2015 ECA International Business Today Summer by arkmedia4217

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 | S U M M E R 2 0 1 5

FREELANCER’S VIEW OF THE FUTURE

AUSSIE DOLLAR: HOW LOW CAN IT GO? DUBAI – TRADE METROPOLIS SPECIAL ISSUE: TWO-PAGE SPREAD OF IMAGES FROM STATE & TERRITORY EXPORT AWARDS

AFRICA: BRIMMING WITH OPPORTUNITY

HEDWELD GROUP OF COMPANIES -WINNER OF THE PREMIER’S NSW REGIONAL EXPORTER AWARD

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CONTENTS International Business Today SUMMER 2015

Export House Level 2, 22 Pitt Street Sydney NSW 2000 Toll free: 1300 361 526 Phone: 02 8243 7400

FOREWORD Minister’s column

CEO’s report

Editor’s letter

FEATURES Aussie dollar: how low can it go?

Africa: more than just the world’s quarry

E-mail: info@export.org.au Fax: 02 9251 6492

REGULAR COLUMNS News 6 People 14

Published by:

Government 30 Spotlight on... India

Phone: 1800 222 757 Fax: 1800 063 151 Email: publications@crowtherblayne.com.au Website: www.crowtherblayne.com.au

Studio manager: Byron Bailey Design team: Andrew Crabb, Danny McGirr and Michelle Triana Editor: Jessica McCabe Production controller: Yvonne Okseniuk Printed by: Newstyle

Events 32 Tim’s tips

Calendar and programs

Courses

PLACES Dubai: the Middle East’s metropolis of trade

Postcard from Dubai

EXPORTER

All rights reserved © 2014 ISSN: 2202-2236 No part of this work covered by the publisher’s copyright may be reproduced in any form by any means, graphic, electronic or mechanical, including photocopying, recording, taping, or information storage and retrieval, without the written permission of the publisher. Any unauthorised use of this publication will result in immediate legal proceedings. Publisher’s Note: Although every care has been taken to ensure the accuracy of the information contained within this publication, neither the publishers, authors nor their employers can be held liable for any inaccuracies, errors or omissions. Readers are strongly advised to contact their professional advisor before entering into any contract to buy or sell any security.

Freelancer’s view of the future

Not all play for Aussie creative powerhouse

DOING BUSINESS Navigating the Singaporean tax regime

What’s your website localisation strategy?

Take your business across borders without tripping over them

The key to success in Europe

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

COLUMN

Minister for Trade and Investment Andrew Robb S

ince I last wrote for International Business Today’s spring edition we have made some significant new gains on behalf of Australian exporters.

After a number of tough negotiating rounds, culminating recently in Atlanta, we have reached agreement on the Trans-Pacific Partnership Agreement or TPP. This deal, which takes in 12 countries including Australia, is of unprecedented scope and ambition. It will slash barriers to Australian goods exports, services and investment and eliminate 98 per cent of all tariffs across everything from beef, dairy, wine, sugar, rice, horticulture and seafood through to manufactured goods, resources and energy. It is the most significant outcome for global trade since the Uruguay round of the World Trade Organisation’s trade negotiations more than 20 years ago and brings transformational promise in terms of helping to drive growth, job creation and innovation in the years and decades ahead.

The deals also offer enormous new opportunities and openings for Australia’s world-class services sector. Nine out of 10 Australians are employed in service industries – tourism alone supports one million jobs – but we need to increase the focus on exporting. Services currently account for around 73 per cent of GDP but only 20 per cent of direct exports. Yet our services are in demand, and will continue to be as Asia’s middle class grows at a phenomenal rate. There is a lot of scope to do more across a range of areas – everything from education, tourism and hospitality, aged care, health and medical services, to engineering, communications, agricultural and financial services. The list goes on. The TPP and our other bilateral agreements are a big part of creating more opportunities for firms to deliver on the economic promise of the future.

The TPP will result in more seamless trade and investment flows across a bloc of countries that account for around 40 per cent of global GDP.

They also create linkages, strengthen relationships and build trust.

It also provides new levels of market access with countries that we do not have existing bilateral trade deals with, including Canada, Mexico and Peru.

I am also pleased to advise that the European Commission recently nominated Australia as a priority negotiating partner for a free trade agreement with the 28 countries that make up the European Union.

The TPP, combined with our landmark bilateral trade agreements with Korea, Japan and China, form an important plank of the federal government’s microeconomic reform agenda, in this critical postmining investment boom period.

This is something of a missing piece in our suite of trade agreements, with the EU countries combined constituting the world’s biggest economy.

This network of FTAs will support the diversification of our economy and reduce our reliance on any one sector or market, regardless of how strong it is. Many of our food and beverage products and our agricultural commodities, for example, will benefit as tariffs are dramatically reduced or eliminated in the world’s biggest consumer markets for food. That will ensure Australian agribusiness, for instance, has every opportunity to play an even more important role in our international trade effort. 2 |

INTERNATIONAL BUSINESS TODAY – SUMMER 2015

The successful business missions I have led as part of Australia Week in China and Australian Business Week in India – as well as the forthcoming Indonesia Australia Business Week and Australia United States Business Week – add to the foundations we have laid through our trade agreements. Deepening our trade and investment links with a range of countries not only nurtures long and successful commercial relationships, it also contributes to regional peace and stability.

EXPORTERS.

WE’VE GOT YOUR BACK. Exporters with the right intellectual property advice are more likely to succeed. Talk to AJ Park today. Coffee’s on us.

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CEO’S REPORT A couple of years ago we began to look at what other countries were doing to promote trade following the financial crisis. The UK, US, New Zealand and Germany have all prioritised strategic trade development activities. Earlier this year we launched our Advancing Trade Development report, which examines the international trade promotion efforts of 10 important exporting nations. Ultimately, we need to create a platform in Australia to discuss the opportunities that investment in trade promotion can offer small and medium sized businesses.

Lisa McAuley

hen we launched the Export Council of Australia exactly three years ago our goal was to create an organisation that is the voice for Australia’s exporters. As the peak membership body for Australian exporters, we planned to focus on: 1. Research: to identify and quantify the issues affecting international trade activity. 2. Skills development: to build the capacity and capability of Australian companies. 3. Advocacy: to make representations to the federal government on behalf of Australian exporters, to break down barriers to trade. It was an ambitious target. And it was only recently when I sat down to review what we had achieved since the launch of the ECA I realised just how far we had come in realising these objectives.

1. Research With the support of our partners Austrade, Efic and Sydney University we launched Australia’s International Business Survey, the largest survey into the international behaviour of Australian exporters. As we enter its third year it is even more important to reflect on why our members’ input is so valuable: the data helps guide the ECA’s trade policy activity and informs our trade policy recommendations.

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As China enters a new phase of development, together with our partners Asialink Business, the Department of Foreign Affairs and Trade’s Australia-China Council, and Austrade, we launched a timely report into the Shanghai Free Trade Zone that clarifies what it means for Australian business. We have also launched an accompanying mobile app, which provides a step-by-step guide on how to set up in the zone. Also alongside our partner ANZ and content providers Hunt & Hunt Lawyers we launched our FTA Tool, a website for Australian exporters that simplifies Australia’s free trade agreements. The FTA Tool (www. ftatool.com.au) helps Australian exporters quickly and easily navigate the basics of Australia’s FTAs. We believe making FTAs accessible to all business, irrespective of size, is a step in the right direction. In the next couple of months we will also be launching the following reports and apps: • Mexico: leveraging recent reforms and highlighting the opportunities for Australian businesses in Mexico and beyond. • Demystifying Korea: understanding and doing business with Australia’s fourth largest partner. • Doing Business in China and Doing Business in Indonesia.

2. Skills development Following recent free trade agreements, we believe one of the main challenges is how to capitalise on these market opportunities and broaden Australia’s export base.

We need to encourage more export-capable companies to actively pursue international opportunities to meet this challenge, as well as offer accessible and affordable support to assist them. In the next couple of months we are refocusing our education offerings to create more value for members. We will be doing this through the development of programs and services that emphasise building companies’ capacity and capabilities to create a clear pathway of learning and engage in international trade.

3. Advocacy One of the ways we play an active role advocating for Australian exporters and importers is through our Annual Trade Policy Recommendations. Next month we will be releasing our 2015/16 recommendations, which focus on six themes: • Building infrastructure and supply chain efficiencies. • Enhancing investment. • Improving trade facilitation. • Advancing trade development. • Growing service exports. • Leveraging free trade agreements. We use our research and direct input from members to inform the recommendations we put forward in our submissions to parliamentary and other inquiries. For instance, we have provided input that supports recent trade agreements’ entry into force, calls for enhancements to the Export Markets Development Grants scheme and provides insights into barriers to services exports. As you can see, we are working very hard to support our members and the export community now and into the future. On behalf of the ECA I would like to extend our best wishes for a happy holiday season and new year. We look forward to working with you in 2016.

EDITOR’S LETTER

hile China is an incredibly important trading partner for Australia, it’s also essential as a nation for us to explore as many opportunities in other markets as we can. This is one of the reasons why we’ve decided to focus on Africa in one of our main features this issue.

When we think about trade opportunities in this vast continent, a good place to start is to consider that it is, in development terms, at about the same place southeast Asia was 20 years ago. Which means there are plenty of opportunities for Australian businesses, as long as exporters approach any potential commercial opportunities in a considered fashion. As you can read about, many of the risks commonly associated with Africa, for instance immature governance structures, are actually easily managed. This means there’s real potential for Australian exporters in Africa across many sectors including mining and resources, education, hospitality and retail.

