Australian Trade Commission; Annual Report 2010-11

Outcome 1

Advance Australia’s trade and investment interests through information, advice and services to businesses, industry and governments.

Program 1.1: trade and investment development

Objective

Through initiatives at a national, sectoral and enterprise level, Austrade will provide advice, market intelligence and ongoing assistance to Australian businesses, institutions and industry looking to develop and expand their international business, and promote and facilitate productive foreign direct investment into Australia.

Program 1.1 — Deliverables

Deliver market development initiatives in priority and emerging markets and coordinate responses to opportunities in those markets. A particular focus will be placed on the expansion of Australia’s presence in India.

Deliver industry development initiatives through the Automotive Market Access Program, Clean Energy Trade and Investment Strategy, positioning of Australia as a financial services centre and other industry initiatives.

Promote the sustainable development of Australia’s international education and training services, and support the international standing of Australia’s education system as world class and globally connected.

Deliver Global Opportunities clusters in priority sectors, to position them to take advantage of opportunities in key international markets and attract complementary high value–added foreign direct investment.

Attract productive foreign direct investment to Australia.

Implement the Brand Australia program and promote its use by Austrade and other Australian Government agencies.

Deliver the Australian Export Awards, Business Club Australia and other events to raise business and community understanding of trade and investment and to recognise Australia’s international business achievements.

Lead the promotion of Australia as a destination for investment and as a source of business capability and competitiveness in overseas markets.

Contribute a trade and investment development perspective to the whole-of-government policy agenda.

Deliver Austrade services to individual Australian businesses including advice and market intelligence through Austrade’s onshore and offshore networks and delivery channels.

Build effective international linkages and networks with buyers, investors, decision-makers and institutions in overseas markets.

Deliver Austrade’s services through relationships and partners including through TradeStart and Corporate Partnerships and industry associations.

Assess applications for the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936, to assist the international competitiveness of Australian companies and government organisations competing to win international tenders.

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Market development initiatives

Performance measure

Outcome

Successful delivery of market development strategies to realise opportunities for Australian businesses in priority and emerging markets.

In 2010–11, Austrade implemented a range of market development initiatives within key markets to help Australian businesses take advantage of opportunities. These included: extending Austrade’s existing presence in India, including increased specialist investment resources and activities around opportunities associated with sport the announcement, in February 2011, of the opening of a new Austrade office in Mongolia deepening Australia’s engagement in key markets, including China and India, and free trade agreement markets such as the Association of Southeast Asian Nations (ASEAN), as well as developing links in growth markets, including Latin America—Brazil, Colombia, Chile, Peru, Mexico and Argentina—and testing opportunities in emerging markets, such as Sub-Saharan Africa and Central Asia.

This year, Austrade continued to build effective international linkages and networks with buyers, investors, decision-makers and institutions in overseas markets. Austrade’s four offshore regions delivered market-specific development initiatives and programs focused on increasing opportunities for Australian trade and investment. The regions were split into the following groups:

Americas

Europe, Middle East and Africa (EMEA)

North East Asia (NEA)

South East Asia, South Asia and Pacific (SEASAP).

In 2010–11, Austrade focused on deepening engagement in the key markets of India and China, supporting Australian businesses to expand their presence in those regions. Asian countries represent seven of the top eight markets based on the volume of Austrade client services delivered, consistent with the strong Asian market representation in the value of trade outcomes achieved with Austrade’s assistance (see Figure 4). Austrade also carried out market development activities in Mongolia as part of this engagement.

Figure 4: Austrade’s services delivered in target markets, 2010–11

Austrade delivered a number of specific market programs in 2010–11, including support for a mission on sports capability to Brazil and mining in Latin America; support for a ‘Team Australia’ approach at the international solar trade fair, Intersolar, in Germany; promotion of the benefits of the ASEAN–Australia–New Zealand Free Trade Agreement; assistance in gaining market access for Australian table grapes in China; and the international promotion of education across all regions. Further details on market development initiatives are provided in the following section.

Austrade’s onshore and offshore networks will be restructured from 1 July 2011, following the Austrade Review. For more information on the Austrade Review, see Appendix B.

Deepening engagement in key markets

In 2010–11, Austrade delivered market development initiatives in key markets and coordinated responses to opportunities in those markets. A particular focus was placed on the expansion of Australia’s presence in India and further deepening of engagement with China.

India

Due to economic growth in South Asia, increasing numbers of Australian firms are actively working in India and achieving trade outcomes.

To support this growth, Austrade now has 11 offices in India. In 2010–11, new offices were opened in Kochi, Ahmedabad, Pune, Jaipur and Chandigarh, after the Government announced additional funding in November 2009. This funding also enabled the expansion of Austrade’s presence in New Delhi, Mumbai, Chennai, Bangalore, Hyderabad and Kolkata, and included a dedicated Trade Commissioner role for investment, based in Mumbai.

Reflecting the Government’s commitment to India, Austrade has the largest in-market network of any country.

This strategic geographic placement means Austrade is well positioned to identify and deliver business opportunities to Australian companies and to work with state, territory and industry organisations to build linkages with Indian companies, implemented through its India and South Asia network.

The official opening of Austrade’s Ahmedabad office in India. L–R: Patrick Kearins, Trade Commissioner, Austrade; Peter Varghese AO, Australian High Commissioner to India; and Jinendra Khara, Austrade

China

Austrade continued to pursue a whole-of-government approach to the planning and execution of trade and investment development activities in China, in cooperation with other federal and state and territory government agencies and industry bodies. This allowed Austrade to identify joint initiatives that increase results, avoid duplication and leverage its ‘badge of government’ in the China market.

Austrade’s network of 14 offices in China provides Australia with the most extensive trade and investment promotion network in the country. Larger Australian companies use the Austrade network to extend their reach by sourcing in-market business intelligence. Austrade also provides assistance in developing relationships with local governments.

For smaller companies, Austrade’s presence in second-tier cities provides access to market information and attractive investment opportunities in a quickly emerging market. Austrade’s network also allows Australia to better identify and capitalise on potential inward investment from China.

In 2010–11, Austrade supported the Australian Government’s focus on specific industry sectors with the highest growth potential, including clean technology and environmental services. Austrade developed the Australia–China Wanwu Eco-country Initiative (the Wanwu Initiative), which provides a coordinated marketing platform to introduce Australian firms to Chinese eco-projects and funding opportunities. Through the Wanwu Initiative, Austrade aims to encourage exports and two-way investment between Australia and China in clean energy, green building and environmental services. For more information on the Wanwu Initiative, see page 34.

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Developing growth and emerging markets

In 2010–11, Austrade delivered market development initiatives in the emerging market of Mongolia and coordinated responses to opportunities in Mongolia.

HE Sukhbaatar Batbold, Prime Minister of Mongolia, visited Australia in February 2011, as a guest of the Australian Government. Mr Batbold was accompanied by a delegation of Mongolian ministers, parliamentarians, officials, media and more than 20 business executives.

During Mr Batbold’s visit to Canberra, the Hon Julia Gillard MP, Prime Minister of Australia, announced that Austrade would open a new trade office in Mongolia. The Hon Dr Craig Emerson MP, Minister for Trade, said this decision reflected the growing business relationship between the two countries, and he expected the office to open in the second half of 2011.

In conjunction with Mr Batbold’s visit, Austrade organised the Australia–Mongolia Business Forum in Sydney. Attended by 115 businesspeople, the forum delivered information about the emerging commercial opportunities in Mongolia, largely within mining, infrastructure, services, vocational education and agricultural sectors.

At the forum, Peter Grey, Austrade’s CEO, launched the Mongolian mining projects report 2011, an Austrade publication for Australian companies interested in doing business in Mongolia’s mining sector.

The Prime Minister of Mongolia, HE Sukhbaatar Batbold, addresses the Austrade-organised Australia–Mongolia Business Forum in Sydney in February 2011. Back to top

Austrade’s regions

Americas

In 2010–11, Austrade’s presence in the Americas was spread across the following markets:

United States

Canada

Latin America.

Figure 5: Austrade’s presence in the Americas [Click on image for large view]

In 2010–11, Austrade supported Australia’s exporters to enter markets in the region; identified major emerging market and technology opportunities; promoted Australian research and innovation; attracted targeted foreign direct investment; and marketed Australian education products and services.

Mature markets, such as the United States and Canada, have grown modestly since the financial crisis as private demand remained fragile. Latin America returned to robust growth on the back of strong market fundamentals and rising demand for resources and commodities from Asia.

The United States and Canada continued to be important export markets for Australia—despite the strong Australian dollar—particularly in financial and business services, and were significant sources of productive foreign direct investment, including in the emerging technology and energy sectors.

In Latin America, Austrade concentrated on major growth markets—specifically Brazil, Mexico, Peru, Chile, Colombia and Argentina. Key sectors included mining and energy, agribusiness, financial services, renewable energy and environmental services, water sustainability, education and training, and major sporting events in Brazil.

Austrade also supported the food and beverage initiatives of Meat and Livestock Australia and Wine Australia.

Highlights from the year are detailed below.

United States

In May 2011, Dr Emerson attended the APEC meeting for ministers responsible for trade, held in Montana. Austrade organised a delegation of officials and business representatives to participate in associated meetings for small to medium-sized enterprises to address trade and investment issues.

Austrade supported export facilitation and investment attraction in the automotive sector, working with the Department of Innovation, Industry, Science and Research and industry associations. Austrade employed an automotive specialist in Chicago and assisted in positioning Australian suppliers in global supply chains by engaging with US-based original equipment manufacturers, niche vehicle builders and after-market retailers.

In April 2011, Austrade assisted an automotive business delegation to the United States, led by the Hon Steve Bracks AC, Australian Automotive Envoy. Austrade assisted the industry cluster, Team Australia Automotive, with a program of meetings with Detroit-based automotive manufacturers, Ford, Chrysler and GM; niche vehicle makers, Tesla and Gibbs; and an Australian technical showcase at the Nissan Technical Center, where designers and engineers could see demonstrations of Australian automotive innovation. For more information on Austrade’s automotive strategy, see page 36.

