2015 ECA International Business Today Autumn

E x p o r t C o u n c i l o f A u s t r a l i a | w w w . e x p o r t . o r g . a u | A U T U M N 2 0 1 5

G20 WRAP UP

MEXICO AND AUSTRALIA: NEW ERA FOR NATURAL PARTNERS

CHINA FTA: NEED TO KNOW

THE HON ANDREW ROBB MP,MINISTER FOR TRADE AND INVESTMENT

D R I V E R A D V I S O R Y S Y S T E M

Energymiser®

◊ REDUCESENERGYUSEANDOPERATIONALCOSTS

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FIXED INSTALLATIONNew build and retrofit

TABLETWindows and iOS devices

INTEGRATEDTMS, ERTMS

TRAFFIC MANAGEMENT SYSTEMConnected DAS (C-DAS)

TTG Transportation Technology P/Le: [email protected] t: +61 2 9249 0100 Sydney, Australia

TTG Technology (Europe) Ltde: [email protected]: +44 (0) 207 554 8804 (London) +44 (0) 133 225 8867 (Derby)

TTG (Beijing) Technology Ltde: [email protected] t: +61 2 9249 0100 Chaoyang District, Beijing, P.R. China

www.ttgtransportationtechnology.com

UNITED KINGDOMLeading passenger operator

AUSTRALIALargest private freight business

CHINAMajor heavy haul operator

AFRICALongest iron ore trains

TTG is a world-leading provider of Driver Advisory Systems for the global rail sector. Energymiser® is now deployed on five continents, with a projected install base of over 3,000 units in 2015, and recognised with a national Export Award – Environmental Solutions. This is due to benefits delivered to customers, pressures to improve rail efficiency, and government initiatives to reduce traffic congestion and environmental emissions, as well as new free trade agreements with countries in the Asia-Pacific region.

Early users of the system focused on its capacity to substantially reduce energy use and operational costs. The global rail market is now seeing additional benefits such as improved on-time running, carbon footprint reduction and ability to integrate with other train management systems.

Clients initially wanted Energymiser® deployed as a fixed ‘in-cab’ solution and this has evolved to include online reporting, deployment via iPads, tablets or integration with existing on-train systems, such as a Train or Traffic Management System. Our development roadmap is designed to meet such changing needs.

CONTENTSFOREWORDThe Hon Andrew Robb MP 4CEO’s report 6Editor’s letter 7

FEATURESLooking into the eyes of the dragon 10G20 the start of a new era for exporters 16

REGULAR COLUMNSNews 8People 20Spotlight on 37Awards 38Tim’s tips 40Calendar and programs 42Courses 44

DOING BUSINESSTake a deep breath before you take the plunge 32Helping SMEs access finance 33Charting a course for business success in the US 34Government support for entrepreneurial exporters 36

EXPORTERGP Graders: the pick of the bunch 28Homegown gaming business playing in global markets 30

PLACESMexico and Australia: new era for natural partners 22Postcard from Mexico 26

International Business TodayAUTUMN 2015

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FOREWORD

By Minister for Trade and Investment, the Hon Andrew Robb MP

Since coming to office, the federal government has very deliberately pursued a most aggressive trade

and investment agenda. As we seek to diversify our economy with the mining boom abating and as we reduce the reliance on government debt-fuelled spending in this post-global financial crisis environment, a core objective has been to open up new

opportunities for businesses across various sectors – and trade and investment are potent drivers of this. Increased trade and investment helps support sustainable economic growth, higher living standards and boosts jobs. We have made a very strong start, having last year concluded a powerful trifecta of high-quality free trade agreements with China, Japan and Korea; our first, second and fourth largest trading partners respectively. We have also actively pursued new foreign investment into Australia at every opportunity. By the end of 2014 I had chaired 44 significant investment roundtables in 19 countries, which have already resulted in billions of dollars of new investment into Australia.

Just as 2014 delivered significant advances in trade for Australia, 2015 holds similar promise as we pursue agreements with the likes of India, with its population of 1.25 billion and emerging middle class. The 12-country Trans Pacific Partnership Agreement (TPP) is also within reach. This promises to be a transformative deal and includes countries representing 40 per cent of global GDP. Already this year, I’ve led a 450-strong business delegation to India to build trade relationships and explore business opportunities throughout the Indian subcontinent. A number of deals and MoUs were signed between Australian and Indian businesses and institutions, and I’m confident our nations will enjoy a strong and growing economic relationship in the years and decades ahead. Work is well underway on a bilateral trade and investment agreement between Australia and India, with the aim of concluding negotiations by the end of this year. During my visit to India I held substantive talks with Prime Minister Modi to advance this objective. As a result of the agreements with China, Japan and Korea, Australian exporters will enjoy improved access to markets of more than 1.5 billion people. This represents a substantial opportunity for Australia’s exporters to enhance their competitive position in three of Asia’s largest economies, with two of the three agreements (Korea and Japan) already in force.

4 | INTERNATIONAL BUSINESS TODAY – AUTUMN 2015

At the moment, China, Japan and Korea account for more than 50 per cent of Australia’s exports. This figure will only increase as Asia’s middle class grows and their demand for Australia’s clean, green produce increases. In fact, the OECD has predicted the middle class across the Asia Pacific will grow from 600 million to three billion over the next 20 to 30 years, which highlights the opportunities for Australia. A wide range of Australian businesses – exporting and non-exporting – as well as Australian consumers, also stand to benefit from lower cost imported goods and components, as import tariffs are eliminated. We have already seen, for example, prices reduced on imported Japanese vehicles as a direct result of our trade agreement with Japan. Along with completing the three trade agreements, last year also saw Brisbane play host to the G20 Leaders’ Summit, which delivered outcomes that will benefit world trade, and in turn boost global growth. This included the agreement – championed by Australia – to increase global growth by at least two per cent over five years, on top of business as usual. This will lead to a stronger global economy, which will of course, benefit Australian exporters. G20 members also welcomed the breakthrough reached on the WTO Agreement on Trade Facilitation. The agreement will reduce trade costs for WTO members by between 11 and 15 per cent, and will make it easier for Australian exporters to do business in the 160 WTO member countries.

Our role as government is to eliminate barriers to trade wherever we can and to support our businesses with the information and guidance they need to unlock the benefits of our agreements, to access all important global value chains, and to secure new foreign investment to support new business activity and growth. The new free trade agreements, together with a softer dollar, present a year of exciting opportunity for Australian exporters. One of the government’s key messages to the world is that Australia is well and truly ‘open for business’. Our domestic reform agenda, which includes removing damaging taxes, streamlining project approval processes, cutting red and green tape and record levels of infrastructure investment, is aimed at making the Australian business environment and our exporters more competitive. Australia has always been a proud trading nation, but as a government which fully understands the economic importance of trade and investment to our economy, we are doing all we can to help take this to a new level entirely.


CEO’S REPORT

It’s a new year and the Export Council of Australia (ECA) is looking forward to a jam-packed year ahead, with lots of initiatives in place that are designed to help support Australia’s thriving export sector.

First, I’d like to let you know about a number of organisational changes we have made, in particular the appointment of new team members who have recently joined us.

Steven Antunovic has been appointed as our national education manager, while Kristina Koprivica has joined us from Serbia and is our new marketing and events coordinator. We also welcome Niels Strazdins as the ECA’s research manager. As research manager Niels will be working on some exciting new projects we are planning to roll out over the next few months. These include: • The China (Shanghai) Pilot Free Trade Zone and Australia: What it is, what it means and

how it can benefit Australian firms in China.• Demystifying Korea: Understanding doing business with Korea for Australian service

providers.• Mexico: Gateway to the Americas: Leveraging reform and opportunity in Mexico and the

wider region.

Niels will be reaching out to our members to gather your insights as part of his role. We encourage all our members to contribute to the ECA’s 2015 programs to make international markets easier to navigate for Australia’s small- to medium-sized businesses.

With the help our head of product development, Collins Rex, these projects will each culminate in the production of a practical guide, which will be published in the form of an app. The technology will help demystify export markets for small-to medium-sized businesses.

Kristen Mulligan is now the ECA’s business development and membership manager. She will be overseeing some exciting changes to membership in 2015. Kristen will be contacting members over the next few months to let you know more about some exciting changes to our membership benefits. This includes the re-launch of our website, which will have a fresh look and will be considerably more user friendly than the existing site.

This year, the ECA will also be re-opening its office in Western Australia and I look forward to letting you know a bit more about that in future issues.

As some of you may know, a review of the Export Market Development Grants (EMDG) has recently been started. As a strong supporter of the EMDG scheme we would be very interested to hear your thoughts on the program and how it has impacted your business. Please send any comments to [email protected]. In addition we encourage interested businesses and individuals to contribute individual submissions to the review. If you’d like to find out more about how to make a submission to the review, go to: http://www.austrade.gov.au/Export/Export-Grants/review.

I’m also pleased to announce that The Australian Institute of Export is launching a pilot consulting program in Sydney in the first half of this year. Keep an eye out on our news platform and social media channels for more information.

A final plug for the ECA’s upcoming business mission to Indonesia, taking place in June 2015. Businesses interested in participating should contact Collins Rex at [email protected] or visit our website http://www.export.org.au/eca/homepage, and click on the ‘Indonesia Now’ tab for more information on how to apply.

All the best to all our members for 2015.

Lisa McAuley


Alexandra Cain

I was staggered when I read the data in the just-released Why Australia: benchmark report. Although Australia accounts for just 0.3 per cent of the world’s total population, ours is the 13th largest economy internationally. This statistic demonstrates how important trade is to

our country’s ongoing success.

This is of course something that has been recognised by successive governments and right now, we’re in a golden era for the formation of bilateral trade agreements between our country and some of the most important emerging markets in the world.

So it’s fitting that the commitment by Australia and China to enter into a free-trade agreement is featured in our cover story this issue. The deal means it will be much easier to do business between China and Australia. It will also reduce costs for importers and exporters and make Australian products more competitive in this massive Asian market.

