copyrights are
protected by Australian law. The Attorney General monitors the
effectiveness of laws and regulations regarding the illegal use of
copyright material. Australia is a member of the World Intellectual
Property Organization, the Paris Convention for the Protection of
Industrial Property, the Berne Convention for the Protection of Literary
and Artistic Works, the Universal Copyright Convention, the Geneva
Phonogram Convention, the Rome Convention for the Protection of
Performers, Producers of Phonograms, and Broadcasting Organizations, and
the Patent Cooperation Treaty.
1. PATENTS, TRADE SECRETS, DESIGNS
Patents are available for inventions in all fields of technology (except
for human beings and biological processes for their production). They
are protected by the Patents Act, 1952, which offers coverage for 16
years, subject to renewal. However, patents for pharmaceutical
substances may have the term of protection extended to 20 years. Trade
secrets are protected by common law, such as by contract. Design
features such as shape or pattern can be protected from imitation by
registration under the Designs Act, 1906 for up to 17 years. The design
must be new or original.
2. TRADE NAMES AND TRADE MARKS; PARALLEL IMPORTS
Trade names and trade marks may be protected for seven years and renewed
at will by registration under the Trademark Act, 1955. Once used, trade
names and trade marks may also, without registration, be protected by
common law. It is wise for any U.S. exporter intending to market
product in Australia to check with the Office of Trade Marks that the
name is not already in use.
Some protection also extends to parallel importing; that is, imports of
legally manufactured products ordered by someone other than a person or
firm having exclusive distribution rights in Australia. Some parallel
importation is allowed for books, under strictly limited conditions
(cases in which newly-published works are not made available in
Australia within 30 days of publication). In 1994, the Australian
Cabinet explicitly rejected allowing parallel imports of compact discs
(CDs). The Prices Surveillance Authority had recommended such imports
to increase competition in the market, and to put downward pressure on
CD prices. In September, 1993, the Australian Copyright Law Review
committee recommended that parallel importation of computer software be
allowed under strict limitations. No action has yet been taken on that
recommendation.
Copyrights are protected under the Copyright Act, 1968. Works do not
require registration and copyright automatically subsists in original
literary, artistic, musical and dramatic works, film and sound
recordings. Computer programs are considered legally to be literary
works. Copyright protection is for the life of the author plus 50
years.
The Australian Copyright Act provides protection regarding public
performances in hotels and clubs, and against video piracy and
unauthorized third-country imports. No complaints about unauthorized
public showings of films have been received for over five years.
In late 1993, a loophole in the copyright act regarding unauthorized
live ("bootleg") recordings was discovered. The Government has adopted
legislation closing the loophole, and it is expected that the flow of
such recordings into the market will cease gradually. At present, no
protection is accorded against the commercial rental of sound recordings
without royalty payments. However, this and other forms of enhanced
copyright protection will enter into force when the GOA ratifies the
Uruguay Round Final Act and the related TRIPS agreement. The Attorney-
General's Department monitors the effectiveness of laws and regulations
curbing the illegal use of copyright material.
I. REGULATORY SYSTEM: LAWS, AND PROCEDURES AND TAXES
Both Australian law and government practice foster transparency and
favor competition. Taxation policy does not impede the efficient
mobilization and allocation of investment, although there are a number
of differences between the U.S. and Australian tax systems that have
potential implications for business. Businesses are advised to seek
counsel from accounting and law firms familiar with the tax policies of
both countries.
In early 1990, the Australian Taxation Office and the Internal Revenue
Service formalized a simultaneous audits agreement to investigate
suspected non-compliance with tax laws of both countries. The U.S. and
Australia Double Taxation Treaty affects business investment between the
two countries. The treaty applies to federal income tax of the U.S.,
excluding accumulated earnings tax and personal holding company tax, and
Australian income tax. Separate agreements apply to gift and estate
taxes.
The Controlled Foreign Corporation and Controlled Foreign Trusts
legislation, effective July 1, 1991, provides for taxing income that
accrues to corporations or trusts established after residency is
established.
J. FOREIGN INVESTMENT REVIEW BOARD (FIRB)
Australia has an investment screening mechanism administered by the FIRB
which tracks foreign investment developments through a notification
system, and, if certain criteria are present, examines specific
proposals. The FIRB must be notified of investment proposals in the
following categories:
- acquisitions of substantial interests in existing Australian
businesses with total assets over $3.7 million ($2.2 million for rural
properties);
- plans to establish new businesses involving a total investment of over
$7.3 million;
- investments in the media, irrespective of size;
- direct investments by foreign governments or their agencies,
irrespective of size;
- acquisitions of non-residential commercial real estate valued over
$3.7 million;
- acquisitions of residential real estate, irrespective of size (unless
exempt under the regulations);
- takeovers of offshore companies whose Australian subsidiaries or
assets are valued over $14.5 million or account for more than 50 percent
of the target company's global assets; and,
- proposals where any doubt exists as to whether they are notifiable.
Most foreign investment proposals notified to the FIRB are granted
automatically without examination. Proposals above the $35 million
threshold are examined, but FIRB policy is to approve them unless they
are found contrary to the national interest. The criteria governing
that decision follow:
- the proposal involves one of the following sectors: rural properties;
agriculture; forestry; fishing; resource processing; oil and gas; mining
(excluding uranium); manufacturing; non-bank financial intermediaries;
insurance; stockbroking; tourism (hotels and resorts); and most other
services; and
- the proposal is an acquisition of 15 percent or more of a company or
business with total assets below $ 35 million; or
- the proposal is to establish a new project or business with a total
investment below $35 million, or to takeover an off-shore company with
Australian subsidiaries or assets valued below $35 million.
The above policy does not apply to uranium mining, civil aviation, the
media, and urban real estate, all of which have separate limitations on
foreign investment. Nor does it alter the notification requirements of
the Foreign Acquisitions and Takeovers Act. During FY 1993-94, 5,287
proposals for investment in Australia were submitted to the FIRB: 4,819
were approved (3,085 with conditions); 384 were withdrawn; and only 84
(1.7%)were rejected. While the FIRB does appear to make judicious use
of its screening and rejection powers, the U.S. has objected to the
continued utilization of the screening mechanism.
K. BILATERAL INVESTMENT AGREEMENTS
Australia subscribes to the 1976 declaration of the Organization for
Economic Cooperation and Development (OECD) concerning international
investment and multinational enterprises. The instruments cover
national treatment and investment incentives and disincentives, and
spell out voluntary guidelines for the conduct of multinational
enterprises in member countries. Australia also subscribes to two OECD
codes of liberalization, one covering capital movements and the other
invisible transactions. It maintains a limited reservation under the
Capital Movements Code, because FIRB practice historically favored the
use of Australian contractors and consultants when reviewing foreign
investment proposals.
Australia is bound by the Nara Treaty not to discriminate against Japan
in the investment area. This has proved a sticking point in bilateral
negotiations on an investment agreement with New Zealand.
L. OPIC AND OTHER FOREIGN INVESTMENT INSURANCE PROGRAMS
Australia provides foreign investment insurance to its firms investing
abroad through the Export Finance and Insurance Corporation (EFIC).
OPIC does not extend coverage to Australia, as it is not a high risk, or
developing, country.
M. LABOR
1. WORK FORCE CHARACTERISTICS
A key factor affecting Australia's future competitiveness in the world,
and in the Asia - Pacific region, is the characteristics of its work
force. Because Australia is an industrialized, technologically-
sophisticated, English speaking country with a western culture, yet with
a diverse, multicultural population, it offers unique advantages
unmatched in the Asia-Pacific region. Any industry requiring an
educated, native-English speaking, highly skilled labor force, with
western work habits and values, can find it in Australia. Australia has
been moving toward more flexible, enterprise-based labor agreements.
This has reduced the complexity of labor negotiations, but labor market
rigidities still can distort the economics of investment.
Australia's population has grown at an average annual rate of 1.3
percent over the past decade, with immigration accounting for just under
half of this growth. Around 63 percent of Australians over the age of
15 are part of the labor force (8.9 million people at the end of 1994).
Of this number, around 69 percent are employed on a full-time basis; 22
percent are employed part-time; and 9 percent are registered as being
unemployed.
Australia's unemployment rate has declined from its recession high of 11
percent. This is due largely to stronger economic growth, and solid
business performance. However, this improvement has not been as rapid
as the government had hoped, partially due to workforce productivity
improvements. Unemployment is expected to be around 8 percent in mid-
1996. In the longer term, a more important factor may be Australia's
concerted effort to upskill its workforce. For example, the percentage
of students graduating from high school has risen from 34 percent in
1983, when reforms were first launched, to over 80 percent in 1995. The
Australian business community is playing a much more active role in
educational reform today than it did in the past.
2. LABOR RELATIONS
Australia maintains a unique, highly centralized national wage and
benefit scheme that has no counterpart in the U.S. The framework of the
Australian industrial relations system has, since 1904, involved a
federally-based system of compulsory conciliation and arbitration to
establish minimum rates of pay and conditions, coupled with equivalent
state-based systems.
The system is based on a series of "awards", and registered industrial
agreements, that are legally binding on employees, governments,
employers and unions alike. Awards cover approximately 85 percent of
the labor force, and, increasingly, are made on the basis of
productivity. The Australian Industrial Relations Commission (AIRC)
issues federal awards. Usually there is one "national wage case" per
year that determines the wage pattern for a determined, or indefinite,
period. The system also provides a means of setting and preventing
industrial disputes by industrial tribunals - the AIRC at the federal
level, and its state counterparts which usually adopt the federal
pattern. The Industrial Relations Court enforces the minimum standards,
certified agreements, enterprise flexibility agreements, the secondary
boycott provisions, and legal sanctions for strike action.
In addition to awards, the past few years have witnessed the
introduction of legally-registered certified agreements (CA's) that are
a result of collective or "enterprise" bargaining at the company level.
Since 1994, a new Act also provides for Enterprise Flexibility
Agreements (EFA's), reached by companies with mainly non-union
employees. There are 4,500 certified agreements (CA's) registered
federally, but only 59 enterprise flexibility agreements (EFA's) to
date.
More broadly, the Federal Government's new legislation clarifies the
role of the changing award system; seeks to promote greater bargaining;
and, maintains an enforcement system. In the new Act:
- the role of the AIRC in exercising all its functions is guided by the
objects of the Act;
- the role of the AIRC with respect to awards is made much more
explicit;
- the AIRC is given new powers in respect of sanctions;
- the need for the AIRC to take family responsibilities into account in
awards and agreements is highlighted;
- enterprise bargaining is promoted; and rights to bargain, and the
requirement to bargain in good faith subject to minimum entitlements,
are provided.
The legislation provides minimum entitlements including:
- minimum wages for groups of employees;
- equal pay for men and women for work of equal value;
- termination of employment rights:
- minimum period of notice;
- protection against unfair dismissal;
- severance pay;
- notification to CES;
- parental leave.
N. FOREIGN-TRADE ZONES AND FREE PORTS
The Darwin Trade Development Zone, Northern Territory, is Australia's
attempt to increase exports via a geographically defined free trade
zone. Incentive packages, individually tailored for each prospect
company, include subsidies for many up-front property, plant, and
equipment costs, as well as relocation assistance. In practice, the
Darwin initiative is focused almost exclusively on its Asian neighbors
to the North and West.
O. CAPITAL OUTFLOW POLICY
Private foreign investment decisions are left to the discretion of
private sector firms. There are no prohibitions on overseas investment
or capital repatriation.
P. MAJOR FOREIGN INVESTORS
Hundreds of major foreign firms in many industry sectors invest in
Australia.
The Australian Federal Government, and each of the State Governments,
vigorously encourages investment by offering incentives to multi-
national companies to set up regional headquarters for financial and
other services and manufacturing operations. At first aimed at
attracting information technology companies, the campaign has widened in
scope to include manufacturing and provision of financial and
administrative services for the Asia Pacific region. The Government
touts the benefits of Australia's safe, stable business environment,
skilled work force and lower facility, site and operating costs in
comparison to other regional centers such as Singapore, Hong Kong and
Taiwan. As a result of its efforts, the Government claims to have
attracted more than 130 companies in the past 18 months. Examples
include large corporations such as American Express, AT&T, British
Aerospace, Campbells Soup, Coca-Cola, HJ Heinz, Kellogg, Microsoft,
Phillip Morris, Thomson CSF and Toys 'R' Us.
There is an increasing flow of investment funds into Australia from the
Asian region, although, because of the overvalued yen, Japanese direct
investment is predicted to fall drastically below previous record highs.
There are increasing capital investments from Hong Kong in particular,
as Hong Kong Chinese relocate in anticipation of 1997. British and
American investment remains at traditionally high levels.
CHAPTER VIII: TRADE AND PROJECT FINANCING
A. BRIEF DESCRIPTION OF THE BANKING SYSTEM
The Reserve Bank of Australia regulates Australia's financial markets,
not unlike the Federal Reserve does in the U.S. It also guarantees
deposits of all authorized banks that operate under Commonwealth
legislation, primarily the Banking Act of 1959. While the banking
system in Australia is reliable and, essentially, transparent, there are
structural and operational differences between it and the American
system. Historically, Australian banks have not operated under the
restrictions that have limited U.S. bank operations since 1933. In
Australia, the distinction between retail banks and investment banks is
blurred.
The Australian banking system is undergoing progressive deregulation and
privatization. Beginning with deregulation of the financial markets in
the 1980s, foreign banks have been allowed to enter the market. Retail
banks, in general, now provide a wider range of financial services,
including life and general insurance, stock brokering and security
underwriting to their retail customers, in addition to making corporate
and consumer loans. This places them in competition with brokerage
houses and merchant banks.
In early 1992, the government further liberalized the banking system by
abolishing limitations on the number of foreign bank licenses. This
permits non-Australian banks to operate as branches to serve the
wholesale market. However, retail banking activities may be conducted
only through a locally incorporated subsidiary.
With Australia's economic reforms that focus on asset sales of
government-owned facilities and services, by the end of 1998,
government-owned banks will no longer exist. The State Bank of New
South Wales was sold in December. The South Australian Government
accepted an offer in 1995 from the Advance Bank and the Western
Australian Government is seeking to privatize Bank West. The Federal
Government announced in the FY 1995-96 budget, that it would sell off
its remaining stake (50.4 percent) in the Commonwealth Bank by 1997-98.
Australia has 44 authorized banking groups, 29 of which are foreign-
owned. Of the latter, 15 are incorporated locally and 14 are branch
operations. There are 7 American licensed banks: Bank of America
(both as a locally-incorporated subsidiary and a branch operation);
Bankers Trust; The Chase Manhattan Bank; Citibank; First National Bank
of Chicago; Morgan Guaranty Trust Company of New York; and State Street
Bank and Trust Company Another 20 U.S. banks have local representative
offices. The major Australian commercial banks are Westpac Banking
Corporation, ANZ Bank, National Australia Bank, and the Commonwealth
Bank of Australia. (See Appendix E.6.) Momentum is in the banking
sector to use Australia as a regional financial services center.
B. FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
Australia does not restrict the flow of currency into, or out of, the
country. There are, however, cash reporting obligations under the Cash
Transaction Reports Act (CTRA). International currency transfers of
A$5,000 or more, or A$50,000 in any form in one year, must be reported
to the Cash Transaction Reports Agency. The purpose is to control tax
evasion and money laundering, and does not inhibit currency transfers
associated with international trade.
The Australian dollar has been allowed to float since 1983. The
currency is freely convertible and exchange rates are determined by
international demand and supply. Official policy is not to defend any
particular exchange rate level. Intervention by the Reserve Bank is
minimal, and is exercised to accommodate government economic policy
adjustments. Transactions in foreign exchange are made through
authorized foreign exchange dealers, including trading banks and most
merchant banks. There are no specific restrictions regarding the
remittance of profits, dividends, and capital.
C. GENERAL FINANCING AVAILABILITY
Banking is the dominant player in the Australian finance industry,
accounting for 75% of total financial sector assets. The major finance
companies, which control about three-quarters of the total assets of the
industry, are owned wholly or predominantly by the major trading banks.
Commercial banks are the major source of medium-term loans. A wide
range of merchant banks operate in Australia, many of which are
associated with some of the world's largest financial institutions.
They also provide short-to-medium term funding. Venture capital finance
usually is available from management and investment companies, which are
funded by tax-deductible capital subscriptions. Other alternatives
include obtaining funds from finance companies (including leasing
arrangements), building societies, credit co-operatives or unions,
insurance companies, pension and superannuation funds and cash
management trusts.
The larger finance companies obtain their funds mainly by public issues
of debentures and unsecured notes with terms of up to five years. Long-
term financing, generally, is supplied by syndicated Australian and
overseas bank lending. A specialized market exists for direct borrowing
and lending on an unsecured basis between large, well established
companies. Factoring of book debts also can be arranged with finance
companies, but is not widespread.
Unlike their U.S. counterparts, Australian banks are free to participate
in virtually all forms of financial services, including overdrafts (a
traditional form of borrowing), fixed-term loans, commercial bills of
exchange, letters of credit, domestic and international debt and equity
issues, underwriting, leasing and Euro currency borrowing. Financial
services to business also are provided through a wide range of non-bank
institutions.
D. HOW TO FINANCE EXPORTS AND METHODS OF PAYMENT
As in other industrialized countries with mature financial systems,
Australia has a range of export finance methods available. The method
chosen should depend upon the individual circumstances of a transaction.
1. Cash in Advance: The exporter demands cash in advance before
exporting. This is the least popular method used. It is acceptable if
the client does not have access to other forms of financing.
2. Letter of Credit: Payment is guaranteed by the issuing bank. A
confirmed letter of credit guarantees payment by a foreign bank as well.
This is a very secure form of payment and is used frequently for unknown
clients, or those perceived to be risky accounts.
3. Commercial Bills of Exchange (sight and time drafts; cash against
documents): These bills of exchange are processed through the
exporter's and importer's banks. The banks do not guarantee payment,
but they will not release shipping documents until the terms of the bill
of exchange are met.
This is the most widely used form of trade finance, but the risk is
higher, as the importer may refuse to pay. The exporter should obtain
credit references, or have had a long standing relationship with the
importer, before offering this form of financing. Importers prefer this
method because it does not affect their cash flow or tie up their
commercial credit lines.
4. Open Account: The exporter ships the goods and sends a bill for
payment. These accounts are used widely, particularly with shipments to
U.S. subsidiary operations in Australia. Because this is the least
secure form of financing, it is also used for the very best and long
established accounts.
Eighty percent of Australian imports from the U.S. carry payment terms
of 30 to 180 days from the date of the shipping documents. Importers
normally will request terms, the cost of which should be built into the
export price. Importers prefer extended terms to allow them to receive,
inventory and sell the goods before paying. They may also wish to use
exporters' credit.
E. TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE
Several U.S. government agencies, as well as state and local ones, offer
programs to assist exporters with their financing needs. Some are
guarantee programs that require the participation of an approved lender;
others provide loans or grants to the exporter, or to a foreign
government. Many financing and guarantee programs apply only to high
risk or developing countries. Therefore, business dealings with
Australia do not qualify for coverage. However, some programs do extend
to Australia. Exporters should seek counseling on availability.
The Export-Import Bank of the United States (Eximbank) is the federal
government's trade finance agency, offering numerous programs to finance
and facilitate U.S. exports by making loans and providing guarantees and
insurance for loans from commercial sources. Although Australia does
participate in Eximbank programs for some major projects such as
commercial aircraft sales, there is relatively little EXIM activity in
Australia.
Other organizations fill various market niches. The Private Export
Funding Corporation (PEFCO) is owned by a group of large banks, and
makes EXIM-guaranteed loans to foreign purchasers of U.S. goods. The
Department of Agriculture offers a variety of programs to foster
agricultural exports. The Small Business Administration addresses the
needs of small exporters.
In Australia, various industrial banks have been established to
encourage the development of local industry and resources. The
government-owned Australian Industry Development Corporation (AIDC)
provides development finance, equity funding and financial advisory
services. The Primary Industry Bank provides, or refinances, loans to
primary producers for longer terms than normally are available.
Because it is an industrialized country, and a donor nation to the
multilateral development banks (MDBs), these lending institutions, such
as the World Bank and the Asian Development Bank, do not operate in
Australia. Like other prosperous countries, Australia has a large
market of private funding available for debt financing of projects.
World Bank and Asian Development Bank support for development projects
in the developing countries of Asia provides opportunities for
American/Australian consortia to compete for MBD-funded contracts in
these countries. Australian companies often have established
relationships in the region and are in a strong position when teamed
with U.S. companies to offer very competitive bids and performance
qualifications. (See Appendix E.7 for MBD contact information.)
F. PROJECT FINANCING AVAILABLE
A number of national and international financial management companies
practice in Australia. They provide the complex financial structuring
services required to fund projects, using the most competitive financial
package available for a particular project. Long-term debt can be
financed from a variety of sources and methods. These include:
-- Banks
-- Financial institutions
-- Retail investors
-- Government loans
-- Export credit agencies
-- Credit enhancement agencies
-- Bonds
-- Formation of national and international banking consortia
-- BOOT (build, own, operate and transfer)
-- Direct investment by local and international companies
-- Formation of loan syndications
-- Formation of joint ventures
Project financing includes both finance made available by non-
participants (i.e., loan funds by financial institutions), and finance
provided by participants (i.e., shares in a stock company), as well as a
host of hybrid arrangements. U.S. companies participate actively in all
types of project financing in Australia.
Banks traditionally have provided project finance term debt and,
currently, are the only source of project credit. While other sources
might fund project loans, funding is undertaken only on the basis of
bank credit enhancement through a bank guarantee or letter of credit.
However, the development of new and innovative funding mechanisms is a
key element in financing projects and infrastructure development as
public projects at the federal, state and local levels are made
available for privatization.
G. BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS
All major banks in Australia have correspondent relationships with U.S.
banks. (See Appendix E.6.)
CHAPTER VIII: TRADE AND PROJECT FINANCING
A. BRIEF DESCRIPTION OF THE BANKING SYSTEM
The Reserve Bank of Australia regulates Australia's financial markets,
not unlike the Federal Reserve does in the U.S. It also guarantees
deposits of all authorized banks that operate under Commonwealth
legislation, primarily the Banking Act of 1959. While the banking
system in Australia is reliable and, essentially, transparent, there are
structural and operational differences between it and the American
system. Historically, Australian banks have not operated under the
restrictions that have limited U.S. bank operations since 1933. In
Australia, the distinction between retail banks and investment banks is
blurred.
The Australian banking system is undergoing progressive deregulation and
privatization. Beginning with deregulation of the financial markets in
the 1980s, foreign banks have been allowed to enter the market. Retail
banks, in general, now provide a wider range of financial services,
including life and general insurance, stock brokering and security
underwriting to their retail customers, in addition to making corporate
and consumer loans. This places them in competition with brokerage
houses and merchant banks.
In early 1992, the government further liberalized the banking system by
abolishing limitations on the number of foreign bank licenses. This
permits non-Australian banks to operate as branches to serve the
wholesale market. However, retail banking activities may be conducted
only through a locally incorporated subsidiary.
With Australia's economic reforms that focus on asset sales of
government-owned facilities and services, by the end of 1998,
government-owned banks will no longer exist. The State Bank of New
South Wales was sold in December. The South Australian Government
accepted an offer in 1995 from the Advance Bank and the Western
Australian Government is seeking to privatize Bank West. The Federal
Government announced in the FY 1995-96 budget, that it would sell off
its remaining stake (50.4 percent) in the Commonwealth Bank by 1997-98.
Australia has 44 authorized banking groups, 29 of which are foreign-
owned. Of the latter, 15 are incorporated locally and 14 are branch
operations. There are 7 American licensed banks: Bank of America
(both as a locally-incorporated subsidiary and a branch operation);
Bankers Trust; The Chase Manhattan Bank; Citibank; First National Bank
of Chicago; Morgan Guaranty Trust Company of New York; and State Street
Bank and Trust Company Another 20 U.S. banks have local representative
offices. The major Australian commercial banks are Westpac Banking
Corporation, ANZ Bank, National Australia Bank, and the Commonwealth
Bank of Australia (see Appendix E.6 for contact details). Momentum is
in the banking sector to use Australia as a regional financial services
center.
B. FOREIGN EXCHANGE CONTROLS AFFECTING TRADING
Australia does not restrict the flow of currency into, or out of, the
country. There are, however, cash reporting obligations under the Cash
Transaction Reports Act (CTRA). International currency transfers of
A$5,000 or more, or A$50,000 in any form in one year, must be reported
to the Cash Transaction Reports Agency. The purpose is to control tax
evasion and money laundering, and does not inhibit currency transfers
associated with international trade.
The Australian dollar has been allowed to float since 1983. The
currency is freely convertible and exchange rates are determined by
international demand and supply. Official policy is not to defend any
particular exchange rate level. Intervention by the Reserve Bank is
minimal, and is exercised to accommodate government economic policy
adjustments. Transactions in foreign exchange are made through
authorized foreign exchange dealers, including trading banks and most
merchant banks. There are no specific restrictions regarding the
remittance of profits, dividends, and capital.
C. GENERAL FINANCING AVAILABILITY
Banking is the dominant player in the Australian finance industry,
accounting for 75% of total financial sector assets. The major finance
companies, which control about three-quarters of the total assets of the
industry, are owned wholly or predominantly by the major trading banks.
Commercial banks are the major source of medium-term loans. A wide
range of merchant banks operate in Australia, many of which are
associated with some of the world's largest financial institutions.
They also provide short-to-medium term funding. Venture capital finance
usually is available from management and investment companies, which are
funded by tax-deductible capital subscriptions. Other alternatives
include obtaining funds from finance companies (including leasing
arrangements), building societies, credit co-operatives or unions,
insurance companies, pension and superannuation funds and cash
management trusts.
The larger finance companies obtain their funds mainly by public issues
of debentures and unsecured notes with terms of up to five years. Long-
term financing, generally, is supplied by syndicated Australian and
overseas bank lending. A specialized market exists for direct borrowing
and lending on an unsecured basis between large, well established
companies. Factoring of book debts also can be arranged with finance
companies, but is not widespread.
Unlike their U.S. counterparts, Australian banks are free to participate
in virtually all forms of financial services, including overdrafts (a
traditional form of borrowing), fixed-term loans, commercial bills of
exchange, letters of credit, domestic and international debt and equity
issues, underwriting, leasing and Euro currency borrowing. Financial
services to business also are provided through a wide range of non-bank
institutions.
D. HOW TO FINANCE EXPORTS AND METHODS OF PAYMENT
As in other industrialized countries with mature financial systems,
Australia has a range of export finance methods available. The method
chosen should depend upon the individual circumstances of a transaction.
1. Cash in Advance: The exporter demands cash in advance before
exporting. This is the least popular method used. It is acceptable if
the client does not have access to other forms of financing.
2. Letter of Credit: Payment is guaranteed by the issuing bank. A
confirmed letter of credit guarantees payment by a foreign bank as well.
This is a very secure form of payment and is used frequently for unknown
clients, or those perceived to be risky accounts.
3. Commercial Bills of Exchange (sight and time drafts; cash against
documents): These bills of exchange are processed through the
exporter's and importer's banks. The banks do not guarantee payment,
but they will not release shipping documents until the terms of the bill
of exchange are met.
This is the most widely used form of trade finance, but the risk is
higher, as the importer may refuse to pay. The exporter should obtain
credit references, or have had a long standing relationship with the
importer, before offering this form of financing. Importers prefer this
method because it does not affect their cash flow or tie up their
commercial credit lines.
4. Open Account: The exporter ships the goods and sends a bill for
payment. These accounts are used widely, particularly with shipments to
U.S. subsidiary operations in Australia. Because this is the least
secure form of financing, it is also used for the very best and long
established accounts.
Eighty percent of Australian imports from the U.S. carry payment terms
of 30 to 180 days from the date of the shipping documents. Importers
normally will request terms, the cost of which should be built into the
export price. Importers prefer extended terms to allow them to receive,
inventory and sell the goods before paying. They may also wish to use
exporters' credit.
E. TYPES OF AVAILABLE EXPORT FINANCING AND INSURANCE
Several U.S. government agencies, as well as state and local ones, offer
programs to assist exporters with their financing needs. Some are
guarantee programs that require the participation of an approved lender;
others provide loans or grants to the exporter, or to a foreign
government. Many financing and guarantee programs apply only to high
risk or developing countries. Therefore, business dealings with
Australia do not qualify for coverage. However, some programs do extend
to Australia. Exporters should seek counseling on availability.
The Export-Import Bank of the United States (Eximbank) is the federal
government's trade finance agency, offering numerous programs to finance
and facilitate U.S. exports by making loans and providing guarantees and
insurance for loans from commercial sources. Although Australia does
participate in Eximbank programs for some major projects such as
commercial aircraft sales, there is relatively little EXIM activity in
Australia.
Other organizations fill various market niches. The Private Export
Funding Corporation (PEFCO) is owned by a group of large banks, and
makes EXIM-guaranteed loans to foreign purchasers of U.S. goods. The
Department of Agriculture offers a variety of programs to foster
agricultural exports. The Small Business Administration addresses the
needs of small exporters.
In Australia, various industrial banks have been established to
encourage the development of local industry and resources. The
government-owned Australian Industry Development Corporation (AIDC)
provides development finance, equity funding and financial advisory
services. The Primary Industry Bank provides, or refinances, loans to
primary producers for longer terms than normally are available.
Because it is an industrialized country, and a donor nation to the
multilateral development banks (MDBs), these lending institutions, such
as the World Bank and the Asian Development Bank, do not operate in
Australia. Like other prosperous countries, Australia has a large
market of private funding available for debt financing of projects.
World Bank and Asian Development Bank support for development projects
in the developing countries of Asia provides opportunities for
American/Australian consortia to compete for MBD-funded contracts in
these countries. Australian companies often have established
relationships in the region and are in a strong position when teamed
with U.S. companies to offer very competitive bids and performance
qualifications. (See Appendix E.7 for MBD contact information.)