In 2010–11, Austrade raised Australian commercial and research awareness of drop-in biofuels in the United States. Austrade also promoted opportunities in sustainable alternative aviation fuels, supporting Qantas Airways.

In January 2011, Austrade managed business-focused events, retail promotions and trade missions at ‘G’Day USA’. Events were held across the United States on urban water management, new technology and innovation, agriculture and the environment, river systems management and energy. Austrade also helped organise a financial services luncheon, which attracted senior representatives from the United States, Canada, Brazil and Chile. This was an important platform for Austrade’s investment attraction activities.

Austrade raised awareness of Australian expertise in water management among US regulatory and business decision-makers and organised a water mission of thought leaders, researchers and business representatives to coincide with water-themed events at G’Day USA. The mission culminated in an ‘Australian Water Day’ at the World Bank headquarters in Washington DC, with the World Bank proposing an international centre for sustainability and water resources management in Australia to showcase capability.

In May 2011, agricultural biotechnology companies, researchers and investors met in St Louis, Missouri, for the Agriculture Innovation Showcase. Australian companies, AgTechnix and Aquation, were two of only 16 firms selected to formally present their emerging technologies. Austrade assisted both companies and UniQuest, the University of Queensland’s technology transfer office, with preparation for the showcase and introductions to senior executives of the world’s largest plant health companies. Austrade also sponsored a panel discussion, where Australia’s research into animal and plant health, food security and clean energy was discussed.

In June 2011, Austrade supported the Australian pavilion at the BIO International Convention in Washington DC. Biotechnology industry delegates participated in forums and partnering events, with Austrade organising networking and information events for Australian and US firms in the areas of regenerative medicine and biopharmaceuticals. Austrade also assisted a Department of Innovation, Industry, Science and Research reception at the Australian Embassy for over 400 guests. Australia sent one of the largest delegations to the convention, which was attended by more than 15,000 delegates from the United States and 65 other countries.

L–R: Grame Barty, Austrade’s Regional Director, Americas; Professor Lyn Beazley, WA Chief Scientist; and the Hon Kim Beazley AC, Australian Ambassador to the United States, at the national pavilion during the BIO International Convention, Washington DC, in June 2011.

In 2010–11, Austrade raised awareness of Australia’s strong economic performance and regulatory environment among US-based financial institutions and assisted new entrants into the Australian market. These activities help to expand financial sector jobs in Australia as well as lower costs and increase choices for Australian investors. Throughout the year, Austrade assisted several highly regarded firms, such as Angelo Gordon & Co and Babson Capital Management, to enter or expand their presence in Australia. Austrade helped to organise briefings by Australian ministers and senior officials. Austrade also provided market and regulatory analysis, and facilitated introductions to regulators, industry bodies, state governments and local professional service providers.

Canada

Austrade supported the inaugural Australia–Canada Economic Leadership Forum in Sydney in November 2010. The forum, for senior business executives, was an acknowledgment of the growth in two-way investment between Australia and Canada.

Austrade initiated the first Australian funds management mission to Toronto and Montreal in early 2011 to help Australian companies develop relationships with Canadian pension funds and financial services companies.

In March 2011, Austrade organised the Australian pavilion at the Prospectors and Developers Association of Canada Convention, the world’s largest mine financing and exploration event. Austrade hosted an ‘Investing in Australia’s Resources Sector’ seminar and supported state government events.

Austrade supported the promotion of Australian education in Canada. In September 2010, nine Australian universities participated in Austrade-managed programs in Vancouver, Toronto and Montreal. The providers engaged with students and discussed collaboration with Canadian universities. Another student recruitment mission was conducted in March 2011 for five Australian universities.

There is increasing interest from Canadian universities to collaborate with Australian institutions in areas of mutual significance, like life sciences and aboriginal and ageing research. During the year, Austrade arranged a life sciences research mission with representatives from six Australian universities.

Latin America

In December 2010, the Hon Kevin Rudd MP, Minister for Foreign Affairs, visited Brazil and Chile to attend the Mercosur trade organisation’s summit and undertake bilateral meetings. Austrade arranged a business roundtable for Mr Rudd in Sao Paulo, which was attended by Australian business leaders from the mining, energy, engineering, agribusiness and tourism sectors. Austrade also facilitated a speaking opportunity at the Alberto Hurtado University in Chile, where Mr Rudd addressed the education sector and a business reception.

During his visit to Brazil, Mr Rudd signed a memorandum of understanding on sports cooperation between Australia and Brazil. Austrade helped Australian businesses to bid for work around the 2014 FIFA World Cup and 2016 Rio de Janeiro Olympic Games. In November 2010, Austrade assisted a mission to Brazil of 21 Australian companies promoting capability in sport infrastructure, technologies, project management and athlete facilities. The mission included meetings and workshops in Rio de Janeiro, Brasilia, Belo Horizonte and Sao Paulo. To date, Austrade has facilitated outcomes for 67 companies in the sports sector in Brazil.

Austrade has worked with Sonda, the largest IT company in Latin America, since 2007 to strengthen its understanding of Australian research and innovation networks. This year, Sonda made a strategic $3 million investment in Australian firm CPT Global, which is regarded as the first step in establishing its Australian presence. The investment in CPT Global enhances that company’s product and technology suite for cloud systems.

In 2010–11, Latin America was a growing source of international students for Australian educational institutions and for in-market education and training services. Brazil and Colombia represented the largest source of students from the region, enrolled primarily in English language courses and vocational training. In May 2011, Austrade organised a Latin American media visit to Australia to profile Australia’s world-class education and training system. Austrade also delivered a familiarisation visit by Latin American education agents, focusing on Australia’s tertiary education sector.

The mining, resources and energy sectors form a major proportion of Australia’s commercial engagement with Latin America. Austrade delivered an integrated regional strategy to attract more Australian companies to the region and to encourage businesses already operating in Latin America to expand into new markets. Austrade worked with smaller Australian mining companies to increase understanding of the key markets in Latin America and identify opportunities. Austrade managed or partnered Australian pavilions at major mining conventions and trade fairs in Chile, Mexico and Colombia.

In 2010–11, economic growth, increasing savings and purchasing power, and strong investment performance have helped drive the rapid expansion of the financial services sector in Latin America. Austrade developed a dedicated financial services team that focused on Brazil, Chile and Mexico and launched Australia: a global financial services centre—benchmark report 2010 in Brazil and Chile during a November 2010 visit program to assess the opportunities for Australian asset managers. The program included meetings with key fund managers, including pension fund managers and senior market regulators.

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Europe, Middle East and Africa

In 2010–11, Austrade’s presence in Europe, Middle East and Africa was spread across the following six sub-regions:

United Kingdom, Ireland and Israel

Western Europe

Central and South East Europe

Commonwealth of Independent States

Middle East and North Africa

Sub-Saharan Africa.

Figure 6: Austrade’s presence in Europe, Middle East and Africa [Click on image for large view]

During 2010–11, Austrade promoted Australia’s capabilities in clean energy, advanced manufacturing, financial services, education, infrastructure, mining and agribusiness and assisted exporters and investors in these sectors.

Market volatility associated with eurozone debt problems, reduced domestic demand and political instability in the Middle East and North Africa led to challenging conditions for much of the year.

United Kingdom, Ireland and Israel

The 2012 Olympic Games in London continued to be a major focus for Austrade. Australian companies that successfully pre-qualified for work on the Olympics were introduced, with Austrade’s assistance, to appropriate UK infrastructure and event management companies.

Austrade worked with the Ireland Office of US network management software firm SolarWinds to increase the company’s operations in the Asia–Pacific. SolarWinds selected Brisbane as the site for expansion in the regional market and will employ a significant number of staff in sales, marketing and product development once fully operational.

In September 2010, Austrade was a leading sponsor of the ‘AustraliaLive’ showcase in London. Australia’s trade and investment opportunities were promoted, including cutting-edge research and technology innovation, financial services, tourism and creative industries. The program reached out to a broad spectrum of business and industry leaders and consumers through several events, such as the CEO forum, attended by 220 high-level delegates.

Western Europe

Austrade, in partnership with the Queensland Government, assisted the German company, Fresenius Kabi, to invest $5 million into a new oncology research and compounding centre in Queensland. The facility will have the capacity to prepare up to 200,000 individualised prescribed doses of chemotherapy each year.

In June 2011, Austrade coordinated the first ‘Investing in Research’ mission to the United Kingdom, France and Germany, to assist Australian universities to commercialise their research and development. Meetings were arranged with nine major European corporations: Bosch, Bayer Schering, Thales, EADS, Veolia, Sanofi Aventis, GlaxoSmithKline, Pfizer and SABMiller. Over 120 proposals were submitted for review and 47 proposals from seven universities were selected for further development.

Austrade continued to promote investment opportunities in clean energy and environmental technologies, building on initiatives commenced during the last two years. Following its success last year, Austrade led a ‘Team Australia’ approach at the world’s leading international solar trade fair, Intersolar, held in June 2011 in Munich, Germany.

Austrade promoted infrastructure investment opportunities in Australia to enable technology transfer between Australian and European companies. Austrade supported a visit to Italy by the Hon Anthony Albanese MP, Minister for Infrastructure and Transport, where he met with Italian industry. During the year, Austrade also supported visits to Italy and Spain by representatives from Infrastructure Australia, the Victorian Government and Brisbane Marketing, for briefings in Milan and Madrid. Both Italy and Spain have multi-billion-dollar investments in Australia with prospects for further growth.

Austrade promoted Australian renewable energy opportunities at Intersolar, the international solar trade fair in Germany, in June 2011.

