Economic Data
(1999 projections)
Total GDP (in US$): $374.5 billion
GDP growth: 3.0%
GDP per capita (in US$): $19,800
Inflation: 2.5%
Unemployment rate: 8.1%
Trade Balance (in US$): $ +0.7 billion
Exports (in US$): $73.5 billion: coal, gold, meat, wool, alumina, iron ore, wheat, machinery and transport equipment. Export to Japan (20%), ASEAN countries (16%), South Korea (9%), U.S. (9%), New Zealand (8%).
Imports (in US$): $72.8 billion: machinery and transport equipment, computers and office machines, telecommunication equipment and parts, crude oil and petroleum products. Import from the U.S. (22%), Japan (14%), Germany (6%), China (6%), UK (6%),
Key Trading Partners: United States, Japan, Germany, China, UK, and ASEAN countries.
RI Exports (1998): Exports to Australia ranked 17th at $16.9 million.
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SYDNEY, Australia (AP) — From the day six years ago that Sydney won the right to host the 2000 Olympics, organizers knew the smooth running of the Games hinged on an effective transport network.
It was a fact magnified by the transport problems at Atlanta in 1996 where a complicated hub transport system meant athletes and officials feared they would miss events and bus drivers often became lost because they were unfamiliar with the city’s roads.
The Sydney Organizing Committee for the Olympic Games (SOCOG) took note and the Olympic Roads and Transport Authority (ORTA) was established in March 1997 to coordinate all elements of moving people around during the Games.
“Transport is really hard,” Olympics Minister and SOCOG president Michael Knight said Monday, two days before the official “one-year-to-go” date of Sept. 15.
Sydney’s rail network will work 24 hours a day to handle the 80-percent increase in regular traffic and the bus system will carry 50 percent more people than usual — amounting to around 1.2 million trips on peak days.
An estimated 500,000 spectators and workers will travel to the main Olympic site at Homebush Bay on the busiest days of the Olympics, with more than 100,000 more people traveling to Darling Harbor in the city, the Games’ second-biggest venue.
All ticket holders can travel free on the Olympic transport system until 4 a.m. on the day after their event.
Athletes and officials will mostly use ferries on the Parramatta River, besides dedicated Olympic traffic lanes in the city and Victoria Road, one of the main routes to travel the 20 kilometers (12 miles) from the central business district in Sydney to Homebush Bay.
Entergy ends Australian venture
NEW ORLEANS (AP) — Entergy Corp., which sold off its Australian power distributor nine months ago, is pulling the plug on its last remaining venture on the continent.
Entergy said it will withdraw from an $800 million joint venture with an Australian partner to expand a coal-fired Tarong North power station near Brisbane in Queensland.
The split, which should be completed by the end of the year, comes amid a growing battle in northeastern Australia between rival projects to build coal-fired generators and natural gas-fired plants. All the projects are seeking government approval.
Entergy’s investment in the Tarong project was minimal, said company spokeswoman Carol Clawson.
The company also will sell off its 50 percent interest in coal deposits in northeastern Australia, and the utility will close its one remaining office on the continent in Sydney.
Group to label foods not genetically altered
CANBERRA, Australia (AP) — A new Australian consortium said it will launch a label and certification process for foods which do not contain genetically modified products.
KPMG consultant Roger Hussey is organizing the move in conjunction with U.S.-based food testing company Genetic ID and food industry representatives.
”Our idea was to get together a group of companies (which) had a strong interest in preserving the food chain,” Hussey said. “We decided, with their agreement, to form the certified food consortium.”
The group hopes to launch a certification and testing process, whereby members use an industry-backed mark of quality on their products, within the next two months.
”It is like a badge of integrity,” Hussey said. He refused to reveal the names of the 10 to 12 companies involved, but said they include retail, distribution, fresh food producers, processed food representatives and large-scale exporters.
“The consortium will be an open consortium and will attempt to gain wide membership from right across the food industry,” Hussey said.
He said the group would consult farmers, consumer groups and other key players.
“It is the launching pad for GM-free food in Australia, because without it you can’t have GM-free food.”
While there are testing provisions for food already in place in Australia, the availability of GM-tested products is minimal, Hussey said.
Figures for the amount of genetically altered food sold in Australia were not immediately available.
Commonwealth of Austrailia
Location: Oceania, continent between the Indian Ocean and the South Pacific Ocean.
Total Area: 7.7 million sq. km. (3 million sq. mi.), about the size of the continental United States.
Climate: Relatively dry, ranging from temperate in the south to tropical in the north.
Main Cities and Towns: Sydney (4.0 million), Melbourne (3.5 million), Brisbane (1.5 million), Perth (1.3 million).
Population: 18.7 million
Language: English
Work Week: Monday through Friday
Type of Government: Democratic Federal and State parliamentary system, recognizing the British Monarch as Sovereign of Australia
Head of State: Queen Elizabeth II
Head of Government: Prime Minister John Winston Howard
Currency: Australian Dollar
Exchange Rate: 1.5186 A$ to 1 US$
Economic and Political Conditions: The U.S. and Australia are close allies, with similar market-oriented economies, cultural characteristics and language. Both countries advocate trade and investment liberalization. No major political issues exist that could disrupt the business climate or bilateral relations. Both leading Australian political parties strongly support internal re-structuring aimed at transforming the country into a globally competitive trading nation. Australia is the southern link in the Asia-Pacific alliance so important to both the U.S. and Australia. Australians are forward-looking, willing to give new things a try. The commercial climate is extremely open to U.S. goods and services and American products and brand names are common. Despite the Asian economic crisis, prudent financial management has allowed the economy to weather the downturn. Although exports to its Asian trading partners have slowed, and the trade deficit widened, Australia has maintained positive economic growth.