The deal was one of the bi-products of the highly successful G20 meeting held last year in Brisbane. Our second feature explores the flow-on effects of this historic meeting. One of the really interesting outcomes was an agreement between Tasmania and China’s major fruit growing region, the Shaanxi province. Although this was an immediate positive to come out of the meeting, expect there to be benefits from the meeting for Australian importers and exporters for many years to come.

This issue, we also profile two important Australian export success stories. Home grown gaming business Halfbrick is poised to achieve one billion downloads of its games this year. And GP Graders is in the midst of a massive global expansion program of its incredible technology that makes it substantially more efficient and profitable to grade and pack cherries.

Austrade trade commissioner and Chris Rodwell also explores the potential for Australian companies to do business in Mexico. It might not be at the top of many exporting business’s lists, but there are actually a huge number of opportunities for local exporters in this extremely populous country. Chris also shares his local knowledge of the best places to eat and experience in Mexico City. It certainly had me imaging booking a trip there.

If you’re thinking about making a foray into the US, Ian Smith’s examination of this massive market is a must-read. Steven Fornasaro’s article on the practicalities of doing business offshore is also essential reading.

Finally, The Airport Economist Tim Harcourt’s tips about doing business in Taiwan will have you dreaming about booking an extended stay at Taipei ’s iconic Grand Hotel.

I hope you enjoy this issue.

EDITOR LETTER


NEWS

AUSTRALIA SIGNS FTA WITH CHINA

Knowing how to take advantage of the increasing number of bilateral trade arrangements Australia has with its economic partners can be confusing for local exporters.

So to help traders navigate the ins and outs of the free trade agreements and economic partnerships Australia has in place, the Export Council of Australia is developing an FTA Tool that exporters and importers can use to get a better understanding of what these agreements mean. For more information contact the ECA at [email protected]

EPA HERALDS NEW ERA IN JAPANESE-AUSTRALIAN TRADE RELATIONS

Australia continues to take decisive steps forward on a slew of free trade agreements. In January, the Japan-Australia Economic Partnership Agreement (EPA) took effect,

the culmination of moves by both nations to secure closer economic ties.

Japan is Australia’s third largest trading partner and accounts for 14.4 per cent of foreign investment in Australia. The EPA will help to increase the flow of two-way trade between the two nations. The agreement is especially good news for Australia’s food and agricultural sectors, two industries that are set to benefit the most from the deal.

Prime Minister Tony Abbott and Japanese Prime Minister Shinzo Abe released a joint statement when the agreement was ratified, confirming the close relationship the two countries enjoy.

The statement noted that, the deal, “represents an historic development in economic relations between Japan and Australia and is the most significant bilateral economic agreement since the 1957 Agreement on Commerce.”

The two leaders acknowledged that the accord “lays the foundation for the next phase of bilateral economic relations, and will strengthen the special strategic partnership between Japan and Australia.”

It’s anticipated the EPA will produce substantial economic benefits for Australia and Japan, reduce trade barriers and stimulate economic growth for both sides of the partnership.

KOREAN EPA NOW IN FORCE

The Korea-Australia Free Trade Agreement (KAFTA) took effect at the end of 2014, which will substantially increase trading opportunities between the two countries.

Trade and investment minister Andrew Robb said in a statement, “KAFTA’s entry into force at this time will mean that many Australian exporters will benefit from an immediate tariff cut by Korea … shoring up our competitiveness in our third largest export market.”

Industries to benefit from the agreement will include beef, dairy, wheat, sugar, wine, horticulture and seafood. The automotive supplies and mining and resources sectors are also set to gain from the deal.

The agreement means tariffs will be removed on 84 per cent of Korean imports. In time, 99.8 per cent of Australia’s exports into Korea will be duty-free.

Korea is Australia’s fourth largest trading partner.


MASSIVE INDIAN TRADE MISSION A SUCCESS

Australia is moving closer towards a formal bilateral economic arrangement with India following a recent delegation of Australian business leaders to India.

Australia Business Week in India involved more than 450 Australian business leaders visiting their counterparts across India, in the biggest trade mission Australia has ever had to India.

“This trade mission is an important way to inform India’s business community about Australia’s commercial strengths and for our nation’s business people to get a closer look at what India has to offer,” said Bruce Gosper, CEO of Austrade, in a statement.

He noted the scale of the mission indicated the importance Australia was placing on its economic ties with India.

“The response to this mission has been impressive and indicates that Australian business is aware of the opportunities and interested in engaging with India in a commercial sense,” Gosper said.

Delegates visited New Delhi, Mumbai, Kolkata Chandigarh, Pune, Ahmedabad, Jaipur and Ludhiana, meeting leading representatives of India’s business community and attending a series of high-level investment roundtables.

The delegates came from a cross section of Australian industry, especially those areas that have the best chance of success in the Indian market. Representatives from the resources and energy, tourism, infrastructure, transport, agribusiness and food, financial services, health and medical, education and training industries were represented.

NEWS

AUSTRALIA CONTINUES PUNCHING ABOVE ITS WEIGHT

The Why Australia: benchmark report has just been released and demonstrates the sound fundamentals of Australia’s economy and the importance of trade and investment to it.

Here are some highlights from the report:• Australia is the world’s 13th largest economy, but we account

for just 0.3 per cent of the world’s total population.• Australia’s nominal annual GDP is US$1.5 trillion, which accounts

for two per cent of the world’s economy. Australia has doubled the value of its overall production in the past 10 years, on the back of 23 years of uninterrupted economic growth.

• According to the International Monetary Fund, Australia’s average annual GDP growth is expected to be three per cent between 2015 and 2019, up from 2.7 per cent between 2010 and 2014, the highest expected growth rate of all the major developed economies.

Australia’s close ties to Asia will help increase economic growth in future years. By 2019 Asia is expected to account for 42 per cent of total global economic output, double the output it achieved in the 1980s. China and India are expected to account for more than a quarter of the world’s GDP by that time. In the 1980s the two nations accounted for just five per cent of total global GDP.

The report also showed Australia is a global leader in five sectors: agriculture, education, tourism, mining and wealth management. Ongoing growth across these sectors is expected to drive Australian and global trade and investment in the near term.

TRUSTED TRADER PROGRAM TO BEGIN WITH AN EXPORT FOCUS

Australian Customs and Border Protection’s pilot Trusted Trader program is expected to commence on 1 July with an export focus. It’s anticipated the scope of the pilot, which will run

for 12 months, will expand as it progresses.

The Trusted Trader program is being designed and developed in partnership with industry, relevant government agencies and international counterparts.

The program is a trade facilitation initiative. Participants that meet international standards built into the program for supply chain security and trade compliance will receive a range of benefits.

Supply chain security refers to the arrangements used to maintain the integrity of goods against threats throughout the supply chain, from the point of origin to their final destination. Trade compliance means meeting all government regulatory requirements associated with the movement of goods along the international supply chain. For instance, importers may be able to seek duty deferral and gain access to periodic payments and streamlined reporting.

Exporters in particular will benefit from being able to access a client service manager and priority trade services. But the main benefit will come from establishing mutual recognition agreements with Australia’s key trading partners to improve Australian exporters’ access to overseas markets.

The Trusted Trader program will help make it easier for exporters to do business with Australia’s main trading partners.


l o o k i n g i n t o t h e e y e s o f t h e

FEATURE

Alexandra Cain

THE CHINA-AUSTRALIA FREE TRADE AGREEMENT WILL GIVE LOCAL EXPORTERS MUCH HIGHER CERTAINTY ABOUT DOING BUSINESS WITH OUR LARGEST TRADING PARTNER. BUT THE HOTLY ANTICIPATED BENEFITS ARE EXPECTED TO ACCRUE OVER TIME, RATHER THAN OVERNIGHT. THIS MEANS IT’S ESSENTIAL TO HAVE A LONG-TERM STRATEGY IF YOU’RE KEEN TO DO BUSINESS WITH OUR GIANT TRADING PARTNER TO THE NORTH. THIS STARTS WITH DEVELOPING A DEEP UNDERSTANDING OF THE CHINESE MARKET AND HOW TO DO BUSINESS IN IT.


The free trade agreement (FTA) between Australia and China really is a game-changer for local importers and

exporters. Over time, it should prompt an increase in activity in the agribusiness and services sectors, and encourage cross-border investment in these and other industries. But it’s important for exporters to understand how to take advantage of this agreement to make the most of it.

There are already lots of resources exporters can access to help them become familiar with the Chinese business environment. Organisations such as the Export Council of Australia (ECA) and Austrade should be your first port of call if you’re looking for information about China. Traders should also expect further tools and assistance to be developed over time to assist them to generate business in the massive Chinese market. For instance, the ECA is developing an FTA Tool to help smaller exporters access not just the China FTA, but also all the major trade agreements Australia has in place. The tool will be an interactive website traders can use to search for information about individual countries, as well as products and services.

The development of resources to assist exporters to understand export agreements is important because at the moment the FTAs Australia has signed are underutilised. According to research published by the Economist Intelligence Unit, of the nine FTAs Australia currently has in place, only 19 per cent of traders are actually using them.

“There is a low understanding of the benefits and concern about their complexity. But the flip side is that 75 per cent of traders who acknowledge FTAs in their business strategy experience an increase in export volumes. This indicates there is an opportunity for traders to access new markets if they do take advantage of FTAs,” says Andrew Skinner, head of global trade and receivables finance for HSBC Australia.

Commenting specifically on the China FTA, Skinner says a plus is that Australia already has strong links with China. “So there’s a

lot of existing activity and many barriers have already been broken down. We’ve been seeing customers take this journey for some time.”