Alexandra Cain

In our other main feature we look at the incredible platform the low Australian dollar is offering Australian exporters. It means our products are much more competitive in global markets and should be viewed as a great foundation on which to build a new export business, or grow an existing one. We’re thrilled to be able to profile two fascinating exporters in our summer issue. Ross Spencer heads SOS Marine, a major exporter of boating safety equipment. It has built up an impressive clientele of defence forces and law enforcement organisations around the world. Ross’s advice to exporters is to take the time to build overseas business opportunities and to never assume that what works in Australia will work overseas. We also introduce Elena Gosse, the CEO of Australian Innovative Systems, which manufactures chlorine generators and water disinfection technologies. She comes from a background as a Russian immigrant and now leads a business that exports to 55 countries and boasts an annual turnover of $8 million. Plus, Matt Barrie from online job portal Freelancer shares his thoughts on why Australia needs to develop its tech skills to operate successfully in overseas markets. And we learn why Singapore administers one of the most favourable tax systems in the world. We also find out about new rules that will affect the way goods are exported overseas and Christelle Damiens from Exportia Australia shares her tips on how to build a great European distribution strategy. As ever, we also bring you ‘The Airport Economist’ Tim Harcourt’s tips for travelling to Chile. And if you turn over to our news section there’s also a chance to win one of 10 copies of Tim’s latest book. Enjoy!

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

NEWS

POSITIVE SIGNS FOR EU TRADE DEAL

rade Minister Andrew Robb confirmed the European Commission will seek to open discussions with European Union nations with a view to a formal free trade agreement between EU nations and Australia. Such an agreement would provide opportunities for businesses in the agribusiness, services and high end manufacturing sectors. It would also mean lower prices for consumers buying European goods. Trade with EU nations accounted for $80 billion in, or 12 per cent of, total trade in 2014. The EU is also the largest single investor in Australia. In 2014 it made up a quarter of foreign direct investment into Australia, totalling $959 billion.

CEMENTING TIES WITH INDONESIA

rade minister Andrew Robb will lead an important trade mission to Indonesia in late November, to coincide with the Indonesian Australian Business Council Conference.

Both events are key initiatives to improve ties between the two countries, with a purpose of encouraging better commercial and political relationships. These events help position Australia as a vital trade, investment, education and tourism partner for Indonesia.

SLOWDOWN IN GLOBAL TRADE A FOCUS OF G20 ARE YOU CHINA READY?

s China enters a new phase of development, the ECA is proud to have recently launched a timely report into the Shanghai Free Trade Zone and what it means for Australian business in China. This initiative is supported by the ECA’s partners Asialink Business, the Department of Foreign Affairs and Trade’s Australia-China Council and Austrade. The SFTZ is one of the most ambitious liberalisation initiatives China has undertaken in decades. It serves as a testing ground for the implementation of the liberalising reforms and changes the country needs to drive its future growth. The report and mobile app will help Australian businesses identify the opportunities and advantages of operating in the SFTZ. The summary report is available to download from the ECA’s homepage: www.export.org.au

oft international trade data was the key focus at the most recent meeting of G20 leaders in Istanbul.

Angel Gurría, Secretary-General, OECD, told the meeting that 2014 was the third consecutive year in which global trade volumes grew by less than three per cent. In addition, trade data further contracted in the second quarter of this year. According to the World Trade Organisation’s figures, international trade growth of only 2.8 per cent is expected for 2015. Global FDI flows also remain 40 per cent lower than pre-GFC levels. The meeting heard the slowdown is due to both structural and cyclical factors. Meeting participants reaffirmed their commitment to collective GDP growth of at least 2.8 per cent by 2018. They also reiterated their promise to open markets and continue structural reform. Members also remain focused on implementing the WTO Trade Facilitation Agreement, which should help streamline bureaucratic structures around international trade.

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INTERNATIONAL BUSINESS TODAY – SUMMER 2015

MAKE YOUR MOVE IN ASEAN

new publication Why ASEAN and Why Now? Insights for Australian Business has been launched by the Minister for Trade and Investment, Andrew Robb. It highlights the trade and investment opportunities for Australian business in the ten countries comprising the Association of South-East Asian Nations. The publication identifies the drivers of growth for ASEAN over the next decade, particularly with the declaration of the ASEAN Economic Community at the end of 2015. It also outlines how Australia’s bilateral and regional free trade agreements with ASEAN provide pathways for Australian business. Developed jointly by the Australian Trade Commission and the Department of Foreign Affairs and Trade, the publication is available at www.austrade.gov.au/ASEANreport

WIN COPIES OF THE AIRPORT ECONOMIST’S LATEST BOOK

e have 10 copies of Tim Harcourt’s latest book, Trading Places, The Airport Economist’s Guide to International Business to give away this issue. Tim is the JW Nevile Fellow in Economics at the Australian School of Business at the University of New South Wales. To win your copy email kristinakoprivica@export.org.au and tell us in 25 words or less which export market you intend to pursue next and why.

TPP OPENS TRADING DOORS

s Trade Minister Andrew Robb outlined in his forward to this issue, negotiations have concluded on the TransPacific Partnership agreement, which creates a single set of trading rules for 12 countries on the Pacific Basin. These countries accounted for 40 per cent of global GDP in 2014 and one third of Australia’s total exports of goods and services, valued at $109 billion, were sent to TPP countries.

TRADE FIGURES RISE IN 2014

ustralia achieved a 2.5 per cent increase in the value of total trade in goods and services to $664 billion last year, according to the Composition of Trade, Australia 2014 report. The research shows Australian businesses are trading more, creating jobs and driving growth. Trade volumes also increased by 2.5 per cent during the year. There was also a drop in the trade deficit of $593 million to $9.9 billion, compared to the previous year’s figure of $10.5 billion. The value of exports rose by 2.5 per cent to $327 billion during 2014, while imports were up by 2.3 per cent to $337 billion. However, Australia’s terms of trade were down by 7.7 per cent, the result of a 3.9 per cent fall in export prices and a corresponding 4.0 per cent increase to import prices. The report also identified that China was Australia’s biggest trading partner in 2014, with 23 per cent of our total trade, representing $152.5 billion, between China and Australia.

The agreement removes import taxes on $9 billion in trade and will help to drive economic growth. The services sector is one of the main beneficiaries of the agreement. For instance, liberalisation of the Malaysian professional services sector will provide opportunities for professions such as engineers, lawyers and architects in this country. There are other opportunities for businesses in the financial, mining services, transport and telecommunications industries to develop export markets in the countries that have signed up to the TPP. Farmers will also be major beneficiaries of the agreement. In 2014 $14 billion in agricultural exports were sent to TPP countries and it’s expected the agreement will be especially beneficial for the dairy sector. The deal will also allow Australia to export an additional 65,000 tonnes of sugar to the US. The countries involved in the TPP are Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, Peru, New Zealand, Singapore, the United States and Vietnam.

Japan is our second biggest trading partner, with trade to Japan comprising 10.6 per cent of total trade or $70.3 billion. The US is in third position, comprising $60.4 billion or 9.1 per cent of total trade.

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

FEATURE

Aussie dollar: how low can it go? Exporters are all smiles as the currency edges further downwards against the US dollar. Alexandra Cain

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INTERNATIONAL BUSINESS TODAY â&#x20AC;&#x201C; SUMMER 2015

Exporter advantage There’s no doubt the declining value of the currency has put a smile on the face of our exporters. Most importantly, it’s made them more competitive in global markets. However, as Garg notes, other currencies have also fallen against the US dollar, so it’s up to exporters to think about how they can use this opportunity to lock in their competitive advantage. “Metals and mining occupy the mindspace of the outside world when they think of Australia. But 80 per cent of our GDP is linked to services, so it’s a great opportunity for this sector to show what it’s capable of, especially in education and tourism. “But it will be important for our exporters to position themselves not just as the cheapest provider but as the best,” he notes.

he Australian dollar has been enjoying a slow slide south since 2011, when it reached a peak of $1.11 in July of that year. Ever since then its value has been depreciating, welcome news to exporters, whose products are now much more competitive on world markets as a result. So where to from here for the currency? Will it head towards 60 cents against the US dollar? Could it fall even lower and if it does, what does that mean for local exporters? HSBC Australia’s head of global trade and receivables finance, Rohit Garg, says the bank’s view is that the currency will trade at around 72 cents by the end of the year, and reach 70 cents by the second quarter of 2016. “There are two reasons for this from a macro perspective. The first is that the US dollar has generally been very strong, not just against the Australian dollar but also against other currencies. “The fact our economy is so closely linked to commodity exports is also a factor in determining the value of the currency,” he adds. Commonwealth Bank currency strategist Richard Grace agrees. “Commodity prices have been an important factor sending the currency lower, driven by the weak global economy. Add to that a massive commodity oversupply at the end of a 10-year mining investment boom. Production of oil, iron ore and coal has been ramped up so prices are under pressure.”

Grace points out that the lower dollar is starting to have a beneficial impact on the economy, with inbound overseas tourist numbers rising and sectors such as education and financial services benefitting as well. “Export volumes of our resources are also at record highs, despite the downturn in China’s economy. The volume of rural exports is also close to record highs. Manufacturing is lagging, but it’s also doing well.”

Capitalising on the currency With the currency so low, it is important exporters explore what they can be doing right now to lock in the benefits of the dropping dollar. Garg says this starts with keeping a close watch on the currency and developing a view on the most appropriate hedging strategy for the business. “At the end of the day you need to form your own view about where you think the currency is headed because there are a number of possible views,” he says. There is a range of different instruments exporters can use to lock in the value of the currency, for instance forward contracts. It’s worth exporters exploring the different options with their bank to ensure they are making the most of the low currency value while it lasts.

The Aromababy story

As a result, Grace notes the Reserve Bank of Australia is comfortable leaving the cash rate at all-time low levels, which is one of the main factors influencing the value of the currency.

Natural and organic skincare brand Aromababy’s export journey began fifteen years ago, firstly to the Middle East and then to South Korea. Other regions followed including Singapore, Hong Kong, parts of Europe, Taiwan and then China. The business has just begun to export to Vietnam and it’s also exploring other export opportunities.

However, it’s possible that the Australian dollar will rise when the US Federal Reserve decides to lift its cash rate. Although most market participants think this won’t have a material effect on the value of the Australian currency, it is possible it could reduce downward pressure on it.