Central and South East Europe

Austrade continued to focus on key areas of education, automotive, infrastructure, mining and energy. A highlight was the ‘Emerging Europe’ coal technology and services mission, which visited Poland, Russia and Turkey in May 2011. The mission focused on opportunities identified by Austrade in coal-bed methane, mine planning and safety. In Poland, meetings were held with ministries overseeing coal mining and the largest Polish coal miners.

Cooperation between the Czech Republic and Australia in the automotive sector made significant headway with a visit to Australia by a delegation of Czech firms from leading research and development institutes and original equipment manufacturers to explore cooperation in new materials and low-emissions technologies.

Throughout 2010–11, Austrade also undertook a series of events and seminars across the sub-region to position Australia as a provider of high-quality education services and develop stronger institutional linkages and research collaboration.

‘Emerging Europe’ coal mission participants at Belchatow, Poland, in May 2011. Belchatow is Central Europe’s largest open-cast lignite mine. L–R: Andrzej Kopertowski, PGE Belchatow; Marian Pirucki, PGE Belchatow; Harry Mostert, Aran International; Marianne Broadgate, Acquire; Pawel Zylka, Aran International; Kevin O’Brien, Coal Services Australia; and David Ricketts, Ludowici.

Austrade assisted two Australian marine firms to access the lucrative Greek shipping and marine market. They were Custom Floats, which provides specialised floating devices for raising marine vessels, and SuperJet Boating, a manufacturer of high-speed pleasure craft. In an unprecedented move, the Greek Government implemented specialised legislation, granting the Australian firms licences and certification to operate in Greece.

Commonwealth of Independent States

Austrade pursued opportunities in the key sectors of mining and energy, agribusiness, sports and education.

Austrade supported two mining missions to Kazakhstan in 2010, including collaboration with Austmine on a mission in September, which combined a large Australian presence at a trade fair with site visits and high-level meetings with companies and government.

The Russian component of the Emerging Europe coal mission included a visit to an open-cut mining operation near Kemerovo, the capital of Siberia’s Kuzbass coal region. On return to Moscow, Austrade arranged a program of group and individual meetings with major Russian coal companies and government agencies. Each delegate identified opportunities to develop further business relations in Russia.

Australian mining equipment, technology and services companies have a ‘preferred supplier’ reputation in Russia. In 2010–11, major companies SUEK and Evraz attended the Queensland Mining Exhibition in Mackay and both awarded substantial contracts to Australian companies.

Opportunities for Australian sports companies emerged in Russia after it won the right to host the 2018 FIFA World Cup, in addition to the 2014 Sochi Winter Olympics and the 2013 Kazan University Games, among other events. Austrade established contact with key stakeholders in Russia and assisted Australian companies seeking to capture opportunities in architecture, construction, project management, cleaning, catering and public events.

Following a detailed market report on the education potential in Azerbaijan, Austrade arranged a mission in April 2011 to Baku, attended by four Australian universities. As a result, Australian education agents have opened offices in Baku and reported growing levels of interest in Australia from students there. ¹

Evin Sungun, Austrade, gives advice to a student at the Azerbaijan Education Exhibition in Baku in April 2011.

1. Austrade’s activities in Azerbaijan are conducted from its Istanbul office.

Middle East and North Africa

In 2010–11, the region faced difficult challenges, including civil unrest. Despite this, Austrade was able to strengthen linkages between business communities in Australia and the Middle East and North Africa, focusing on infrastructure, education and agriculture.

In October 2010, Austrade organised the first delegation of seven Australian infrastructure-related companies to the Emirates Nuclear Energy Corporation in Abu Dhabi, to showcase Australian capability in designing and building cities.

In December 2010, Austrade supported a visit by a delegation from the Australia Gulf Council, led by the Hon Bob Hawke AC, former Prime Minister, and the Hon Peter Costello AC, former Treasurer. The visit explored trade and investment opportunities between Australia and the Gulf region.

As part of Austrade’s strategy to help Australian agriculture firms leverage opportunities arising from the $4 billion Green Morocco Plan, Austrade arranged Australian participation in the Salon International de l’Agriculture au Maroc (SIAM), Morocco’s leading international agricultural exhibition, in April 2011. The Head of State, HM King Mohammed VI, HRH Prince Moulay Rachid and HE Aziz Akhannouch, the Moroccan Minister of Agriculture and Fisheries, visited the Australian national stand. Australian exhibitors included Wellard Rural Exports, AgWest International, Macquarie Bank, Leader Products, Rubicon Water and Food Safety Operations Queensland.

Austrade also assisted the horticultural exporter, CostaExchange, with access to the Moroccan Government to establish and expand a blueberry plantation in Morocco. CostaExchange imports root stock from Australia to Morocco and exports the fresh blueberry produce to the European Union under the Morocco–EU Free Trade Agreement. CostaExchange is now able to supply its international customers year round under this arrangement.

Tom Yates, Austrade’s Senior Trade Commissioner, North Africa, welcoming Morocco’s Head of State, HM King Mohammed VI, and introducing him to exhibitors at the Australian stand at SIAM in Meknes in April 2011.

Austrade coordinated participation by 24 institutions in a Middle East and North Africa education seminar series in October and November 2010. Participants reported significant outcomes as a result and are planning future visits to the region.

In April 2011, the International Exhibition and Conference on Higher Education took place in Riyadh, Saudi Arabia. Austrade organised a number of events to raise the profile of Australian education and build stronger relations between Australia and Saudi Arabia in the research field.

In 2011, Austrade assisted in the evacuation of Australians from Libya due to civil unrest. For more information, see page 83.

Sub-Saharan Africa

While economic recovery is under way in the region, among country groups, there is variation in the spread of the recovery. Austrade focused on building business relationships in mining, agriculture, infrastructure and education.

In 2010, Austrade met with mining companies and service providers in Dakar, Senegal, to forge commercial links in infrastructure, agriculture, mining and energy in both Senegal and wider francophone West Africa.

Austrade, in collaboration with the Department of Foreign Affairs and Trade (DFAT) and the Australian Agency for International Development (AusAID), managed two major mining events, Electra Mining in Johannesburg in October 2010, and Mining Indaba in Cape Town in February 2011. Austrade recruited a total of 27 companies to Electra Mining and 42 to Indaba, actively connecting them with potential business partners and introducing them to regulatory officials.

In 2011, Austrade assisted the inaugural mission of nine Australian companies to Africa from the Australia–Africa Business Council. Austrade also supported DFAT in hosting a visit to Africa by a delegation from the Joint Standing Committee on Foreign Affairs, Defence and Trade.

Austrade participated in the inaugural Guinea Mining Symposium in May 2011. The resource-rich West African country allocated iron ore and other mineral concessions to the world’s three biggest miners—BHP Billiton, Rio Tinto and Vale—which will deliver significant opportunities for Australian mining equipment, technology and services and supply chain companies.

Austrade promoted Australian capability and expertise in the education and research sectors, particularly engineering, minerals and vocational training. Austrade assisted AusAID to increase awareness of its Africa Awards program through education agent briefing sessions in Botswana, Kenya, South Africa, Malawi, Zambia and Zimbabwe.

Austrade also assisted the University of Newcastle to form a strategic partnership with the Ford Foundation and Walter Sisulu University in South Africa for the delivery of a broad range of courses. An introduction was also made to the University of Botswana resulting in an arrangement for the University of Newcastle to deliver a short course in industrial relations and develop a range of future programs.

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North East Asia

In 2010–11, Austrade’s presence in North East Asia was spread across the following markets:

China

Japan

Republic of Korea

Taiwan

Hong Kong and Macau

Mongolia (part-year presence managed from Seoul).

Figure 7: Austrade’s presence in North East Asia [Click on image for large view]

During 2010–11, Austrade focused on delivering high-quality outcomes in line with the Australian Government’s trade, industry and investment policies in North East Asia, particularly in those markets where Austrade’s extensive market knowledge, cultural understanding and role as Australia’s representative were best able to assist trade promotion and two-way investment.

Austrade assisted companies in a number of industry sectors to achieve trade and investment success. These sectors included environmental technology, regional supply chain integration and education.

The North East Asia region comprises export and investment markets of vital importance to Australia, as well as the emerging market of Mongolia, which welcomes Australian expertise, exports and investment. For more information on Austrade’s work with Mongolia, see page 13.

A number of highlights from the year are provided below.

China

China is Australia’s largest trading partner and one of the fastest growing sources of foreign direct investment.

Austrade was involved in an extensive program of business events at Shanghai World Expo 2010. Between May and October 2010, decision-makers and businesspeople from Australia and China were brought together in a series of carefully targeted events covering industries including agribusiness, cosmetics, construction and financial services.

For more information on the Shanghai World Expo, see page 52.

In September 2010, Austrade ran the Australian pavilion at the China International Small and Medium Enterprises Fair (CISMEF) in Guangzhou, where Australia was honoured as the partner country. The pavilion featured Australia Unlimited branding and included a cultural program developed by the Australian Consulate-General in Guangzhou. Austrade also supported an extensive business matching program during CISMEF, with an exit survey showing more than 90 per cent of clients reported positive outcomes as a result of the fair. For more information on CISMEF, see page 67.

Austrade provided foreign investment assistance to Chinese company Luheng. In July 2010, Luheng agreed to invest $2 million into more than 20 greenhouses and a hydroponic system on 80 acres of farming land in Willunga, South Australia. The farm produces high-quality Asian vegetables for the domestic market. Luheng holds certification for food safety and quality from Freshcare, an Australian, industry-owned-and-operated program that provides on-farm assurance for fresh produce. Luheng currently supplies a number of Australian supermarkets, including Woolworths.

Austrade, in conjunction with the South Australian Government, has been working with Luheng since 2007, providing the company with investment-related information and services, including Australian industry capability reports, information on the investment environment and foreign investment regulations.