Importantly, the FTA means tariffs on local agricultural and other commodities sold to China will be wound back. And if the New Zealand experience is anything to go by – it has had an FTA with China since April 2008 – trade volumes should increase markedly. “There’s been five-fold growth in Kiwi exports to China since it signed its FTA, thanks to a ‘mining and dining’ boom. Australia should also see growth in the volume of services we export to New Zealand [as a result of the FTA].”

But Skinner warns not to expect any overnight spike in activity; growth of export sales to the Chinese market will take time. He says at the moment, prudent exporters should be investing time in understanding the Chinese market, before making any major push.

“There will be bilateral direct investment as a result of the FTA; our customers are looking at a 20-year time horizon; they are investing for the long-term.”

Jim Harrowell, a partner at law firm Hunt & Hunt, says the agreement is particularly beneficial for agribusinesses, given it will result in a reduction to tariffs for wine and wool, as well as other commodities.

“It’s will also open up new live export cattle markets,” he says. Indeed, Barnaby Joyce has said there’s the potential for a million head of live cattle to be exported from Australia to China annually.

Harrowell said there’s particular demand for Angus cattle, which are generally bred in higher rainfall areas in southern Australia, as well as for cattle bred in the drier top end. Exports of live dairy cattle should also increase, as should the supply of commodities such as fruit, berries and fish.

There’s also huge potential for the export of agricultural services and technologies related to crop production, farm management and commodity logistics such as grain handling.


FEATURE

“It’s all pretty exciting and great news for regional Australia. There really are lots of opportunities, as well as the potential for capital inflows,” says Harrowell. This will help re-build and reinvigorate the agribusiness sector locally.

Professional services should also benefit as a result of the agreement, although details about how local financial services, legal and accounting firms will establish a toehold in the Chinese market still need to be addressed.

“It’s still unclear how the Shanghai free trade zone will operate,” says Harrowell. For instance, Hunt & Hunt has a license to practice in China and presently offers services from Shanghai. “It’s not clear what the benefits will be of moving to the free trade zone. There’s also the potential to do joint ventures with local [Chinese] firms, but we could do that at the moment,” he adds.

It’s also undecided whether financial services businesses will only be able to transact from the free trade zone, or offer a broader range of services across China.

Aside from professional services, there are also opportunities for Australian providers in the aged care industries to establish operations in China.

However, Harrowell notes the signing of a memorandum of understanding to establish an FTA between Australia and China is only the first step of the journey. The formal FTA should be signed mid-2015 and he expects the relationship to evolve over time.

Dr Robert Jack, who heads Macquarie University’s China Business Research Network, says the FTA will help lower the cost of doing business in China given the reduction in tariffs it brings. But he notes it won’t necessarily make it easier to do

“The signing of a memorandum of

understanding to establish an FTA between Australia and China is only the first

step of the journey.”12 | INTERNATIONAL BUSINESS TODAY – AUTUMN 2015

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CHINA FAST FACTS

HSBC research shows 75 per cent of

all Australian companies that include

free trade agreements in their business

strategy have experienced export

growth. Respondents noted three main

competitive advantages of using FTAs:

• 40 per cent say they have access to

new markets.

• 39 per cent say they have access to a

wider client base.

• 37 per cent say they are able to

create new business opportunities.

business in China: cultural, language and political barriers remain in place.

“But it does deliver greater certainty in planning costs to enter that market,” he explained.

However, Jack reminds exporters who are interested in exploring opportunities in China that this market is not as transparent as the Australian market. “It can be difficult to get information,” he says.

He suggests exporters explore opportunities Austrade offers to help understand the workings of Chinese markets. Another avenue is bilateral chambers of commerce, such as AustCham, which has chapters in Beijing and Shanghai.

Jack notes China should not be viewed as one homogenous market; rather it’s characterised by a number of different

regional areas. Success in one market does not automatically lead to success in other Chinese markets.

For exporters to get the most out of the China FTA, the idea is to explore resources available to help become more familiar with the market. After that, the next step is to start building commercial alliances, before writing a more formal business plan. It’s a long-term approach because taking a short-term perspective is likely to lead to failure.

Nevertheless, it’s an exciting time for local exporters who have ambitions to expand their presence in China. Now is the time to understand what the opportunities are and how to take advantage of them, before making a more concerted push into China.

FEATURE


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A momentous agreement between China’s Shaanxi province and the Tasmanian fruit growing industry clearly demonstrates the spirit of the G20 meeting in Brisbane last year.

The deal was one of three memoranda of understanding witnessed by Chinese President Xi Jinping and Tasmanian premier Will Hodgman subsequent to the G20.

One of the agreements concerned the state-owned China Development Bank Corporation (CDB), which should prompt Chinese investment in Tasmania in the agriculture, mining and tourism sectors. A second agreement strengthens Tasmania’s sister-state relationship with China’s Fujian province, while the third concerned the Shaanxi fruit growing area.

One of the facilitators of the fruit industry agreement was George Wang, a director of WinWorld, which has recently launched a new export platform, called Nourifarm Direct, which helps streamline the supply chain for Tasmanian fruit exporters to China.

He explains Shaanxi is the largest fruit-growing region in China, and there are considerable potential future synergies between Tasmanian and Shaanxi fruit growers, that will benefit all parties.

“Shaanxi produces big volumes, but doesn’t have a substantial reputation internationally. Tasmania has a good international reputation, and good skills. There’s huge potential for the two regions to work together,” says Wang.

For instance, one of the big opportunities is off-season trading, given that the two region’s crops are ready at different times. There’s also the potential for joint investment projects. Chinese producers could also learn from Tasmanian producers about how the latter has managed to lower chemical use on fruit crops over time.

While this is one of the most tangible outcomes for local exporters from the G20, many other benefits will accrue to local traders for years to come.

G20 the start of a new era for exporters

Mark Thirlwell, chief economist, Australian Trade Commission, says the G20 is such a beneficial meeting for all countries given how complex the world economy is. “There will be lots of spill overs from it; the fact that it’s held is very positive for the world economy. When it comes it international trade, anything that increases international stability is a good thing,” he says.

He says the Brisbane meeting was widely seen as a success, which helps to validate the existence of the G20.

“The focus was global growth and jobs, at a time when the world economy is struggling to gain momentum, with economic growth below trend and struggling. So having the Brisbane action plan and policy measures is positive,” Thirlwell explains.

For instance, the commitment to a two per cent global growth target will deliver clear benefits for all nations “The fact we have the International Monetary Fund monitoring this commitment, rather than just having an overarching goal, also helps,” he adds.

According to Thirlwell, the G20 meeting is an acknowledgement that trade is good for growth. “Every action plan includes trade facilitation measures and there are also commitments to reduce regulatory barriers and promote trade enabling measures, which will help stimulate trade flows,” he says.

“If we meet the commitment to international growth it will result in $2 trillion added to the global economy, which is a significant boost and Australian traders should get a slice of that,” he adds.

Australian National University academic Dr Susan Harris-Rimmer concurs considerable benefits will come out of the G20 meeting.

“It was the first trip to Australia for heads of government from Indonesia, Italy and India and the first trip to Australia outside of Canberra for the Chinese president, President Xi Jinping. Even for leaders who had been here before, many had only ever visited Sydney and Canberra and had not had an opportunity to go to

LAST YEAR’S LANDMARK MEETING OF GLOBAL LEADERS IN BRISBANE IS A FANTASTIC LAUNCHING PAD FOR A RANGE OF INITIATIVES THAT WILL MAKE LIFE EASIER FOR TRADERS.

Alexandra Cain


FEATURE

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Brisbane. Now, they will associate the communiqué with Brisbane and global economic growth, which is a great connection to make,” she says.

Harris-Rimmer also notes there were meetings with representatives from many nations throughout 2014 across Australia, which should also benefit local exporters. “It’s been an intense period of diplomatic activity Australia has never before seen,” she says.

Many delegations had spent the period before the G20 meeting in Brisbane in the Asia-Pacific region, which also helps to form the impression Australia is part of the burgeoning Asian region, which is another positive to come out of the event.

A key part of the meeting was the B20, the business advisory group attached to the G20. Given one of the B20’s four taskforces was focused on trade, it’s clear the issues local as well as global exporters face were front and centre at the meeting.

“The big issue is the first recommendation to implement the Bali agreement because when this happens there will be a big payoff for both developed and developing economies,” Milliner says.

He says there is substantial global support for the Bali agreement given so many nations are struggling with growth issues and ratification of this agreement should address some of these.

A significant number of action plans are being developed and implemented around these four recommendations at the individual country level. What’s also pleasing is that countries are accountable for reporting against their progress on these action plans. So although it might take time for local traders to see tangible benefits from the G20 meeting, they are in train.

The other organisation associated with the G20 whose activities should help buoy local traders is the G20 Young Entrepreneurs Alliance (G20 YEA).

Australian president Jeremy Liddle is confident there will be concrete outcomes stemming from the G20 for entrepreneurs who are also exporters or that trade online.

“The proportion of entrepreneurs that are trading online, engaged throughout the G20 YEA network, is increasing every year. Through the network the 20 not-for-profit organisations that make up the alliance organise many bilateral trade delegations. More than 50 new partnerships and trade alliances have been created as a result of these since G20 YEA’s inception,” he explains.

During the summit eight entrepreneurs were given 15 minutes to pitch their business to the 400-plus delegates. “During this time each of the entrepreneurs created relationships and partnerships for international expansion,” Liddle says.

One of the G20 YEA’s recommendations to world leaders was the creation of a multilateral G20 start-up visa that would enable young and high growth entrepreneurs to travel more easily to conduct business. The group also proposed G20 countries relax immigration laws so that skilled labour can be hired more easily.

Says Liddle: “we have seen a bilateral agreement reached between the governments of Canada and France already, which will enable more trade.”

Overall, the G20 should be seen as part of a chain of events that will ultimately succeed in breaking down trade barriers, to make it easier for large and small traders alike to do business internationally. And the best bit is that thanks to its hosting role, Australia is at the front and centre of all these initiatives, which only bodes well for local importers and exporters.