Founder Catherine Cervasio has just returned from her second trip to China in a month, after having recently signed a new, five-year distribution agreement.

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

FEATURE “Having already spent close to five years working on education and brand awareness in China, this trip was to present our brand to a group of buyers from a number of different provinces. The feedback was that our brand story is unique and hugely appealing. The overwhelmingly positive response was in part due to the fact we are still a 100 per cent Australian owned and made business with a history spanning two decades,” says Cervasio. “This, coupled with the outstanding results on sensitive skin Aromababy has become known for, generated a successful conference outcome. Presenting Aromababy to a group of buyers allowed me to explain my reason for developing the products. I had been unable to find any natural baby products to use for my own baby and was committed to offering parents in a similar position to me access to choice in the type of products they use on their babies,” she explains. Cervasio notes that because the business chooses to sell in Australian dollars it simplifies the financial aspect of its export operations. “Having positioned Aromababy as a mid-high end brand over the past twenty years, currently sold in organic stores Thomas Dux, baby boutiques, Myer and pharmacies, we do not have any challenges with brand pricing being compared to discount stores in Australia. Instead, our products are regarded as a more professional brand of natural and organic skincare for mothers and babies. This provides us greater flexibility in terms of justifying a higher retail price in export markets.” A weakening Australian dollar is a positive for Aromababy’s distributors. Take for example a $100,000 order to China in September 2013. “The cost to our distributor would have been in the vicinity of 550,000 renminbi, whereas today, the same $100,000 order will cost them 450,000 renminbi. In these relatively early days, any savings provide a buffer that can be used by the distributor for a range of marketing initiatives. Any cost savings are put back into the business, which is a win-win.” Cervasio explains export orders are all pre-paid in Australian dollars. “Also we have no need to deal with forward purchasing currency or carrying large debt to service a growing business. This ensures we are in a position to instead invest in building our stock levels to service larger volumes.”

ENROL IN THE FREQUENT FLYER PROGRAMME! The Export Council will be running quarterly speed networking events aimed at getting prospective and new exporters ready to embark upon their export journey. At these events businesses will have the opportunity to meet a range of government agencies, education providers and suppliers who can help them along their export path. For more information, please visit www.export.org.au and click on the events tab. 10 |

INTERNATIONAL BUSINESS TODAY – SUMMER 2015

FEATURE

AFRICA:

more than just the world’s quarry Once viewed with caution by exporters thanks to political instability and its relatively immature economies, this enormous continent is now capturing the attention of savvy Australian businesses. Alexandra Cain

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

FEATURE

hile other markets such as China and India tend to capture the spotlight when it comes to export opportunities, Africa and specifically southern Africa is somewhat of a dark horse. It’s known for its rich resources, but opportunities in the mining and minerals sector are not the only pockets of potential for Australian businesses.

Other countries that are worth exploring include Zambia, Malawi and Tanzania. “Australia is already a key investor in many of these places,” says Foran explaining that sub-Saharan countries tend to have the best governance, business services, infrastructure and investment climate in the region.

Managing risks South Africa alone is an emerging market of 43 million people with a growing middle class. But there are also opportunities in places like Mozambique, Botswana and Namibia. Liam Foran, project manager with the Australia-Africa Mining Industry Group, says there is potential in the mining, mining equipment and mining technology services sectors. “Africa is a large space and there are still big resource deposits to be found in copper, gold, oil and gas; so there are big growth opportunities in this space,” he says.

It’s easy to assume Africa is a very risky place to do business. But experts suggest this is not necessarily the case. “People think of Africa as a dark and mysterious continent, that bribery is an issue and infrastructure is not at Australian standards. But these are manageable risks,” says Foran. According to Madew, some of the risks include lack of infrastructure including roads, railways, ports and telecommunications as well a dearth of skills and less developed governance protocols.

Avoiding error According to Foran across Africa there is a growing middle class of 300 million people with disposable incomes with a growing demand for consumer goods. Africa’s desire to develop its agricultural sector so it can feed Asian markets will provide opportunities for Australian exporters. “Africa needs the infrastructure and people who have the skills to grow food and raise animals in an arid climate. There’s also demand for education as people see that a higher education is a way to get a better job,” he notes. John Madew, Austrade’s senior trade commissioner, says there’s a burgeoning opportunity in the education sector as well. “There’s a real skills shortage in short- and long-form higher education and people have the funds to pay for a foreign education.” When it comes to countries that offer Australian exporters the biggest potential, Foran says, perhaps surprisingly, that Nigeria is a country to watch. “It has a bigger population than South Africa and is going to have a big middle class.”

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INTERNATIONAL BUSINESS TODAY – SUMMER 2015

One way to manage risks in Africa is to avoid making the same mistakes other businesses have already made there. Foran says it’s easy to start out overly exuberant and adventurous. “Africa is 54 states covering an array of cultures, so it’s important to not think of it as just one state. You have to understand the local context and not see it as one country,” Foran notes. His advice is to draw on resources provided by groups such as the Australia Africa Business Council and Austrade to get an understanding of the business landscape. From his perspective, Madew says the first step should be to identify which country is the landing point for the business. “The traditional starting point is South Africa, but when you look at movement figures more and more people are coming into Africa through places like 2. Evan Dubai is a good place to start because transport links are so good into Africa.” “Companies can be successful, but it’s important to acknowledge the risks, do your homework and go in eyes wide open,” he adds.

Breaking new ground One business that has its sights firmly set on the African continent is Xenith Consulting. Country manager – Africa, Jeff Beatty, explains how the business is approaching opportunities in Africa. “We’ve a mine consulting company and we’ve been operating for about 10 years, mainly in coal but also in other base metals such as gold and copper. Our history is in the central Queensland coal industry. We have around 40 consultants working for us across engineering, geology, chemical engineering, safety, risk and the environment. We cover everything from managing exploration programs, to mine design and planning, to feasibility studies and environmental impact assessments. “As the market has softened in Australia, we have started to explore opportunities overseas. We have been operating in Mozambique for four years in an exploration program. From that, we were able to begin working with Brazilian iron ore miner Vale, in mine planning and study work in Mozambinque. “From our perspective it’s an ideal time to do a study on the opportunities in Africa, which is the biggest quarry in the world. We formulated a detailed business plan and studied all the risks and decided to open an office in Johannesburg in June, which is the technical hub of the area. We’re looking at opportunities in Mozambique, Botswana, Namibia and South Africa. So far, we’ve placed emphasis on setting up the company and our banking arrangements so we can invoice as a local business. We’ve also put a lot of work into identifying new and appropriate clients, from large businesses such as Anglo American and South32 to start-ups in Male and the Congo. In terms of our future, we’re focused on building relationships and our business. We’re also considering acquiring a number of small businesses. My advice to other exporters considering the African opportunity is to start by measuring the risk. The way I see it, Africa is a place of great opportunity, but it’s a very different place to do business. It takes time to get things underway. Australian businesses, especially in mining, have a great reputation in Africa. People recognise our competence, but they want to pay local prices, so it’s a balance. So understand the risks and how to manage them because if you get this right there’s lots of opportunity.”

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PEOPLE

SOS Marine knows boats

An Australian marine products business is leading the way internationally with water safety products. Ross Spencer, director, SOS Marine and Australian Export Hero

hirty years ago my good friend Phil Thompson and I took over a retail marine operation at Rushcutters Bay in Sydney. We were fitting out more than 90 per cent of Australia`s 18-footer sailing fleet, plus two of the world`s maxi racing class yachts. At that time Phil was asked to be part of the America`s Cup challenger team and he then went to live in the US. I continued on with SOS Marine. In the past couple of years Phil has become SOS Marine`s agent in the US. Then, 20 years ago, the Royal Australian Navy had a tender for life jackets, which we won. SOS Marine has since supplied life jackets and safety equipment to 12 defence forces worldwide.

Export story SOS Marine started exporting in 2010. Our export journey began by a customer-driven approach. We spent many years designing and 14 |

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manufacturing equipment endorsed by a multitude of Australian marine professionals. These professionals worked in a large range of marine applications from water rescue to high risk marine tactical operations. We found relevant solutions to meet their changing safety needs and identified their working challenges. We could then shape solutions and design new innovative safety equipment to enhance working situations. This custom engineered application was based on years of accumulated experience. Our company has the flexibility to be adaptive with a high variability in designs. Through this supply chain, we were able to launch new and improved safety and rescue products for international marine professionals. These new designs are regularly displayed at international marine trade shows. From these exhibits we are able to set up distributors worldwide. We have established a presence overseas through distributors and attend defence and general marine international trade exhibitions. The Marine International Trade Show is held each year in Amsterdam. This trade show is a market barometer for comparing our product designs and seeking distributor channels. Our overseas customers include the Pacific Islands, North America, UK, Europe, Canada Norway, Malaysia, Pakistan, Sri Lanka, Bangladesh and emerging export markets include the UAE, the Netherlands and Kuwait, as well as our traditional export markets of New Zealand and Singapore.

There are all kinds of protocols and specifications we use to make sure we chose our export markets correctly. We look to find partners we trust and can work with easily. It takes time and patience. But to find export markets first we have to be sure they are legitimate. We can then look at how we can merchandise and service the market. This is where international trade shows are important. A lot of our business is done in Amsterdam at the Marine Equipment Trade show.

Overcoming barriers We have overcome many hurdles in exporting our goods. The logistics is costly from Australia, so we’re constantly calculating the costs of travel, shipping and marketing we incur. With our exports we find a distributor and then we make all arrangements for shipping our products overseas. This requires lots of footwork; they purchase our products and then resell. We are aware of trade barriers in terms of customs, patents and import regulations. We can often modify our product to meet the needs of a new market.

