Austrade media release 24 November 2009
Australian exporters seeking to gain assistance through the Export Market Development Grant (EMDG) for eligible export expenses incurred during 2008/09 have until the close of business Monday, 30 November to apply.
The EMDG scheme administered by Austrade encourages small and medium-sized Australian businesses to develop export markets by reimbursing up to 50 per cent of expenses – in excess of $10,000 – incurred on eligible export promotional activities.
Austrade’s General Manager Business Policy & Programs, Ian Chesterfield, said the scheme is designed to encourage new and existing exporters to increase their international marketing, which has a direct effect on their income.
"For example, EMDG gives exporters the means to attend trade shows in new markets, develop intellectual property, and ultimately engage new staff,” Mr Chesterfield said.
"Past EMDG recipients report that the grant has been instrumental in allowing them to identify and secure customers in markets that helped grow sales.
“During the 2007/2008 financial year, 4,025 businesses received $180.7 million in EMDG grants representing multiple industries in every state including rural and regional Australia,” Mr Chesterfield said.
By broad industry classification, during the 2007/08 financial year, the majority of EMDG recipients – 62.2 per cent – were in service industries dominated by tourism, education and culture, and ICT. A further 34.3 per cent were in manufacturing and 3.4 per cent in primary sector.
The principal market targeted by EMDG recipients continued to be the United States, followed by the United Kingdom, China, Singapore, Japan and Germany.
Earlier this year, Minister for Trade, Simon Crean, announced allocation of an extra $50 million to the EMDG scheme for 2008-09.
Mr Chesterfield said this was very well received by exporters and was part of the Government’s stimulus plan to assist exporters in supporting employment as well as developing and defending their international markets during the financial crisis.
This is the first grant year that the Government’s changes to the scheme, made as part of election commitments, have been available to exporters.
Other changes included raising the budget for 2009-10 financial year by $50 million to $200 million; increasing the maximum grant by $50,000 to $200,000 and increasing the turnover limit for eligible businesses from $30 million to $50 million with the inclusion of intellectual property expenditure.
The Government’s recent signing of the ASEAN-Australia-New Zealand Free Trade Agreement and the entry into force of the Australia-Chile Free Trade Agreement provides new opportunities for exporters.
The EMDG scheme allows eligible exporters to seek out new business and promote their products and services.
Austrade’s Chief Economist, Tim Harcourt said, Australian exporters have been our ‘secret weapon’ in the global financial crisis.
“Whilst we did see a huge drop in international trade – world trade volumes declined by 20 per cent over the year according to the Reserve Bank of Australia – Australian export volumes held up,” Mr Harcourt said.
“The Australian exporter community has played an important role in keeping people in work and keeping business going for global recovery which is now taking place,” he said.
Any eligible Australian individual, partnership, company, association, co-operative or trust seeking up to $200,000 in assistance may apply, but applications must be received by close of business Monday 30 November, 2009.
Further information on the EMDG scheme or assistance on how to apply can be found at:
http://www.austrade.gov.au/EMDG-application-forms/default.aspx
ENDS Media contact Sarkis Khoury, Senior Media Adviser, Ph: 9390-2118, Mobile: 0414 401 072
For further news and information from the Australian Trade Commission (Austrade) visit www.austrade.gov.au//mediacentre.
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