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Review of financial assistance to SME exporters.

On 3 October 2019, the Minister for Trade, Tourism and Investment, Senator the Hon Simon Birmingham, announced Ms Anna Fisher (Co-Owner, Zonte’s Footstep) will undertake a review of the Export Market Development Grants (EMDG) scheme and Australian Government financial assistance to SME exporters.

The Review will take a broad approach and examine the most effective and efficient way the Government can best provide financial assistance to SME exporters to promote their products and services overseas and enter new export markets. This is a key pillar in implementing the Government’s agenda to increase the number of exporters by 10,000 over the next three years and create an additional 250,000 trade related jobs over the next five years.

While the Government boosted the EMDG scheme by $60 million in the 2019-20 budget, the scheme has not seen significant reform in over 40 years. The review will consider how Government can make it easier and simpler for businesses to access support, consistent with the Government’s commitment to streamline service delivery.

The Review will seek the views of exporters and any interested parties through a series of face‑to‑face consultations around Australia, webinars and calls for online written submissions, commencing in October 2019.

The Review will also take into account research to explore the impact financial assistance can have on exporters and to understand the characteristics of successful exporters

The Reviewer will provide Minister Birmingham with her final report in March 2020.

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Australia wins big in US-China trade war

Australia has emerged as the “world’s biggest winner” from the US-China trade war, with surges in iron ore and coal prices supporting the first current account surplus in more than four decades.

Amid a thawing in the trade standoff between the superpowers at the weekend, a new Deloitte Access Economics Business Outlook report highlights “pain in our economy has been home-grown”.

The report, titled Oz Muddles through Global Uncertainty, warns that although global events had helped the economy, “that could change fast” and cited the housing market slump, consumer confidence and drought as negative growth factors.

 “The geopolitical landscape is littered with worrying risks. But neither the drought nor the housing downturn are here to stay and there’s already stimulus via cuts to taxes and to interest rates, plus a lower $A,” Deloitte Access Economics partner Chris Richardson said. “And housing prices are now rising, which may limit the damage housing does to the economy from here on. So absent a spanner in the works from a global threat, Australia should keep muddling through the aftermath of a housing bubble and a drought.

“Growth won’t be flash but it should slowly lift. Yet that recovery looks unlikely to develop sufficient momentum to see wages accelerate or to see unemployment fall much over the coming year.”

In his report, Mr Richardson said the “world has been giving Australia a pay rise amid a global slowdown”. “That’s never happened before. It means Australia has been the world’s biggest winner from the trade wars and the slowdown in China,” he said.

“That marvelous combination has given us the first current ­account surplus in more than four decades. But wait, there’s more. Borrowing costs have collapsed. That’s a big benefit for a nation with a trillion dollars in global debt, with the savings from that building substantially over time via a lower net income deficit.”

Trade Minister Simon Birmingham on Sunday welcomed the progress in talks between US and Chinese negotiators, and said easing trade tensions could “only help to lift global economic confidence”.

As part of the truce, US President Donald Trump said planned tariff increases on Chinese goods would be scrapped, with Beijing committing to buying $40bn-$50bn worth of US farm products. “We will examine the details of any agreement when they are released. Initial products mentioned don’t pose any significant concerns to Australia and we hope that any agreement is consistent with World Trade Organization rules,” Senator Birmingham said.

“We strongly back the competitiveness and quality of our ­exporters to compete on fair terms with any other nation, including the US. Through our free-trade agreements with both the US and China, Australian exporters are well positioned to continue to enjoy strong access to sell goods and services in both markets.”

The Australian understands that while there is limited detail on the US-China agreement, it is expected the soybean and pork sectors would feature prominently.

The Deloitte Access Economics report said Australia’s fiscal fin­ances had improved as rising house prices and commodity ­prices boosted state and federal taxes, with delays in the NDIS rollout slowing spending.

Mr Richardson said despite these factors, there remained“fragility about revenues” and a heightened focus on budget surpluses. “They rely on two trends whose sustainability is suspect: Chinese stimulus and housing price rises in Australia,” he said.

“That’s why there’s a risk that this is just five minutes of surplus sunshine in the nation’s fiscal fin­ances, as the states in particular move back into deficit.”

Opposition Treasury spokesman Jim Chalmers said the report forecasts “below-trend growth of 2.2 per cent in 2019-20, well below the Morrison government’s budget forecasts”.

THE AUSTRALIAN NEWS: Tuesday, October 15, 2019.

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Planting the digital seeds of success in China

A partnership between Austrade and Hort Innovation Australia is supporting horticulture growers and exporters to build reputation and market share in China.

The two organizations are working together to deliver a program of activities that promote and deliver trade outcomes for Australian horticulture growers and exporters.

These include campaigns on China’s premier social media platform WeChat timed to coincide with major Chinese festivals such as Lunar New Year. These campaigns have profiled Australia’s finest quality produce, including summer fruit, table grapes and citrus varieties.

A strategic longer-term joint approach which focused on how to work alongside China’s abundant bloggers and “foodies” has also resulted in increased engagement and subscribers to specific marketing accounts.

Online marketing strategies are typically complemented with activities such as targeted sampling and in-store tastings at supermarkets and other venues.