“More than 50 new partnerships and trade

alliances have been created since G20 YEA's

inception.”Robert Milliner, senior adviser at UBS and the B20 Sherpa for Australia for 2014, explains four recommendations were made by the B20 during the summit.

The first was to accelerate ratification of the Bali agreement regarding trade facilitation. The second was to address the issue of countries using non-tariff barriers, especially localisation requirements that stymie trade flows.

The third recommendation was to remove supply chain barriers, encourage infrastructure investments to streamline trading and to address domestic regulatory reforms to help unblock supply chain issues. The final point was to support both bilateral and multilateral preferential trade deals such as free trade agreements.


FEATURE

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PEOPLE

The secret to RightShip’s export successWarwick Norman

RIGHTSHIP WAS ESTABLISHED IN 2001 AS AN INDEPENDENT AND TRANSPARENT THIRD-PARTY RISK MANAGEMENT ORGANISATION FOLLOWING A SERIES OF MARITIME DISASTERS AROUND THE WORLD. AT FIRST GLANCE, MELBOURNE IS NOT AN OBVIOUS LOCATION FOR THE HEADQUARTERS OF AN ORGANISATION THAT PROVIDES MARINE RISK ASSESSMENTS TO THE WORLD’S SHIPPING FLEET. HOWEVER, THE FOUNDING PARTNERS WERE MELBOURNE-BASED BHP BILLITON AND RIO TINTO, WHO WERE JOINED IN 2006 BY CARGILL AS AN EQUAL EQUITY PARTNER. THE BUSINESS HAS ENJOYED IMMENSE SUCCESS SINCE IT WAS FOUNDED.

Our business helps shippers, terminals and ports, ship owners, managers and maritime finance organisations minimise maritime and environmental risk. In 2014 alone RightShip, the largest

provider of third-party vetting services in the maritime industry, analysed the suitability of ships performing more than 35,847 voyages, which resulted in 900 unsafe vessels being removed from customer supply chains.

In the early days RightShip serviced international customers from its Melbourne office. But thanks to the assistance of supporting organisations such as Austrade and an Export Market Development Grant we were able to grow our business and establish offices in Houston in 2004 and London in 2006.

Working with – and listening to – industry partners and stakeholders has been integral in maintaining good relationships and keeping in touch with the wider marketplace. We regularly contribute to high-level meetings with industry organisations such as the International Chamber of Shipping, Intercargo, Intertanko and BIMCO. I also sit on Lloyd’s Register Asia Advisory Committee and am the chairman of the Australian Marine Environment Protection Association.

We are a lean, family-friendly organisation with fewer than forty staff, many of whom work part-time. We recruit carefully and ensure our staff enjoy their work and are challenged. This is not just lip-service; the results of our 2014 staff survey show around 94 per cent of staff would recommend the organisation as a great place to work. Moreover, in such a male-dominated industry, three of our female staff hold senior management positions, including that of company secretary and financial controller.

Innovation and re-investment is a priority for our business. In 2009 when RightShip developed the Greenhouse Gas (GHG) Emissions Rating for ships, the organisation decided to provide it free rather than charge for it. Partnering with non-for-profit organisation the Carbon War Room, RightShip developed www.shippingefficiency.org which provides access to the data and analysis on the carbon emissions of individual vessels. For the GHG Rating to be effective in reducing the industry’s carbon footprint, it had to be widely accepted, which meant it had to be widely-used. We now have data on more than 76,000 vessels in our system, and it is used in the decision-making process by almost a quarter of the world’s non-containerised trade.

Warwick Norman, CEO, RightShip


Although we are a market-leader, we’ve not complacent. RightShip has spent the last two years building, from scratch, a new multi-million dollar technology platform to be launched in 2015. Named Qi (pronounced key), it will harness big data, establishing a predictive analytics model that will set up the organisation – and the industry – for the future.

People, culture, travel, grants, innovation, technology, connections and partnerships have all contributed to RightShip’s success; but clearly leadership, hard work and tenacity have played no small part in the achievements of this organisation.


PLACES

Few if any countries are executing as ambitious a reform program as Mexico right now. The program will prompt a transformation in international trade and investment for the country.

OECD secretary general Jose Angel Gurria commented in January that Mexico’s reform program is the most extensive and ambitious that had been seen in the OECD in recent times and possibly the most extensive and ambitious in the world. The OECD forecasts Mexico will average an additional one per cent growth per year for the next ten years. Should it implement other reforms it could arrive at an additional two per cent growth per year.

The program encompasses energy, telecommunications, finance, tax, infrastructure, education and more. Add the prospect of the Trans Pacific Partnership (TPP) and Mexico’s existing tranche of trade agreements, covering 45 different countries and including NAFTA and the Pacific Alliance, an enhanced commercial relationship between Australia and Mexico is almost certain.

Mexico and Australia: new era for natural partners

Chris Rodwell, Austrade trade commissioner for Mexico, Central America and The Caribbean

THE AUSTRALIAN BUSINESS COMMUNITY IS JUST STARTING TO RECOGNISE THE INCREASINGLY SIGNIFICANT ROLE MEXICO WILL PLAY IN THE GLOBAL ECONOMY IN THE NEXT FEW DECADES.

For instance, BHP Billiton has entered the market in search of opportunities in the deepwater of Mexico following the overhaul of 76-year-old legislation that had previously closed the energy sector to international investment. WorleyParsons has similar intentions and a view to developing its Mexican business.

Macquarie Group manages the largest fund for commercial and industrial property in the country and also has a lead interest in a US$1billion greenfields wind farm project. More recently, Melbourne-headquartered IFM made its first investment, a US$600 million stake in a major toll road.


The fundamentals of the Mexican economy are strong. Goldman Sachs forecasts Mexico will be a top five economy by 2050 and few dispute it will enter the top 10 by 2030. One reason is because Mexico’s central bank has been an astute manager. In early 2014 Moody’s lifted Mexico to an A-credit rating. With international reserves nearing US$200 billion and a low debt-to-GDP ratio, Mexico’s economy is solid.

It is determined to deal with productivity issues. Mexico is challenged by significant infrastructure gaps. But it plans to invest north of US$550 billion in the next five years to fast-track the delivery of roads, rail and pipelines.

There has also been significant education reform but much more needs to be done. Mexico is creating mega-programs to combat skills deficits. The creation of 60,000 scholarships in the energy sector is an example of the country’s commitment to break the 20-year bind of stagnant productivity.

There are pressures to manage in funding new programs. The tax base is narrow and small compared to other OECD nations. While the government has hedged its oil price for 2015, should it remain deflated until 2016 budget cuts will likely be made and a second round of fiscal reform may be needed.

On the upside Mexico is a huge manufacturer. It is the engine room of the Mexican economy and accounts for 80 per cent of all advanced manufactured exports in Latin America. It is the number one producer of flat screens and refrigerators in the world and the fourth largest exporter of motor vehicles. Having the US as a neighbour has advantages, especially as the US economy is trending back to four per cent GDP growth a year. Announcements of new car production plants are as common in Mexico as taco street vendors. Just before Christmas General Motors announced it would invest a further $5 billion in Mexico. This comes on top of recent announcements from Kia, VW and Mercedes.

The opportunities produced by such investment are apparent for Australian companies looking to new markets as a result of the structural overhaul of the local industry. Austrade is working with companies to determine how to penetrate some of the global value chains in Mexico.

Mining is also a sector of interest for Australia. While deeply embedded in other parts of Latin America, Australian companies are underrepresented in Mexico, despite the country being the fifth most popular destination for mining investment in the world. In September last year, Rio Tinto, announced a joint venture with mining exploration company Azure Minerals to explore for copper in Mexico.


The other strategic opportunity for Australia is in agriculture. Mexico and Australia share similar ambitions in improving the productivity of their land. We also produce many of the same commodities and face the challenges of flood and drought. Yet it is unlikely we will ever be great competitors. The margins and demand from Asia are too enticing for Australia to contemplate anything but niche plays into Mexico. The greater opportunity exists for shared investment plans in both countries, recognising Australia’s privileged position as a gateway to Asia and Mexico’s similarly held status in the Americas.

In the medium term, expect greater commerce in consumer goods and health. It surprises most to learn Mexico is the fifth largest market for luxury brands in the world. That’s a promising market for a sector such as our wine industry. While Mexico has traditionally been the land of tequila and cerveza, the red wine segment is

growing at 14 per cent per annum in value terms. That’s why 10 Australian wine producers visited Mexico for Australia Day this year to develop the market.

In terms of health, Mexico’s population is 120 million and it has a fast rising middle class. Those numbers, coupled with a zeal for better health and an addiction for sugar that recently led to the introduction of a sugar tax, is evidence of the scale of the opportunity.

While Australia fosters an ever-more expansive view of global commerce, Mexico represents a compelling opportunity, both in its diversity and scale. It is, by any standard, a much underdone relationship. But it’s also a pivot for Australian companies keen to manage risk in Asia and develop new markets. If ever Australia was looking to recruit a ‘natural partner’ Mexico would surely be on the shortlist.


PLACES

PLACES

Postcard from…

C I T YHave you ever been overseas on business and had to take a client out to dinner, only to find you have no clue where to go, let alone what to order when you get

there? Maybe you’ve had a few hours to spare and spent it watching CNN in your hotel room instead of seeing the sights because you didn’t know where to go?

Stacey Mills-Smith, Export Council of Australia

Each issue we focus on a different city from around the world, bringing you the latest on where to go and what to do. This issue, let’s explore Mexico City with Chris Rodwell, trade commissioner

for Mexico, Central America and The Caribbean.

If you have a few hours to spare in Mexico City where should you go?It may surprise some, but Mexico City is one of the most cosmopolitan cities in the world. It houses some of the most incredible museums and galleries. This comes from both a public and private fascination with art and culture. Carlos Slim, for instance, founded Soumaya Gallery, which doubles as both a stunning piece of architecture and the home to many of the most significant pieces of art in the world today.