Austrade also assists exporters to take advantage of new opportunities resulting from the lowering of trade barriers in markets such as China. After more than six years of negotiation, Australian table grapes were granted market access into China in 2010. The protocol allowing access to Australian table grapes was signed in July 2010 during the Shanghai World Expo and the first consignment of 1,870 boxes of crimson seedless table grapes arrived in Guangdong in May 2011.

Austrade provided market intelligence, facilitated introductions to key Chinese importers, promoted Australian grapes in the Chinese market and supported the Australian Table Grape Association’s push to build on its members’ initial steps into the market. Australia’s table grape trade to China is expected to grow significantly as a result of this new market opening.

L–R: Representatives from Golden Wing Mau Group, the Chinese distributor of Australian table grapes, the Australian Table Grape Association and Austrade with the first consignment of Australian table grapes to China.

During the year, Austrade supported a large number of ministerial and official visits to China. This included a visit to China by the Hon Justine Elliot MP, Parliamentary Secretary for Trade, during which she attended the Australian Pavilion at the 16th China International Education Exhibition Tour in Beijing in March 2011. For more information, see page 64.

Japan

Japan is Australia’s second-largest export market and remains one of Australia’s most significant sources of foreign direct investment with diverse interests in food and resource security, wholesale and retail trade and services. While Japan’s large long-term investment in minerals and energy projects in Australia is well known, mid-sized Japanese companies are also actively seeking business opportunities in Australia.

Ito En was the first company to grow, harvest and export green tea from Australia to Japan. Australia’s location in the southern hemisphere allows Ito En to supply Japan with fresh tea during the northern hemisphere’s winter. This means Japanese consumers can buy fresh Australian-grown green tea when it is locally out of season. The company’s factory in Wangaratta, Victoria, was built in 2004 to process tea for the Japanese market. Once the Australian-grown tea had met Ito En’s quality control standards, the company launched a new green tea product in Japan called ‘Australia’, to take advantage of Australia’s strong reputation for safe food. In 2010, Ito En Australia was recognised for its achievements through a regional exporter commendation at the Governor of Victoria Export Awards.

Austrade was instrumental in helping Ito En reinvest $8.4 million into the company’s Australian operations. Austrade’s contribution built on the Victorian Government’s significant assistance to the company when it first set up its Australian operations. Ito En is also involved in Austrade’s ‘Taste of Tomorrow’ initiative which focuses on the important issue of food safety in Japan. See page 36 for more information on Taste of Tomorrow.

Japanese consumers are increasingly sensitive to product integrity and origin issues, especially in the food and agribusiness sectors. In the last two years, Australian wool exporter, G. Schneider Australia Pty Ltd, provided approximately $2 million worth of Australian merino wool to the Japanese retail giant Uny Co., the third-largest retail supermarket chain in Japan. The company uses merino wool in the production of garments marketed under the ‘Geelong Wool’ brand.

Clothing made with G. Schneider Australia wool at a Uny Co. department store in Japan.

Austrade worked with the Victorian office of G. Schneider Australia by facilitating meetings with Uny Co. in Geelong. Austrade linked G. Schneider and Uny Co. with key decision-makers in the Victorian Government, the City of Greater Geelong Council and Australian Wool Innovation, all of which assisted in the commercial success of G. Schneider Australia in the Japanese market.

In 2011, Austrade assisted in the crisis response to the natural disasters in Japan. For more information, see page 84.

Republic of Korea

In 2011, Australia and the Republic of Korea celebrated 50 years of diplomatic relations. Korea is now Australia’s third-largest export market and a significant source of resource investment and international students.

In Korea, Austrade pursued strategies in sectors such as agribusiness, minerals and energy, manufacturing, services and other significant niche markets. 2010 was the second year of a three-year strategy in which Austrade joined with the Australian Commercial Galleries Association to raise the profile of Australian visual arts in Korea. In September 2010, four of the association’s member galleries represented 17 Australian artists, including some of Australia’s leading contemporary Indigenous artists, at the Korea International Art Fair, organised by the Galleries Association of Korea. It is North East Asia’s largest annual contemporary art show, with 5,000 works on display and almost 200 galleries from 16 countries represented.

At the 2011 fair, Australia will be the guest-of-honour country. It will have a large presence with 17 galleries in attendance. Austrade worked closely with the Australia Council for the Arts to raise awareness of Australian contemporary arts in the Korean market.

In the minerals and energy field, Austrade has provided ongoing assistance to the Korea Gas Corporation (KOGAS), a Korean energy supplier. During the last five years, KOGAS has invested in and purchased Australia’s energy resources. In December 2010, the company signed a contract to invest in a proposed liquefied natural gas (LNG) project in Gladstone, Queensland, and to purchase 3.5 million tonnes of LNG per annum for up to 20 years.

The Australian presentation at the Korea International Art Fair in Seoul in September 2010.

The $665 million investment—a 15 per cent stake in the project—is the largest Korean investment in Australia. With KOGAS on board, the project leader, Santos Ltd, decided to proceed in January 2011, with commercial LNG production expected to begin in 2015. KOGAS is expected to invest approximately $2.63 billion over the lifetime of the project and export approximately $3 billion worth of LNG per annum back into Korea.

Market assistance provided by Austrade, including information on the Australian investment environment, government policies and foreign investment requirements, helped to give KOGAS the confidence to invest in the Gladstone project.

Hong Kong and Macau

In 2010–11, Austrade’s work in Hong Kong and Macau spanned a diverse range of consumer and industrial sectors. For example, Austrade assisted the Australian company, TPI Commercial Joinery Pty Ltd, to achieve success in the highly competitive Hong Kong construction sector. TPI is a specialist wholesale supplier of commercial bathroom and kitchen joinery. Austrade initially introduced TPI to its Hong Kong distributor, Jardine Engineering Corporation (JEC), and provided support to the company through seminars and briefings on key participants in the Hong Kong construction sector.

TPI’s product was specified for the refurbishment of HSBC Bank’s head office in Hong Kong, one of the biggest and most prestigious projects in the market.

Austrade’s assistance also helped TPI to capitalise on the Asia-wide reach of corporations in the Hong Kong market. Companies operating in Hong Kong often have networks all over China and elsewhere in Asia, and by linking TPI with JEC, Austrade helped this Australian company to find a partner with extensive operations throughout Asia. Through TPI’s agreement with JEC and its long-term approach, TPI’s commercial joinery products have since received market interest and commercial success in Singapore and Vietnam.

Taiwan

In 2010–11, Austrade continued to support a whole-of-government approach to regaining market access in Taiwan for Australian peaches, plums and nectarines.

Building on the successful entry of Australian fruit into the Japanese, Korean and Chinese markets in the last few years, Horticulture Australia Ltd and Albury-based Summerfruit Australia officially relaunched their range of nectarines, plums and peaches into Taiwan in January 2011. Now that the Taiwan market has reopened to Australian fruit, following a five-year absence, Summerfruit’s growers are confident they can rebuild their market share in Taiwan over the next few years.

In October 2010, the Study in Australia exhibition celebrated its 10th anniversary in Taiwan. A record 60 Australian educational institutions attended the Austrade-organised events in Taipei and Kaohsiung. More than 6,800 people visited the four-day exhibition. Exhibitors included 26 Australian universities, which proved to be major attractions.

While Taiwan has always been a stable market for Australian education providers, this year’s strong public interest suggests potential for further growth in the sector. In 2010, Australia reached its highest-ever ranking in Taiwan, as the second most popular study destination, behind the United States and ahead of the United Kingdom and Canada.

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South East Asia, South Asia and Pacific

In 2010–11, Austrade’s presence in South East Asia, South Asia and Pacific (SEASAP) was spread across three sub-regions:

South East Asia: Brunei, Cambodia, Indonesia, Laos, Malaysia, Philippines, Singapore, Thailand and Vietnam

South Asia: Bangladesh, India, Pakistan and Sri Lanka

Pacific: Fiji (also covering eastern Pacific markets), New Caledonia, New Zealand and Papua New Guinea.

Figure 8: Austrade’s presence in South East Asia, South Asia and Pacific [Click on image for large view]

During 2010–11, Austrade helped to deliver the Australian Government’s trade and investment policy priorities in the region. Markets continued to grow. Combined with the resilience of the Australian economy, Austrade was able to assist Australian companies to develop closer trade and investment with the region, particularly with ASEAN and India.

Key outcomes are highlighted below.

South East Asia

ASEAN has recovered quickly from the financial crisis. Domestic demand and intra-regional trade remained robust during the period. The ASEAN–Australia–New Zealand Free Trade Agreement offers enhanced access to a consumer base of around 620 million people with a combined gross domestic product of more than $3.2 trillion.

In cooperation with DFAT, Austrade delivered a series of seminars, briefings and webinars to inform local and Australian businesses in key sectors in the region of the benefits of the agreement.

In October 2010, Austrade supported the Australian Prime Minister’s visit to Hanoi, Vietnam, for the East Asia Summit. Austrade arranged a business briefing attended by the Prime Minister and senior representatives from Australian companies.

In March 2011, the Australian Minister for Foreign Affairs launched Ozmine Indonesia 2011 in Jakarta. Ozmine, an Austrade initiative, was attended by more than 100 Australian exhibitors, while the conference attracted about 400 delegates.

For the first time at an Ozmine event, Austrade brought together mining officials from seven ASEAN countries—Cambodia, Laos, Thailand, Vietnam, the Philippines, Malaysia and Indonesia—to host a roundtable to share experiences and expertise and contribute to a greater dialogue between ASEAN mining officials and the Australian mining industry. In addition to Ozmine Indonesia, Austrade organised Ozmine Greater Mekong in May 2011, which included conferences in Bangkok and Vietnam.

In support of a joint collaboration of ASEAN nations on environmentally sound technologies, Austrade organised a regional carbon mission in March 2011. Six ASEAN national authorities shared their experiences in the Clean Development Mechanism. The mission raised the profile of Australian capability in carbon consulting, management and trading; low-emissions technology and services; and renewable energy development.