The SOS 2 Person Life Raft caters for a large percentage of the marine market, the inshore and coastal boaters who usually travel solo or as a couple. By adding a thermally insulated floor it becomes reflective for search and rescue. The SOS Dan Buoy is first of its kind to be tested to elements of ISO 12402 standards. It has webbing loops to support the MOB victim (patented). In terms of our future, we see SOS Marine continuing to improve safety and rescue systems. This is the driving force behind the development of our products. We have built a strong reputation for quality and reliability and want to continue to become a world class organisation. The global boating population grows each month. Rescue organisations are always seeking more efficient methods to save lives at sea. Our new product inventions will emerge as a result of these needs and requirements, and we will continue to research the latest technology and materials to produce exceptional safety and protective products.

One of the biggest risks is payment. Being exposed can be a huge risk, particularly if the transaction value is high. It’s hard to make exporting easy; you really have to check and re-check. Our international sales department contributes approximately 20 per cent to 25 per cent of our sales. We have a 30-year reputation for pioneering and developing products for the Australian defence forces, customs, immigration, water police, law enforcement, the coast guard, marine pilots, search and rescue services, ambulance service, fire and rescue, mining and construction industries. Setting up international exports takes time.

Prioritising innovation The design of the Boarding Party Life Jackets has enabled waterfront risk management teams to manage heat stress in the marine workplace and improve their capabilities and effectively support occupational health and safety obligations. This simple design has also assisted soldiers and law-enforcement officers to work their missions ‘hands-free’ of plastic bottles. This has assisted the carbon footprint associated with bottling and transporting plastic water bottles. In terms of our man overboard innovations we have the SOS Reelsling, which has a reflective rope to assist night rescues, to address the problem of ropes being caught around the propeller. The SOS Recovery Ladder is a simple yet effective rescue system, as many boats don’t have a plan to get back on board. This ladder can also be used to hoist a person on board.

ROSS SPENCER’S TOP EXPORTING TIPS • Take your time and be ready to invest over the long term as short-term benefits rarely happen. Also, it makes a difference to know your customer. Try to visit each one in person at their place of business to understand their market. Keeping in close contact with potential agents and distributors is most important. • Products that are popular in Australia are not necessarily popular internationally. It is important to be familiar with export rules and regulations. Assess which countries are appropriate to approach, then analyse the price situation and needs of the local market. You will need to obtain information about the target countries such as their political, economic, payment and consumer behaviour. • It is important to be familiar with international finance instruments like bank guarantees. In the beginning don’t deliver on open account and be sure to prepare detailed documentation about the products. It is important to determine the distribution method, which could be exclusive or non-exclusive. Make sure to prepare fair and reasonable international contracts. INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

PEOPLE

Water, water everywhere for AIS Elena Gosse, CEO of Australian Innovative Systems

The potential for this exciting exporter is far more than just a drop in the ocean.

fter arriving in Australia as a Russian immigrant, my journey in business, and then exporting in Australia, started in 1992. At that time my husband, Kerry and I acquired AIS, a company which manufactures chlorine generators and water disinfection technology. Initially AIS was a small, family business with three staff and an annual turnover of approximately $100,000. In 1995 I joined AIS as company director and secretary and that same year we entered the export market. In 1997 I saw huge opportunities for the business and decided to implement a global expansion plan. I am now CEO and am proud to say that our company exports our products to more than 55 countries for use in home swimming pools and commercial projects such as swim schools, aquatic facilities, water theme parks and resort pools. From very humble beginnings we have grown AIS to employ more than 50 equivalent full time staff and achieved an annual turnover of more than $8 million. 16 |

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The export journey When AIS started exporting in 1995 initially our market focus was Europe. Then we expanded into Europe and Asia. AISâ&#x20AC;&#x2122; export market is now approximately 40 per cent of total business. The majority of that emanates from the European market, followed by Asia. Today, our main export focus is on Asia and the US, particularly in relation to the recent release of a number of our latest products, which include a revolutionary freshwater chlorine generator for home swimming pools. We have actively grown our export market through various methods including attending large international trade shows and conducting our own international business missions. I also regularly speak at major industry events. Whenever we take our products overseas a great deal of interest is always generated. In 2016 we plan to expand our markets further and will attend two trade shows in the US as well as grow sales in Canada.

Our primary customers generally come from the leisure, tourism and hospitality markets. AIS’ chlorine generators are installed in a wide range of commercial and residential projects from large water theme parks such as Waterbom Bali in Indonesia, to the Grand Hyatt Hotel Lagoon Pool in Dubai, to municipal swimming pools in Prague, to numerous resorts in the Canary Islands, a competition swimming pool at Moscow State University and a large resort development in the Philippines. There is also the worldwide home swimming pool market. As a manufacturer, AIS does not have a sales team but rather a family of approved, worldwide distributors who we consider our eyes and ears and part of our R&D team. The business of exporting forms part of AIS’ ongoing global expansion plan. It ensures year-round revenue in the ‘seasonal’ market of swimming pools and water disinfection. From our R&D efforts we know there is high demand in locations such as Asia and the US for residential and commercial fresh water chlorine generators as well salt and mineral water chlorine generators.

Future focus Recently we purchased another manufacturing facility with additional land adjacent to our corporate headquarters. As the world’s population continues to grow, the effects of climate change continue unabated, and water remains our most valued resource, there will be increased demand for large and small scale, cost effective, water disinfection systems. AIS is perfectly positioned to meet this demand. My goal for AIS is to be the market leader in water disinfection and reach a $40 million-plus annual turnover by 2020. We will do so by bringing all manufacturing facilities together in the one location, expanding production capacities, creating more jobs to support Australia’s economy, increasing distribution channels in export and local markets and continuing to invest in research, development and staff training.

As an agile company AIS has recently developed a number of new products to satisfy that market demand, particularly in the freshwater area. In many cases, due to our reputation for innovation and quality, markets choose us. We are regularly approached by worldwide distributors who wish to stock our products.

Addressing challenges Australia’s high labour costs make the process of manufacturing relatively expensive however the increasing demand for high quality, innovative products means that we will keep developing more and more innovative products to maintain our position as a leader in the water disinfection industry. To protect AIS’ intellectual property and guarantee outstanding quality, we keep all R&D and manufacturing activities in Australia. I regularly present at industry and business events and use these opportunities to help debunk myths surrounding water disinfection and chlorine use. Governments and health agencies are under huge pressure to eliminate the risk of recreational water illnesses in our communities.

AIS’ TOP EXPORTING TIPS

At AIS we have decided to embark on a water hygiene education campaign to keep what we call ‘SINS’ (swimmer introduced nasties) out of public and private pools through simple, effective methods such as showering before swimming, not swimming when ill and ensuring children are encouraged to use toilet facilities regularly during swimming activities.

• Innovation is the key to success. Surround yourself with likeminded people who embrace challenges and are ready, willing and able to create, or quickly respond to market demands. • Do not consider going global unless you have done your homework and know that your product will satisfy or create a demand. • Stay connected. Maintain personal relationships with your distributors/customers and ask them for continuous feedback. They are a valuable part of any export business’s R&D team.

We are meeting with Queensland Health authorities as well as industry stakeholders to help promote awareness regarding good water hygiene.

Rather than change the way AIS does business these lessons have helped to reinforce our overall business culture and affirm that our business plans are well on track.

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

PLACES

Dubai: the Middle East’s metropolis of trade Given its position at the crossroads between the east and the west Dubai has become a critical export hub. There are plenty of opportunities for Australian businesses to form close ties in this exciting city. Gerard Seeber, Austrade senior trade commissioner and consul general, Dubai

n the long arc between Asia and Europe, Dubai is the only city that stands out as a centre of trade and a safe haven for business and investment.

$3.7 billion in 2014, growing by 15.5 per cent. Australian merchandise trade to the Middle East and North Africa region was $14.7 billion in 2014.

Located in the United Arab Emirates in the Persian Gulf, the city and emirate of Dubai is one of the world’s great commercial and logistical hubs.

Despite the instability in the Middle East there are good reasons why the commercial outlook is promising.

The city is a gateway to markets in Europe, the Middle East, Africa, South Asia and Iran, one that is increasingly attracting the attention of Australian businesses.

An eight-hour flight from Dubai can put your business in contact with two-thirds of the world’s population, including the 420 million people in the Middle East and North Africa.

There are already more than 30,000 Australians living in the Persian Gulf region and about 450 Australian companies have operations there.

As well, Iran’s economy is set to open up to the world economy after the nuclear deal it reached with the international community, and new developments in Egypt and Tunisia offer promise in those markets.

According to figures published by the Department of Foreign Affairs and Trade, the UAE was Australia’s fifteenth largest export market in 2014 and exports reached

Dubai’s geographic advantage is significant, but of equal importance is the investment the emirate has made in its economic development.

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Apart from the financial incentives provided by its free zones, infrastructure and logistics are key. Dubai now has the world’s busiest airport having overtaken London’s Heathrow Airport early in 2015, with 71 million passengers recorded over a year. Qantas flies direct to Dubai, making it a hub for freight and passengers from Australia. Dubai is also building what will become the world’s biggest airport, Al Maktoum International Airport, with an expected capacity of 255 million passengers a year. AMIA will be connected to the port of Jebel Ali through a free zone that will also be serviced by a rail network connecting the Gulf Cooperation Council states.

The shelves of Dubai’s supermarkets are filled with Australian fresh food products. Australia’s food exports are also inputs to the region’s growing food processing industry, which re-exports much of its product. Indeed, the Middle East and North Africa contend with China as the major market for Australian meat and livestock products. Demographic pressures and changes in lifestyle are also offering opportunities in health care and tourism.

Tourism is an important source of opportunity and Dubai’s World Expo in 2020 is expected to attract 20 million visitors, bringing with it new hotels and increased demand for staff, skills and design work.

The recent fall in the oil price has led many Middle East economies to diversify their economies away from a reliance on oil and gas into services and manufacturing. By 2020, the GCC’s labour force is expected to grow by 30 per cent to 20.5 million people. That in turn is creating the need for a more highly skilled workforce that is creating new opportunities for Australian education providers, especially at the vocational level.