For a whirlwind tour I’d suggest a trip to the Zocalo, in the centre of town, and nearby to the National Palace to view one of the many Diego Rivera murals that grace the city, before taking Avenida Reforma to view the Angel of Independence and later the Chapultepec Castle.

The afternoon could be spent wandering the truly world-class Museum of Anthropology. Also, you can’t forget the pyramids at Teotihuacan. They’re only just over an hour’s bus ride from the city. If it’s a weekend, be sure not to miss the markets at either San Angel or Coyoacan, regular stomping grounds for Frida Kahlo, Diego Rivera and David Siqueiros.


Are there any local specialities you can recommend?While the world sometimes views Mexico as fairly homogenous, the truth is that its diversity is quite fascinating. Mexico is made up of 32 different states, each with very different cultures and rituals. It is an exquisite place to explore. It’s hard to point to any particular speciality because the list would be fairly limitless.

One thing visitors can do, however, is take a ‘walking food tour’ around an area such as Polanco, to try some of the better known specialties, such as tamales, mole, sopes and mezcal. It’s not all about tacos, cervezas, tequila and Mariachis.

If you are taking a client out to dinner, or just going to dinner yourself, what restaurants would you suggest?Mexico may be an emerging economy, but it is the fifth largest market in the world for luxury brands. It has two restaurants in the top 50 restaurants in the world, Pujol and Bico. Both are extraordinary. Another option is a more traditional hacienda-style restaurant, such as the San Angel Inn or Hacienda de los Morales. While many people hold a very narrow view of Mexican food, the city is full of options. You come across a lot of Italian and French influences in particular. Places like Maximo Bistrot and Rosetta redefine the concept of Mexican cuisine.

In terms of nightlife, where would you suggest visitors go?Mexico City comes to life at night. There are some wonderful little cantinas in the centre of the city. For something more modern, try some options around Roma Norte and La Condesa, such as Rosita and Felix. Your other option is to head to the wrestling – Lucha Libre – for a fairly hysterical evening of entertainment. Think WWF but with melodrama and gaudiness only Latin Americans can conjure. Some of the language is a little crass, but if you don’t speak the local Chilango slang then, well, what you don’t know won’t hurt you. It is otherwise very theatrical and a great place to gulp down a few oversized Micheladas (beer prepared with lime juice and a few other spices) with friends.

Any more advice for visitors in town for business?I have yet to meet an Australian who isn’t surprised by the energy and sophistication of Mexico City and the warmth of its people. The initial apprehension of some visitors, stemming from the sometimes reckless portrayal of Mexico in the international media, gives way to a genuine intoxication for a place so thriving with life and imagination. Mexico is a place of scale. That’s not just about the number of people or the economy. It’s also about the pursuit of knowledge and culture, but also the incurable addiction to the fiesta.


GP Graders: the pick of the bunchStuart Payne, GP Graders

ESTABLISHED IN 1963, GP GRADERS IS AN INTERNATIONAL SUCCESS STORY, GROWING FROM A SMALL AUSTRALIAN FAMILY BUSINESS INTO THE WORLD’S LARGEST MANUFACTURER OF CHERRY GRADING AND PACKING TECHNOLOGY. IT DEVELOPED THE WORLD’S BEST CHERRY GRADING MACHINE, REVOLUTIONISING THE FRUIT GRADING MARKET. IT’S A REMARKABLE STORY ABOUT HOW A LOCAL ENTERPRISE HAS BECOME A GLOBALLY-RENOWNED BUSINESS AND INDUSTRY LEADER.

GP Graders has successfully supplied the Australian market with fruit grading machinery for five decades. After

identifying slow domestic growth, we decided to concentrate on export sales to the US, Canada, Chile, Turkey, Greece, the UK and mainland Europe. Our success is the result of a substantial investment in R&D, which used customer feedback for continued product design. This has produced a unique technology: adoption of our grading technology results in customers increasing revenue by up to 25 per cent and reducing costs by up to 35 per cent per year.

“Adoption of this

grading technology

results in customers

increasing revenue by

up to 25 per cent and

reducing costs by up to

35 per cent per year.”

Washington, to meet demand and provide local, on-the-ground service to international customers and to support GP Graders’ sales prospects. Due to this expansion, our markets are set to grow to $35 million with 40 per cent growth expected in the current financial year.

Spoilt for choice Our major export focus is towards California and Washington State in the US, as well as Chile, Greece and Spain. These markets have huge growth potential where, aside from Spain, we have an established brand with strong resources. Our recent success in the US is leading a revolution across the industry with the entire market transitioning to our technology. The market potential in the US alone is in the hundreds of millions of dollars.

Our major challenge over the coming two years will be production. The US facility will come some way to alleviating the production burden but it may be that we need to continue to outsource stages in production to third party suppliers. The company as a whole is going through a huge growth surge and that requires structural changes.

The global teamOur entire business is now geared toward export sales and we have 12 staff in the US and eight in Chile, although this is expected to triple this year. With the opening of GP Graders in Chile, we have appointed an international service manager to manage the service and support side of the business.

We are committed to employing dynamic, highly skilled staff. This year we have hired seven Polish computer technicians as support staff we place with customers as operators, as part of our new service model. A lot of our resources are directed toward service and installation to meet customer needs. Our production bottleneck is now being overcome through the increased capacity provided by our US factory.

Our point of differenceThere are two keys to the survival of an Australia manufacturer: innovation and export. Unless you are a heavy industry manufacturer that produces un-transportable products you really need to see your future markets as outside of

For some time our export sales have been focused on the development of the company’s core product range, where we have substantial competitive strengths. As a result, export sales have grown from 10 per cent to 75 per cent of total sales over the past 10 years.

Over the past year we have expanded our business locations, opening an office in Chile and an assembly plant in Seattle,


EXPORTER

GP Graders’ three export lessons

• Manage risk – be that payment, geographic, supplier or currency risk. Don’t think honesty is universal.

• Don’t waste time and money trying to enter markets if you don’t get early traction; there are many other markets on offer.

• Asia is not the only avenue for success. There are many more culturally aligned countries that might be a better fit for your product. We have found success in Greece, Turkey, Italy, Chile, US and Canada.

Australia. And you have to manufacture something that has a difference. That means having key staff who are willing to get on airplanes and research markets and find opportunities. They also need to be able to act on the outcome of that research by being willing to adapt the product to meet those market needs and have an open mind to opportunity and a sensitive consciousness to risk.

It’s a mistake to try to penetrate every market all at once. Start with the one that shows the most promise. That might not necessarily be the Asian growth market; it might be somewhere obscure like Uruguay or a state in the US. From there, get traction in the market, build your brand, understand

the business culture and market, then expand as you gain confidence.

Overcoming barriers There are many tools we have used to help us overcome challenges. As an export-orientated company, free trade agreements are very beneficial in eliminating tariffs and duties. The APEC travel card makes travel to Pacific rim countries a breeze and is a great innovation for business people who are forever on and off airplanes as it provides pre-visa approval for all participating countries. Efic has fantastic finance products available, which we present at every sales meeting with offshore customers. Austrade has representative offices worldwide that can assist any Australian company to access

foreign markets. The most important initiative the government has in place for manufacturers is the R&D tax incentive program.

When it comes to overcoming the barriers of doing business overseas, every foreign market has differences, but globalisation means many markets are addressing excessive bureaucracy for exporters by standardising rules. There’s never been a better time for Australian businesses to tap into export markets.

EXPORTER

Homegown gaming business playing in global marketsHALFBRICK CELEBRATED ONE BILLION DOWNLOADS OF ITS GAMES LAST YEAR, WITH EXPORTS THE KEY TO ITS SUCCESS.

Kate Hynes, Halfbrick

Halfbrick started about 14 years ago in the front bedroom of Halfbrick CEO and owner Shainiel Deo’s house in Brisbane.

At the time there was a group of five passionate young gamers with the goal of making games they wanted to play.

In our early days we had a dual focus – we created our own games plus developed games for other studios. The work-for-hire business kept us fed and gave us a wealth of knowledge and experience in building games that people love. It also gave us experience in making games for mobile platforms – and we won lots of awards for that work.

When the smart phone revolution hit in the mid-2000s we were in pole position to release great games to a content-hungry smart-phone audience. We launched Fruit Ninja on April 21, 2010 and we are still reeling from what a phenomenon it has become. We released Jetpack Joyride in September 2011, and it was another smash hit for us. In late 2014, we crossed the incredible milestone of reaching one billion downloads.

In 2015, we have 12 game titles we are currently publishing which are available across a divergent range of platforms, with our focus remaining on Android and iOS mobile phones.

The export journeyThe electronic games industry is truly global. Launching a new game onto the App Store, Google Play or other storefront is an immediate foray into the export market. So we have been exporting since the very first time we released our own game into the App Store (our first game was called Blast Off, it’s a cheeky little game that’s very hard to find. Lovers of Jetpack Joyride might see some influences there).

“We know Australia loves our games, and we love being in Australia, but our home

territory represents a relatively small portion of our revenue.”

Our true export journey began when we saw the massive opportunity for localising our content: we realised that fun in Australia or the US might not hit the spot in places like China or India. We started seeing the cultural differences in how people were responding to our games.

In 2011 our CEO started building a relationship with a start-up Chinese games publisher call iDreamSky. They began localising our games for the Chinese market and building their influence in the massive and highly competitive China mobile games market. In 2014, iDreamSky listed on the Nasdaq and is going strong and today the Chinese market represents a significant portion of our revenue.


Now we are focusing on opening our next major market. The two main contenders we are reviewing at the moment are India and South America. There are lots of considerations that go into selecting an export market. The two most pressing issues for us are smart-phone penetration and developed payment systems. For example, countries where Apple iPhones have market success and where most people have credit cards hooked up to their App Store accounts – that’s low hanging fruit for us. So we have traditionally targeted the US, UK, Europe, Russia, Australia, New Zealand because they have perfect market place conditions for us. Over the past five years we have watched China really open up both in terms of technology uptake and payment systems, and that has become a huge market for us as a result. We can see that India is just at the beginning of this process – so we are watching that space closely.