F. PROJECT FINANCING AVAILABLE
A number of national and international financial management companies
practice in Australia. They provide the complex financial structuring
services required to fund projects, using the most competitive financial
package available for a particular project. Long-term debt can be
financed from a variety of sources and methods. These include:
-- Banks
-- Financial institutions
-- Retail investors
-- Government loans
-- Export credit agencies
-- Credit enhancement agencies
-- Bonds
-- Formation of national and international banking consortia
-- BOOT (build, own, operate and transfer)
-- Direct investment by local and international companies
-- Formation of loan syndications
-- Formation of joint ventures
Project financing includes both finance made available by non-
participants (i.e., loan funds by financial institutions), and finance
provided by participants (i.e., shares in a stock company), as well as a
host of hybrid arrangements. U.S. companies participate actively in all
types of project financing in Australia.
Banks traditionally have provided project finance term debt and,
currently, are the only source of project credit. While other sources
might fund project loans, funding is undertaken only on the basis of
bank credit enhancement through a bank guarantee or letter of credit.
However, the development of new and innovative funding mechanisms is a
key element in financing projects and infrastructure development as
public projects at the federal, state and local levels are made
available for privatization.
G. BANKS WITH CORRESPONDENT U.S. BANKING ARRANGEMENTS
All major banks in Australia have correspondent relationships with U.S.
banks (see Appendix E.6 for contact information).
CHAPTER IX: BUSINESS TRAVEL
A. BUSINESS TRAVEL
American business travelers to Australia should not encounter any
particular difficulties. Visitors should make preparations as they
would when traveling in the U.S., using normal reservation services for
travel and accommodation, plus taking into account the requirement to
have a valid Australian visa.
Despite the old image of being a far distant shore, travel time from the
U.S. to Australia is comparable to that to other Asian destinations, a
14 hour non-stop flight from the West Coast, with a choice of flights on
several reliable U.S. and international airlines. Most departures from
the U.S. leave in the evening and arrive in Australia early in the
morning (with a day skipped at the international date line). Some
morning departures are available. Travel to or from the rest of Asia,
Europe, South America and South Africa also is convenient. Around 30
international airlines fly into Australia every week from 37 countries
around the globe.
Frequent interstate flights connect the five major Australian cities.
Savings are available on internal air fares when purchased in
conjunction with international tickets. Australia has a very extensive,
efficient domestic transportation system including air, rail, coach,
sea, chauffeured and rental cars, and urban public transport between
cities and country areas, and within the urban areas.
Australia's many attractions as a tourist and holiday destination
finally are becoming well known, and the country has a tourism boom that
surpasses that of any other western country. In the past ten years,
tourism has become Australia's largest export earner, with the number of
international visitors increasing from 1.1 million in 1985 to 3.3
million in 1994. The Australian Tourist Commission is Australia's
national tourist office, and has locations in Los Angeles and New York
(see Appendix E, Section 4A). They can assist with travel advice, and
information on where to go and what to see.
Australia is a desired international destination for conventions and
corporate meetings, and corporate incentive travel. Its convention
centers and trade show facilities in capital cities and resort areas
offer state-of-the-art technology, some accommodating as many as 10,000
delegates. Many executives and conference delegates extend their stay
in Australia with a holiday.
B. BUSINESS CUSTOMS
Doing business in Australia is comfortable for American companies
because the language, the cultural environment, business practices and
customer expectations are very similar. Business etiquette is familiar
to Americans, with attention paid to advance planning, promptness,
punctuality, and follow through.
Australians are personally gracious, yet informal and direct in their
business dealings. Very soon after meeting, Australians do business on
a first name basis. Business cards are exchanged for information
purposes, but without any special ceremony. Token gift exchange is not
common. Luncheon meetings are common, but Australians do not usually
schedule business functions during the evening or on week-ends, which
are dedicated to family and friends. Normal business attire is worn in
the cities, with country areas being more informal.
C. TRAVEL ADVISORY AND VISAS
1. TIME ZONES
Australia's three time zones, Eastern, Central and Western, are parallel
to those in Asia. Eastern Time, (Sydney, Melbourne, Canberra Brisbane,
Cairns), is one hour ahead of Tokyo. The reversal of the seasons (and
hence of daylight saving time in the Northern and Southern Hemispheres)
complicates the time zone calculation. Between the months of April-
October, when it is 8:00 am in New York and 11:00 am in Los Angeles, it
is 10:00 pm in Sydney and 8:00 pm in Perth. From November-March, at 8:00
am in New York it is 12:00 pm in Sydney and 10:00 pm in Perth.
2. INTERNATIONAL AIR TRAVEL TIMES
Los Angeles to Sydney 14 hrs 20 mins
New York to Sydney (via Los Angeles) 21 hrs 30 mins
(via Japan) 25 hrs 20 mins
Honolulu to Sydney 9 hrs 55 mins
Tokyo to Sydney 9 hrs 20 mins
Hong Kong to Sydney 9 hrs 00 mins
Singapore to Sydney 7 hrs 50 mins
3. AIR TRAVEL TIMES WITHIN AUSTRALIA
Sydney to Melbourne 1 hr 25 mins
Sydney to Brisbane 1 hr 25 mins
Sydney to Perth 4 hrs 50 mins
Sydney to Canberra 35 mins
Melbourne to Brisbane 1 hr 50 mins
Melbourne to Perth 4 hrs 00 mins
Brisbane to Perth 6 hrs 20 mins
4. VISAS
A valid U.S. passport and visa are required for Americans traveling to
Australia. Visas are issued by Australian Embassies and Consulates and
by some airlines. Business visitor visas and tourist visas are the most
common types and generally are issued without problem. Requirements for
work and resident visas are more stringent. The nearest Australian visa
office should be contacted well in advance. (The addresses of
Australian Government offices in the U.S. are listed in Appendix E.4A.)
D. HOLIDAYS
Australians tend to take their long annual holiday in December and
January, combining Christmas/New Year celebrations with the long summer
school holidays. Consequently, business slows down and it is sometimes
difficult to make appointments. Business travelers should be sure their
contacts will be available during this period before scheduling their
trip.
Listed below are the national public holidays observed in Australia.
Some dates may vary from state to state and individual states have their
own additional public holidays. For example, all states have a public
holiday for the Queen's Birthday, but the date varies.
New Year's Day January 1
Australia Day January 26
Good Friday varies
Easter Monday varies
Anzac Day April 25
Christmas Day December 25
Boxing Day December 26
E. BUSINESS INFRASTRUCTURE
1. BUSINESS HOURS AND BANKING
Office business hours generally are 9:00 am- 5:00 pm, Monday through
Friday. Retail shops increasingly keep longer business hours and all
city centers have evening shopping at least one day per week along with
Saturday. However, Australia has not yet gone to the 7 day/24 hour
shopping mode of parts of the U.S. Banks keep normal business hours
Monday through Friday, with 7 day/24 hour ATM service. Restaurants and
convenience stores are open long hours.
2. CURRENCY
Australia's unit of currency, the Australian dollar (A$), is freely-
traded. The conversion rate is variable. In 1993, the average rate was
$1 Australian to $0.68 U.S. but as of June, 1994 the rate was $1
Australian to $0.73 U.S., an average that is likely to continue in the
near term. Travelers checks are accepted widely. Currency can be
exchanged easily at international airports and most major banks, and ATM
machines are everywhere. There are no major restrictions on importing
or exporting currency or travelers checks to/from Australia, although a
customs declaration is filed when taking out large amounts of cash.
3. CREDIT CARDS/ATMS
Most international credit cards are accepted in Australia and, as in the
U.S., can be used for purchases of goods and services, and to confirm
hotel and other travel arrangements. ATM machines have most
international cash access systems available so travellers can draw cash
directly from their U.S. accounts.
4. TELEPHONES AND FACSIMILES
Australia's telecommunications infrastructure is excellent, and rates
have reduced to become more competitive than prior to 1992, when there
was only one network operator. Services to businesses include ISDN,
Frame Relay, Email, voice messaging, electronic mail boxes, and
faxstream. A number of companies provide call-back services by leasing
excess capacity lines from the telecommunications operators, then
offering national or international calls. The use of phone cards is
common, and most major international phone cards can be used. Phone
cards are available from numerous retail outlets.
For international travelers wanting to use a mobile phone, it is easier
to rent one in Australia. Business visitors from the U.S. can use only
Analog AMPS mobile phones in Australia, and even then, they must obtain
a compliance certificate from the local manufacturer, plus an Electronic
Serial Number (ESN). Compliance certificates cost between A$100 and
A$400. Local manufacturers may say that phones may be used without a
compliance certificate for a short period of time by going to phone
shops who could connect short term users to the network directly. But
phone shops, in turn, advise they will connect a mobile phone only if it
has a compliance certificate and ESN, and then only if the account will
be paid by an Australian resident.
Facsimile services are available for public use in Post Offices, hotels,
and some copying shops.
5. POSTAL AND COURIER SERVICES
The Australian Postal Corporation supplies modern and efficient postal
services within Australia, and between Australia and overseas. Express
delivery and insured service is available. Domestic and international
faxes can be sent from Post offices.
Several international courier services operate from major cities
offering express world-wide delivery of documents and packages.
6. HOTELS AND BUSINESS SERVICES
The business traveler to Australia can choose from a full range of
hotels, from budget to international standard. Bookings for major
chains can be made before leaving the U.S. Accommodations range from
rooms, to elaborate suites. Serviced apartment hotels with kitchens and
living rooms are available. Most large hotels offer a full range of
business and communications services including fax, word processing and
copying. Temporary serviced office suites are available for short term
rent.
7. RENTAL CARS AND LOCAL TRANSPORTATION
As in Britain and most of Asia, Australians drive on the left side of
the road. Major U.S. and Australian car rental agencies operate
throughout the country. Reservations can be made through airports,
hotels, travel agents, or directly, using a credit card and a U.S. or
international driver's license. Throughout the urban areas, public
transportation is well developed and safe. Urban crime is not a common
fear. Comfortable and convenient bus, rail, and air services are
available between cities and country towns.
8. ELECTRICAL POWER
Voltage in Australia is 220-240V, 50 cycles. Three prong conversion
plugs are available widely in retail stores. Voltage transformers to
convert American 110V appliances are available, but not found so easily.
Dual voltage devices are more practical.
9. TAXES AND CUSTOMS DUTIES
There is no retail sales tax in Australia. Instead, wholesale taxes are
levied at either manufacturer or wholesaler level by the Commonwealth
Government and passed along to the consumer as part of the retail price.
Passengers with airline tickets can buy items at duty-free shops in
major cities and airports, although sometimes the prices are better in
regular shops. It pays to compare. Customs information is available
from the Australian Customs Service. (See appendix C.1.)
10. HEALTH
Australia is a healthy place, with no notable problems. Public water is
safe everywhere. There are active campaigns to get people to protect
themselves from the sun, skin cancer, and AIDS, and visitors should be
no exception. Medical and dental services, and all types of health
facilities are comparable to those in the U.S. Visitors needing medical
attention can receive it easily, but may be required to pay for services
immediately by cash or credit card. Therefore, visitors should have
their own health insurance arrangements in the U.S. from which to seek
reimbursement.
11. FOOD AND DRINK
Australia's reputation as a world gourmet destination is growing, as
understanding spreads of Australia's abundance in fresh, pure, and prime
quality fruits, vegetables, meats, seafood, dairy products, specialty
cheeses and fine wine. Australia's cultural diversity means a broad
choice of cuisines from many national origins, and modern Australian
chefs are reaching new heights of creativity. The coastal cities are
renowned for fresh seafood, and the traditional Australian barbecue is a
way of life. Australia is winning international wine awards; and its
wine industry export earnings are growing exponentially. Of course -
the Aussies' traditional dedication to their beer is legendary.
12. CULTURAL OPPORTUNITIES
Australia's vibrant, multi-cultural society offers cultural events to
suit every preference. In major cities opera, ballet, and theater
companies have full seasons. There is a myriad of art exhibitions,
classical,rock, and country and western music festivals and concerts.
Books and movies are current. Country areas hold folk, historic and
food and wine festivals. Ethnic groups stage their own celebrations.
Sport of all types is a national obsession - whether as a participant,
or stadium fan, or television viewer. After sampling some of these
attractions, most business visitors decide they want to spend their next
holiday in Australia!
CHAPTER X: APPENDICES
TABLE OF CONTENTS
APPENDIX A: AUSTRALIA COUNTRY DATA
1. POPULATION
2. POPULATION GROWTH RATE (%)
3. RELIGION(S)
4. GOVERNMENT SYSTEM
5. LANGUAGE(S)
6. WORK WEEK
APPENDIX B: AUSTRALIAN DOMESTIC ECONOMY STATISTICS FOR 1994, 1995, 1996
1. GDP
2. GDP GROWTH RATE (%)
3. GDP PER CAPITA
4. GOVERNMENT SPENDING AS A % OF GDP
5. INFLATION (%)
6. UNEMPLOYMENT RATE (%)
7. FOREIGN EXCHANGE RESERVES
8. AVERAGE EXCHANGE RATE FOR USD1.00
9. NET FOREIGN DEBT
10. DEBT SERVICE RATIO (%)
11. U.S. ECONOMIC MILITARY/ASSISTANCE
APPENDIX C: U.S. AND AUSTRALIAN TRADE STATISTICS FOR 1994, 1995, 1996
PART I: GOODS AND SERVICES TRADE STATISTICS
1. TOTAL AUSTRALIA EXPORTS (G&S)
2. TOTAL AUSTRALIA IMPORTS (G&S)
3. AUSTRALIA'S EXPORTS OF MERCHANDISE GOODS
4. AUSTRALIA'S IMPORTS OF MERCHANDISE GOODS
5. U.S. SHARE OF MERCHANDISE IMPORTS (PERCENT)
6. AUSTRALIA'S IMPORTS OF MANUFACTURED GOODS
7. U.S. SHARE OF MANUFACTURED IMPORTS (PERCENT)
8. MANUFACTURED GOODS TRADE BALANCE WITH U.S.
9. TRADE BALANCE WITH THREE LEADING PARTNERS 1994
10. PRINCIPAL U.S. EXPORTS TO AUSTRALIA 1994
11. PRINCIPAL U.S. IMPORTS FROM AUSTRALIA 1994
PART II: AGRICULTURAL TRADE STATISTICS
1. AUSTRALIAN AGRICULTURAL IMPORTS
2. AGRICULTURAL TRADE BALANCE WITH U.S.
3. AGRICULTURAL TRADE BALANCE WITH 3 TOP PARTNERS
4. PRINCIPAL AUSTRALIAN EXPORTS TO THE U.S.
5. PRINCIPAL AUSTRALIAN IMPORTS FROM THE U.S.
APPENDIX D: FOREIGN DIRECT INVESTMENT STATISTICS
1. TABLE 1: FOREIGN DIRECT INVESTMENT IN AUSTRALIA
2. TABLE 2: STOCK OF FOREIGN DIRECT INVESTMENT IN AUSTRALIA AT
FYE BY SELECTED COUNTRIES
3. TABLE 3: STOCK OF FOREIGN DIRECT INVESTMENT IN AUSTRALIA AT
FYE BY INDUSTRY
4. TABLE 4: TOTAL EXPECTED INVESTMENT BY COUNTRY OF INVESTOR
AND INDUSTRY SECTOR
5. TABLE 5: AUSTRALIAN FOREIGN DIRECT INVESTMENT ABROAD
APPENDIX E: KEY CONTACTS IN THE U.S. AND AUSTRALIA
1. U.S. GOVERNMENT OFFICES IN AUSTRALIA
2. AMCHAM AND BILATERAL BUSINESS COUNCILS
3. KEY AUSTRALIAN TRADE ORGANIZATIONS AND INDUSTRY
ASSOCIATIONS (by industry sector)
4. KEY AUSTRALIAN GOVERNMENT OFFICES
5. SOURCES OF MARKET RESEARCH AND BUSINESS FACILITATION SERVICES
6. COMMERCIAL BANKS IN AUSTRALIA
7. NEWSPAPERS, PERIODICALS AND BUSINESS DIRECTORIES
APPENDIX F: MARKET RESEARCH 1995 - 1996
1. KEY INDUSTRY SECTOR MARKET RESEARCH
2. AGRICULTURAL MARKET RESEARCH
APPENDIX G. 1996 TRADE EVENT SCHEDULE (by industry sector)
APPENDIX A: COUNTRY DATA
1. Population 17.9 million
2. Population Growth Rate 1.1%
3. Religions (approximate) Anglican 25%
Roman Catholic 25%
Other Christian 20%
Unspecified 30%
4. Government System: A Democratic Federal and State parliamentary
system, recognizing the British Monarch as Sovereign
5. Languages: English is the official language, with modern Australian
English a conglomerate of British, American, and their own phraseology
and spelling. Because Australia is one of the most multicultural
nations in the world it is possible to find vibrant ethnic communities
using almost every other world language. Australian school children
have the highest rate of learning Asian languages, particularly Japanese
and Chinese, of any industrialized western nation - in recognition of
their future as a member of the Asia-Pacific region.