A recent Taste Australia promotion invited consumers to sample a new Australian grape-flavoured ice-cream (developed in conjunction with Hort Innovation and a local business). The promotion was advertised through social and traditional media channels.

Austrade and Hort Innovation will continue to share marketing insights and content that is effective in reaching Chinese audiences and assist Australian horticultural exporters to enter and expand in China.

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The impact of U.S.-China trade war on Australia

As the trade war between China and the United States continues to escalate, which country can benefit from it has been widely discussed. As a developed country, Australia can't fill the trade gap between China and America, because most of the manufactured goods are the main target of trade war however Australia did not export those goods. Developing countries like Vietnam will benefit because they can export manufactured goods to the U.S. instead of China.

In the short term, it is natural resources, such as liquefied natural gas(LNG), that Australia stands to gain from the trade war. Australia replaces the United States to export LNG to China at a lower price. But in the long run, a trade war would lead to recession in both countries’ economic environment, resulting in less opportunity for those other countries who fill the gap like less demand for Australia LNG. Therefore, U.S.-China trade war will not have a huge impact on Australia.

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Ausmate is preparing for the terms and conditions with an Gorilla Australia.

Recently, Ausmate headquarter ar preparing for the terms and conditions with an Gorilla Australia who is engaged in power drinks, and started a talk about future cooperation intention with Gorilla Australia on April 30th. Gorilla is science-backed nutrient powered drinks to help athletes reach peak performance. It is rich in vitamins and electrolytes, contains no artificial colors and sweeteners. The project is still under negotiation and is expected to be completed in the later stage.

Picture from GORILLA Facebook

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Australia’s supermarket chains play a pivotal role in the Australian food retail industry

“Supermarkets and Food Stores” is the most important sales department in the Australian food retail industry. Australia's four supermarket chains are a major part of Australia's “supermarkets and food stores”. From distribution to sales, Australia's food retail industry is dominated by four major supermarket chains. The four supermarket chains are Australian state-owned Woolworths, Coles Group's supermarket chain Coles, and Franklins, which is mainly in the Canberra region and rural New South Wales, and Aldi Supermarkets, a German food retail discount store. Australia's supermarket chains play a pivotal role in the Australian food retail industry.

At present, Ausmate is also actively seeking cooperation with large supermarkets in Australia to provide more sales channels for clients.

Picture from JobCool website

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Bigshot sparking wine is entering Chinese market

Bigshot is a kind of wine-based party sparkling wine. It is made from 90% of the Chardonnay grape in the Barossa Valley, a world-famous wine producing region. It blends 10% alcohol and has low alcohol content. The refreshing, rich Australian fruit aroma and unique personality of the wine make it very popular among young Australians. At present, Ausmate has assisted Bigshot in the export of Australian customs, preparing materials for entering Chinese market and completing customs procedures. Bigshot's products are now available on the Alibaba TrustPass platform.

Seize the opportunity and consult with us for Bigshot if you are interested in wine!

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The establishment of China Free Trade Zone promotes China-Australia cooperation

The Free Trade Zone(FRZ)is a class of special economic zone which  can provide the specific customs regulation on  imported goods, and  preferential policies on income taxes and other investment policies for the member countries of the agreement. The purpose is to eliminate tariff barriers and promote the trade between the member countries. Chinese Free Trade Zones  provide special exemptions from  foreign investment restrictions, promote the free flow of goods, services, capital, technology, personnel and other factors of production, liberalize trade and investment, complement each other's advantages and foster economy activity.

As of April 30, 2017, China has opened 12 special economic zones for FRZ, including pilot  Free Trade Zones in Shanghai, Guangdong province, Liaoning province and Zhejiang province. Meanwhile, Ausmate has set up branches in China where the pilot zones are located, which enhances the effectiveness and convenience of goods flow between Australia and China. Under the leadership of national policies, Ausmate have promoted the smooth development of bilateral trade and accelerated trade cooperation between supply and demand.

Picture from: dlpark.cn

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Ausmate will hold the “China-Australia Dalian Free Trade Zone Roundtable Conference ”in May.

Ausmate will hold the “China-Australia Dalian Free Trade Zone Roundtable Conference” in Dalian Free Trade Zone, China from May 10th to 11th, 2019 to expand the company's business and promote Sino-Australian trade cooperation. Invited guests include the Australian Chamber of Commerce, Australian manufacturers, Chinese customers and the Ausmate’s branch in China. The roundtable conference is about how to promote the collaboration between China and Australia, which will activate the cooperation between the governments and chambers of commerce and enhance the connection between manufacturers and governments. Ausmate will create a better platform for more and better collaboration between China and Australia through the roundtable conference in the future.

Picture from:dlpark.cn

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The Second Belt and Road Forum for International Cooperation was successfully held

The Second Belt and Road Forum for International Cooperation was held in Beijing on April 27 this year.mThe Second Belt and Road Forum for International Cooperation was held in Beijing on April 27 this year. A total of 40 countries and leaders of international organizations attended and discussed the theme of “building ‘One Belt, One Road’ and creating a better future”. The successful holding of the forum will contribute to the strengthening of the connectivity and the expansion of the world economy, and will facilitate more cooperation and exchanges between China and Australia in the South Pacific region.

Reference: The Second Belt and Road Forum For International Cooperation Website.f