Ninety-five per cent of our revenue comes from exports. We know Australia loves our games, and we love being in Australia, but our home territory represents a relatively small portion of our revenue. Our current top ten export markets (in order) are the US, China, Brazil, Russia, Mexico, UK, France, Italy, Germany and Vietnam.

Investing for growthR&D is absolutely essential to our business. Most of our work is innovation – new games, new game content, new

technologies, new platforms, new ideas to reach the marketplace, and probably 90 per cent of our workforce is dedicated to creating new and innovative things. It’s what we do. Add to that the environment in which we operate – the world is constantly shifting and changing. Microsoft has just announced it’s going holographic. Last year it was all about virtual reality. Tomorrow there could be a ground breaking technology shift. We need to jump immediately and move to assimilate these opportunities and we do that through R&D.

The biggest regulatory challenge we face comes from delivering a single digital product to multiple territories with competing regulatory requirements. For example, privacy laws vary and conflict from country to country. Compliance in Australia does not automatically mean compliance in the US and vice versa. Our challenge is creating one product that sensibly meets conflicting regulations.

Lessons learntLooking back I think the one thing we could have done better was select our opportunities more wisely. When you have the type of ‘overnight’ global success we enjoy, opportunities pour through the door. Making decisions about which opportunity to grab and which to decline can be difficult.

In terms of the future, we are building out a lot of really exciting technology. In

five years, we will have implemented that technology and liberated ourselves from some of the bigger technical challenges of the environment in which we operate. By that time we will also have successfully grown the publishing and merchandising arms of our business, and we will continue to be a major player in the delivery of awesome games that people love.

And I’ll be watching Fruit Ninja: The Movie at the cinemas with my kids. It might even be a holographic movie.

Three export lessons from

Halfbrick• Trust your instincts• Relationships matter• Embrace change

Take a deep breath before you take the plungeSTEVEN FORNASARO FROM CROWE HORWATH GUIDES YOU THROUGH THE PROCESS OF SETTING UP AN OFFSHORE COMPANY.

There is a misconception that if you sell goods or services overseas you need to incorporate a company offshore. All too often we see Australian business owners having to restructure their tax affairs

because they have set up a foreign subsidiary for the wrong reasons. Usually this involves a false perception they will save on tax.

Our approach to setting up structures revolves around what you do operationally. If you use your Australian sales force to sell overseas, you probably won’t have to set-up an offshore entity. You will pay tax in Australia on your foreign income but this will be available as a franking credit to Australian shareholders, lowering their effective tax rate on dividends received from the company.

If you require people on the ground overseas you may need to consider setting up a foreign subsidiary. The table below highlights the effective rate of tax to Australian shareholders where subsidiaries are set up in a range of foreign countries.

Questions to consider before you set-upStructuring your affairs correctly will prevent excessive restructuring costs down the track. Matters to consider include:• How are you going to fund your offshore operations?• What value do your offshore operations add to your business?• What will you do with the profits from your offshore entity?• What is the ultimate exit from your business?

These factors will determine the type of entity set-up that is required and also what documentation has to be in place. This will form the basis of your projected results, which could be used to obtain bank funding or access Australian government grants.

Choosing the right bank Most banks in Australia also have a presence overseas. This should make any cross-border lending easier as your Australian bank manager can discuss your operation with their overseas counterpart.

Generally Australian assets act as security for funds used to set up foreign operations. The ultimate aim for most offshore operations is that they become self-sustaining, so that foreign assets are used as security for foreign debt. This also takes away any currency risk. So foster a good relationship with your banker and articulate what you are doing offshore.

It’s important not to complicate your structures around any perceived tax savings. A well thought out strategy ensures you have your business structures set up correctly and helps when you need funding or access to government assistance.

USA Canada China NZ Russia UK Singapore Hong Kong Aus.

Underlying profit 100 100 100 100 100 100 100.0 100.0 100

Less: Source country corporate income tax (max) (41) (31) (25) (28) (20) (21) (17.0) (16.5) (30)

Less: Dividend withholding tax (3) (3) (8) (4) (4) 0 0.0 0.0 0

Cash Dividend to Aus. Co (not taxable) 56 66 68 68 76 79 83.0 83.5 70

Cash Dividend to Australian individ-ual shareholder 56 66 68 8 76 79 83.0 83.5 70

Less: Individual tax on dividend * (26) (30) (31) (32) (35) (37) (38.6) (38.8) (17)

Cash remaining post Foreign and Aus. tax 30 35 36 37 41 42 44.4 44.7 53

Effective tax rate 70% 65% 64% 63% 59% 58% 55.6% 55.3% 46.5%

Available franking credits 0 0 0 0 0 0 0 0 30

Table 1: To reduce the effective tax rate, reduce taxes paid in foreign jurisdictions, use transfer pricing to maximise Australian franking credits or use flow through vehicles where possible.• Based on 46.5 per cent maximum tax rate


DOING BUSINESS

Helping SMEs access financeSMALER EXPORTERS CAN NOW ACCESS NEW LINES OF FUNDING TO HELP THEM MOVE OFFSHORE, WRITES EFIC’S ANDREW WATSON.

The small-to-medium enterprise segment (SME) is one of the biggest employers in the country, a valuable source of innovation and a key driver of increasing productivity. Yet small businesses

often find it tough to access the finance they needs to succeed.

This can hold SMEs back from winning new business, commencing export operations and growing internationally.

The good news is there are a number of options available to help ensure SMEs don’t miss out on the finance they need to expand overseas.

Access to finance remains difficult Efic’s SME Exporter Index for December 2014 found more than 57 per cent of SMEs believe they will find it even more difficult to access finance in the next 12 months. It’s also worth noting the number of SMEs that has found access to finance more difficult has more than doubled since the last survey in September 2014.

While Australian banks may be supportive of the export and overseas expansion plans of their SME clients they may be unable to approve the additional funding required.

How Efic can help As Australia’s export credit agency, we’re a specialist financier that delivers simple and creative solutions for Australian companies – to enable them to win business, grow internationally and achieve export success.

Our ability to support SME exporters comes from our specialist knowledge and expertise in understanding their needs.

We have a long history of successfully operating in overseas markets, and this is reflected in our knowledge of country risk assessment, our strong relationship with other export credit and government agencies, and our willingness to take and manage risk. We use a range of products to deliver financial solutions for exporting SMEs, including: • Working capital guarantees, where we provide a guarantee to

an SME’s bank if they don’t have the assets that are required as security to approve further working capital finance.

• Bonding facilities, including bonding lines and contract-specific bonds, which are used if an SME’s bank can’t support the total bonding requirements for a specific project.

• Overseas direct investment guarantees, where we can provide a guarantee to an SME’s Australian bank so it can approve the funding needed for the SME to expand overseas, whether that’s building a warehouse or manufacturing facility, or buying an existing asset or business.

There is also legislation currently moving through federal parliament that, if signed, will allow us to provide SMEs with the funding they need through direct, unsecured loans.

By offering these and other similar products, we’ve helped many Australian exporters take advantage of new contract opportunities that may otherwise have been out of reach.

Tomo Technologies: growth frequencyTomco Technologies is a South Australian-based engineering company that designs and manufactures radio frequency power amplifiers for scientific and commercial applications.

Tomco needed additional working capital to support a new contract with Bevatech OHG, a German physics consulting firm, for the manufacture and export of several radio frequency amplifiers.

Not being able to always receive advance payments for its products means Tomco must buy components, and pay for manufacturing and delivery costs, before payment is received.

Tomco’s bank was already covering its trade facility and, once the contract with Bevatech came about, this facility had reached its limit.

How Efic helpedWe provided an export working capital guarantee for $620,000, which allowed Tomco to receive the working capital it needed to fulfil the contract from Bevatech.

This allowed Tomco to buy everything it needed for the project upfront, which ensured it proceeded more smoothly, and so was more profitable.

Efic worked with Tomco’s bank to fulfil this very important contract, which allowed it to bid on a wider range of other projects.


DOING BUSINESS

Charting a course for business success in the USIAN SMITH FROM UNITED STATES CONNECT EXPLORES HOW TO MAKE THE MOST OF THE MOST IMPORTANT WESTERN MARKET IN THE WORLD.

According to a recent report by leading financial magazine Barron’s, the United States could, for the first time since 2006, account for a larger share of nominal gross domestic product

growth in 2015 than China. It is little wonder then that the States is well and truly back on the radar of Australian exporters as the world’s largest economy and by far the largest consumer market.

While its size means the US can be very profitable for companies, it is also highly competitive and has one of the highest failure rates for market entrants. This was confirmed by the 2014 International Business Survey, which ranked the US as the number one market for Australian exporters, but also the third most difficult market in which exporters do business.

Over the last 10 years, I have worked with hundreds of companies trying to crack the world’s largest market and have seen first-hand what makes for a profitable market entry strategy. Here are my top ten tips for Australian companies looking to succeed in the States.

1. One nation… or is it?

A common mistake Australians make is thinking of the States as one market. It is in fact made up of many significant markets and companies may need to segment by geography, industry or demographics depending on their product or service.

2. Tall poppies welcome

Modesty is not a virtue in the US and will not win you business. Not only are you expected to say that your widget is the best in the world but also have five reasons why. You need to know your competitive advantage and convey it in a succinct and confident way. Practice your elevator pitch when you meet new people – US taxi drivers are always up for a chat.

3. Patience and persistence pay off

With so many competing priorities in the US, email is usually ignored and voicemail is used to screen calls. When calling a prospect a good rule of thumb is to ring until you feel uncomfortable and then ring ten more times.