L–R: David Twine, Austrade’s SEASAP Regional Director; the Hon Kevin Rudd MP, Minister for Foreign Affairs; and Dr Ir Bambang Setiawan, Indonesia’s Director General of Minerals and Coal, Ministry of Energy and Mineral Resources, open Ozmine 2011 in Jakarta.

ASEAN represents a strongly emerging source of foreign direct investment into Australia, demonstrated by a 25 per cent increase to $27.5 billion in 2010. In support of this, Austrade organised the ASEAN Investment Roundtable Series in June 2011. High-level roundtables were held in Jakarta, Kuala Lumpur, Hanoi and Bangkok, showcasing opportunities for productive investment in specific industry sectors within Australia.

Austrade delivered a range of events and initiatives in ASEAN to reposition Australia as a provider of high-quality education services. Austrade worked to engage key stakeholders, including parents, students, agents and alumni. Highlights included the Distinguished Alumni Awards, held in Singapore in March 2011, and guest lectures by three environmental science researchers from Australian universities at Thailand universities in June 2011.

South Asia

South Asia rivalled only China as Australia’s fastest growing trading partner for the past four years, across a diverse range of industry sectors. Services provided by Austrade to Australian companies doing business in the sub-region have tripled over the past three years.

The sub-continent, dominated by India, continued to outgrow the G7 countries, though inflation levels have proved to be problematic.

Austrade assisted BP Solar and Mono Energy with in-depth support in Sri Lanka. Assistance included liaison with representatives of several Sri Lankan ministries and relevant Australian government agencies, including the Export Finance and Insurance Corporation and the Department of Foreign Affairs and Trade, for the Sustainable Agriculture Water Management Project. Under the project, 10,000 solar-powered drip irrigation units were loaned to farmers, allowing more efficient use of water and fertiliser.

Austrade supported delegations under the Agriculture Sector Linkages Program in Pakistan. Members of Pakistan’s dairy industry were introduced to Australian companies that specialise in high-yielding dairy cattle, forage seed and agricultural machinery. Austrade assisted the Sapphire Dairy Farm in Lahore, Pakistan, with the transfer of expertise on herd management, dairy systems and production techniques as part of the program.

Austrade assisted the Sapphire Dairy Farm in Lahore, Pakistan, with the transfer of expertise in dairy farming. L–R: Azhar Shah, Austrade; Mr Hassam, Farm Manager, Sapphire Dairy Farm; Tahir Mahmood, Austrade; Peter Linford, Senior Trade Commissioner, Austrade; Azhar Pasha, Manager, Sapphire Dairy Farm; and Imran Saeed, Austrade.

In November 2010, Australia was the partner country at the International Mining and Machinery Exhibition 2010 in Kolkata, India. Fifty Australian firms participated in the exhibition, showcasing Australia’s leadership in mining technology and services. The Hon Justine Elliot MP, Parliamentary Secretary for Trade, led the delegation. Austrade managed the exhibition, partnering with the Department of Resources, Energy and Tourism, Geoscience Australia and the state governments of New South Wales, Queensland, Western Australia and South Australia.

In 2010, Austrade’s Business Club Australia (BCA) was implemented for the Commonwealth Games in Delhi, the biggest sporting event to be held in India. Australia took its largest-ever team of Commonwealth Games athletes to India. Off the field, 47 Australian companies won contracts to help India produce the Games, with these successes continually showcased throughout the BCA program. Twenty-three business events were held within a purpose-built marquee located in the Australian High Commission compound in New Delhi during the 12 days of the Games. For more information on BCA India 2010, see page 48

The Australian High Commission in New Delhi implementing the nation brand, Australia Unlimited, during BCA India 2010.

Austrade, together with the Australian High Commission in New Delhi, continues to assist companies awaiting overdue payments for their contractual involvement in the Commonwealth Games.

Pacific

Austrade worked with clients in response to the 6.3-magnitude earthquake in Christchurch, New Zealand, in February 2011. Austrade formed an earthquake response project team, established an Australian suppliers’ database to assist in the rebuild and coordinated relevant tenders and supplier information.

In conjunction with New Zealand Trade and Enterprise, Austrade delivered the ANZ Pacific Infrastructure Forum in Auckland in October 2010. Delegates from Austrade, New Zealand Trade and Enterprise and Pacific Islands Trade and Investment spoke about the trade and investment climate in the Pacific.

The resource and mining sectors in Papua New Guinea are experiencing strong growth, driven mainly by the Exxon Mobil LNG project. Austrade assisted several Australian companies to successfully engage with the LNG project engineering procurement contractors in Papua New Guinea, as well as related peripheral projects and economic activity. Australian companies have already secured in excess of $3 billion worth of contracts. In May 2011, Austrade also hosted a mining trade mission, which included visits to the Lihir and Hidden Valley mines.

Austrade hosted a trade mission to the Hidden Valley Mine in Papua New Guinea in May 2011.

The New Caledonian sheep-breeding association, UPRA, enlisted the help of Austrade to improve the genetics of the New Caledonian flock. With Austrade’s introduction and on-the-ground support in Noumea, Australian companies, World Wide Genetics and Breedtech, organised the transport and implantation of 150 Dorper and Suffolk sheep embryos into New Caledonian ewes. If successful, the operation will result in the expansion of Australian access to the New Caledonian market for other species.

In March 2011, Austrade conducted Study in Australia Week 2011 in Fiji, joined by nine education institutions from Australia. There was a strong whole-of-government presence, with the Department of Immigration and Citizenship and AusAID also represented. More than 1,600 students from Fiji and the surrounding islands attended the exhibition. Three side events were held, namely a roundtable meeting with the Fiji Ministry of Education; a seminar for larger corporate organisations, Fiji institutes and scholarship providers; and an alumni networking event.

Anne Borgo, Austrade, shearing a sheep before an embryo implant in an Austrade-assisted breeding program in New Caledonia. Back to top

Supporting the internationalisation of industries

Performance measure

Outcome

Support for the internationalisation of industries through strategic development initiatives, such as the successful establishment of industry clusters and integration into global supply chains in priority sectors.

Austrade managed several programs in 2010–11 to support the internationalisation of industries through strategic development initiatives, including: contributing to the commercialisation of Australian innovation in international markets through the development of links with the Department of Innovation, Industry, Science and Research, Commercialisation Australia, CSIRO, Cooperative Research Centres and educational institutions developing an online gateway for potential overseas investors in Australia, undertaken in close consultation with the Australian Prudential Regulation Authority, Australian Securities and Investments Commission, Reserve Bank of Australia, Foreign Investment Review Board, Australian Competition and Consumer Commission, Australian Transaction Reports and Analysis Centre, and relevant state agencies promoting Australia as a leading financial services centre in the Asia–Pacific delivering the Government’s Clean Energy Trade and Investment Strategy promoting Australia’s food safety credentials in targeted Asian markets, building on the Taste of Tomorrow project pilot in Japan delivering government objectives to assist the Australian automotive industry to access global supply chains, including the Automotive Market Access Program establishing and supporting Australian industry clusters to build their international business, including projects delivered through the Global Opportunities program.

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Enhancing support for industry

In 2010–11, Austrade delivered trade and investment initiatives through the Automotive Market Access Program, the Clean Energy Trade and Investment Strategy, by helping to position Australia as a financial services centre, and undertaking initiatives for other industry sectors.

Austrade also delivered the Global Opportunities clusters program in key sectors, positioning businesses to take advantage of opportunities in key international markets. The Global Opportunities program concluded on 30 June 2011.

Austrade’s industry focus was built on 10 global industry networks, covering the following sectors:

financial services

clean energy and environment

food and beverage

automotive and advanced manufacturing

mining and resources

infrastructure

information and communications technology

health and biotechnology

agribusiness

professional and business services and creative industries.

Each industry network developed and implemented Austrade’s global industry strategies for trade and investment. These included enterprise-level services to exporters, promotion of Australian capability in major international events, and the attraction and facilitation of productive foreign direct investment to Australia.

Financial services

During 2010–11, Austrade continued its work to help strengthen Australia’s position as a leading financial services centre in the region by actively promoting Australia’s financial services capabilities through events and publications, supporting Australian financial services companies in international markets, and facilitating inward investment into the Australian market.

Austrade worked closely with other government agencies on a number of recommendations from the Australian Financial Centre Forum report, Australia as a financial centre: building on our strengths. Work included building an online gateway to help potential investors navigate the Australian financial services regulatory environment. There was close collaboration among key government agencies on this project, including Treasury, the Australian Prudential Regulation Authority, the Australian Securities and Investments Commission and the Australian Financial Centre Taskforce. The Financial Services Gateway streamlines access to information about Australia’s banking, superannuation, insurance and fund management sectors.

During the year, Austrade delivered export services to Australian financial services firms in banking, asset management and insurance. In March 2011, Austrade, in conjunction with the New South Wales and Victorian Governments, undertook its first export-focused financial services trade mission to Canada. The mission provided Australian financial institutions with a channel to develop links with Canadian pension funds, banks and industry stakeholders. The Trust Company joined the trade mission to Canada and tailored meetings were arranged to enable it to engage with prospective clients, raise the company’s profile and gain market intelligence. As a direct result of the trip, The Trust Company achieved a number of successful export outcomes. For more detail, see the case study on page 34.

In 2010–11, Austrade continued to facilitate investment from established markets, such as the United States, including the entry of several investment management firms into the Australian market. Austrade also assisted a new Indian entrant into the securities market to establish an Australian office. In addition, Austrade continued to assist foreign banks expand their presence in Australia. New developments included the opening of the Bank of China’s Brisbane branch and the official opening of the China Construction Bank’s Sydney branch.

Clean energy and environment

The Clean Energy Trade and Investment Strategy supports Australia’s energy and environment sector to capitalise on opportunities from global efforts to tackle climate change and address security issues related to energy, water and the environment.