6. Work Week: The normal business work week is Monday-Friday, 38 hours,
usually ranging between 8 a.m. - 6 p.m. with an hour or so for lunch.
Most shops close by 6 p.m. most days but keep some evening, Saturday,
and, increasingly, Sunday hours.
APPENDIX B. DOMESTIC ECONOMY STATISTICS
(all figures in millions of U.S. dollars*)
Calendar Year 1994 1995 1996
(e) (p)
1. Gross Domestic Product 298,613 309,038 337,700
89-90 prices)
2. GDP Growth Rate (%)** 5.1 4.2 3.6
3. GDP per Capita 16,682 17,074 18,449
4. Government Spending 26.7 25.1 25.0
(% of GDP)
5. Inflation (%) 2.5 3.5 4.2
6. Unemployment Rate (%) 9.7 8.5 8.0
7. Foreign Exchange Reserves 10,130 12,400 13,500
(year end)
8. Avg. Exchange Rate 1.36 1.37 1.30
(US$=1.00)
9. Net Foreign Debt (yr end) 119,291 118,300 123,200
10. Debt Service Ratio (%) 11.4 12.1 12.4
11. U.S. Economic/Military NA NA NA
Assistance
* Exchange rate fluctuations must be considered when analyzing data.
** Percent changes are calculated in Australian dollars.
(e) Estimate
(p) Projection
APPENDIX B. DOMESTIC ECONOMY STATISTICS
(all figures in millions of U.S. dollars*)
Calendar Year 1994 1995 1996
(e) (p)
1. Gross Domestic Product 298,613 309,038 337,700
(89-90 prices)
2. GDP Growth Rate (%)** 5.1 4.2 3.6
3. GDP per Capita 16,682 17,074 18,449
4. Government Spending 26.7 25.1 25.0
(% of GDP)
5. Inflation (%) 2.5 3.5 4.2
6. Unemployment Rate (%) 9.7 8.5 8.0
7. Foreign Exchange Reserves 10,130 12,400 13,500
(year end)
8. Avg. Exchange Rate 1.36 1.37 1.30
(US$=1.00)
9. Net Foreign Debt (yr end) 119,291 118,300 123,200
10. Debt Service Ratio (%) 11.4 12.1 12.4
11. U.S. Economic/Military NA NA NA
Assistance
* Exchange rate fluctuations must be considered when analyzing data.
** Percent changes are calculated in Australian dollars.
(e) Estimate
(p) Projection
APPENDIX C: U.S. AND AUSTRALIAN TRADE STATISTICS
(All figures in millions of U.S. dollars*)
PART I. GOODS AND SERVICES TRADE STATISTICS
Calendar Year 1994 1995 1996
(e) (p)
1. Total Australian 60,960 64,500 75,500
Exports (G&S)**
2. Total Australian 64,723 72,300 79,300
Imports (G&S)**
3. Exports of Merchandise Goods (a)
(1) Total (to World) 47,763 50,200 59,100
(2) To the U.S. 3,410 3,500 4,100
4. Imports of Merchandise Goods (a)
(1) Total (from World) 50,056 56,200 62,400
(2) From the U.S. 10,907 11,520 11,850
5. U.S. Share of Merchandise
Imports (%) 21.8 20.5 19.0
6. Imports of Manufactured Goods (b)
(1) Total (from World) 30,439 34,160 38,500
(2) From the U.S. 10,068 8,540 9,200
7. U.S. Share of Manufactured
Imports (%) 33.0 25.0 24.0
8. Manufactured Goods Trade Balance
with U.S. (8,586) (5,840) (5,400)
(1) Growth Rate from World (%) 8.5 13.0 6.8
(2) Growth Rate from U.S. (%) 14.5 14.6 2.6
9. Trade Balance with Three Leading Partners in 1994
Japan 2,874
U.S. (7,497)
New Zealand 736
10. Principal U.S. Exports to Australia in Calendar 1994
(1) Aircraft and Associated
Equipment 806.5
(2) Computers 754.1
(3) Computers and Office
Mach. Parts etc. 560.8
(4) Measuring and Checking
Equipment 389.9
(5) Telecommunications
Equipment 339.3
11. Principal U.S. Imports from Australia
(1) Bovine Meat f.c.f. 546.0
(2) Computers and Office
Mach. parts etc. 199.5
(3) Aircraft and Associated
Equipment 134.5
(4) Crude Petroleum and Oils 123.3
(5) Wool and Animal Hair
(inc. wool tops) 117.0
PART II. AGRICULTURAL TRADE STATISTICS
1994 1995 1996
(e) (p)
1. Australian Agricultural Imports
Total from World 2977 3126 3300
Total from U.S. 381 410 495
U.S. Share of Market (%) 9.4 13.0 15.0
2. Agricultural Trade Balance with U.S.
Aust. Agr Exports to U.S. 868 990 1200
Aust. Agr Imports from U.S. 382 410 495
Balance 486 580 705
3. Agricultural Trade Balance with top three trading partners
Aust. Agr. Export to Japan 2767 2700 2800
Aust. Agr. Imports from Japan 68 65 70
Balance 2699 2635 2730
Aust. Agr. Exports to Taiwan 451 500 600
Aust. Agr. Imports to Taiwan 33 40 50
Balance 418 450 550
Aust. Agr. Exports to Singapore 253 275 300
Aust. Agr. Imports from Singapore 61 60 65
Balance 192 215 235
4. Principal Australian Exports to the U.S. (Top 5)
(1) Meat and Meat Preparations 769 750 1000
(2) Vegetables and Fruit 23 30 50
(3) Dairy Products and Birds Eggs 20 25 30
(4) Sugar, & Preparations, Honey 16 16 20
(5) Cereals and Cereal Preparations 1 1 10
5. Principal Australian Imports from the U.S. (Top 5)
(1) Cork and Wood 53 50 50
(2) Vegetables and Fruit 71 75 80
(3) Oilseeds and Oleaginous Fruits 57 100 75
(4) Beverages 35 50 65
(5) Tobacco and Tobacco Manufactures 25 25 25
Source: Australian Bureau of Statistics
Footnotes:
* Exchange rate fluctuations must be considered when analyzing data.
** Total Trade and Manufactured Trade are recorded on a balance of
payments basis. Merchandise Trade is recorded using FOB data from the
Department of Foreign Affairs and Trade.
(a) Data on total bilateral trade with the U.S. is not available due to
lags in data for services trade.
(b) Manufactured Goods include total major commodity imports, apart
from: food and live animals; animal and vegetable oils, fats and waxes;
mineral fuels and lubricants; and gold, coins and special commodities
transactions.
(e) Estimate.
(p) Projection.
APPENDIX C: U.S. AND AUSTRALIAN TRADE STATISTICS
(All figures in millions of U.S. dollars*)
PART I. GOODS AND SERVICES TRADE STATISTICS
Calendar Year 1994 1995 1996
(e) (p)
1. Total Australian 60,960 64,500 75,500
Exports (G&S)**
2. Total Australian 64,723 72,300 79,300
Imports (G&S)**
3. Exports of Merchandise Goods (a)
(1) Total (to World) 47,763 50,200 59,100
(2) To the U.S. 3,410 3,500 4,100
4. Imports of Merchandise Goods (a)
(1) Total (from World) 50,056 56,200 62,400
(2) From the U.S. 10,907 11,520 11,850
5. U.S. Share of Merchandise
Imports (%) 21.8 20.5 19.0
6. Imports of Manufactured Goods (b)
(1) Total (from World) 30,439 34,160 38,500
(2) From the U.S. 10,068 8,540 9,200
7. U.S. Share of Manufactured
Imports (%) 33.0 25.0 24.0
8. Manufactured Goods Trade Balance
with U.S. (8,586) (5,840) (5,400)
(1) Growth Rate from World (%) 8.5 13.0 6.8
(2) Growth Rate from U.S. (%) 14.5 14.6 2.6
9. Trade Balance with Three Leading Partners in 1994
Japan 2,874
U.S. (7,497)
New Zealand 736
10. Principal U.S. Exports to Australia in Calendar 1994
(1) Aircraft and Associated
Equipment 806.5
(2) Computers 754.1
(3) Computers and Office
Mach. Parts etc. 560.8
(4) Measuring and Checking
Equipment 389.9
(5) Telecommunications
Equipment 339.3
11. Principal U.S. Imports from Australia
(1) Bovine Meat f.c.f. 546.0
(2) Computers and Office
Mach. parts etc. 199.5
(3) Aircraft and Associated
Equipment 134.5
(4) Crude Petroleum and Oils 123.3
(5) Wool and Animal Hair
(inc. wool tops) 117.0
PART II. AGRICULTURAL TRADE STATISTICS
1994 1995 1996
(e) (p)
1. Australian Agricultural Imports
Total from World 2977 3126 3300
Total from U.S. 381 410 495
U.S. Share of Market (%) 9.4 13.0 15.0
2. Agricultural Trade Balance with U.S.
Aust. Agr Exports to U.S. 868 990 1200
Aust. Agr Imports from U.S. 382 410 495
Balance 486 580 705
3. Agricultural Trade Balance with top three trading partners
Aust. Agr. Export to Japan 2767 2700 2800
Aust. Agr. Imports from Japan 68 65 70
Balance 2699 2635 2730
Aust. Agr. Exports to Taiwan 451 500 600
Aust. Agr. Imports to Taiwan 33 40 50
Balance 418 450 550
Aust. Agr. Exports to Singapore 253 275 300
Aust. Agr. Imports from Singapore 61 60 65
Balance 192 215 235
4. Principal Australian Exports to the U.S. (Top 5)
(1) Meat and Meat Preparations 769 750 1000
(2) Vegetables and Fruit 23 30 50
(3) Dairy Products and Birds Eggs 20 25 30
(4) Sugar, & Preparations, Honey 16 16 20
(5) Cereals and Cereal Preparations 1 1 10
5. Principal Australian Imports from the U.S. (Top 5)
(1) Cork and Wood 53 50 50
(2) Vegetables and Fruit 71 75 80
(3) Oilseeds and Oleaginous Fruits 57 100 75
(4) Beverages 35 50 65
(5) Tobacco and Tobacco Manufactures 25 25 25
Source: Australian Bureau of Statistics
Footnotes:
* Exchange rate fluctuations must be considered when analyzing data.
** Total Trade and Manufactured Trade are recorded on a balance of
payments basis. Merchandise Trade is recorded using FOB data from the
Department of Foreign Affairs and Trade.
(a) Data on total bilateral trade with the U.S. is not available due
to lags in data for services trade.
(b) Manufactured Goods include total major commodity imports, apart
from: food and live animals; animal and vegetable oils, fats and waxes;
mineral fuels and lubricants; and gold, coins and special commodities
transactions.
(e) Estimate.
(p) Projection.
APPENDIX D: FOREIGN DIRECT INVESTMENT STATISTICS
TABLE 1. FOREIGN DIRECT INVESTMENT IN AUSTRALIA
(All figures in U.S.$ Billion (a))
Foreign Investment Flows:
- Direct Investment
- Total Foreign
Fiscal Year Equity Other Total Investment
1989-90 4.0 -0.2 5.8 19.5
1990-91 5.7 -0.2 6.5 17.0
1991-92 3.2 0.1 5.2 11.6
1992-93 4.3 0.1 3.4 12.6
1993-94 3.5 0.1 3.5 15.2
Source: Foreign Investment Review Board Report 1993-94, Table 3.1.
TABLE 2. STOCK OF FOREIGN DIRECT INVESTMENT AT FYE (JUNE 30) IN
AUSTRALIA BY SELECTED COUNTRIES
(All figures in U.S.$ Millions (a))
Country Fiscal Year Equity Other Total
USA
1988-89 13,577 3,477 17,053
1989-90 16,332 3,492 19,824
1990-91 17,202 3,924 21,126
1991-92 17,416 4,346 21,762
1992-93 18,618 4,928 23,546
Japan
1988-89 4,073 4,265 8,338
1989-90 5,614 5,642 11,256
1990-91 6,447 5,966 12,412
1991-92 6,826 6,610 13,436
1992-93 5,806 5,868 11,675
UK
1988-89 17,053 2,035 19,089
1989-90 18,179 2,635 20,814
1990-91 16,508 2,344 18,852
1991-92 16,100 2,529 18,628
1992-93 15,115 2,183 17,298
Source: ABS 5305.0 Foreign Investment Australia 1992-93, Table 22
(published August 1994).
TABLE 3. STOCK OF FOREIGN DIRECT INVESTMENT IN AUSTRALIA
AT FISCAL YEAR END (JUNE 30) BY INDUSTRY
(All figures in U.S. Millions (a))
Industry 1989-90 1990-91 1991-92 1992-93
Mining 11,347 9,897 10,479 9,934
Manufacturing 21,224 22,058 22,593 23,559
Wholesale & Retail
Trade 12,412 11,849 12,644 11,413
Finance, Prop.
& Business 24,153 28,022 28,183 24,432
Agriculture, Forest,
Fish & Hunting 972 1,232 903 973
Other np 1,068 np 1,997
Total 73,005 75,535 78,643 74,765
Source: ABS 5305, Table 29 (published August 1994).
np - not available for separate publication but included in totals where
applicable.