4. Do as the Romans do

With more than 500,000 lawyers in the US it is not hard to see why it is one of the most litigious countries in the world. Seeking legal advice is just part of doing business in the US and getting it right from the start can save you a lot of time and money.

5. Ask for a biscuit, get a scone when you really wanted

a cookie

Just because you grew up on American sitcoms doesn’t mean you will necessarily be understood, particularly in a boardroom. Make sure all your marketing materials use US spelling, grammar and measurements and never use Aussie slang.

6. Leave your sarcasm at the door

I am no comedian but never have I experienced so many lead balloons as in the US and what’s worse you can (and will) offend potential clients if you persist.

7. Business is king

In such a competitive environment potential partners do not want to hear about the weather or how your favourite footy team went on the weekend. Know your value proposition as it relates specifically to their business, prepare your elevator pitch and hit them between the eyes with it.

8. Absence does not make the heart grow fonder

Business in the US is all about face-to-face contact. Most of the successful exporters I have dealt with have either set up shop over there or have their country manager spend at least six months a year Stateside to support distributors/reps and generate new sales.

9. If you don’t ask, you won’t get, which is your loss

Most companies enter the US thinking they can do it all themselves only to find that they waste a lot of time, money and energy. Take full advantage of Aussie expat networks (there are chambers of commerce in most major cities) and state and federal government contacts in-market.

10. It is not what you know, but who you know

The old boys (and girls) club is alive and well in the US. Where possible surround yourself with key advisers who are well connected in your target industries and geographies. Join industry associations and attend trade shows. Networking is not an optional extracurricular activity.


DOING BUSINESS

CASE STUDY FROM THE COAL FACE

Q&A with Andrew Shepherd, GM marketing at Bundaberg Brewed Drinks

HOW LONG HAVE YOU EXPORTED TO THE UNITED STATES AND WHAT DOES YOUR CURRENT BUSINESS LOOK LIKE?

Bundaberg Brewed Drinks has been exporting to the United States since 1998. The current business is strong, healthy and growing fast in the US. The brand is rapidly being discovered by younger sophisticated urbanites in the cool bars of LA and San Francisco. The young educated consumers are drinking Bundaberg Ginger Beer both as an alternative to alcohol and as a premium mixer in their Moscow Mules and Dark'n'Stormys. On trade has led to great success in off trade premises for take home consumption which is now flowing on to the grocery channel.

HOW HAS YOUR US STRATEGY CHANGED OVER THE YEARS AND HOW SUCCESSFUL HAVE THESE CHANGES BEEN?

Our strategy has changed from a broad reactive approach to a proactive focused consumer approach. We now better understand who the key influencers and ambassadors are for our brand. It is critical that our brand continues to be discovered by the young urban influencers who are driving the growth of the premium soda market and craft beer market. This has involved a strong sampling and social media. We now have local advertising agency support in LA, which is enabling us to produce relevant locally based targeted communications. Most importantly we have a very talented country manager and staff who have a wealth of experience and knowledge in how to implement multi-channel distribution models in the US market. This on-the-ground representation has been crucial in helping us to set up the right distributors, retailers and logistical support.

WHAT IS YOUR ADVICE TO AUSTRALIAN COMPANIES THAT ARE LOOKING TO EXPAND INTO THE US MARKET?

Start small and be focused. Get the basics right. Know your customer first and foremost. Get the best local people who share your passion to support you along the journey. Try and recruit people and organisations that align with your organisation's values.


ENTERPENEURS

IMPORTANT INITIATIVES ARE NOW IN PLACE TO HELP INNOVATIVE BUSINESSES ACCESS WORLD MARKETS.

Government support for entrepreneurial exporters

Exporting is at the heart of Australia’s economic success. Traditionally, our ability to sell into foreign markets has been built

on our natural resources. These commodities will remain our largest exports, but Australia has so much more to offer the world.

In October 2014 Prime Minister Tony Abbott launched the Australian government’s Industry Innovation and Competitiveness Agenda. Two initiatives in the agenda – the Entrepreneurs’ Infrastructure Program and Industry Growth Centres Initiative – are aimed at increasing Australian exports by capitalising on our untapped potential.

The federal government’s $484.2 million Entrepreneurs’ Infrastructure Programme is designed to help businesses enter global markets and access expert knowledge and networks, increasing the likelihood of success in the highly competitive global market.

The Entrepreneurs’ Infrastructure Programme will assist innovative firms seeking to enter the global marketplace with access to the knowledge they need to make the most of opportunities they have identified. Three services focus on exporters:• Supply Chain Facilitation offers eligible

small and medium businesses practical services to develop their capabilities and improve their ability to supply into domestic and global supply chains.

• Business Growth Services assists eligible small and medium businesses looking to export by helping businesses build their capabilities to address internal barriers to growth.

• Accelerating Commercialisation helps entrepreneurs, researchers, start-ups and businesses address key challenges in bringing new products, processes and services to market.

A key component of the Industry Innovation and Competitiveness Agenda is the Industry Growth Centres Initiative. Growth Centres build on the Entrepreneurs’ Infrastructure Program by addressing competitiveness, productivity and capability at the sectoral level.

Growth Centres will be not-for-profit companies led by respected industry leaders in critical sectors of competitive advantage. In 2015, five Growth Centres will be established, covering food and agribusiness; mining equipment, technology and services; medical technologies and pharmaceuticals; advanced manufacturing; and oil, gas and energy resources.

The Growth Centres will:• Improve collaboration between

businesses, scientists and researchers,

The $484.2 million Entrepreneurs’ Infrastructure Programme is designed to help businesses enter

global markets and access expert knowledge and networks.

enabling the adoption of new processes and development of new products.

• Increase the commercialisation of new ideas.

• Identify ways to remove stifling regulation which burdens Australian businesses.

• Assist businesses participate in global supply chains and markets.

• Implement skills strategies to future ready the nation’s workforce.

After four years the initiative will be owned by industry, which is why industry participation from day one is so important. As exporters your knowledge and hard-earned, on-the-ground experience is essential. The creation of business networks in Australia that share real-world know-how will make all Australian exporters stronger.

For more information visit www.business.gov.au


FOR MORE INFORMATION PLEASE VISIT THE DFAT WEBSITE AT WWW.DFAT.GOV.AU

Despite the fierce competition between the two nations’ cricketing sides, there has been substantial growth in trade between Australia and India in recent years. As former British colonies, Both India and Australia are members of the Commonwealth. There are surprising similarities between the two

countries. A comprehensive economic co-operation agreement is expected shortly.

Two-way trade has grown in value from $5.1 billion in 2003 to $15.2 billion in 2013.

India is the world's largest democracy and is a market of 1.2 billion people.

Bilateral tradeIndia snapshot ( 2 0 1 3 f i g u r e s )

GDP: US$1.870 trillion

GDP per capita: $1,504.5

GDP growth: 4.4 per cent

Population: 1,243.3 million

Trade with Australia: $15.2 billion

Value of major Australian exports

to India (2013, $m)

Value of major Australian exports to India (2013, $m)

Coal 4,794

Gold 1,371

Vegetables 196

Copper ores and concentrates 1,014

Passenger motor vehicles 210 Medicaments (incl veterinary) 200 Pearls and gems 197 Jewellery 150


SPOTLIGHT ON

Aidan Millott of Halfbrick receiving Online Sales Award from Colin Baines, senior manager, Small Medium Business Operations, PayPal Australia

Danny Maher of Opmantek receiving Information and Communication Technology Award from Jeff Buckpitt, Australian Customs and Border Protection Service

Jason Strong of Australian Agricultural Company receiving Agribusiness award from Geoff Wearne of Commonwealth Bank of Australia

Clive Yep of TTG Transportation Technology receiving Environmental Solutions Award from Peter Hood, President of Australian Chamber of Commerce and Industry

Lisa McAuley, Collins Rex and Richelle Ward of the Export Council of Australia

Darren Thornton of Blast Movement Technologies receiving Minerals, Energy & Related Services Award from Sid Marris, Minerals Council of Australia

52nd Australian Export Awards


AWARDS

Michael Renshaw of Cardno receiving Business Services award from Chris Butler, head of AusIndustry - business services, Department of Industry

Nic Cooper of Turbosmart receiving Small Business Award from Andrew Hunter, managing director and CEO, Efic

Stuart Payne of GP Graders receiving Manufacturing Award from Ian Harrison, chief executive officer, Australian Made Campaign Limited

The 2014 Australian Export Award winners with the Hon Andrew Robb, Minister for Trade & Investment

Jeffery Cheetham of SDI receiving Health & Biotechnology Award from the Hon Andrew Robb, Minister for Trade & Investment

Tim Rolfe of The Creature Technology Company receiving Creative Industries Award from Bryan Clark, director, International Affairs and Trade, ACCI

Monica Turvey of Charles Darwin University receiving Education and Training Award from Bruce Gosper, chief executive officer, Austrade

Roger Newman of Bega Cheese receiving Regional Exporter Award from Maryanne Galea, regional sales manager, Qantas Freight


AWARDS

TIM’S TIPS

Airport economist Tim Harcourt looks at how Taiwan, a small island half the size of Tasmania, can do so well, both economically and environmentally.

Taiwan is special because it has been able to build its green credentials and at the same time develop its economy.

But, first a bit of history. When the ruling Kuomintang party lost the war to Mao Tse-tung in 1949, its members fled over to the island of Taiwan, formally Formosa, to start the Republic of China.

Not only did they take a lot of art and jewels from the Ming Dynasty, but also a lot of ceramics and cultural relics. Much of this can be found in Taiwan’s National Museum. The rest can be found in the Grand Hotel, perched on top of one of the capital Taipei’s numerous hills.

The hotel makes a nice change from the usual one-size-fits-all approach of many business hotels. You feel like you’re living in history without leaving the hotel grounds. My recent stay in Taiwan was a good chance to witness the dynamism of the Taiwanese economy and Taipei’s special interest the environment. In fact, the local word is that it is easy being green.