Now is the perfect time for Australian firms to seize the opportunities.

ARAB EMI

TES RA

In the UAE, for instance, there is an estimated shortfall of 2,000 beds while in Kuwait that figure rises to 5,000.

The planned 2,200 kilometre rail line connecting the GCC states has yielded solid contracts for Australian firms and many more are on the horizon.

Bilateral relations with the countries of the Middle East and North Africa are multifaceted and growing rapidly.

There is a need for new medical infrastructure to make up shortfalls in hospital beds.

Located in the United Arab Emirates in the Persian Gulf, the city and emirate of Dubai is one of the world’s great commercial and logistical hubs.

Trade commissioners and diplomats based in the Middle East, discussed the opportunities open to Australian businesses, especially across key sectors of food, agriculture, healthcare and education.

A growing middle class with higher disposable income, as well as compulsory health insurance and growing problems such as diabetes are leading to demand for better health care.

Australian companies are also active in the Gulf Cooperation Council rail network, worth about US$200 billion in investment in freight and passenger rail planned over the next six years.

To highlight the growing opportunities, Austrade, together with the Department of Foreign Affairs and Trade, conducted a series of seminars, The MENA Connection Seminars 2015, across Australia’s capital cities between 26 October and 6 November.

Given its scarce water resources and arid landmass, food exports to the Middle East have been a major source of success for Australian exporters, especially meat, livestock and grains.

Saudi Arabia is the largest producer of gold in the Middle East and has large reserves of phosphate, bauxite and tantalum, while Morocco has 70 per cent of the world’s phosphate resources.

Instability in the region and the impact of falling oil prices has complicated the business outlook, but the UAE itself is growing at about three per cent a year, according to figures from the International Monetary Fund, and its reputation as a safe haven is still strong.

Australia exports a range of products to the region, much of it linked to its unique geographic and demographic conditions.

The UAE is also a hub for Australian mining companies and providers of mining equipment, technology and services, or METS.

UNI T

Jebel Ali is the world’s largest port between Singapore and Rotterdam, and in 2014 was also voted the world’s most productive by industry analysts.

A R A B E MI

UAE FAST FACTS • Exports to the UAE reached $3.7 billion in 2014, an increase of 15.5 per cent. • Australian trade to the Middle East and North Africa region was $14.7 billion in 2014. • The Middle East and North Africa has a population of 420 million people.

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

PLACES

… m o r f d r a c t Pos

Gerard Seeber, Austrade senior trade commissioner and consul general, Dubai

Have 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? 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 the fascinating city of Dubai. Where should you go if you have a few hours to spare? There is so much to do in Dubai the choices are endless. Due to the city’s cosmopolitan culture, international food and retail chains are in abundance. Earlier Dubai was positioned as a shoppers’ haven with two largely successful shopping festivals hosted twice a year – the Dubai Shopping Festival and Dubai Summer Surprises. But over the years it’s evolved as an iconic destination. Burj Khalifa, the tallest building in the world, Dubai mall, the largest mall in the world and the world’s most luxurious hotel, Burj Al Arab are all nestled within this magnificent city.

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With all its grandeur and luxury there is still an old world charm preserved through Dubai’s various souqs or marketplaces. Deira-Bur Dubai creekside is where you can see the dhows, traditional fishing boats, carrying cargo or fruits and vegetables. One of my favourite things to do is ride my bike out in the desert. There are many tour companies that organise desert safaris, giving visitors a taste of Arabian culture by camping out in Bedouin tents, going on camel rides or go off-roading for wadi-bashing (dune rallying), which is a popular endeavour for thrill-seekers.

Also with its expansive coastal line, there are plenty of water sports to try out, although this is limited from October to April, taking into account the weather during the summer months.

Any local specialities you can recommend? Camel meat and milk is a must try when visiting Dubai. As camels are greatly valued for their milk and transporting ability, you will find that eating camel meat is normally reserved for special occasions. Besides these, dates are quite popular for their nutritious benefits and importance during the holy month of Ramadan, when Muslims break their fast by having dates and water. It’s common to see dates growing in people’s backyards; palm trees are everywhere. I would recommend trying the chocolate covered dates available at supermarkets and speciality stores.

Where do you suggest going if you’re taking a client out? Dining out is a favourite pastime of the residents here and there are plenty of good food options. In the last couple of years Australian food and beverage franchises have taken-off in a big way. These include Jamaica Blue, The Coffee Club, Pie Face, Gloria Jeans, Dome Café and Tom&Serge. Restaurants such as Clé, Australian chef Greg Malouf’s restaurant, as well as Jones the Grocer, Toko, Bushman’s Grill and Bidi Bondi, have already formed a loyal customer base.

Where would you suggest visitors go for nightlife? Dubai has more of a lounge scene than a bar scene. Resto-lounges are becoming the norm with a concentration of these located in the Dubai International Financial Center, Downtown Dubai, and Dubai Marina. Barasti Bar is one of the most popular haunts, frequented by residents and visitors alike, due its beachside relaxed atmosphere. It also makes a refreshing change from other bars and clubs that require you to be dressed a certain way or have made a table booking. But when in Dubai, do as the Emiratis do, and visit the numerous shisha (hookah) places, which can be found at almost every corner here.

Any other advice for visitors in town for business? Alcohol is only available at hotels or restaurants attached to hotels, and there is zero tolerance for drinking and driving. Also, as in the case of most bustling cities, traffic can be a hindrance so plan ahead for meetings or other appointments.

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

EXPORTER

Freelancer’s view of the future As we continue through the Asian century, Matt Barrie, chief executive, Freelancer, explains why we must focus more fully on developing Australia’s tech skills.

espite the commodities super cycle entering a downturn, Australia still heavily relies on our finite natural resources to drive export growth.

It is imperative Australia transitions to a more diversified economy. Key to this is to build Australia’s technology industry, an industry that provides great productivity and wealth multipliers. We should be starting companies that are delivering goods and services in promising new areas for the future such as software applications, mobile devices, robotics, nanotechnology and biotechnology. We should be building companies like Google, Amazon, Facebook, Apple and Samsung, those that are high growth, scalable, intellectual property based, value producing businesses. Australia can move toward the forefront of modern day developments locally and abroad by first establishing a robust technology industry. This will enable us to move higher up the value chain in international trade, getting more high-end manufactured goods or technology-based products or services from the knowledge economy out there to the global market. The advent for the biggest technology boom in the history of mankind is taking place now. Global exports for high-technology products are worth trillions of dollars and this will continue to grow with the increasing affluence of the middle class from developed and developing countries. Asia holds the world’s biggest market for advanced technology. The fast-growing market, is set to rival major markets for advanced technology within the next 15 years. Currently, there are 2.7 billion smartphone users in the region and this is projected to grow to three billion by 2017. In two years time, about 59 per cent of the world’s smartphone users will come from Asia. China is Apple’s biggest iPhone market, surpassing the US. Asian companies have already strategically positioned themselves as market leaders within the region and across the world with four out of five of the top worldwide smartphone vendors being Asian brands. The southeast Asian region in itself has a market larger than North America or the European Union and it has one of the most open economies in the world. That and with north Asian FTAs in place, the

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vast market holds so many opportunities for Australian companies to explore. On top of all these, Asia is right at our doorstep giving us time zone and geographical advantage, covering logistics and communication, over the US and UK. However we should not limit our sights to Asia. Now is an opportune time for exporters to penetrate the global market, particularly the US and other big markets. With the falling dollar currently around 70 cents again the US dollar, Australian exports gain price competitiveness in the world market, potentially increasing demand and boosting overseas sales. Given a region with bursting trade opportunities for a next door neighbour and an economic state which exporters can take advantage of, Australian companies are missing out on the technology gold rush glaringly present in the world market. In a long list of issues Australia must address to strengthen its tech industry so that it can secure a prime spot in the world market, there are two things the country must act on immediately: • The state of technology education. Students are graduating high school without exposure to technology and over the past decade, IT enrolment have fallen to over 60 per cent and student numbers taking up technology subjects have been declining as well. We need to develop a world class technology curriculum in our K-12 system and from a young age, get students excited about building innovative products and services. This way, we are honing brilliant minds and producing a highly educated workforce for our technology industry. • The funding problem in technology. The ASX must be promoted as the founding source of choice for technology companies. Investors in qualifying early stage investments should be given tax relief and share loss relief, and the government should ultimately end allocating funds to venture capital – too much committed cash from the government is required for an ineffectual funding vehicle.

The country must focus on supporting the capabilities of businesses to expand globally, on the other hand, businesses must also use technology such as online resources to expand globally. One area in particular is in finding professionals with the required skill to help bring the business forward. Organisations big or small can focus on the core of their business and penetrate a bigger portion of the global marketplace by employing freelancers. Freelancer helps entrepreneurs globally by connecting entrepreneurs running small businesses in the developed world with entrepreneurs running service providers in the developing world. Here are two ways businesses can benefit from hiring freelancers online: • Maximising their resources for growth and expansion Businesses can choose from a wide range of project or hourly fees from skilled freelancers from around the world to help them with projects like research, web development and design. There are more than 600 project categories on the site. This broad range of options allows them to get projects done cost-efficiently, then having more resources and budget to allocate for other aspects of their business.

