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North America market overview The North America market offers diverse opportunities for Queensland companies. North America is the state’s fifth- largest 1 merchandise trade partner and largest investor. North America remains the largest market for funding and commercialising innovative technologies and already attracts many technology firms from Queensland and Australia. The Australia-US Free Trade Agreement (AUSFTA) has been in place since 2005 and 97% of Australia’s non-agricultural exports (excluding textiles and clothing) are duty free and two-thirds of agricultural tariffs have been eliminated. There are no restrictions on moving capital in or out of the US or the repatriation of profits. In 2003, a protocol amending the double taxation convention for Australia and the US entered into force followed by an agreement between the Australian and the US government to improve international tax compliance and to implement the Foreign Account Tax Compliance Act (FATCA) on 30 June 2014. US$58.7B of investment in technology 1 64% Technology Venture capital priority sectors are software, media and entertainment, biotechnology, IT services and industrial/energy. Venture capital investment grew 66% in 2014 compared with 2013. Seed stage investment declined 20%, with investors moving to less risky later stage opportunities. Speciality food, beverage and nutritional products U.S. consumer sales of natural, organic and healthy food products are forecasted to expand 64%, from $153B in 2013 to $252B by 2019 (CAGR of 8.6%) 1 . 81% of American families purchasing organic food. 2,3 Queensland exporters of high-quality, specialty food products have vast and far-reaching opportunities in the US market with the right strategy, as US consumers trend towards natural and organic products. Mining and resources, technologies and products Lower commodity prices for minerals and energy are driving a desire for innovation and technologies that deliver improved productivity and efficiency gains. Mexico’s significant mining industry is ripe for improvement in productivities and HSE performance and Queensland innovative METs companies are well positioned to deliver these services. Current opportunities Future opportunities North America will be a key partner for companies looking to enter regional growth markets in Central and South America – in many ways the Gateway to the Americas. Its sophisticated capital markets and financial structures provide vital support mechanisms for innovative SMEs to expand into these growth markets. North America is the world’s largest individual economy by GDP but is forecast to be taken over by China and India. It will remain a powerful player in the global economy especially for the development of new technologies and the provision of investment capital. Natural, organic and healthy food products are forecasted to expand US$14.8b Mexico mining & metallurgical production was in 2014 3 $ to $252B in 2019 from $153B in 2013 (CAGR of 8.6%) 1 Agricultural Technology Mining & Resources Technologies Biotechnology Innovation Health Services