After all, Taiwan is a small, lush, semi-tropical green island that is half the size of Tasmania in terms of area, but with a population of 23 million (plus another one million Taiwanese living in China).

The green island’s success economically is also doing much for Australia’s green exports, with environmental technology being a major economic success story in Taiwan.

According to Austrade’s Taipei-based senior trade commissioner, Jeff Turner, Taiwan’s major industrial groups are interested in forming business relationships with suppliers of alternative fuels and enabling technologies.

“As customers request more efficient and cleaner products, Taiwan’s larger firms are looking to Australian businesses that can supply green technologies and energy sources,” Turner says.

“Major players in Taiwan’s energy and information and communication sectors are facing domestic and international pressure to deliver cleaner and more energy efficient solutions. [They] are keen to work with companies that can supply the materials, technologies and know-how to help them achieve these goals.”

According to Sidney Chen from Austrade, in Kaioshin, Taiwan’s second biggest city, products like polysilicon and biodiesel are in big demand in Taiwan.


“Taiwan is committed to renewable energy and reducing carbon emissions, so biodiesel, which is made from vegetable oils, is in demand because it is renewable, contains no sulphates and is almost 50 per cent more efficient than traditional diesel,” he says.

While Australia’s trade relationship with Taiwan has traditionally been based on commodities like coal, aluminium, crude and refined petroleum, copper and iron ore, the relationship is now becoming reasonably diverse.

In fact, according to the Australian Bureau of Statistics, there are just under 2000 businesses exporting merchandise to Taiwan. This – together with more than 5600 businesses exporting to China and the 4900-plus businesses exporting to Hong Kong – shows the region is a magnet for Australian exporters.

Australia also does well in services exports to Taiwan. We have a good name in aviation, financial services and education. More than 10,000 Taiwanese students study in Australia. So what about relations with China? Despite the headlines about the political situation, Taiwan and China are pretty well integrated, economically speaking. For instance, there is significant Taiwanese

investment in China. Recent estimates indicate Taiwan has invested more than $U S70 billion into some 50,000 business in China – many of which are exporters.

In fact, with all this cross-straits economic activity, many Australian exporters talk about the market as ‘Greater China’ – that is, China, Taiwan and Hong Kong.

With substantial Taiwanese investment in China and a large Taiwanese business community in cities like Shanghai, it makes sense for business to talk about a Greater China market.

Taiwan has shown that when it comes to economic competitiveness, size isn’t everything, and Australian exporters have been key beneficiaries of the island’s commercial success.

Tim Harcourt is the JW Nevile Fellow in Economics at UNSW Business School and the author of Trading Places – The Airport Economist’s guide to International Busines.


MARCH3 MarchAustralia Future Unlimited: Higher Education Showcase

Philippines 2015

Manila, Philippines

3-5 MarchGlobal Security Asia 2015

Singapore

3-6 MarchFOODEX Japan

Japan

4-8 MarchAULA Spain 2015 – third semester

Madrid, Spain

9-11 MarchMiddle East Oil & Gas 2015

Bahrain

10-12 MarchAustralia Future Unlimited: Russian Far East Education

Mission 2015

Vladivostok and Khabarovsk, Russia

11-14 MarchFUTURALIA Portugal 2015 – third semester

Lisbon, Portugal

16-20 MarchPremium Australia – Showcasing Australian food and

beverages to China 2015

Beijing, Kunming and Xiamen, China

18-23 MarchOzmine Vietnam - Cambodia 2015

Vietnam & Cambodia

19-24 MarchAustralia Future Unlimited: Tertiary Education Roadshow Fiji

2015

Fiji

23-27 MarchHong Kong Mines and Money

Hong Kong

APRIL13-16 AprilInternational ICT Expo 2015

Jakarta, Indonesia

15-18 AprilInternational Exhibition and Conference on Higher Education

(IECHE) 2015

Riyadh, Saudi Arabia

15-18 AprilFood & Hotel Indonesia

Jakarta, Indonesia

21-23 AprilFood & Hotel Vietnam

Ho Chi Minh City, Vietnam

MAY4-9 MayBeef Australia 2015

Wandal, Australia

6-8 MaySIAL Shanghai

Shanghai, China

6-9 MayHOFEX 2015 – Asia’s Leading Food & Hospitality Tradeshow

Hong Kong

11-15 MayExponor 2015

Antofagasta, Chile

12-15 MaySeoul Food & Hotel

Seoul, South Korea

24-29 MayNAFSA Annual Conference and Expo 2015

Boston, USA

JUNE2-4 JuneOil & Gas Asia 2015

Kuala Lumpur, Malaysia

2-5 JuneCommunicAsia 2015

Marina Bay Sands, Singapore

3-5 JuneBroadcastAsia

Singapore


INTERNATIONAL CALENDAR

AUGUSTBuilding & Construction Mongolia 2015

Ulaanbaatar, Mongolia

Power & Renewable Energy Mongolia 2015


Mining Mongolia 2015


SEPTEMBER 9-12 SeptemberBuilding & Infrastructure Indonesia 2015

Jakarta, Indonesia

9-12 SeptemberElectric Power & Renewable Energy Indonesia 2015

Jakarta, Indonesia

9-12 SeptemberMining Indonesia 2015

Jakarta, Indonesia

14-17 SeptemberExposibram 2015

Belo Horizonte, Brazil

17-20 SeptemberFood & Hotel Malaysia

Kuala Lumpur, Malaysia

21-25 SeptemberPerumin - Extemin 2015

Arequipa, Peru

22-26 SeptemberWest Africa Education Exhibition 2015

Accra, Ghana and Lagos, Nigeria

OCTOBER31 OctoberEco Expo Asia

Hong Kong

NOVEMBER4-7 NovemberOil & Gas Indonesia 2015

Jakarta, Indonesia

TRADE MISSIONS

FOODEX Japan

When: 3-6 March Where: Makuhari Messe, Chiba, Japan

Consulting Services Asian Development Bank Mission to

Manila 2015

When: 24-27 MarchWhere: Manila, Philippines

Food and Hotel Mission to Indonesia

When: 15-18 AprilWhere: Indonesia

Australia Unlimited MENA 2015 Trade Mission

When: 12-16 AprilWhere: Dubai, Abu Dhabi, Riyadh and Kuwait, United Arab Emirates, Saudi Arabia and Kuwait

SIAL Shanghai

When: 6-8 MayWhere: Shanghai, China

Medical Mission to China

When: 12-15 MayWhere: Shanghai, Suzhou, China

UECA Mission to Latin America 2015

When: 27 August to 4 SeptemberWhere: Argentina, Peru, Mexico


Want to update your knowledge in the new year?

COURSESFace-to-Face Export Procedures CourseECA/AIEx member price: $660 Non-member: $760 Duration: Two days

Face-to-Face Import Procedures CourseECA/AIEx member price: $390Non-member: $450Duration: One days

Face-to-Face International Payments & Understanding Documentary CreditsECA/AIEx member price: $390Non-member: $450 Duration: One day

Online Export Procedures CourseECA/AIEx member price: $250Non-member: $330Delivery: Online

Online Import Procedures CourseECA/AIEx member price: $250Non-member: $330Delivery: Online

India Cross-Cultural Intelligence Course ECA/AIEx member price: $60Non-member: $80Delivery: Online

PUBLICATIONSExport HandbookCost: $137.50

Export Handbook E-BookCost: $55

Import HandbookCost: $104.50

Import Handbook E-BookCost: $44

International Trade ProceduresCost: $55

ICC UCP 600Cost: $55

Australian Institute of Export courses and publications

For informaiton please visit www.aiex.com.au or call 02 8243 7440

COURSE DATES18-19 FebruaryExport Procedures Course

Sydney, NSW

3 MarchImport Procedures Course

Sydney, NSW

11 MarchInternational Payments &

Understanding Documentary Credits

Melbourne, VIC

11-12 MarchExport Procedures CourseBrisbane, QLD

17 MarchInternational Payments &


Sydney, NSW

17-18 MarchExport Procedures Course

Melbourne, VIC

17-18 MarchExport Procedures Course

Adelaide, SA

8 AprilInternational Payments &


Brisbane, QLD

21 AprilImport Procedures Course

Brisbane, QLD

22 AprilInternational Payments &


Adelaide, SA

12-13 MayExport Procedures Course

Sydney, NSW

13 MayImport Procedures Course

Adelaide, SA

3 JuneInternational Payments &


Melbourne, VIC

10 JuneImport Procedures Course

Sydney, NSW


COURSES

TIME FOR A NEW YEAR, TIME FOR A NEW LOGISTICS SOLUTIONFreight Management,Customs Brokerage & Consultancy,3PL, Exports & Imports

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2015

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Insync Personnel is an Australian owned and specialised Recruitment Agency focused solely on servicing the International Logistics and Supply Chain Industries. Insync Personnel sources, selects and secures the highest quality talent for all business modules within Importers, Exporters, 3PL & Supply Chain specialists, Shipping Lines & Agencies, Freight Forwarders & Customs Brokerages. With more than 35 years of combined recruitment and direct industry experience at your disposal, at Insync we pride ourselves on our ability to provide our clients with suitably qualified and vetted candidates and most importantly – the right fit for your organisation.Contact Insync today to make sure your company only hires the top talent.

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Are you export-ready?

“Is your content and product information

accessible to your target audience? Have

you studied your desired clientele? If so,

you have made a great start. Successful

exporters all have a credible presence in

their target countries. Many novice exporters, however,

overlook the importance of localised content and efficient

cross-cultural communication.

Don’t underestimate the difficulty of trading in another

culture or another language. Engaging an experienced

partner should always be your first step.”

Veerle Vanderplasschen, Executive Director

Head office:

Level 19 AMP Place

10 Eagle St, Brisbane

1800 500 791

[email protected]

www.absolutetranslations.com.au/exProbably the best translations in the world.Probably the best translations in the world.

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