• Acquiring necessary help from any part of the world Expanding a business to other or greater parts of the world requires thorough research and a reliable network within the country a business is trading with. Businesses can find the local talent that they need that can help them take the business to any country. Whether it’s in the area of translations, marketing, operations or product development, businesses can immediately find a native freelance workforce. With a falling dollar and a global marketplace filled with potential for Australian businesses, there is no denying that the world is your oyster and now is the time to transition to a global mindset where Australian companies are market leaders in advanced tech solutions. It’s high time for Australian businesses to strategically position themselves to take their fair share of opportunities available now. INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

EXPORTER

Not all play for Aussie creative powerhouse Suzanne Ryan, CEO, SLR Productions

A local kids’ content producer is holding its own on the world stage.

started my own business in 2002, when I had just turned 30. It was a turning point in my life and my career and I wanted to do something for myself. I had optioned the TV rights to two Australian books and decided to head overseas to raise the finance and create the partnerships to produce them as kids’ cartoons. I had just left full time employment at a post production company and I was working from my bedroom in Sydney. I applied for a small business loan and booked a ticket to MIPCOM, a major global market for entertainment content in France. One of my meetings at MIPCOM was with a New Zealand producer John Barnett. On my return to Sydney he offered to give me a start-up loan. A few months later I moved into a creative share office in Kings Cross, and started to develop production of the books. Soon after I moved into my own office with a more permanent team and started production of the two books. My original creative director Jo Boag is still with me today. It’s been 13 rewarding years and SLR now has a purpose built studio in Darlinghurst, Sydney. I have a team of talented people who 24 |

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share my passion for kids’ entertainment content. From small things big things can grow and the journey has certainly been an awesome one.

The export journey I started exporting in 2005 with one distributor based in Germany and then a second distributor in the US. Since then I have secured sales agents across all the vital territories for reach into global markets. My distribution teams are now based in Germany, UK, France, China, the US and Canada. Our customers are children’s broadcasters such as SUPER RTL, KiKA, HR, Disney, Nickelodeon, Netflix and Cartoon Network, to name a few. We have just completed 145 hours of content across 160 territories worldwide. This is a huge volume for a company the size of SLR Productions as we face tremendous competition globally from the major media players like Mattel, Disney, Viacom and Turner Broadcasting System. These companies turnover multiple millions of dollars in children’s content annually and yet SLR Productions is still highly regarded as a major player globally.

We have a great relationship with our international distributers, which is key in determining markets. Kids content and especially cartoons can easily be dubbed into local languages and that allows us to access non-English speaking territories worldwide.

Breaking barriers We continue to market our content through regular trips locally and internationally. The fluctuation of the Australian dollar is an issue when dealing with multiple currencies worldwide. I have overcome this by making sure the currency is protected with the likes of OzForex through hedging.

Top lessons One of the things I have learned as an exporter is that strong relationships help continue sales. This is why maintaining our valued relationships internationally is important. I have also learned over the years that you are only as good as the last show you have made, which is why every show we do has to have the same energy and love as the next one.

In terms of what I would do differently if I had my time again, I can’t say there is one thing I would change. But I can say I would definitely not sweat the small stuff. No matter how much you stress and worry about the little things the world keeps turning. As long as you believe in yourself and have a great team around you moving forward does get easier. As to where I see the organisation in five to ten years’ time, the media sector is evolving with incredible speed. The introduction of video on demand and non-traditional broadcasting channels such as YouTube will play a huge role in how SLR Productions develops our next generation of kids content. Adapting to the technology is key and we have already begun the process to keep SLR relevant in five years. It would be awesome to have made a huge hit in by then, so that one day when I’m super old I can say to my family, “hey I made that show.”

We received a highly commended award in the creative industries category in the 2013 NSW Export Awards and then we were the winner in the same category in the 2014 NSW Export Awards. It was fantastic to be recognised among such incredibly talented and hardworking companies. These awards have been a great way to meet new companies and network across the industry. Accolades like these really do increase your profile both locally and internationally and allow you stand out.

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

DOING BUSINESS

Navigating the Singaporean tax regime David Lee, regional manager, Dezan Shira & Associates Singapore

ne of the main factors that make Singapore an attractive place for companies to invest is its favourable tax regime. This includes the granting of tax incentives, a comprehensive tax treaty network and tax exemption for certain income, making Singapore’s effective tax rate among the lowest in Asia. The Singaporean tax system operates on a territorial basis, meaning companies and individuals are taxed primarily on Singapore-sourced income. Foreign-sourced income (such as that from other ASEAN nations) is only taxed when it is remitted or deemed remitted into Singapore, unless the income has already been subject to taxes in a jurisdiction with a tax rate of at least 15 per cent. Certain types of income remitted into Singapore are also exempt from Singapore income tax. Here, we discuss individual income tax and some taxes directly applicable to companies establishing operations in Singapore:

Individual income tax Every taxpayer in Singapore must file an annual tax return with the Inland Revenue Authority of Singapore. The basis period of assessment runs from 1 April through 31 March of the following year. Singapore’s IIT rate can be between zero and 20 per cent depending on income.

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Corporate income tax Singapore has a single-tier income tax system that does not tax both corporation and shareholder profits. Under this system, once a company has paid corporate tax on profits, the dividends for shareholders are not subject to further taxes. The effective CIT rate for subsidiary company profits up to S$300,000 is 8.5 per cent, and there is a flat rate of 17 per cent for profits above S$300,000. Newly incorporated companies can often benefit from a series of incentives, deductions and reduced tax rates including being subject to a zero per cent tax rate for the first three filings of the tax year if certain requirements are met. Singapore does not have a capital gains tax.

Goods and services tax Singapore’s GST is a tax on consumption charged on the purchase of a good or service, the equivalent of a value added tax in many other countries. Singapore has a standard seven per cent GST rate on the import of goods and the supply of most goods and services. Businesses with a turnover exceeding S$1 million per year must preregister for GST, while those that do not have a turnover exceeding $1 million per year may register voluntarily.

Withholding tax While Singapore does not require withholding tax on dividend payments, a number of other payments, including royalties, interest, rentals from movable properties, payments for the use of technical information, and directors’ fees paid to nonresidents (individuals or companies) are subject to withholding tax.

DOING BUSINESS

What’s your website localisation strategy? LOCALISED WEBSITES ARE OFTEN VIEWED SIMPLY AS TRANSLATED VERSIONS OF THE ORIGINAL SITE. BUT TRANSLATION ISN’T EVERYTHING: A GREAT WEBSITE IS ALSO ABOUT THE INFORMATION IT DELIVERS AND ITS RELEVANCE TO THE USER. Megh Shetty, marketing manager and Alex Fairie, director of European operations, ONCALL Interpreters

ccording to entrepreneur blogger Mikal Belicove people are four times more likely to buy from organisations that communicate with them in their native language. So if organisations are seeking to expand into overseas markets they must consider cultural and behavioural factors impacting user experience with their website. Coca-Cola is one example of a brand that required full consideration of cultural relevance when translating its name into Mandarin. In this language the translation of ko-kä-kö-la means something like ‘bite a wax tadpole’. So Coca-Cola is called Kekoukele in Mandarin, which means tasty fun. Website translation essentially means translating the business’s online profile and all its digital assets like blogs and images into the language of its target customers. The translation process incorporates local cultural sensitivities and practices to enhance the acceptance of the product in the local context.

Competitive advantage Having a localised approach means considering the target customers’ personae, that is, their behaviour while interfacing with the business. For example, companies such as McDonalds, KFC and Pizza Hut have adapted their menus to suit the local palate in various markets around the world. For instance, in India these companies do not serve beef products while in the Middle East, the menu is devoid of pork products.

Marketing objectives There are three potential strategies business can take when localising their website:

1. Creating awareness in the market Suppose someone in China is searching online for a particular foreign brand of yogurt using key words or strings of key words such as healthy yogurt, Greek yogurt or Greek natural yogurt. The success of the business’s localisation strategy is determined by whether the website appears in the prospect’s search results. If the website is not localised with relevant keywords and key phrases in Mandarin the search results may not return the website as a result even if the company is marketing the best yogurt in the world.

2. Acquiring and converting the customer Lead generation is one of the objectives of website localisation. User experience is the critical driver creating the ‘First Moment of Truth’. This occurs when the business has successfully generated interest from the customer who then decides to visit its website. The lead generation effort will have been wasted if the prospective customer finds the product they are looking for but the product instructions and information are in English. So all images, instructions and content must be localised to prevent the company from losing the customer’s attention and business.

3. A customer advocate According to Brian Solis in his book What’s the Future of Business? the ultimate test for the company and its product is when customers convert their experience into discoverable reviews such as blogs and testimonials. Businesses that have achieved this have generally been successful in localising the content of their website. Understanding customers’ behaviour and their journey is what creates a valuable digital experience. This journey includes many online touch points and must reflect the message the business wishes to deliver to its customers. The message must be in language the customer understands, sensitive to the culture where the customer lives and the information must be presented in a way that is accessible. INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

DOING BUSINESS

Take your business across borders without tripping over them NEW EXPORTERS NEED ACCESS TO THE RIGHT INFORMATION TO GIVE THEM THE BEST CHANCE OF SUCCESS ABROAD. Murray Lawson, director, FTI Consulting

and geopolitical landscape of the region. For instance, when two bordering countries have a diplomatic dispute it can quickly affect business through the passage of people and goods across a border.

With slower growth at home many Australian businesses want to capture the demand for imported goods in foreign markets by exporting for the first time. Entering new markets brings great rewards for those that get it right, but for many, things don’t go to plan. Which is why reliable intelligence is necessary to support decision makers to craft the right strategy and deliver the best chance of success.

Then examine industry risks, considering many of the same factors as any industry assessment. For example, where a competing company is state-owned, it may benefit from structural advantages that disadvantage an exporter in the same market. Assessing government policies including government departments and agencies involved in issuing licences, permits or certificates and the respective timeframes and costs involved can help assess the level of transparency and the potential for corruption. It should also consider whether distribution routes for the industry present a risk.

n the last 15 years developing economies have produced a generation of new middle class consumers in countries like China, leading to higher demand for energy, food and consumer goods in these markets.

A recent FTI Consulting study found 99 per cent of losses by companies in emerging markets were due to either a regulatory, bribery, fraud or reputation issue and the worst losses are encountered when two or more of these factors converge. A clear understanding of and plan to deal with the risks of doing business in a new market provides the best insurance against being tripped up. A sound, methodical risk assessment process should occur alongside strategy development in three distinct phases that, like good strategy development, move from the general to the specific.