The objectives for 2010–11 included:

attracting foreign direct investment into the Australian renewable energy sector

supporting Australian companies to access the China market

promoting Australian expertise in water management to international markets

promoting Australia’s carbon capture and storage capabilities

developing exports of Australia’s clean technologies and services to South Asia and South East Asia.

During the year, Austrade helped to facilitate 10 investment successes at a total of $563.1 million. Seven of these successes were in renewable energy and biofuels, and one each in recycling, smart grid and green buildings. Austrade helped 46 companies achieve a total of 54 export and outward investment deals worth $220.5 million. These deals predominantly involved the provision of water services, environmental services and some clean energy technologies.

Austrade’s Australia–China Wanwu Eco-country Initiative represents a group of over 100 Australian companies and aims to introduce them into Chinese clean technology projects. Building on memorandums of understanding Austrade has signed on sustainable development with Chinese cities and close relations with local economic and environmental officials, Austrade has actively supported the group with market opportunities. The Australian remediation companies, Earth Systems, OTEK, Creative Water Technologies, GHD and Chung Tin Holdings have formed the Australian Advanced Remediation Group cluster, offering complementary resources and expertise to win business in the soil and water remediation areas in China.

Laurie Smith, Austrade’s North East Asia Regional Director (second from left), at the signing of an action plan to promote cooperation between Austrade and Chinese officials.

Renewable energy investment

Austrade promoted the Government’s Solar Flagships program—designed to develop one gigawatt of new Australian solar power plants—to potential international investors. Austrade provided information and assistance to Spanish solar developer, Fotowatio, which mounted a winning bid for the first round of the Solar Flagships program. Fotowatio will partner with BP Solar to build a 150-megawatt photovoltaic power plant at Moree, New South Wales.

Food and beverage strategy

The major initiative under the food and beverage strategy sought to promote Australian food safety credentials in Japan. The Taste of Tomorrow program aims to raise the profile of Australia’s food safety standards and reliability and integrity of supply with major Japanese food suppliers and retailers in order to strengthen supply chain linkages and increase market share for Australian products. Austrade hosted a high-level forum in Australia in February 2010 to facilitate consultations between key Australian industry and government stakeholders, and major Japanese food suppliers to discuss food safety protocols, supply chain issues and crisis management strategies. A second forum, planned for April 2011 to further strengthen linkages, was rescheduled to November 2011 due to the March earthquake and subsequent disasters in Japan.

The Taste of Tomorrow forum could not be more timely given Japanese food shortages and the recent disruption of food supply chains. Many food manufacturers look to Australia as a potential manufacturing base and recent events have heightened the Japanese focus on securing supply linkages. For many Japanese businesses, this has included restructuring their contingency supply chain planning in the production and delivery processes to deliver safe, high-quality foods.

Elizabeth Masamune, Austrade’s Senior Trade Commissioner, Tokyo, with Kentaro Ogawa, CEO of Zensho, the largest food service operator in Japan. Ms Masamune is handing a ‘Partnership for the Taste of Tomorrow program’ certificate to Mr Ogawa.

Automotive and advanced manufacturing sectors

During 2010–11, Austrade supported the delivery of major government commitments to assist the Australian automotive industry to access global supply chains, and in total supported 124 individual automotive clients in achieving export or outward investment successes.

Austrade is an integral part of the Australian Government’s Automotive Market Access Program (AMAP). Austrade expanded its activities, with emphasis on the automotive component industry and new technologies, especially in the AMAP-designated markets of ASEAN, China, India and Korea. Austrade also supported visits to Australia of delegates from China and ASEAN and these events were assisted by the Australian Government’s automotive envoys and relevant state governments. A joint venture with the Victorian Government’s Department of Business and Innovation also expanded offshore AMAP team numbers and assisted Australian exporters. In 2010–11, under this program, Austrade facilitated $92 million in export and outward investment outcomes and $17 million in two inward investment projects.

Austrade is a partner in the Team Australia Automotive initiative. It uses a contractor, Terry Barr Sales, to assist Australian component and technology companies in the US market. In April 2011, a Team Australia Automotive mission, led by automotive envoy, the Hon Steve Bracks AC, visited the United States. In support of this mission, Austrade worked in partnership with the Industry Capability Network, the Victorian Government and Terry Barr Sales. Over the year, export and outward investment outcomes under the initiative reached $121.3 million.

Austrade supported an automotive mission to the United States in April 2011. L–R: Chris Knepler, Austrade; the Hon Steve Bracks AC, automotive envoy; Judy Fitzgerald, Australian New Zealand American Chamber of Commerce Midwest; and Scott Adlington, Victorian Government Business Office, Chicago.

Austrade also supported two automotive envoys, Mr Bracks and John Conomos AO, in their visits to Germany and the Czech Republic in July 2010 and to Japan and Korea in December 2010. In addition, Austrade assisted a technology group visit to China in October 2010, led by Mr Conomos.

Mining equipment, technology and services

In 2010–11, Austrade’s global mining network continued an active program of promotion and business matching in established and emerging markets for mining equipment, technology and services companies. Target markets included Sub-Saharan Africa, Mongolia, Latin America and ASEAN. Australian companies have won business deals which open up access to new markets following their participation in trade events and business matching programs arranged by Austrade.

Information and communications technology

In 2010–11, Austrade pursued strategies to position Australia as a source of innovative, world-class information and communications technology (ICT) and as a preferred location for global and regional investment in this sector.

In October 2010, Austrade facilitated a Digital Economy and Broadband Applications mission to Japan, Korea and Singapore to develop investment interest in Australia’s ICT industry. The mission was supported by the Department of Innovation, Industry, Science and Research.

Mission delegates included representatives from the Commonwealth Scientific and Industrial Research Organisation (CSIRO), National ICT Australia, Communications Alliance, iiNet, Australian Information Industries Association, GHD, Farr Consulting and the Queensland and Tasmanian Governments. The mission was a catalyst for identifying offshore partners for research and development collaboration and global supply chain opportunities for Australian companies. It was also an opportunity for delegates to examine how countries in Asia are utilising their high-speed broadband networks for e-learning, e-health and other advanced applications.

A highlight was the memorandum of understanding signing in Tokyo between National ICT Australia and Nomura Research Institute to pursue joint ICT research in water, agriculture, smart grid and intelligent transport systems.

Sawaaki Yamada, Nomura Research Institute, and Phil Robertson, National ICT Australia (seated), sign a memorandum of understanding to conduct joint ICT research in urban, industrial and social infrastructure during the Austrade-hosted Digital Economy and Broadband Applications mission in Tokyo, while colleagues from Austrade, CSIRO and the institute look on.

Innovation

Innovation is a primary driver of productivity and international competitiveness. Austrade has taken part in a whole-of-government approach to innovation by helping to build paths to international markets and trade and investment opportunities for Australian innovation, in cooperation with the Department of Innovation, Industry, Science and Research, CSIRO, IP Australia and Commercialisation Australia. In 2010–11, Austrade promoted Australia as a competitive destination for inward investment into innovation and industry partnerships.

A major component of the strategy was an innovation mission to Europe in June 2011, in partnership with CSIRO, which profiled the high level of Australian research and development skills and infrastructure, and history of strong and successful partnerships with industry. The aim was to build future opportunities for investment into— and partnership with—Australian innovation. Part of the program included meetings between CSIRO’s water specialists and Acciona, Passavant Espana, H2O Innovation, Aqualia and Sociedad General de Aguas de Barcelona, S.A. These meetings resulted in a number of potential projects and a workshop, with one of the companies coming to Australia to participate in and explore opportunities with CSIRO.

Fostering industry clusters— Global Opportunities program

The Global Opportunities program provided export and outward investment facilitation services and funding support of up to $1.8 million during the three-year period 2008–09 to 2010–11. The program supported eight industry clusters of Australian companies.

The eight industry clusters were:

Health Team Australia

AutoLink Australia

High Performance Brands

Australian Railway Industry Campaigns

Austmine Mining Technology and Services

MedTech Australia

Australia–Taiwan ICT

Australian Environmental Technologies Group.

Austrade continued to work with the companies on this program in 2010–11. During the year, these clusters focused on targeted opportunities aimed at achieving lasting business goals. Austrade provided funding and direct support to the companies, enabling expansion of international activities, access to global supply chains and bidding for major international contracts.

A selection of specific cluster activities is outlined below.

Health Team Australia

The Health Team Australia consortium comprised nine Australian companies. It was created in response to the increasing global demand for fully integrated, turn-key delivery of healthcare facilities in the Middle East. The consortium’s services included:

feasibility and health facility planning and project financing

architecture, engineering and construction

equipment and technology fit-out and facility commissioning

staffing and training, facility management and healthcare operation

hospital and healthcare accreditation.

Austrade supported Health Team Australia’s objectives through matching funding arrangements for marketing collateral and activities, providing a dedicated in-market resource and coordinating and facilitating key meetings.

During 2010–11, Health Team Australia successfully exhibited at a number of high-profile health-related exhibitions in the Middle East. It secured—via its consortium leader, TAHPI—three major health projects in the Middle East. The largest was a $30 million hospital refurbishment project in Abu Dhabi.

Austrade supported the High Performance Brands cluster’s attendance at the PRI Show in Florida in 2010. L–R: Stuart Charity and Ben Bartlett, Australian Automotive Aftermarket Association; Marcos Ambrose, Petty Motorsports; Roslyn Mitchelson, NSW Government; Phil Jankura, Austrade; and Brian Carnahan, Victorian Government.

AutoLink Australia

In 2010–11, the AutoLink Australia cluster of automotive interior component companies continued its focus on opportunities in India and ASEAN countries. Austrade worked closely with the cluster, including participating in a number of events, such as the Federation of Automotive Products Manufacturers’ outbound mission to Malaysia and Thailand in November 2010 and the Victorian Government’s automotive mission to India in April 2011. AutoLink was managed by Futuris Automotive Group and assisted by the federation. Outcomes achieved to date by the AutoLink cluster total $41 million.