TABLE 4. TOTAL EXPECTED INVESTMENT ASSOCIATED WITH PROPOSALS APPROVED
BY THE FIRB, BY COUNTRY OF INVESTOR AND INDUSTRY SECTOR (FY 1993-94)
(All figures in U.S. Millions (a))
Industry Sector Total USA UK NZ
Agriculture, Forestry
& Fishing 111 34 4 11
Mining 2,661 790 340 34
Resource Processing 182 66 81 na
Manufacturing 1,441 467 110 82
Finance & Insurance 525 85 67 138
Services (excl. Tourism) 1,257 440 190 148
Tourism 3,024 428 33 158
Real Estate 7,908 894 343 32
Total 17,107 3,202 1,169 603
No. of Proposals 4,920 264 330 46
Industry Sector Germany Japan Australia
Agriculture, Forestry
& Fishing na 4 na
Mining 2 222 905
Resource Processing na 3 9
Manufacturing 56 150 294
Finance & Insurance 131 18 2
Services (excl. Tourism) 21 45 58
Tourism 273 456 549
Real Estate 49 230 586
Total 533 1,127 2,404
No. of Proposals 92 244 109
Source: FIRB Annual Report 1993-94.
TABLE 5. AUSTRALIAN FOREIGN DIRECT INVESTMENT ABROAD (FY 1992-93)
(All figures in U.S. Millions (a))
Destination/Flow/Level of Investment
(FYE 6/30/93)
USA 609 7,438
NZ 859 4,801
UK np 8,911
Total OECD 1,648 23,727
ASEAN 251 2,371
Papua New Guinea 93 1,387
Others np np
Unallocated np np
Total 2,169 30,334
Source: ABS 5305.0 Table 24, 26 (published August 1994).
Footnotes:
(a) Exchange rate fluctuations must be considered when analyzing data.
(np) not available for separate publication but included in totals where
applicable.
Exchange Rates:
FY 1988-89: A$1.00 EQUALS US$0.755
FY 1989-90: A$1.00 EQUALS US$0.790
FY 1990-91: A$1.00 EQUALS US$0.768
FY 1991-92: A$1.00 EQUALS US$0.749
FY 1992-93: A$1.00 EQUALS US$0.672
FY 1993-94: A$1.00 EQUALS US$0.729
APPENDIX E: U.S. AND AUSTRALIA CONTACTS
Contents at a Glance:
1. U.S. GOVERNMENT ORGANIZATIONS IN AUSTRALIA
A. U.S. Embassy/Commercial Service/Agricultural Service
Offices in Australia
B. Washington-based USG Contacts Dealing with Australia
2. AMCHAM & BILATERAL BUSINESS COUNCILS
A. The American Chamber of Commerce in Australia
B. Australian-American Chambers of Commerce
C. Australian Chambers of Commerce
3. KEY AUSTRALIAN CONTACTS
4. AUSTRALIAN GOVERNMENT AGENCIES
A. In the U.S.
B. Federal Government Agencies
C. State Economic Development Agencies
5. AUSTRALIAN MARKET RESEARCH AND BUSINESS SERVICE PROVIDERS
6. COMMERCIAL BANKS
A. Australian Banks
B. American Banks with Representation in Australia
10. AUSTRALIAN PUBLICATIONS
A. Newspapers
B. Periodicals
C. Leading Business Directories
1. U.S. GOVERNMENT ORGANIZATIONS
A. EMBASSY OF THE UNITED STATES OF AMERICA
Moonah Place
Canberra ACT 2600
Tel: 61 6 270 5000
Fax: 61 6 270 5970
For mail from the U.S.:
American Embassy Canberra
PSC 277
APO AP 96549
The U.S. Embassy, with its subsidiary Consulates General, is responsible
for all of the functions of the U.S. diplomatic mission to Australia.
The Ambassador is the senior U.S. government official in Australia.
Embassy Officers with primary responsibility for trade policy, trade
issues, and trade promotion programs include:
* Commercial Counselor (The Senior U.S. Commercial Service Officer
for Australia, who is located at the U.S. Consulate General in Sydney -
send inquiries to address below, not to Embassy)
* Economics Counselor
* Agricultural Counselor
* Labor Attache
* Defense Attache
B. COMMERCIAL SERVICE OFFICES IN AUSTRALIA
The Commercial Service of the U.S. Department of Commerce has offices at
the American Consulates General in Sydney, Melbourne, and Perth. These
offices are staffed by American Commercial Service Officers, who are
part of the Diplomatic Mission to Australia. They manage all aspects of
the trade promotion program, with an Australian staff of trade
professionals.
The Commercial Service in Australia works with the U.S. Department of
Commerce District Offices throughout the United States to provide a full
range of export facilitation services to U.S. business. The first point
of inquiry for an American company needing Commercial Service assistance
is its nearest USDOC District Office in the United States.
For general questions concerning trade policy or issues, or industry-
specific inquiries:
Senior Commercial Officer for Australia
Commercial Service
U.S. Consulate General
MLC Centre, Martin Place, Level 59
Sydney, NSW 2000
Tel: 61 2 373 9200
Fax: 61 2 221 0573
For inquiries concerning New South Wales, Queensland:
Principal Commercial Officer
Commercial Service
U.S. Consulate General
MLC Centre, Martin Place, Level 59
Sydney, NSW 2000
Tel: 61 2 373 9200
Fax: 61 2 221 0573
For mail from the U.S.:
Principal Commercial Officer
U.S. Consulate General Sydney
Commercial Service
PSC 280, Unit 11024
APO AP 96554-0002
For inquiries concerning Victoria, South Australia, Tasmania and the
Northern Territory:
Principal Commercial Officer
Commercial Service
U.S. Consulate General
553 St. Kilda Road, 6th Floor
Melbourne, VIC 3004
Tel: 61 3 9526 5900
Fax: 61 3 9510 4660
For mail from the U.S.:
Principal Commercial Officer
U.S. Consulate General Melbourne
Commercial Service
Unit 11011
APO AP 96551-0002
For inquiries concerning Western Australia:
Commercial Specialist
U.S. Consulate General
Commercial Service
16 George's Terrace, 13th Floor
Perth, Western Australia 6000
Tel: 61 9 231 9400
Fax: 61 9 231 9444
For mail from the U.S.:
Commercial Specialist
U.S. Consulate General (Perth)
Commercial Service
U.S. Consulate General
APO AP 96530
C. WASHINGTON-BASED U.S. GOVERNMENT OFFICES DEALING WITH AUSTRALIA
U.S. DEPARTMENT OF COMMERCE
Australia Desk Officer
International Trade Administration
Room 2308 HCHB
Washington DC 20230
Tel: 202 482 2471/2955
Fax: 202 482 5330
U.S. DEPARTMENT OF AGRICULTURE
Foreign Agricultural Service
Foreign Agricultural Affairs
East Asia Pacific Area Office
Washington DC 20250
Tel: 202 720 2690
Fax: 202 720 6063
U.S. DEPARTMENT OF STATE
East Asia Pacific/ANZ Desk
Room 4209
Washington DC 20520/6310
Tel: 703 255 5138
Fax: 202 647 4402
U.S. INFORMATION AGENCY
East Asia Desk
301 4th Street, S.W., Room 766
Washington DC 20547
Tel: 202 619 5847
Fax: 202 619 6684
U.S. DEPARTMENT OF DEFENSE
Defense Security Assistance Agency
East Asia Pacific Division
Office of the Secretary of Defense
Room 4B740
The Pentagon
Washington DC 20301
Fax: 703 604 6541
MULTILATERAL DEVELOPMENT BANK OFFICE
U.S. Department of Commerce
14th and Constitution Avenue, N.W.
Room H-1107
Washington, D.C. 20007
Tel: 202 482 3399
Fax: 202 273 0927
Australia is a donor country to multilateral development banks, not a
recipient. There are no MDB offices in Australia. The Australian
government liaises with the MDBs through its Embassies in the cities
where the banks are located: Asian Development Bank, Manila; World
Bank, Washington.
TRADE INFORMATION CENTER (TIC)
Tel: 1-800-USA-TRADE (1 800 872 8723)
202 482 5455 (TPCC Secretariat)
Fax: 202 482 4473
TIC specialists provide basic export counseling and information on
export services and programs offered by 19 federal agencies of the Trade
Promotion Coordinating Committee (TPCC). The annual report of the TPCC,
"The National Export Strategy", designates "the Trade Information
Center, situated in Commerce, as the single TPCC-wide information office
that will coordinate specialized non-agricultural export information
offices".
2. AMCHAM AND BILATERAL BUSINESS COUNCILS
A. THE AMERICAN CHAMBER OF COMMERCE IN AUSTRALIA (AMCHAM)
AmCham is the premier organization supporting the U.S. - Australian
business community. The Chamber has more than 1500 member companies and
works very closely with the U.S. Embassy and U.S. Commercial Service in
Australia. It has a full program of business information and advisory
services, business community networks, business forums, etc. It
represents views of the business community to both the Australian and
American governments and is active in the Asia-Pacific Association of
Chambers and the Asia-Pacific Cooperation Forum (APCAC). It publishes
an annual directory of all members.
The American Chamber of Commerce in Australia
Ste 4, Gloucester Walk
88 Cumberland Street
Sydney NSW 2000
Tel: 61 2 241 1907
Fax: 61 2 251 5220
B. AUSTRALIAN/AMERICAN CHAMBERS OF COMMERCE (AACC)
These organizations conduct a variety of activities ranging from trade
promotion and facilitation, to information programs, to social and
cultural activities, depending upon the interests of their members.
They also are affiliated loosely with the Australian Embassy and the
Australian Trade Commission (AUSTRADE) in the U.S. There are AACCs in
the following cities: Atlanta, GA; Chicago, IL; Dallas, TX; Denver, CO;
Honolulu, HI; Houston, TX; Los Angeles, CA; Minneapolis, MN; Orlando,
FL; Pittsburgh, PA; St. Louis, MO; San Diego, CA; San Francisco, CA.
Contact AUSTRADE for further information (see Section 4A for address).
C. AUSTRALIAN CHAMBERS OF COMMERCE (BY STATE)
Each Australian state has a Chamber of Commerce to promote business
relations and investment, including imports and exports, in their state.
NEW SOUTH WALES
State Chamber of Commerce (NSW)
GPO Box 4280
Sydney, NSW 2001
Tel: 61 2 350 8100
Fax: 61 2 350 8199
VICTORIA
Victorian Employers Chamber of Commerce and Industry
50 Burwood Road
Hawthorn VIC 3122
Tel: 61 3 9810 6333
Fax: 61 3 9819 0139
QUEENSLAND
Queensland Chamber of Commerce and Industry Limited
Industry House, 375 Wickham Terrace
Brisbane QLD 4000
Tel: 61 7 831 1699
Fax: 61 7 832 3195
SOUTH AUSTRALIA
South Australian Employers Chamber of Commerce and Industry Inc.
136 Greenhill Road
Unley SA 5061
Tel: 61 8 373 1422
Fax: 61 8 272 9662
WESTERN AUSTRALIA
Chamber of Commerce and Industry of Western Australia
PO Box 6209
East Perth WA 6892
Tel: 61 9 421 7555
Fax: 61 9 325 6550
TASMANIA
Tasmanian Chamber of Commerce and Industry
GPO Box 793H
Hobart TAS 7001
Tel: 61 02 34 5933
Fax: 61 02 31 1278
3. LEADING TRADE OR INDUSTRY ASSOCIATIONS
(Listed by Standard ITA Industry Codes)
Australia, like the U.S., has active trade and industry associations
that have various information and industry promotion programs to assist
their members.
GENERAL BUSINESS AND TRADE ASSOCIATIONS (ZEC; ZRG; ZSV)
ASEAN-Australia Business Council
PO Box E14
Queen Victoria Terrace
Canberra ACT 2600
Tel: 61 6 273 2311
Fax: 61 6 273 3196
Asia Pacific Business Association
PO Box A2163
Sydney South NSW 2000
Tel: 61 2 235 1222
Fax: 61 2 221 8109
Association of Consulting Engineers
PO Box 1002
North Sydney NSW 2059
Tel: 61 2 922 4711
Fax: 61 2 957 2484
Australian Centre for American Studies
Building 2, University of Sydney
Sydney NSW 2006
Tel: 61 2 660 5865
Fax: 61 2 692 4817
Australian Chamber of Commerce and Industry
PO Box E14
Queen Victoria Terrace
Canberra ACT 2600
Tel: 61 6 273 2311
Fax: 61 6 273 3286
Australian Chamber of Manufactures
GPO Box 1469N
Melbourne VIC 3001
Tel: 61 3 9698 4111
Fax: 61 3 9699 1729
Australian Commercial Disputes Centre
Level 4, 50 Park Street
Sydney NSW 2000
Tel: 61 2 267 1000
Fax: 61 2 267 3125
Australian Council for Infrastructure Development
Level 1, 1 Kent Street
Sydney NSW 2000
Tel: 61 2 247 3223
Fax: 61 2 247 3097
Australian Institute of Management
PO Box 112
St. Kilda VIC 3182
Tel: 61 3 9534 8181
Fax: 61 3 9534 5050
Business Council of Australia (policy advisory group)
PO Box 7225
Melbourne VIC 3004
Tel: 61 3 9274 7777
Fax: 61 3 9274 7744
Chamber of Manufactures of NSW
Private Bag No. 938
North Sydney NSW 2059
Tel: 61 2 957 5792
Fax: 61 2 923 1166
Customs Brokers Council of Australia (NSW) Inc
Ste 3, Level 6, Eastgardens
Bunnerong Road
Pagewood NSW 2035
Tel: 61 2 314 1711
Fax: 61 2 314 2484
Institute of Patent Attorneys of Australia
1st floor, Qantas House
2-6 Railway Parade
Camberwell VIC 3124
Tel: 61 3 882 8041
Fax: 61 3 882 8087
Institution of Engineers, Australia
Engineering House, 11 National Circuit
Barton ACT 2600
Tel: 61 6 270 6555
Fax: 61 6 273 1488
Market Research Society of Australia Ltd.
Tower Building,
155 Miller Street
North Sydney, NSW 2060
Tel: 61 2 955 4830
Fax: 61 2 955 5746
Retailers Council of Australia
Illoura Plaza, 424 St. Kilda Road
South Melbourne VIC 3004
Tel: 61 3 9820 0466
Fax: 61 3 9866 5510
Standards Australia
PO Box 1055
Strathfield NSW 2135
Tel: 61 2 746 4700
Fax: 61 2 746 8450
AGRICULTURAL MACHINERY AND EQUIPMENT (AGM)
Australian Agricultural Machinery Manufacturers Assn
GPO Box 1023
Adelaide SA 5001
Tel: 61 8 267 4722
Fax: 61 8 239 1329
AIRCRAFT/PARTS (AIR)
AIRPORT/GROUND SUPPORT EQPT (APG)
AVIATION SERVICES (AVS)
Association of Australian Aerospace Industries
GPO Box 817
Canberra ACT 2601
Tel: 61 6 247 2233
Fax: 61 6 248 6157
General Aviation Association (Australia) GAA
PO Box 398
Manly NSW 2095
Tel: 61 2 238 2281
Fax: 61 2 976 2316
APPAREL (APP)
Apparel Importers Association of Australia
PO Box E326, Queen Victoria Terrace
Canberra ACT 2600
Tel: 61 6 281 0722
Fax: 61 6 282 5477
AUTOMOTIVE PARTS/SERVICE EQUIPMENT (APS)
Auto Parts Recyclers Association of Australia (APRA)
263 Boundary Road
Mordialloc VIC 3195
Tel: 61 3 9587 2194
Fax: 61 3 9587 6556
Australian Automotive Aftermarket Association
26 Railway Avenue
Caulfield East VIC 3145
Tel: 61 3 9572 2686
Fax: 61 3 9572 2956
Australian Automobile Dealers Association
PO Box E368
Queen Victoria Terrace
Barton ACT 2600
Tel: 61 6 273 4333
Fax: 61 6 273 2738
BUILDING AND CONSTRUCTION (CON)
Australian Construction Industry Council, The
Level 9, 50 Margaret Street
Sydney NSW 2000
Tel: 61 2 299 8011
Fax: 61 2 299 8010
Australian Constructors Association
C/o The Metal Trades Industry Association
MTIA House, 51 Walker Street
North Sydney NSW 2060
Tel: 61 2 929 5566
Fax: 61 2 929 5044
Australian Earthmovers & Road Contractors Federation
74 Burwood Road
Hawthorn VIC 3122
Tel: 61 3 9819 5170
Fax: 61 3 9819 6098
Master Builders Australia Inc.