Considering risks At the broadest level, a country risk assessment considers the overall business risk in a given region, taking into account things like overall level of corruption and the effectiveness of business governance. It also assesses factors such as law enforcement and the judiciary and the enforceability of contracts and other agreements. It should consider the reliability and accessibility of information such as corporate records, litigation records and other information and whether a lack of information could present a risk to good decision making. It should also consider the political 28 |

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The risk assessment should also assess the business model. Most companies will engage a local agent or distributor when exporting, which presents a different series of risks. For instance, it’s important to ensure distributors and agents won’t engage in product counterfeiting without the company’s knowledge. Undertaking robust due diligence in selecting a partner is the best way to minimise these risks and ensure you know who you’re dealing with. Scrutinising the corporate records, histories and reputations of potential agents can guide the selection of reliable, long-term partners. Ultimately, a thorough risk assessment involves having the right intelligence at the right time in the decision making process. Risk assessment should receive as much focus as strategy, especially when entering opaque markets where infrastructure and information systems and corporate governance are less developed. A holistic risk assessment allows new markets to be conquered with far greater confidence and control.

DOING BUSINESS

The key to success in Europe WHY DISTRIBUTION CHANNELS DELIVER THE BEST OUTCOMES IN THE EUROPEAN MARKET Christelle Damiens, managing director, Exportia Australia

few years ago I made the difficult decision to cease working with a client. I had started exploring opportunities for his company in a European country, visiting end-users, generating initial leads and connecting with potential partners. After making a couple of trips to Europe with him I made several recommendations to take the export project a step further. However, my client was determined to do business in Europe the same way he had in his home market in Australia. In this instance, the best tactic would have been to partner with a European company that had prior experience responding to government tenders and marketing to buyers in that sector. Unfortunately, I was not able to get my point across to my client; he insisted visiting end-users. For this reason, I decided to terminate our working relationship. Generally, to be successful, businesses – particularly in the high-tech sector – need to partner with companies that are well established in the export market they want to enter. In Europe, doing direct sales involves creating a company, hiring people locally, and being well informed about local laws. A better approach, especially for new exporters, is to work with European partners or distributors to leverage their expertise, knowledge of the local market and market reach.

Define your ideal distributor profile Before engaging with distributors or partners you need to define the ideal distributor profile for your business. Start by identifying the

profiles of your previous distributors and looking at how they helped your business. To select an appropriate distributor for your business, you need to be very clear about which industry you are targeting and the type of clients associated with that particular industry. Additional questions to keep in mind while creating your distributor profile: • Are they a large company or a small business? Are they regional or nationally based? • How broad is their product range? • Do they sell to a network of resellers or directly to end-users? • What profile do their sales reps have? Do they spend more time on the road or are they in the office preparing marketing campaigns? Once you understand your customer profile, you will be in a good position to find distributors with this specific clientele in their portfolio as well as those who are already selling products that are complementary to yours. The other important consideration is what role you want the distributor to play for you. You should determine what tasks you want them to do for you in the market besides sales, such as after-sales service, repairs and training. For more information on selecting distribution channels, download the related tools at http://exportia.com.au/downloads. Above all, you should aim to work with European partners or distributors to leverage their expertise, knowledge of the local market and market reach.

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

GOVERNMENT EXPORTER

Securing US exports – make it your business Are you thinking about exporting to the US? Then air cargo security is part of your business. Department of Infrastructure and Regional Development

hen Australian businesses send products overseas they need to consider how their goods will reach their destinations safely and securely. If your business exports to the US you need to understand the special arrangements that the US Government has in place for air cargo security. US law requires that all air cargo be examined at piece-level if it is carried on a passenger aircraft. This means that each box or item in a shipment must be security screened before it is loaded onto an aircraft. Currently, the majority of Australia’s out-bound international air cargo is examined after it’s consolidated onto crates, pallets or Unit Load Devices. From 1 July 2017, air cargo prepared using these arrangements won’t be accepted for shipment to the US.

Get ready to act early The Office of Transport Security (OTS) encourages exporters to discuss US-bound air cargo arrangements with their freight forwarders and logistics service providers, as soon as possible. A number of Australia freight forwarders are authorised to conduct piece-level screening under an Australian Government Enhanced Air Cargo Examination (EACE) notice. Exporters should contact your service providers to find out if they have an EACE notice, what screening arrangements they have for US-bound air cargo and what costs will be associated with this service. Exporters will be able to apply for Australia’s Known Consignor Scheme from mid-2016, providing they have appropriate security arrangements in place. More information about the Known Consignor Scheme will be available from OTS soon.

Securing Australia and US bilateral trade for the future To ensure our exports to the US can continue without disruption, the Australian Government will introduce a new security regime for US-bound air cargo. These arrangements will be phased in over the next two years. Under the new arrangements, exporters can choose to: • Have their cargo examined at piece-level by an approved business or • Apply to join the Government’s Known Consignor scheme. If your business sends products to the US by air you should prepare for these new security arrangements.

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It is important to stay informed about the changes, so you can make the best decision for your business’ future. You can stay informed of the changes by subscribing to the Department’s Air Cargo Security eNewsletter. Visit the Department of Infrastructure website, to find out how: www.infrastructure.gov.au/usaircargosecurity

SPOTLIGHT ON

India is of increasing strategic importance to Australia. It’s our twelfth largest trading partner and the two nations are in the process of exploring how closer economic ties might be developed. Trade minister Andrew Robb led a delegation to India in early 2015 and it’s expected a more formal trade agreement between India and Australia will be announced in the near future.

Value of major Australian exports to India (2014, A$m) Coal 5,191

Fast facts

(2015 forecast)

India’s capital is New Delhi

GDP: US$2,308 billion

Its official languages are Hindi and English

GDP per capita: US$1,808

Trade with Australia A$11.96 billion

Gold 699

India snapshot

(2014)

GDP growth: 7.5% (change year-on-year) Population: 1.26 billion (2014)

Value of major imports from India (2014, A$m)

Copper ores and concentrates 779

Wool and other animal hair 193

Refined petroleum 299

Pearls and gems 232

Medicaments (incl veterinary) 223

Passenger motor vehicles 205

FOR MORE INFORMATION PLEASE VISIT THE DFAT WEBSITE AT WWW.DFAT.GOV.AU INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

EVENTS

Winners from the State and Territory Export Awards 2015 2015 ACT Exporter of the Year, Aspen Medical L-R: Bruce Armstrong, CEO, Glenn Keys, co-founder and managing director, Dr Andrew Walker, Co-Founder

Winner of the ACT Manufacturing category, Frameskin L-R: Canberra Business Chamber CEO Robyn Hendry with Alan Vogt, director and Creator Frameskin

Premier’s NSW Export Awards All of the Premier’s NSW Export Award winners with Export Council of Australia CEO, Lisa McAuley, and NSW Minister for Trade, the Hon. Stuart Ayres MP

Winner of the ACT Information and Communication Technology category, DAMsmart L-R: Joe Kelly, general manager DAMsmart with Dean Seeley, Director of Programs, Canberra Business Chamber

Premier’s NSW Export Awards Premier’s NSW Exporter of the Year, Nuix

NT Export Awards NT Export & Industry Awards overall winner and NT Exporter of the Year Award Winners, Charles Darwin University (Group photo)

NT Export Awards NT Export & Industry Awards : John Kaus and Kevin Mulvahil, South East Asian Livestock Services accepting the 2015 NT Agribusiness Award with Natasha Griggs MP

NT Export Awards 2015 NT Export & Industry Award Winners with the Minister for Asian Engagement and Trade, The Hon. Peter Styles MLA

QLD Awards Pre-dinner entertainment with Brisbane’s very own sensational drumming troupe BANG!

Winner of the Premier of Queensland’s Exporter of the Year Award Packer Leather. Left to right: Tony Schiffman from BDO. Lindsay and Graham Packer, and the Premier of Queensland Annastacia Palaszczuk

QLD Awards Winner of the Small Business Award, Evolve Skate Boards, Jeff and Fleur Anning

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INTERNATIONAL BUSINESS TODAY – SUMMER 2015

SA Export Awards All the winners of the 2015 SA Export Awards

Tasmanian Export Awards Winners of the Small Business Award Australian Honey Products

SA Export Awards South Australian Exporter of the Year, Sentek Technologies with their Awards

Tasmanian Export Awards Tasmanian Exporter of year 2015 Reid Fruits with Matthew Groom Minister for State Growth

Governor of Victoria Export Awards Winners of the 2015 Governor of Victoria Export Awards with the Governor of Victoria The Hon Linda Dessau AM and the Victorian Minister for Industry The Hon Lily Dâ&#x20AC;&#x2122;Ambrosio

Tasmanian Export Awards Winners from the 2015 Tasmanian Export Awards with Matthew Groom Minister for State Growth

Governor of Victoria Export Awards Victorian Exporter of the Year winner at the 2015 Governor of Victoria Export Awards - a very happy 99designs

2015 WA Industry and Export Awards All of the winners at the 2015 WA Industry and Export Awards

INTERNATIONAL BUSINESS TODAY â&#x20AC;&#x201C; SUMMER 2015 |

TIM’S TIPS

Airport economist Tim Harcourt looks at the innovative nation of Chile and its commonalities with Australia. Tim Harcourt

hile is often known as the ‘Jaguar economy’ of South America (equivalent to the Asian tigers) and on the trade front the long thin country west of the Andes has been very aggressive. According to its innovative trade agency Pro Chile, the country can access 80 per cent of the world with its free trade arrangements. According to Chilean economist Dr Orlando Jimenez of CSIRO Chile, Chile’s strategy of opening up the economy was necessary but not sufficient for Chile’s future prosperity. He now believes the new game is about boosting innovation, productivity and competitiveness. Hence the reason why Chile attracted the CSIRO to set up a centre of excellence in mining and mineral processing in Santiago in a program that has also attracted similar centres from Germany, France and the Netherlands. CSIRO Chile shares know how and technology between the Australian and Chilean mining industries and is now providing learning opportunities across the continent. For instance in the northern Chilean mining town of Antofagasta, post graduate students from Peru study locally at the university and travel to Australia for courses and internships at the CSIRO. This benefits the international mining sector and creates education opportunities in all three countries. The emphasis on technology and innovation and investing in human capital is a big part of Australia’s economic relationship with Chile now. Professor Marta Lagos of the Santiago based think tank Latinbarometro agrees Chile’s internationalisation strategy is now more about innovation and investment than trade. She believes all the most obvious reforms have been done. And economically Chile is at almost full capacity. She believes Chile will not be the main source of economic dynamism in South America now. Instead there will be more action from Peru, Colombia and even Bolivia, given its resource endowments. Professor Lagos believes Colombia will be an economy to watch as it must have an enormous stock of social capital to have survived violence and instability and to remain socially intact. 34 |