High Performance Brands

The High Performance Brands cluster targeted the automotive performance aftermarket in the United States and was managed by the Australian Automotive Aftermarket Association.

The cluster participated in a number of US exhibitions, the most notable being the Performance Racing Institute (PRI) Show in Orlando, Florida, in December 2010. Significant progress was made in distribution and development of Australian products for the US market. With Austrade’s support, the cluster funded four US inward buyers to attend the Australian Auto Aftermarket Expo in Melbourne in May 2011. This cluster has generated outcomes totalling $4 million.

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Marketing Australian education internationally

Performance measure

Outcome

Effective international marketing of education with the support of relevant institutions and stakeholders.

Austrade was involved in the following activities in 2010–11 to effectively market education internationally: launch of a new education brand, Future Unlimited, in June 2011 transfer of the Study in Australia website from the Department of Education, Employment and Workplace Relations to a new web platform hosted by Austrade featuring the new Future Unlimited brand, with the the Study in Australia website receiving 3.3 million visits in the reporting year supporting Australian alumni success stories, such as the Australia–China Alumni Association Awards in Shanghai initiating visits by members of key education media organisations from China, Latin America and Russia, as well as a program of active engagement offshore regular surveys of education agents, newsletters to agents and supervision of education agent training tests provision of market intelligence through the subscription-based Market Information Package and Austrade’s free fortnightly newsletter, Global Education News international market briefings for the education sector through videoconference and education seminars representation on the Joint Committee on International Education—a Commonwealth and state and territory government senior officials committee—and work with education sector peak bodies.

On 1 July 2010, Austrade assumed responsibility for the international marketing and promotion of Australian education and training, previously undertaken by Australian Education International (AEI) in the Department of Education, Employment and Workplace Relations (DEEWR).

AEI is responsible for strategic policy, regulation and government-to-government engagement in international education and training. Austrade’s role is to promote and position Australia as a leading provider of high-quality education services, both locally and offshore. An outline of the memorandum of understanding that governs the respective responsibilities of both agencies is available on Austrade’s website, www.austrade.gov.au.

In 2010, there were around 617,000 international student enrolments in Australia, across the higher education, vocational education and training, English language and schools sectors. International education was Australia’s largest services export sector, worth around $18.3 billion to the Australian economy in 2010. ²

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International education framework

Austrade’s framework for the international marketing and promotion of Australian education and training services was developed in 2010–11, following thorough consultation with the education sector and government agencies. The framework aims to help reposition Australia as a provider of high-quality education services, contribute to the growth of demand for Australian education and build a sustainable Australian international education sector. Austrade has worked with the sector to achieve these objectives by focusing on five key priorities:

assisting to improve perceptions of Australia’s international education sector offshore

implementing an effective communications and media strategy

executing an effective engagement strategy with offshore education agents

delivering high-quality and timely market research, intelligence and services to the international education sector

undertaking effective stakeholder engagement with key government and non-government organisations and individual institutions, both onshore and offshore.

2. International Trade in Services by Country, by State and by Detailed Services Category, Calendar Year, 2010, Australian Bureau of Statistics.

These five priorities guide Austrade’s work both in Australia and overseas. They are discussed in more detail below.

Assisting to improve perceptions of Australia’s international education sector offshore

In June 2011, a new education brand, Future Unlimited—part of the Australia Unlimited nation branding—was launched by the Hon Justine Elliot MP, Parliamentary Secretary for Trade. Future Unlimited specifically seeks to realign the Australian education sector internationally by moving the focus beyond affordability and lifestyle. Future Unlimited positions an Australian education as an investment in the future, which opens up global career opportunities. For more information about the development of Future Unlimited, see pages iv and 44.

In 2010–11, Austrade undertook a major project to transfer the Study in Australia (SIA) website, www. studyinaustralia.gov.au, from DEEWR to a new web platform hosted by Austrade. The SIA website is the primary source of government-endorsed information for international students. It provides facts about studying in Australia and pathways to education providers.

Accessible in English and 11 other languages, the SIA website also plays a key role in the Council of Australian Governments’ International Student Strategy for Australia, which was released in October 2010. It provides comprehensive, accurate and up-to-date information for international students about personal safety, support services and employment rights and responsibilities.

The revised SIA website, released in July 2011, uses the new Future Unlimited branding. The new website will allow Austrade to develop social media technologies favoured by students to disseminate information about studying in Australia.

Austrade also supported Australian alumni successes as a means of demonstrating the value of an Australian education to offshore markets. Activities undertaken during the year included supporting the annual Australia–China Alumni Association Awards in Shanghai, the launch of the My Oz Network alumni program in India, and the Australian Alumni Excellence Dinner in Singapore.

Implementing an effective communications and media strategy

Australia’s reputation as a safe and reliable provider of high-quality education and training services can be affected by media reporting in key offshore markets. Austrade has undertaken specific media strategies in each of Australia’s key markets to address media issues and complement the work to reposition Australia’s international education sector. This work was designed to showcase Australia’s education and training expertise as well as support for international students.

In 2010–11, Austrade initiated and supported visits to Australia by members of key education media organisations from China, Latin America and Russia, as well as a program of active engagement offshore with education media organisations. These visits led to positive coverage of Australia by key media outlets in those countries.

Executing an effective engagement strategy with offshore education agents

Austrade recognises that education agents who recruit students for educational institutions play a critical role in the international promotion of Australian education.

Education agents can have a strong influence on student and parent choices concerning the destination, institution and field of study. Education agents can also assist students with the visa application process and provide advice on student work rights, accommodation and pastoral care. As most education agents represent institutions from more than one country, their influence on student and parent choices can be critical.

In 2010–11, Austrade’s engagement strategies offshore included regular surveys of education agents to gain valuable market intelligence; information sessions on Australian Government initiatives; organising agent familiarisation tours of Australia (by agents based in the Americas region); regular newsletters to agents; and supervision of education agent training tests.

Delivering high-quality and timely market research, intelligence and services

A key priority for Austrade in 2010–11 was the provision of high-quality and timely market research and intelligence to the international education sector in Australia.

In addition to in-country briefings for education providers, identifying opportunities offshore and undertaking tailored market research, Austrade’s main avenue for delivering timely and accurate market intelligence is through its Market Information Package (MIP), available on Austrade’s website, www.austrade.gov.au/mip.

The Market Information Package is a subscription-based service, accessed via Austrade’s website. It delivers updated market intelligence, market opportunities, publications, reports and event information. It is supplemented by Global Education News (GEN), a free, fortnightly e-newsletter that highlights new information appearing on the MIP website. In 2010–11, 323 articles were published through GEN to 4,425 subscribers.

On 1 January 2011, Austrade amended the fee structure for the MIP service to increase the number of subscribers, especially smaller education providers. In April 2011, the team undertook an online readership survey of the Market Information Package and GEN to determine how Austrade could enhance these services.

The survey showed that 78 per cent of MIP subscribers were either satisfied or very satisfied with the service and 74 per cent of GEN subscribers were either satisfied or very satisfied with the service. While the outcomes show a high level of satisfaction, Austrade will consider further changes to the Market Information Package and GEN in the light of the detailed outcomes of these surveys.

Austrade also provided opportunities for direct engagement with its education export advisers. Videoconference market briefings were held by staff in China, Latin America and Sub-Saharan Africa. In May 2011, a series of education seminars in five Australian capital cities was also delivered. More than 700 participants were able to hear market presentations delivered by 19 of Austrade’s education staff from abroad, as well as undertake one-on-one consultations.

Participants at Austrade’s education seminar series in Sydney in May 2011.

Undertaking effective engagement with key organisations

As an operational agency, it is imperative that Austrade works closely with policy-making agencies that influence the direction of Australia’s international education sector. Austrade’s National Education Unit is based in Canberra, where it engages closely with Commonwealth Government departments on a range of issues. Austrade is also represented on the Joint Committee on International Education, which is a federal and state government senior officials committee.

In 2010–11, Austrade worked with peak education sector bodies on specific issues, such as the redevelopment of its framework for the international marketing and promotion of Australian education and training services and the development of the new education brand, Future Unlimited.

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Promoting Australia internationally and raising awareness of the benefits of trade and investment

Performance measure	Outcome
International awareness of Australia’s business capabilities, and of Australia as a destination for investment and as a source of competitive, high-quality goods and services and world-class international education system.	In addition to international awareness activities described elsewhere, Austrade supported Australia as the co-host and guest nation at the China International Small and Medium Enterprises Fair in Guangzhou, China, the world’s largest SME trade fair. The Building Brand Australia program progressed, with Australia Unlimited branding applied across all Austrade programs. Austrade managed a program of business events at the Shanghai World Expo until 31 October 2010. Austrade supported AustraliaLive, a showcase of Australia in the United Kingdom, which highlighted Australian innovation and talent across a range of sectors, and G’Day USA. Austrade implemented Business Club Australia (BCA), coinciding with the Commonwealth Games in Delhi, India. BCA is the Australian Government’s official business networking program set around major international sporting events.
Community and business awareness of the importance of trade and investment and participation in international business promotional activities and initiatives.	Austrade delivered major initiatives to raise community and business awareness in Australia of the importance of trade and investment. In 2010–11, Austrade managed the Government’s sponsorship of the 2010 Forbes Global CEO Conference, positioning Australia as a top-performing and resilient economy and contributing to the development of Australia’s brand as a highly rated place to invest and do business. Austrade delivered the 48th Australian Export Awards, which highlighted and promoted exporting to the wider community.

Austrade leads the promotion of Australia as a destination for investment and as a source of business capability and competitiveness in overseas markets. In 2010–11, Austrade continued to implement the Brand Australia program and promoted its use by Austrade and other Australian Government agencies.

Austrade also delivered the Australian Export Awards, Business Club Australia and other events to raise business and community understanding of trade and investment, and to recognise Australia’s international business achievements.