3rd Floor, 217 Northbourne Avenue
Turner ACT 2601
Tel: 61 6 249 1433
Fax: 61 6 249 1373
BOOKS/PERIODICALS (BOK)
Australian Booksellers Association Inc. (ABA)
P.O. Box 1088
Carlton VIC 3053
Tel: 61 3 663 7888
Fax: 61 3 663 7667
BIOTECHNOLOGY (BTC)
Australian Biotechnology Association (ABA)
Suite 2, 112a Martin Street
Gardenvale VIC 3185
Tel: 61 3 596 8879
Fax: 61 3 596 8874
Australian Institute of Agricultural Science (AIGS)
1st Fl., 91 Rathdowne Street
Carlton VIC 3053
Tel: 61 3 662 1077
Fax: 61 3 662 2727
Australian Institute of Food Science & Technology
PO Box 319
Noble Park VIC 3174
Tel: 61 3 706 3837
Fax: 61 3 798 8842
Australian Pharmaceutical Manufacturers Association, Inc.
Level 2, 77 Berry Street
North Sydney NSW 2060
Tel: 61 2 922 2699
Fax: 61 2 959 4860
Australian Society for Biochemistry and Molecular Biology
Department of Biochemisty
University of Sydney
Sydney NSW 2006
Tel: 61 2 351 2230
Fax: 61 2 351 4726
Environment Management Industry Association of Australia
Anzac Building, Cnr. Adelaide & Edward Streets
Brisbane QLD 4000
Tel: 61 7 229 8522
Fax: 61 7 229 8577
Medical Industry Association of Australia (MIAA)
126 Greville Street
Chatswood NSW 2067
Tel: 61 2 415 1151
Fax: 61 2 415 2130
Pharmaceutical Society of Australia
44 Thesiger Ct.
Deakin ACT 2600
Tel: 61 6 281 1366
Fax: 61 6 285 2869
CHEMICAL PRODUCTION MACHINERY (CHM)
CHEMICALS, INDUSTRIAL (ICH)
Australian Chemical Industry Council
GPO Box 1601M
Melbourne VIC 3001
Tel: 61 3 9699 6299
Fax: 61 3 9699 6717
COMPUTERS/PERIPHERALS (CPT)
COMPUTER SOFTWARE (CSF)
COMPUTER SERVICES (CSV)
Association for Computer Aided Design (ACADS)
Level 10, 91 York Street
Sydney NSW 2000
Tel: 61 2 299 5396
Fax: 61 2 299 5406
Australian Information Industry Association (AIIA)
12 Campion Street
Deakin ACT 2600
Tel: 61 6 282 4700
Fax: 61 6 285 1408
Australian Computer Society
Ste 1, 200 Riley Street
Darlinghurst NSW 2010
Tel: 61 2 211 5855
Fax: 61 2 281 1208
Electronic Data Interchange Council of Australia (EDICA)
2nd Floor, 854 Glenferrie Road
Hawthorn VIC 3122
Tel: 61 3 9819 6860
Fax: 61 3 9818 3129
Information Industry Association
12 Campion Street
Deakin ACT 2600
Tel: 61 6 282 4700
Fax: 61 6 285 1408
DEFENSE INDUSTRY EQUIPMENT (DFN)
Defence Manufacturers Council
GPO Box 817
Canberra ACT 2601
Tel: 61 6 247 2233
Fax: 61 6 248 6157
DIRECT MARKETING (DIR)
Australian Direct Marketing Institute
GPO Box 3982
Sydney NSW 2001
Tel: 61 2 247 7744
Fax: 61 2 247 4919
EDUCATION/TRAINING (EDS)
Australian Association of Adult & Community Education (AAACE)
PO Box 308
Jamison Centre ACT 2614
Tel: 61 6 251 7933
Fax: 61 6 251 7935
Australian Institute of Training & Development (AITD)
Level 1, 2 Thomas Street
Chatswood NSW 2067
Tel: 61 2 415 2094
Fax: 61 2 415 2093
Austrailan National Training Association (ANTA)
GPO Box 3120
Brisbane QLD 4001
Tel: 61 7 246 2300
Fax: 61 7 246 2490
ELECTRONICS (EIP)
Australian Electrical and Electronic Manufacturers Assn
PO Box 1966
Canberra City ACT 2601
Tel: 61 6 247 4655
Fax: 61 6 247 9840
ELECTRICAL POWER SYSTEMS (ELP)
Australian Institute of Energy
PO Box 230
Wahroonga NSW 2076
Tel: 61 2 449 1800
Fax: 61 2 983 9665
Electricity Supply Association Australia (ESAA)
219-227 Elizabeth Street
Sydney NSW 2000
Tel: 61 2 267 8366
Fax: 61 2 267 2207
FINANCIAL SERVICES (FNS)
Australian Bankers' Association
42nd Floor, 55 Collins Street
Melbourne VIC 3000
Tel: 61 3 9654 5422
Fax: 61 3 9650 1756
Australian Securities Commission (ASC)
135 King Street
Sydney NSW 2000
Tel: 61 2 911 2200
Fax: 61 2 911 2333
Institute of Chartered Accountants in Australia
37 York Street
Sydney NSW 2000
Tel: 61 2 290 1344
Fax: 61 2 262 1512
FOOD PROCESSING/PACKAGING EQUIPMENT (FPP)
FOODS, PROCESSED (FOD)
Agri-Food Council Secretariat
GPO Box 9839
Department of Industry, Science & Technology
Canberra ACT 2600
Tel: 61 6 276 1086
Fax: 61 6 276 2203
Australian Institute of Food Science & Technology (AIFST)
83 Pymble Avenue
Pymble NSW 2073
Tel: 61 2 449 8884
Fax: 61 2 983 9626
Council of Australian Food Technology Association Inc.
11th Floor, The Denison
65 Berry Street
North Sydney NSW 2060
Tel: 61 2 963 7670
Fax: 61 2 954 4327
CSIRO Division of Food Processing
PO Box 52
North Ryde, NSW 2113
Tel: 61 2 887 8333
Fax: 61 2 887 3107
Food and Beverage Importers Association
PO Box 209
South Melbourne VIC 3205
Tel: 61 3 9690 7600
Fax: 61 3 9699 8338
Food Industry Council of Australia (FICA)
PO Box E14, Queen Victoria Terrace
Canberra ACT 2600
Tel: 61 6 273 2311
Fax: 61 6 273 3286
Packaging Council of Australia Inc.
GPO Box 1469 N
Melbourne VIC 3001
Tel: 61 3 608 4262
Fax: 61 3 690 3515
FRANCHISING (FRA)
Franchisors Association of Australia and New Zealand
Unit 9, 2-6 Hunter Street
Parramatta NSW 2150
Tel: 61 2 891 4933
Fax: 61 2 891 4474
HEALTH CARE SERVICES (HCS)
Australian Institute of Health (AIH)
GPO Box 570
Canberra ACT 2601
Tel: 61 6 243 5000
Fax: 61 6 257 1470
INFORMATION SERVICES (INF)
Australian Information Industry Association (AIIA)
PO Box E434
Queen Victoria Terrace ACT 2600
Tel: 61 6 282 4700
Fax: 61 6 285 1408
Australian Information Technology Society
PO Box 414
St Leonards NSW 2065
Tel: 61 2 901 3644
Fax: 61 2 906 8939
JEWELRY (JLR)
Jewellers Association of Australia (JAA)
PO Box E446
Queen Victoria Terrace
Canberra ACT 2600
Tel: 61 6 282 3211
Fax: 61 6 282 2725
LABORATORY SCIENTIFIC INSTRUMENTS (LAB)
Australian Scientific Industry Association
580 Church Street
Richmond VIC 3121
Tel: 61 3 9428 8966
Fax: 61 3 9427 9824
MACHINE TOOLS/METALWORKING EQUIPMENT (MTL)
Metal Trades Industry Association of Australia (MTIA)
PO Box 289
North Sydney NSW 2059
Tel: 61 2 929 5566
Fax: 61 2 956 5044
MATERIALS HANDLING MACHINERY (MHM)
Australian Institute of Material Management
PO Box 112
St Kilda VIC 3182
Tel: 61 3 534 8181
Fax: 61 3 534 5050
MEDICAL EQUIPMENT (MED)
Medical Industry Association of Australia (MIAA)
126 Greville Street
Chatswood NSW 2067
Tel: 61 2 415 1151
Fax: 61 2 415 2130
MINING INDUSTRY EQUIPMENT (MIN)
Australian Mining Industry Council
PO Box 363
Dickson ACT 2602
Tel: 61 6 279 3600
Fax: 61 6 279 3699
PACKAGING EQUIPMENT (PKG)
Packaging Council of Australia
PO Box 1469 N
Melbourne VIC 3001
Tel: 61 3 9698 4278/9
Fax: 61 3 9690 3514
PLASTIC MATERIALS/RESINS (PMR)
PLASTICS PRODUCTION MACHINERY (PME)
Plastics Industry Association
41-43 Exhibition Street
Melbourne VIC 3000
Tel: 61 3 9654 2199
Fax: 61 3 9654 2384
SECURITY/SAFETY EQUIPMENT (SEC)
Australian Security Industry Association Limited (ASIAL)
104/2 Clarke Street
Crows Nest NSW 2065
Tel: 61 2 906 4780
Fax: 61 2 436 4247
TELECOMMUNICATIONS EQUIPMENT (TEL)
TELECOMMUNICATION SERVICES (TES)
Australasian Teleconferencing Association Inc. (ATA)
PO Box 3151
South Brisbane QLD 4101
Tel/Fax: 61 7 300 9077
Australian Telecommunications Users Group (ATUG)
11th Floor, 80 Alfred Street
Milsons Point NSW 2061
Tel: 61 2 957 1333
Fax: 61 2 925 0880
TEXTILES, CLOTHING AND FOOTWEAR (TXP)
Council of Textile and Fashion Industries of Australia
4th Floor, 380 St Kilda Road
Melbourne VIC 3004
Tel: 61 3 9698 4470
Fax: 61 3 9698 4459
Fashion Industries of Australia
4th Floor, 380 St Kilda Road
Melbourne VIC 3004
Tel: 61 3 9698 4470
Fax: 61 3 9698 4472
Textile Clothing and Footwear Council of Australia Limited
380 St Kilda Road
Melbourne VIC 3004
Tel: 61 3 9698 4460
Fax: 61 3 9698 4459
WATER RESOURCES EQUIPMENT/SERVICES (WRE)
Australian Water & Wastewater Association
PO Box 388
Artarmon NSW 2064
Tel: 61 2 413 1288
Fax: 61 2 413 1047
International Association on Water Quality
Australian National Committee
PO Box 388
Artarmon NSW 2064
Tel: 61 2 413 1288
Fax: 61 2 413 1047
4. AUSTRALIAN GOVERNMENT AGENCIES
A. AUSTRALIAN GOVERNMENT OFFICES IN THE UNITED STATES
The Embassy of Australia is responsible for all diplomatic relations
between Australia and the United States. Australian Consulates General
are located in various U.S. cities and have representational, trade and
consular functions.
The Australian Trade Commission (AUSTRADE) is responsible for trade and
investment promotion and has offices in the Australian Embassy in
Washington, D.C. and at the Australian Consulates General in Los
Angeles, San Francisco, Atlanta, Houston, and New York.
Embassy of Australia
1601 Massachusetts Avenue NW
Washington DC 20036
Tel: 202 797 3000
Fax: 202 797 3300
Senior Trade Commissioner
AUSTRADE
c/o Embassy of Australia
(as above)
Senior Customs Representative
Embassy of Australia
(as above)
Australian Tourist Commission
2121 Avenue of the Stars,
Suite 1200
Los Angeles CA 90067
Tel: 310 552 1988
Fax: 310 552 1215
and
100 Park Avenue, 25th Floor
New York NY 10017
Tel: 212 687 6300
Fax: 212 661 3340
B. KEY AUSTRALIAN FEDERAL GOVERNMENT AGENCIES
Anti-Dumping Authority
40 Allara Street
Canberra City, ACT 2601
Tel: 61 6 276 2458
Fax: 61 6 276 1747
AUSTEL (Telecommunications Regulatory Authority)
5 Queens road
Melbourne VIC 3004
Tel: 61 3 828 7300
Fax: 61 3 820 3021
Broadcasting Authority, Australian
Level 15, Darling Park
201 Sussex Street
Sydney NSW 2000
Tel: 61 2 334 7700
Fax: 61 2 334 7799
Building Codes Board, Australian
Mr. Lyall Dix, Executive Director
51 Allara Street
Canberra ACT 2601
Tel: 61 6 276 2334
Fax: 61 6 266 2281
Bureau of Statistics, Australian
PO Box 10
Belconnen ACT 2616
Tel: 61 6 252 7911
Fax: 61 6 251 6009
Civil Aviation Authority
GPO Box 367
Canberra ACT 2601
Tel: 61 6 268 4111
Fax: 61 6 248 5239
Communications and the Arts, Department of
Film and Licensed Broadcasting
GPO Box 2154
Canberra City ACT 2601
Tel: 61 6 279 1644
Fax: 61 6 279 1717
Communication and the Arts, Department of
Spectrum Management Agency
(Radiofrequency Spectrum)
PO Box 78
Belconnen ACT 2616
Tel: 61 6 256 5555
Fax: 61 6 256 5200
Communications and the Arts, Department of
Telecommunications Industry Division
GPO Box 2154
Canberra City ACT 2601
Tel: 61 6 279 1894
Fax: 61 6 279 1890
Construction Forecasting Committee
Department of Industry, Science and Technology
51 Allara Street
Canberra ACT 2601
Tel: 61 6 276 2277
Fax: 61 6 276 1071
Customs Service, Australian
Customs House
5 Constitution Avenue
Canberra City, ACT 2600
Tel: 61 6 275 6666
Fax: 61 6 275 6999
Sydney ...... Fax: 61 2 213 4000
Melbourne ... Fax: 61 3 9244 8640
Brisbane .... Fax: 61 7 835 3499
Perth ....... Fax: 61 9 477 8851
Adelaide .... Fax: 61 8 47 9206
Tasmania .... Fax: 61 02 30 1264
Defence, Department of
Russell Offices
Canberra ACT 2600
Tel: 61 6 265 9111
Fax: 61 6 265 3000
Foreign Affairs and Trade, Department of
Administrative Building
Parkes ACT 2600
Tel: 61 6 261 9111
Fax: 61 6 261 3111
Foreign Investment Review Board (FIRB)
c/o Department of the Treasury
Parkes Place
Parkes ACT 2600
Tel: 61 6 263 3755
Fax: 61 6 263 2940
Health and Medical Research Council, National
GPO Box 9848
Canberra ACT 2601
Tel: 61 6 289 1555
Fax: 61 6 282 7802
Immigration and Ethnic Affairs, Department of
Benjamin Offices
Chan Street
Belconnen ACT 2617
Tel: 61 6 264 1111
Fax: 61 6 264 2670
Industrial Property Organization, Australian
PO Box 200
Woden ACT 2606
Tel: 61 6 283 2211
Fax: 61 6 281 1841
Industrial Supplies Office
Level 1, 10 Moore Street
Canberra ACT 2600
Tel: 61 6 257 1881
Fax: 61 6 257 1763
Industry, Science and Technology, Department of
51 Allara Street
Canberra ACT 2600
Tel: 61 6 276 1000
Fax: 61 6 276 1111
Primary Industries and Energy, Department of
GPO Box 858
Canberra ACT 2601
Tel: 61 6 272 3933
Fax: 61 6 272 5161
Quarantine & Inspection Service, Australian
Edmund Barton Building
Broughton Street
Barton ACT 2600
Tel: 61 6 272 5455
Fax: 61 6 272 5697
Taxation Office, Australian
PO Box 900
Civic Square ACT 2608
Tel: 61 6 216 1111
Fax: 61 6 216 2538
Trade Development Zone Authority
Berrimah Road
Berrimah NT 0828
Tel: 61 89 47 0133
Fax: 61 89 84 3417
Transport, Department of
22 Cooyong Street
Canberra City ACT 2601
Tel: 61 6 274 7111
Fax: 61 6 257 2505
Treasury, Department of the
Parkes Place
Parkes ACT 2600
Tel: 61 6 263 3738
Fax: 61 6 273 3360
C. AUSTRALIAN STATE ECONOMIC DEVELOPMENT AGENCIES
Each Australian state has its own office that provides information on
business location, communications and infrastructure, privatization,
major projects, work force and skills base, regulations, planning and
approval processes, and potential joint-venture opportunities and
partners. These offices actively promote foreign investment into their
individual states. They have a great deal of information available and
offer a variety of business promotion services to corporations
interested in establishing a business presence in their state.