Tariffs and Trade Regulations
Australian duties on manufactured goods currently average 3 percent, with 94 percent of its industrial tariff lines GATT-bound. All tariffs were reduced to 5 percent or below in 1996, except for textiles, clothing, and footwear, and certain automotive products. By 2000, apparel and certain finished textile tariffs will be reduced to 25 percent. Footwear, sheeting and certain other fabrics will be lowered to 15 percent. The tariff rate on passenger motor vehicles and their original equipment components, currently 20 percent, will be reduced in stages to 15 percent by 2000.
Taxation: Australia imposes no import tax, but does have a sales tax on both domestically manufactured and imported goods. The general sales tax rate is 22 percent, but household goods are taxed at 12 percent and luxury goods at 32 percent. U.S. exporters should consult with their agent/distributor to determine the tax rate on their product when they calculate their price.
Licenses and Documentation: Although Australia has phased out import licensing requirements, U.S. exporters are still responsible for gaining customs clearance with the correct documentation. The minimum documentation required is a bill of lading or airway bill, and any shipment related papers. Exports require the necessary permits and an Export Clearance Number that may be obtained from the Department of Defense or the relevant government agency.
Prohibited Imports: Australia has rigid restrictions on certain imports, particularly those that could pose a public danger (weapons/firearms) or introduce contamination or disease into the environment (certain agricultural products).
Free Trade Zones: Australia has two major FTZs. The Darwin Trade Development Zone concentrates on trade relationships with Australia’s Asian neighbors primarily but is accessible for other uses as well. The Newcastle “Manufacturing In Bond” facility, created in 1997, assesses sales and duties taxes only if goods and materials are removed for sale in Australia. Australia is planning to open more of these MIB zones over the next several years.
Trade Finance: Australia has a wide range of export finance methods. The major trading banks own the main finance companies, with commercial banks providing medium term loans. Several U.S. organizations offer export assistance: the Export-Import Bank of the United States (Ex-Im Bank), the Private Export Funding Corporation (PEFCO) and the Small Business Administration.
Marketing: Market entry strategies for U.S. firms are straightforward. They include exporting products and services through the use of agent/distributorships, license/technology transfers, franchise arrangements, joint ventures, strategic alliances, and wholly owned subsidiaries/branches. As Australia restructures economically, there are significant opportunities to participate in major public-funded projects and to win major infrastructure and services projects made available through public sector divestment and privatization.
Product Pricing: Basic market factors of supply and demand apply in product pricing. In order to complete successfully in this small, but highly competitive market, U.S. exporters to Australia must be prepared to offer flexible prices, possibly lower than usual profit margins, and smaller minimum quantities.
Selling Factors and Techniques: Americans find it easy to do business in Australia because of the similarities in cultural and business practices. To understand the market better, some precautions must be observed, and some key selling factors considered. Australians are very quality conscious. Australians value product quality, company integrity, and good ongoing service.
Patents/Trademarks/Copyrights: Patents are available for inventions in all fields of technology and are the principle system for protecting ownership of any new device, substance, method or process. The Patents Act of 1990 offers coverage for 20 years, subject to renewal. A patent application provides international priority rights if applications follow in overseas jurisdictions within 12 months. Trademarks may be protected for ten years and renewed indefinitely upon request by registration under the Trademarks Act of 1995. Once used, trademarks may also, without registration, be protected by common law. However, registration with IP Australia does make enforcement easier.
Key Contacts
Rhode Island Export Assistance Center (RIEAC) and World Trade Center, Bryant College
Raymond W. Fogarty, Director Edward Barr, World Trade Center Manager
Telephone: (401) 232-6407 or (401) 232-6408 Fax: (401) 232-6416
E-Mail: mailto:postoffice@itdn.net Website: http://www.rieac.org
Rhode Island Economic Development Corporation (RIEDC)
Maureen Mezei, International Trade Director
Telephone: 222-2601, ext. 123 E-Mail: mmezei@riedc.com
U.S. Export Assistance Center, Department of Commerce
Keith M. Yatsushashi, International Trade Specialist
Telephone: (401) 528-5104
E-Mail: mailto:kyatsuha@mail.doc.gov kyatsuha@mail.doc.gov
Australian Embassy
1601 Massachusetts Ave, NW, Washington, DC 20036
Telephone: (202) 797 3000 Fax: (202) 797-3168
US Department of Commerce
Australia Desk Officer, International Trade Administration
Room 2308 HCHB, Washington DC 20230
Telephone: (202) 482 2471/2955 Fax: (202) 482 5330
Senior Commercial Officer for Australia
Commercial Service, U.S. Consulate General
MLC Centre, Martin Place, Level 59, Sydney, NSW 2000
Telephone: 61 2 9373-9200 Fax: 61 2 9221-0573
English Language Media Sydney Morning Herald
http://www.smh.com.au
The Age: http://www.theage.com.au
Australian News Network: http://www.news.com.au
Country Profile
Compiled by Providence Business News,
in collaboration with Bryant College Export Assistance Center.