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Dr Robert Funk, director of Instituto de Asuntos Publicos, a Santiago think tank based at the University of Chile, agrees Chile’s past economic success will be a hard act to follow. “When Michelle Bachelet was President she did us a favour by getting us into the OECD. Now instead of being the top ranking economy in Latin America and emerging markets, we’re one of the lowest ranking in the OECD.” Juan Francisco McKenna, president of the Chilean Australian Chamber of Commerce agrees with Funk. “Bachelet got us in the big league with a tougher benchmark which is good for us,” he says. Francisco McKenna, an environmental lawyer by profession, believes environmental issues are becoming more important as Chile has become more affluent. “In Australia, you have the NIMBY (not in my back yard) syndrome. In Chile it’s the BANANA syndrome. That is – build anywhere but not anywhere near anything, which makes economic development slow going,” he explains. On the other hand, environmental issues are in fact a real opportunity in Latin America, according to Mark Trueman, managing director of Latin America for Worsley Parsons. Trueman says Worley Parsons has set up the Eco Nomics program to calculate net present value of projects based on environmentally sustainable targets. Trueman says, “in Latin America, especially Chile and Peru, water and energy constraints are the biggest risk factors. Right now probably much more so than fluctuations in commodity prices, so we take environmental sustainability very seriously.” Trueman runs the Worley-Parsons Latin America operations from Mexico City. The company set up in Chile 2006 and through strategic acquisitions now runs extensive operations throughout the continent including divisions in Peru, Colombia, Ecuador and Brazil. Operations

Chile fast facts Capital: Santiago Population: 17.6 million GDP US$ 263.1 billion (current prices) US$352.2 billion (PPP) GDP re capita: US$14856 Real GDP growth: 3.6% Australian exports to Chile $359m, (41st) Australian imports from Chile $1004m (31st) Number of exporters: 538

Key contacts :

are localised so each country makes its own decisions as a devolved management structure. Trueman believes in strongly building up local leadership and responsibility at the country level. “You can’t run your Latin American operations from Houston, let alone Sydney. You’ve got to be here on the ground, and you have to support local ideas and innovations. And you have to be patient; it takes at least seven to eight years in Latin America to be properly established.” Currently there are more than 80 Australian companies based in Santiago, which has for a long time been the effective centre for corporate headquarters for South America, particularly the Andean nations. Most Australian companies, particularly in ‘rocks and crops’ (mining and agriculture) begin in Chile as a beach head and then migrate north to Peru, Ecuador and increasingly Colombia. They get their firm footing in Chile before establishing operations elsewhere in South America. With large infrastructure gaps in places like Peru, we’re likely to see more Australian companies following the path of successful businesses like Worley-Parsons. Overall Chile is a great base for Australian companies, as it sees Australia as a ‘model’ in terms of business and public policy. The Chilean government is actively working with Australia to develop better policy in areas such as sustainable city development, water management, superannuation, technical training and mine safety. There have been information exchanges, study tours, treaties and other partnerships, many funded through AUSAID grant programs to strengthen its policy framework. By supporting the Chilean government in these policy themes Australia creates enormous goodwill as well as developing a highly receptive market for Australian industry, a competitive advantage in itself.

Austrade: www.austrade.gov.au Australian Embassy in Chile: www.chile.embassy.gov.au/sclecastellano/home.html Australia Chile Chamber of Commerce: www.chilechamber.com Harris Gomez group: www.hgomezgroup.com Pro Chile: www.prochile.gob.cl/paises/australia

Simple suggestions: 1. 2.

Many Chileans speak English but learn some Spanish for getting around particularly outside Santiago. Don’t talk too much about the dictatorship unless it’s raised with you first. Many Chileans took exile in Australia during that period (1973-90) including the President Michelle Bachelet and her brother still lives in Australia. There are some great Chilean Australians who can help. Harris Gomez runs and excellent legal and business services form in Santiago: www.hgomezgroup.com Many Australian businesses like WorleyParsons use Santiago as a base for their South American operations so consider this as an option. Take your surf board for summer and skis for winter and enjoy Chilean wines and seafood all year round.

INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

INTERNATIONAL CALENDAR NOVEMBER

MARCH

JUNE

17-19 Communicast Myanmar - November 2015 Yangon, Myanmar

1-31 Australia Future Unlimited Education Exhibition Hong Kong 2016 Hong Kong

1-3 Food & Hotel Myanmar Yangon, Myanmar

3-5 Food, Hotel & Tourism Bali Nusa Dua, Indonesia

SEPTEMBER

17-20 Indonesia Australia Business Week 2015 Jakarta, Indonesia 26-28 Building & Construction Myanmar November 2015, Yangon Yangon, Myanmar 26-28 Mining Myanmar November 2015, Yangon Yangong, Myanmar

DECEMBER 2-5 Machine Tool Indonesia 2015 Jakarta, Indonesia 3-6 Manufacturing Indonesia 2015 Jakarta, Indonesia

FEBRUARY 8-11 Australia Lounge at Mining Indaba 2016 Cape Town, South Africa 21-25 Gulfood Dubai

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INTERNATIONAL BUSINESS TODAY â&#x20AC;&#x201C; SUMMER 2015

29-31 Mining Vietnam 2016 Hanoi, Vietnam

APRIL

7-10 Food & Hotel Thailand Bangkok, Thailand 26-28 MINExpo 2016 Las Vegas, USA

9-20 Australian Pavilions, FPP Latin America EduEXPOS Colombia, Peru and Chile 12-15 Food&HotelAsia (FHA) & ProWine Asia (PWA) 2016 Singapore 25-29 Expomin 2016 Santiago, Chile

MAY 10-13 Seoul Food & Hotel Seoul, Korea 31 May - 3 June CommunicAsia2016 and BroadcastAsia2016 Singapore

TRADE MISSIONS MENA 2016 Health Education Mission When: 24-28 January Where: Dubai, Abu Dhabi, Riyadh and Kuwait Australia US Business Week When: 22-26 February 2016 Where: US Australian ICT Centres of Excellent Mission to India When: 22-26 February 2016 Where: Mumbai, Bangalore, Chennai, Hyderabad, Delhi Australia Week in China When: Mid April 2016 Where: TBC

COURSES

WATCH THIS SPACE FOR OUR NEW SKILLS DEVELOPMENT OFFERINGS IN EARLY 2016! Australian Institute of Export courses and publications can help you.

ONLINE COURSES

ICC PUBLICATIONS

Online Import Procedures Course ECA/AIEX Member price: $250 Non-member price: $330

Please note that for certain publications we do have limited stock.

Online Export Procedures Course ECA/AIEX Member price: $250 Non-member price: $330

User’s Handbook for Documentary Credits under UCP 600 The Law of Letters of Credit in China

India Online Cultural Intelligence Course ECA/AIEx Member price: $65 Non-member price: $80

International Commercial Transactions

China Online Cultural Intelligence Course ECA/AIEx Member price: $65 Non-member price: $80

ICC Model Turnkey Contract for Major Projects

ICC UCP 600

ICC Model International Sale Contract Trading in RMB with China ECA/AIEx Member price: $65 Non-member price: $80

ICC Guide to Incoterms 2010 ICC Model Confidentiality Agreement

PUBLICATIONS

COURSE DATES

Australian Export Handbook - 20th Edition Cost: $137.50

9 February 2016 Import Procedures Course Brisbane, QLD

Export Handbook E-book Cost: $55.00 Australian Import Handbook - 1st Edition Cost: $104.50 Import Handbook E-book Cost: $44.00 Advancing Trade Development: A Study into International Trade Cost: $55.00

11 February 2016 Import Procedures Course Sydney, NSW 24-25 February 2016 Export Procedures Course Sydney, NSW 1-2 March 2016 Export Procedures Course Brisbane, QLD 2-3 March 2016 Export Procedures Course Melbourne, VIC

8 March 2016 Import Procedures Course Melbourne, VIC 9-10 March 2016 Export Procedures Course Adelaide, SA 15 March 2016 International Payments & Understanding Documentary Credits Sydney, NSW 16 March 2016 Import Procedures Course Adelaide, SA 22 March 2016 International Payments & Understanding Documentary Credits Melbourne, VIC 23-24 March 2016 Export Procedures Course Perth, WA 30 March 2016 Import Procedures Course Perth, WA

NEW TO EXPORT? The Export Council of Australia is delighted to present the first of our new quarterly events aimed at getting prospective and new exporters ready to embark upon their export journey. 16 February 2016 – Melbourne 17 February 2016 – Sydney 18 February 2016 – Brisbane Perth and Adelaide dates TBC.

For more informaiton please visit www.aiex.com.au or call 02 8243 7440 INTERNATIONAL BUSINESS TODAY – SUMMER 2015 |

Think Global Trade, Think ECA. T

hroughout 2015 The Export Council of Australia (ECA) has proven to be a peak industry body for the Australian export community. Helping to equip Australian business with the skills and capabilities required to effectively and efficiently conduct profitable international trade. Through intensive research and industry insight, ECA has provided support to sector specific associations and councils representing business engaged in international trade.

This year ECA has continued to be a prominent voice for Australiaâ&#x20AC;&#x2122;s exporters.