AUSTRALIAN CAPITAL TERRITORY
Business Employment and Tourism Bureau
Chief Minister's Department
GPO Box 158
Canberra ACT 2601
Tel: 61 6 205 0667
Fax: 61 6 205 0616
NEW SOUTH WALES
Department of State Development
State Office Block, Level 27
74-90 Phillip Street
Sydney NSW 2000
Tel: 61 2 228 5070
Fax: 61 2 228 5752
NSW Trade and Investment Initiative One Stop Shop
Level 44, Grosvenor Place
225 George Street
Sydney NSW 2000
Tel: 61 2 250 6900
Fax: 61 2 250 6950
Sydney Olympics
Homebush Bay Corporation
Private Bag 3
PO Homebush NSW 2140
Tel: 61 2 735 4800
Fax: 61 2 735 2871
NSW Department of Sport Recreation and Racing
Level 2, MLC Building
105-153 Miller Street
North Sydney NSW 2060
Tel: 61 2 923 4234
Fax: 61 2 923 4345
Sydney Organizing Committee for the Olympic Games
GPO Box 2000
Sydney NSW 2001
Tel: 61 2 931 2000
Fax: 61 2 931 2020
NORTHERN TERRITORY
Department of Industries and Development
GPO Box NT 4160
Darwin NT 0801
Tel: 61 89 99 5210
Fax: 61 89 99 5333
QUEENSLAND
Department of Business, Industry and Regional Development
GPO Box 1141
Brisbane QLD 4001
Tel: 61 7 224 8568
Fax: 61 7 229 5289
SOUTH AUSTRALIA
Economic Development Authority
GPO Box 1264
Adelaide SA 5001
Tel: 61 8 303 2400
Fax: 61 8 303 2410
TASMANIA
Tasmanian Development Authority
GPO Box 646
Hobart TAS 7001
Tel: 61 02 335 888
Fax: 61 02 335 800
VICTORIA
Department of Business and Employment
228 Victoria Parade, 8th Floor
East Melbourne VIC 3002
Tel: 61 3 9412 8000
Fax: 61 3 9419 0770
WESTERN AUSTRALIA
Department of Commerce and Trade
PO Box 7234
Cloisters Square
Perth WA 6850
Tel: 61 9 327 5666
Fax: 61 9 327 5481
5. SOURCES OF MARKET RESEARCH AND BUSINESS FACILITATION IN AUSTRALIA
There are many professional Market Research companies in Australia.
Some have industry specializations. Others offer a range of services
from broad industry analyses, to financial checks, to tailored market
entry assistance. In addition, many national and international law
firms, accounting firms, management consulting firms and financial
services organizations offer market research and business facilitation
as part of their services packages.
The U.S. Commercial Service in Australia, the American Chamber of
Commerce in Australia and the State Chambers of Commerce maintain lists
of service providers and can advise companies on how to obtain
assistance on specific needs (see Sections 1B and 2A and 2C for contact
information).
There are a number of new information products, in print and on CD-ROM
discs, available to help American companies find prospective business
contacts in Australia. (See Section 7.C.)
6. COMMERCIAL BANKS IN AUSTRALIA
A. AUSTRALIAN BANKS
Advance Bank Australia Limited
PO Box R221
Royal Exchange NSW 2000
Tel: 61 2 964 5000
Fax: 61 2 964 5111
Australia and New Zealand Banking Group Limited
GPO Box 537E
Melbourne VIC 3001
Tel: 61 3 9658 2955
Fax: 61 3 9658 2909
Commonwealth Bank of Australia
GPO Box 2719
Sydney NSW 2000
Tel: 61 2 227 7111
Fax: 61 2 227 3317
National Australia Bank Limited
GPO Box 84A
Melbourne VIC 3001
Tel: 61 3 9641 3500
Fax: 61 3 9641 4916
Westpac Banking Corporation
GPO Box 1
Sydney NSW 2001
Tel: 61 2 226 3311
Fax: 61 2 233 1990
B. AMERICAN BANKS
Bank of America
Level 18, Bank of America Centre
135 King Street
Sydney NSW 2000
Tel: 61 2 931 4200
Fax: 61 2 221 1023
Bankers Trust Australia Limited
38th Level, Tower Building
Australia Square
Sydney NSW 2000
Tel: 61 2 259 3555
Fax: 61 2 235 2882
Chase Manhattan Bank Australia Limited
Levels 32-36, World Trade Centre
18 Jamieson Street
Sydney NSW 2000
Tel: 61 2 250 4111
Fax: 61 2 250 4554
Citibank Limited
1 Margaret Street
Sydney NSW 2000
Tel: 61 2 239 9100
Fax: 61 2 239 9193
First National Bank of Chicago
Level 24, Grosvenor Place
225 George Street
Sydney NSW 2000
Tel: 61 2 250 2100
Fax: 61 2 223 1686
Morgan Guaranty Trust Company of New York
Level 20, 1 O'Connell Street
Sydney NSW 2000
Tel: 61 2 551 6100
Fax: 61 2 551 6353
State Street Bank and Trust Company
Level 64, MLC Centre
19-29 Martin Place
Sydney NSW 2000
Tel: 61 2 323 6000
Fax: 61 2 323 6333
7. AUSTRALIAN PUBLICATIONS AND DATABASES
Australia has a full range of national, state and local general,
business and special purpose newspapers and periodicals, and a range of
comprehensive business directories and references.
A. NEWSPAPERS
AUSTRALIAN CAPITAL TERRITORY
The Canberra Times
Federal Capital Press of Australia
9 Pirie Street
Fyshwick ACT 2609
Fax: 61 6 280 4884
NEW SOUTH WALES
The Australian (national focus)
News Ltd
2 Holt Street
Surry Hills NSW 2010
Fax: 61 2 288 2370
The Australian Financial Review (national focus)
235 Jones Street
Broadway NSW 2822
Fax: 61 2 282-2484
The Sydney Morning Herald
John Fairfax Group Ltd
235 Jones Street
Sydney NSW 2000
Fax: 61 2 282 3121
NORTHERN TERRITORY
Northern Territory News
News Ltd
3 Printers Place
Darwin NT 0800
Fax: 61 89 81 8392
QUEENSLAND
The Courier Mail
Queensland Newspapers Ltd
41 Campbell Street
Bowen Hills Qld 4006
Fax: 61 7 252 6698
SOUTH AUSTRALIA
The Adelaide Advertiser
Advertiser Newspaper Ltd
121 King Street
Adelaide SA 5000
Fax: 61 8 206 3622
VICTORIA
The Age
250 Spencer Street
Melbourne VIC 3001
Fax: 61 3 670 7514
WESTERN AUSTRALIA
The West Australian
WA Newspapers Ltd
219 St Georges Terrace
Perth WA 6000
Fax: 61 9 481 2130
TASMANIA
The Mercury
Davies Brothers Limited
91-93 Macquarie Street
Hobart Tasmania 7000
Fax: 61 02 30 0766
2. NATIONAL PERIODICALS
Business Review Weekly
BRW Publications
Level 2/469 La Trobe Street
Melbourne Vic 3000
Fax: 61 3 670 4328
The Bulletin with Newsweek
ACP Publishing Pty Limited
54 Park Street
Sydney NSW 2000
Fax: 61 2 267 4359
Business Council Bulletin
Business Council of Australia
15th Fl, 10 Queens Road
Melbourne Vic 3000
Fax: 61 3 274 7744
The National Business Bulletin
National Business Magazines Pty Ltd
66 Foveaux Street
Surry Hills N.S.W. 2010
Fax: 61 2 212 3709
Scitech
Scitech Publications
GPO Box 1915
Canberra ACT 2601
Fax: 61 6 249 6648
The Land Newspaper (Agriculture/Country Life focus)
159 Bells Line of Road
North Richmond NSW
Fax: 61 45 70 4650
C. BUSINESS DIRECTORIES
Brylar's Australia on Disc
Dependable Database Data
70 Philip Street
Parramatta NSW 2150
Fax: 61 2 787 3539
Yellow Pages Business Directories of Australia on CD
Annual
"Australia on Disc - Business" is one of the most comprehensive,
including more than one million business names, addresses and fax
numbers throughout Australia.
Searches can be made on a number of criteria. Information can be
exported to an ASCII format. Customized data bases can also be built.
The cost is about US$200 with updates twice a year. A less
sophisticated CD-ROM called "Green Pages" contains business and
residential telephone book listings but no fax numbers. Its cost is
about US$60. Contact the Commercial Service in Australia for more
details.
The Business Who's Who of Australia
Riddell Information Services Pty Ltd
A Dun & Bradstreet company
19 Havilah Street
Chatswood NSW 2067
Fax: 61 2 935 2777
Available in CD-ROM or hard copy.
Annual
Directory of Australian Associations
Information Australia
45 Flinders Lane
Melbourne VIC 3000
Fax: 61 3 650 5261
Quarterly
Kompass
Peter Isaacson Publications Pty Ltd
46-50 Porter Street
Prahran VIC 3181
Fax: 61 3 245 7840
Available in CD-ROM or hard copy
Annual
National Guide to Government
Information Australia
45 Flinders Lane
Melbourne VIC 3000
Fax: 61 3 650 5261
Quarterly
APPENDIX F: MARKET RESEARCH 1995-1996
1. INDUSTRY SECTOR MARKET RESEARCH
A full range of available market research, including a broad range of
Industry Subsector Analysis (ISA) reports in best prospects and other
sectors, as well as other special market research reports are available
in the National Trade Data Bank (NTDB). The following is a selected
list:
A. INDUSTRY SUBSECTOR ANALYSES (ISAS) COMPLETED IN 1995:
APS Automotive Parts & Services (Replacement Parts)
AGM Irrigation Equipment
AUV Audio Visual (Media Equipment)
BTC Biotechnology Industry in Australia
CON Construction Machinery (Engineering and Non-
residential)
CSF Educational Software
FPP Packaging, including Food Processing
HCG Household Consumer Goods (Household Furniture)
MED Medical Equipment Disposables
MHM Materials Handling Equipment (Distribution Equipment)
PGA Printing & Graphic Arts (Graphics Equipment)
POL Environmental Industries
TEL Telecommunications (Frame Relay Products)
TRN Transportation Equipment
B. INDUSTRY SUBSECTOR ANALYSES (ISAS) SCHEDULED FOR FY1996
ACR Air Conditioning and Refrigeration (August)
APS Automotive Industry in Australia (March)
AUV Audio Visual Equipment (July)
BTC Biotechnology (April)
CON Building and Construction Trades (March)
CPT Printers (March)
CSF Multimedia (August)
DFN Defense Major Capital Equipment Projects (June)
EDS Personal/Professional Development Training (Dec)
FPP Food Processing & Packaging Equipment (September)
GCG Consumer Goods, Appliances, Housewares (June)
MED Medical Equipment (December)
SEC Security Surveillance Equipment (March)
TEL Telecommunications Equipment (August)
TES Telecommunications Services (January)
TRN Transportation Equipment (August)
C. INTERNATIONAL MARKET INSIGHT (IMI) REPORTS PROVIDE BASELINE
INFORMATION ON MARKET TRENDS, GOVERNMENT POLICY AND REGULATORY
DEVELOPMENTS, MARKET ENTRY OPPORTUNITIES, MAJOR PROJECTS, JOINT VENTURE
AND INVESTMENT OPPORTUNITIES IN THE FOLLOWING INDUSTRY SECTORS. SEE THE
NTDB FOR A COMPREHENSIVE LISTING OF MARKET RESEARCH REPORTS ON
AUSTRALIA. A SELECTED LIST FOLLOWS:
AIR Aircraft/Parts
Space Industry Development
APS Automotive Parts and Accessories
Heavy Truck Market Entry
Auto Parts Tariff Revision
APP Apparel
Clothing, Textile Industry Development Plan
AUV Media Equipment and Services
FM Radio Investment Opportunity
TV Cable Production Joint Venture Project
AVS Aviation Services
Helicopter Service Contract
Aircraft Assembly Joint Venture Project
CON Building and Construction Trades
Construction Joint Venture Trends
Velodrome Project
Sports Center Project
Stadium Construction Project
Olympic Construction Project
Construction Project
Lightweight Concrete Research
Property Markets
Building Glass Research
Home Building Trends
Commercial Construction Trends
CPT Computer Hardware
Computer Market Trends
Multimedia Development Plans
Information Technology Market Trends
Information Technologies News
Government Computer Spending
CSF Computer Software
Educational Software Market Overview
DFN Defense Industry Equipment
Navy Ship Refit Project
EDS Education & Training Services
Training Services
ENG Energy
Power Plant Privatization
Privatization Progress
Electricity Company Privatization
FNS Financial Services
Bank Privatization
New South Wales Investment Program
FOD Foods - Processed
Food Labeling Guidelines
Health Food Market Profile
FRA Franchising
Franchising Policy Views
GEN General
Discount Superstore Trends
Queensland Economic Profile
Recording Copyright Laws
INV Investment Services
New South Wales Investment Program
MIN Mining Industry Equipment
Mining Industry Overview
Minerals and Petroleum Profile
Industrial Minerals Overview
OGM Gas Distribution
Natural Gas Power Trends
PKG Packaging Equipment
Packaging and Labeling Overview
Packaging, Labeling Regulations Study
PMR Plastic Materials/Resins
Plastics Industry Trends
POL Pollution Control
Greenhouse Gas Plans
TEL Telecommunications Equipment
Telecom Policy Views
Telecommunications Distribution License
Telecom Local-Content Regulations
Telemedicine Project
Mobile Telecom Standards
TES Telecommunication Services
Telecom Call-Back Services Project
WRE Water Resources Industry
Water Authority Profile
2. U.S. DEPARTMENT OF AGRICULTURE/FOREIGN AGRICULTURAL SERVICE
COMMODITY REPORTS AND MARKET BRIEFS
AGRICULTURAL COMMODITY REPORTS (FY96)
JANUARY Fresh Deciduous Fruit - annual
Kiwifruit - annual
FEBRUARY Livestock - semi-annual
Tree Nuts - annual
Planting Seeds - annual
MARCH Grain and Feed - annual
Canned Deciduous Fruit - annual
APRIL Sugar - annual
Dried Fruit - annual
MAY Citrus - annual
Tobacco - annual
Dairy - semi-annual
JUNE Cotton - annual
Poultry - annual
AUGUST Livestock - annual
SEPTEMBER Fresh Deciduous Fruit - semi-annual
Canned Deciduous Fruit - semi-annual
Agricultural Situation - annual
OCTOBER Sugar - semi-annual
Dried Fruit - semi-annual
Forest Products - annual
NOVEMBER Dairy - annual
APPENDIX G: 1996 TRADE EVENT SCHEDULE
Because Trade Event Schedules may change, firms should consult the
Export Promotion Calendar on the NTDB, or contact the U.S. Commercial
Service in Australia for the latest information.
