Business Wagga Wagga

International Trade and Investment

INTERNATIONAL TRADE AND INVESTMENT

While established markets in Wagga Wagga guarantee businesses access to both regional and domestic markets, international trade and access to international markets continues to be a key economic driver in our national economy. International trade stimulates economic growth and allows countries to specialise in the production of products in which they have a comparative advantage.

The third annual survey from the Export Finance and Insurance Corporation on export found that access to finance was one of the main obstacles facing companies expanding into overseas markets as cited by Jeff Hutton in BRW Magazine in June 2010. Hutton says "About 43 per cent of the respondents indicate they would expand into new markets if they had better access to finance". "Access to finance is the key constraint to the offshore expansion plans of Australian businesses" EFIC Chief Economist Roger Donnelly says.

The importance for companies to have the option to explore overseas markets is imperative in order to remain competitive on the international stage and a number of our Wagga Wagga businesses have already explored these options and are reaping the benefits.

EFIC Chief Executive Angus Armour says "If you have firms that can compete overseas and succeed then you have world class firms and that pays dividends and benefits productivity and efficiency in ways that they couldn't if they are only serving a market of 22 million people". (BRW June 2010)

Wagga Wagga is ideally located to position itself as a major exporter of goods and services now and into the future. The strategic location of Wagga between Sydney and Melbourne ports highlights its accessibility to export markets, while its stand-out infrastructure sets it apart from its regional counterparts.

While the economics of trade policy is clear, the politics of trade are highly complex. After many years of negotiation ASEAN countries, Australia and New Zealand have adopted the "ASEAN Australia and New Zealand Free Trade Agreement" (AANZFTA) which amongst other things allows Australian producers and manufacturers to export goods to the signatory countries under reduced tariff rates. This not only places Australia on a level playing field with Japan, China and Korea who have had these benefits for many years, it also provides Australian exporters with a competitive advantage over countries who are not involved. Whilst Indonesia has not yet signed the agreement, they are expected to be a signatory by the end of 2010.

Australia is also currently negotiating a free trade agreement with India, which has the potential to be one of our largest and most dynamic trading partners.

Government agencies including Austrade (Australian Govt) and Industry and Investment NSW together with organisations such as the NSW Business Chamber provide existing, new and potential exporters a variety of resources including information, workshops, one-to-one mentoring and financial assistance (subject to meeting eligibility criteria) to assist them develop the skills and capability to export as well as research, identify and access international market opportunities.

Export advisors work one on one with companies to look at their specific needs when considering markets, location and product. Export advisors use networks they have developed with overseas counterparts to ‘business match' Australian exporters with potential buyers and/or investors overseas.

The opportunity to attend exhibitions for certain industries in various countries also exists and is an excellent way for potential, new or existing exporters to develop further links with potential clients overseas.

Wagga Wagga businesses considering entering the export market should speak to Industry and Investment NSW Export Advisor for further information.

Industry and Investment NSW
48 Fitzmaurice Street
PO Box 1156
Wagga Wagga NSW 2650

T: + 61 2 6921 6422 | F: + 61 2 6921 0780

W: www.industry.nsw.gov.au | www.export.nsw.gov.au

Sources: BRW Magazine (June 10-16 2010)