MAJOR AUSTRALIAN EXHIBITIONS (by Industry Sector):
AUTOMOTIVE (APS)
NATIONAL TRUCK SHOW '96
Date: May 9-12 1996
Location: Darling Harbour, Sydney, New South Wales
Trade Show featuring trucks and truck components.
Frequency: Annual
Exhibition Organizer: Exhibition Management, 193 Rouse Street, Port
Melbourne, VIC 3207
Tel: 61 3 9646 4044
Fax: 61 3 9646 1828
THE AUSTRALIAN AUTOMOTIVE TRADE FAIR
Date: June 21-23 1996
Location: Darling Harbour, Sydney, New South Wales
Trade Show featuring automotive replacement parts, accessories,
chemicals, garage and repair shop equipment.
Frequency: Annual
Exhibition Organizer: Trade Fairs Australia, 52 Kellett Sreet,
Kings Cross, NSW 2011
Tel: 61 2 357 7022
Fax: 61 2 356 3834
BIOTECHNOLOGY (BTC)
10TH INTERNATIONAL BIOTECHNOLOGY SYMPOSIUM
Date: August 25-30, 1996
Location: Sydney, New South Wales
Wide ranging International Conference that includes a trade
exhibition.
Frequency: Every four years
Exhibition Organizer: Tour Hosts Conference & Exhibition
Tel: 61 2 262 2277
Fax: 61 2 262 2323
INTERNATIONAL SYMPOSIUM ON YEAST
Date: August 25-30, 1996
Location: Sydney, New South Wales
Held in conjunction with the International Biotechnology Symposium,
and includes a trade exhibition.
Frequency: Every four years
Exhibition Organizer: Australian Biotechnology Association
Tel: 61 3 596 8879
Fax: 61 3 596 8874
BUILDING PRODUCTS (BLD) AND CONSTRUCTION (CON)
INTERBUILD AUSTRALIA
Date: June 1996
Location: Darling Harbour Convention & Exhibition Centre, Sydney,
New South Wales
Trade Show featuring building products and builders' hardware.
Frequency: Annual
Exhibition Organizer: Australian Exhibition Services Pty Ltd
Tel: 61 3 9867 4500
Fax: 61 3 9867 7981
CONCRETE 95
Date: September 4-7, 1995
Location: Convention & Exhibition Centre, Brisbane, Queensland
Trade Exhibition with the theme: Toward Better Concrete
Structures
Frequency: Annual
Exhibition Organizer: Concrete Institute of Australia
Tel: 61 7 831 3288
Fax: 61 7 839 6005
COMPUTERS/PERIPHERALS/SOFTWARE/SERVICES (CPT/CSF)
PC '96
The PC Show, held annually in three cities (Sydney, Melbourne and
Brisbane), is one of the biggest computer events in Australia,
displaying every facet of the personal computing field.
Exhibition Organizer: Australian Exhibition Services Pty Ltd
Tel: 61 3 9867 4500
Fax: 61 3 9867 7981
Sydney
Date: March 5-8, 1996
Location: Darling Harbour Convention & Exhibition Centre,
Sydney, New South Wales
Melbourne
Date: September 3-6, 1996
Location: Melbourne Exhibition Centre, Melbourne, Victoria
Brisbane
Date: May 14-16, 1996
Location: Brisbane Convention & Exhibition Centre, Brisbane,
Queensland
1995 QUEENSLAND COMPUTER EXPO/OFFICE TECHNOLOGY EXPO
Date: October 18-21, 1995
Location: Brisbane Convention and Exhibition Centre, Southbank,
Brisbane, Queensland
This event has taken place since 1983 and is expected to attract
25,000 visitors in 1995.
Frequency: Annual
Exhibition Organizer: Woodland Exhibitions
Tel: 61 7 846 4777
Fax: 61 7 846 2811
COMTEC (COMPUTER AND TECHNOLOGY SHOW)
Date: August 6-8, 1996
Location: Adelaide Convention & Exhibition Centre
Adelaide, South Australia
Comtec is South Australia's computer and business technology
exhibition targeted at the business and government sectors. The 1995
event displayed products and services of over 175 firms, with around
18,000 visitors.
Frequency: Annual
Exhibition Organizer: Australian Trade Exhibitions Pty Ltd
Tel: 61 3 9819 0211
Fax: 61 8 364 4717 or
Fax: 61 3 9818 8553
AUUG '96 (AUSTRALIAN UNIX USERS GROUP)
Date: September 17-19, 1996
Location: Melbourne World Congress Centre, Melbourne, Victoria
Australia's premier UNIX and Open Systems exhibition is expected to
attract 4,500 visitors and delegates.
Frequency: Annual
Exhibition Organizer: Australian Convention Management Services
Tel: 61 2 332 4622
Fax: 61 2 332 4066
AUSCOM '96 (AUSTRALIAN COMPUTER & COMMUNICATIONS SHOW)
Date: September 5-6, 1996
Location: National Convention Centre, Canberra, ACT
AUSCOM '96 is the 8th annual computer and communications exhibition
for government, with over 100 exhibitors. It consistently attracts over
4,000 visitors, of which 65 percent are expected government officials.
Frequency: Annual
Exhibiton Organizer: Atek Holdings Pty Ltd
Tel: 61 6 257 4252
Fax: 61 6 248 5562
EDUCATION/TRAINING (EDS)
NILLIA LANGUAGE & LITERACY EXPO '96
Date: July 19-21, 1996
Location: Brisbane Convention & Exhibition Centre, Brisbane,
Queensland
This event draws professionals in the language and literacy
industry, including workplace language/literacy training.
Frequency: Twice yearly
Exhibiton Organizer: Fauth Royale & Associates Pty Ltd
Tel: 61 2 954 4544
Fax: 61 2 954 4964
CPE '96 - INTERNATIONAL CONFERENCE ON CONTINUING PROFESSIONAL
EDUCATION
Date: May, 1996 (to be determined)
Location: Opal Cove, Coffs Harbour, New South Wales
This conference brings together professionals/trainers in continuing
professional education.
Frequency: Annual
Exhibition Organizer: Department of Continuing Education
Tel: 61 67 733 226
Fax: 61 67 733 204
In addition, there are numerous conferences, seminars and workshops
in the education and training services field conducted by various
training organizations. Contact:
Australian Association of Adult & Community Education, Inc
PO Box 308, Jamison Centre, Canberra, ACT 2614
Tel: 61 6 251 7933
Fax: 61 6 251 7935
The Australian Institute of Training and Development (AITD)
Level 1, 2 Thomas Street, Chatswood, NSW 2067
Tel: 61 2 415 2094
Fax: 61 2 415 2093
Australian Human Resources Institute
PO Box 508, Neutral Bay, NSW 2089
Tel: 61 2 908 3155
Fax: 61 2 953 9649
ELECTRICAL POWER SYSTEMS (ELP)
ENERGY WISE CONFERENCE & EXHIBITION '96
Date: September 11-13, 1996
Location: Melbourne, Victoria
Trade show focusing on immediate energy cost reducing measures,
processes and systems for long term cost effective use of resources.
Frequency: Annual
Exhibition Organizer: The DGB Group
Tel: 61 3 9551 7200
Fax: 61 3 9551 7300
SOLAR ENERGY
Date: November 29 - December 2, 1995
Location: Hobart, Tasmania
Trade show featuring products and services for the solar energy
industry.
Frequency: Annual
Exhibition Organizer: Mures Convention Mangement
Tel: 61 02 34 1424
Fax: 61 02 34 4464
FOOD PROCESSING/PACKAGING EQUIPMENT (FPP)
FINE FOOD 96
The 14th Australian International Food, Drink & Equipment
Exhibition, endorsed by the Foreign Agricultural Service, U.S.
Department of Agriculture, as being the premier food show in Australia.
Date: September 8-11
Location: Melbourne, Victoria
Featuring comprehensive range of food, drink and related equipment.
Frequency: Annual (alternating between Melbourne and Sydney)
Exhibition Organizer: Australian Exhibition Services Pty Ltd
Tel: 61 3 9867 4500
Fax: 61 3 9867 7981
FINE FOOD 96 also is staged annually in Brisbane, Queensland, on a
smaller scale.
Date: March 17-19
Exhibition Organizer: as above
FOOD PRO-96
International Food Processing Machinery & Technology Exhibition &
Conference
Date: July 14-17, 1996
Location: Sydney, New South Wales
Features raw materials, processing equipment, hygiene, food
handling, testing, monitoring and lab equipment, and packaging.
Frequency: Every two years
Exhibiton Organizer: Riddell Exhibition Promotions
Tel: 61 2 565 1099
Fax: 61 2 550 4345
MACHINE TOOLS/METALWORKING EQUIPMENT (MTL)
AIEE 96 (AUSTRALIA'S INTERNATIONAL ENGINEERING EXHIBITION)
Date: May 1996
Location: Sydney, New South Wales
General engineering, machine tools, process control, electrical and
electronics.
Frequency: Annual
Exhibition Organizer: Thomson World Trade Exhibitions
Tel: 61 2 357 7555
Fax: 61 2 357 3020
MEDICAL EQUIPMENT (MED)
HOSPITAL AND HEALTHCARE EXHIBITION
Date: 1997
Frequency: Every two years
Exhibition Organizers: Australian Trade Exhibitions
PO Box 192, Camberwell, VIC 3124
Tel: 61 3 9819 0211
Fax: 61 3 9818 8553
MINING INDUSTRY EQUIPMENT (MIN)
AIMEX 95 (AUSTRALIA'S INTERNATIONAL MINING EXHIBITION)
Date: October 1995
Location: Sydney, New South Wales
Australia's largest mining exhibition
Frequency: Every four years
Exhibition Organizer: Thomson World Trade Exhibitions
Tel: 61 2 357 7555
Fax: 61 2 357 3020
PACKAGING EQUIPMENT (PKG)
AUS PACK 95
International Exhibition for Packaging Machinery & Materials Date:
October 31 - November 3, 1995
Location: Sydney, New South Wales
Australia's key packaging machinery and materials exhibition,
covering the following industries: automotive, food, beverages,
household products, pharmaceuticals/medical, plastics and printing.
Frequency: Every two years
Exhibition Organizer: Exhibitions and Trade Fairs Pty Ltd
Tel: 61 2 413 3322
Fax: 61 2 413 3303
SECURITY AND SAFETY (SEC)
ASIAL - Australia Security Industry Ltd Exhibition & Conference
Date: August 6-8, 1996
Location: Sydney, New South Wales
The annual conference and exhibition for Australia's security
industry association. Presentation of achievement awards.
Frequency: Annual
Exhibition Organizer: ASIAL, National Office, Sydney
Tel: 61 2 906 4780
Fax: 61 2 906 4202
TELECOMMUNICATIONS EQUIPMENT (TEL)
MOBILE COMMUNICATIONS EXHIBITION
Date: November 30 - December 2, 1995
Location: Darling Harbour, Sydney, New South Wales
A relatively new trade show, held in Melbourne and Sydney as a forum
for retailers and wholesalers to display their mobile phones and related
products, and to advertise their mobile services.
Frequency: Twice yearly
Exhibition Organizers: High Profile Exhibitions, 1st Floor, 21 Swan
St., Richmond, VIC 3121
Tel: 61 3 9428 0415
Fax: 61 3 9428 9508
Also: Melbourne, April 18-20, 1996
Melbourne Exhibition Center, Southgate, Victoria
AUSTRALIAN TELECOMMUNICATIONS USERS' GROUP (ATUG) '96
Date: April 30 - May 2, 1996
Location: Melbourne Exhibition Centre, Victoria
Australia's largest telecommunications trade show, exhibiting a
range of telecommunications products including network products,
consumer products, and a range of services. The show is held annually,
one year in Sydney the next in Melbourne. It is extremely well
patronized, and grows larger each year. The ATUG conference also runs
coincidentally. This is an excellent forum for international exhibitors
planning to enter the Australian market.
Frequency: Annual
Exhibition Organizers: Riddell Exhibitions, 135-141 Burnley St,
Richmond, VIC 3121
Tel: 61 3 9429 6088
Fax: 61 3 9427 0829
TEXTILES, APPAREL & FOOTWEAR (TXT)
TCF INTERNATIONAL
Date: March 26-28, 1996
Location: Melbourne Exhibition Centre, Southbank, Victoria
A new exhibition for the textile, clothing, footwear and fashion
industry.
Frequency: Annual
Exhibition Organizers: Australian Exhibition Services
424 St. Kilda Road, Melbourne, VIC 3004
Tel: 61 3 9867 4500
Fax: 61 3 9867 7981
INTERIOR DESIGNEX
Date: April 25-28, 1996
Location: Darling Harbour, Sydney, New South Wales
Trade show features commercial and domestic interior
design products and services.
Frequency: Annual
Exhibition Organizers: Australian Trade Exhibitions
PO Box 192, Camberwell, VIC 3124
Tel: 61 3 9819 0211
Fax: 61 3 9818 8553
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