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Brand Australia

In 2010–11, its second year of operation, the Building Brand Australia program established a strong foundation of research that positions Australia’s reputation in a global context and creates a brand identity that has already been used across many applications.

Research

Research commissioned from three key sources—the AMR Reputation Institute Country Rep Study, the Nation Brands Index and Taylor Nelson Sofres—has provided strong evidence from which future reputational developments can be measured.

Research summaries for 12 countries were also commissioned from the Lowy Institute to provide a comprehensive and concise overview of Australia’s perceived strengths and weaknesses in key markets.

Events

Brand identity guidelines have been developed for the Australia Unlimited brand to ensure a consistent approach is applied wherever the brand is used. Major events where the brand has been implemented included:

Business Club Australia business networking program at the FIFA World Cup, South Africa, June 2010

Australian Export Awards Winners and Hall of Fame dinner, Canberra, June 2010

Forbes Global CEO Conference, Sydney, September 2010

China International Small and Medium Enterprises Fair (CISMEF), Guangzhou, September 2010—Austrade created a 10,000 square-metre pavilion, featuring Australia Unlimited branding and showcasing Australian industry sectors and more than 260 companies (for more information on CISMEF, see page 67)

Business Club Australia program of events, Commonwealth Games, Delhi, October 2010

FilmInk, Sydney, March 2011

Australia Day address, Sydney, January 2011—the address by Sir Michael Parkinson was sponsored by Australia Unlimited

Taiwan International Book Exhibition, February 2011

Professor Frazer Catching Cancer Tour of South East Asia, April and May 2011

Clean Energy Week, Melbourne, May 2011

Seoul Food and Hotel International Exhibition, Korea, May 2011

HOFEX 2011, Hong Kong, May 2011

BIO International Convention, Washington DC, June 2011—profiling Australian biotechnology companies, research institutes and industry service providers to 500 invited guests

Innovation roadshow, France, Spain and Germany, June 2011

Exponor 2011, Chile, June 2011.

Brand identity

The Australia Unlimited brand has been rolled out across all Austrade programs. It has also been incorporated into the National Tourism Strategy. More than 40 presentations have been given to government departments and corporate organisations to explain the principles behind Australia Unlimited and to educate and encourage take-up of the identity.

Australia magazine

A second issue of the Australia magazine was published with updated content. It was distributed at the Commonwealth Games in Delhi and the AustraliaLive events in London in 2010. The third issue is currently under development and will be published later in 2011.

Brand Australia Advisory Group

The Brand Australia Advisory Group was created to help foster a strong relationship with the Australian business community. The group met twice, in October 2010 and February 2011, to provide strategic advice and receive updates on the development of the program.

International education

Building Brand Australia has collaborated with Austrade’s education team on the development of the Future Unlimited brand, an application of the Australia Unlimited brand for the international education sector. For more information see pages iv and 44.

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Promoting the benefits of trade and investment

Austrade promoted Australia’s business, education and industry capabilities and conducted a range of media and online activities.

In October 2010, a News and Media Centre was launched on Austrade’s website. This provides a single point of entry to Austrade-generated content, such as media releases, speeches, Export Update, Investor Update, Latest from Austrade and success stories (case studies). Page views of the News and Media Centre have subsequently increased by 44 per cent.

The Australian Pavilion at CISMEF in Guangzhou, September 2010, featuring Australia Unlimited branding. The Australia Unlimited brand was implemented at the BIO International Convention in Washington DC in June 2011. Pictured is the foyer of the Australian Embassy, where networking events were held as part of the program. (Image courtesy of Paul Morigi.)

High-profile publications and presentations for the year included the Forbes Global CEO Conference presentation, Australia: a story of economic strength and resilience, in September 2010.

Other publications to which Austrade contributed included:

Australia: a global financial services centre— benchmark report 2010

US trends in clean tech investment

Mongolian mining projects report 2011

Korean automotive market report

Australian water innovation.

Austrade’s case study program, which highlighted success at the company level in both trade and investment, continued in 2010–11. The case studies covered inward investment, export and outward investment and innovation. They were published in the News and Media Centre section of the Austrade website.

Social media was a focus in the last year, given its ability to reach wider audiences in the absence of large advertising budgets. Austrade’s Social Media Policy was established, followed by an extensive training and accreditation program for all staff. Social media tools, such as Facebook, LinkedIn, YouTube and Twitter are now being used to promote Australia’s trade, investment and education capabilities.

Austrade also pursued communications strategies in Europe and South East Asia, which were designed to enhance stakeholder engagement in those regions.

The following events received broad media coverage:

the new Future Unlimited education brand, June 2011

Mining Indaba Conference, February 2011

visit to Australia by Mongolian Prime Minister, HE Sukhbaatar Batbold, February 2011

launch of Austrade’s publication, Mongolian mining projects report 2011, February 2011

announcement of a new Austrade office in Mongolia, February 2011

G’Day USA, January 2011

Study in Australia education trade show in Singapore, March 2011

Business Club Australia – India 2010, held during the Commonwealth Games in Delhi, October 2010

AustraliaLive, September 2010 (formerly G’Day UK)

Mining missions to Kazakhstan, September 2010

Forbes Global CEO Conference, Sydney, September 2010

US Water Management and Sustainability study tour, July 2010

launch of Australia: a global financial services centre—benchmark report 2010, September 2010.

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Business Club Australia

In October 2010, a comprehensive Business Club Australia (BCA) program was delivered to coincide with the Commonwealth Games in Delhi, India. BCA India 2010 comprised 23 business and industry events, held within the purpose-built marquee on the High Commissioner’s lawn, at the Australian High Commission in New Delhi, during the 12 days of the Games.

Target sectors included investment attraction, sustainable building and construction, sports and major events, advanced manufacturing, food and beverage and mining.

The inaugural Australian Alumni Excellence Awards was held to recognise Indian alumni of Australian universities who have excelled in their field of study or area of work. Australia: a global financial services centre—benchmark report 2010 was also launched at an Austrade function in Mumbai.

A seminar was held in collaboration with the Scottish Council for Development and Industry, which is responsible for implementing Business Club Scotland for the 2014 Commonwealth Games in Glasgow. The seminar highlighted Australian expertise in the planning and delivery of major sporting events, with Business Club Scotland modelled on the Business Club Australia initiative.

More than 2,200 Australian, Indian and other international business leaders attended BCA events in India. Attendees included the Hon Mark Arbib MP, Australian Minister for Sport; the Hon Anna Bligh MP, Premier of Queensland; Professor David de Krester AC, Governor of Victoria; Kamal Nath MP, Indian Minister of Road Transport and Highways; Peter Varghese AO, Australian High Commissioner to India; and delegations from Scotland and Sri Lanka.

Eighteen Australian and Indian businesses partnered with Austrade to deliver BCA India 2010, including Pearls Group, Gujarat NRE, Leighton Contractors (India), Adani Enterprises, Events NSW, Lavasa Corporation, BHP Billiton, Aban Group, APCS, MARG Group, Stroudgate, the Australian International Sporting Events Secretariat and the Industry Capability Network Victoria—many of which held their own private functions within BCA’s versatile event space.

Business outcomes during the Games included a licence agreement signed between internet media provider, miRoamer, and Pearls Group for business expansion in Bangladesh, India and Sri Lanka and an agreement between Hockey Australia and Lavasa Corporation to develop a hockey academy in India. Indian wine distributor, Pearls Group, launched the Wolf Blass label into the Indian market and Events NSW launched Parramasala: Australian Festival of South Asian Arts, targeting the Indian outbound travel market.

The BCA India 2010 program featured the first rollout of the Australia Unlimited brand in India.

The BCA India 2010 Australian wine and cheese tasting evening within the grounds of the Australian High Commission in New Delhi. The BCA India 2010 program of activities was based within the grounds of the Australian High Commission in New Delhi. Back to top

Australian Export Awards

In 2010—its 48th year—the Australian Export Awards showcased 78 national finalist companies from a diverse range of industries. These companies collectively generated $7 billion of export sales in the 2009–10 financial year and employed over 40,000 people.

Sixty per cent of finalists were first-time applicants to the program. Exporters become national finalists by winning their category in one of the eight state and territory export award programs.

The 48th Australian Export Awards program consisted of several events, including an export panel breakfast focusing on ICT to promote the opening of applications, a national finalist reception, a master class for all finalists focusing on social media, and the national awards ceremony.

The Hon Dr Craig Emerson MP, Minister for Trade, hosted a gala dinner for over 450 people at the Sydney Town Hall in December 2010, where the 12 national winners were announced. The Prime Minister’s Australian Exporter of the Year Award was awarded to Future Fibre Technologies, a manufacturer of fibre optic detection and location systems.

For the 2010 program, the Australian Export Awards was rebranded to align with the new nation brand, Australia Unlimited.

The Australian Export Awards is presented by Austrade and the Australian Chamber of Commerce and Industry and is one of the longest running business programs in Australia.

The 48th Australian Export Awards winners were:

Prime Minister’s Australian Exporter of the Year Award
Future Fibre Technologies (VIC)

Agribusiness Award
Swift Australia (QLD)

Arts and Entertainment Award
Laservision (NSW)

Education and Training AwardNavitas (WA)Emerging Exporter Award
Ansarada (NSW)

Information and Communication Technology Award
Atlassian (NSW)

Large Advanced Manufacturer Award
Matrix Composites & Engineering Ltd (WA)

Large Services Award
Sedgman Ltd (QLD)

Minerals and Energy Award
Xstrata Mount Isa Mines (QLD)

Regional Exporter Award
Kelly Engineering (SA)

Small Business Award
Epichem (WA)

Small to Medium Manufacturer Award
Future Fibre Technologies (VIC)

Small to Medium Services Award
Pivot Maritime International (TAS)

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Commonwealth Business Forum

In 2010–11, Austrade and the Department of Foreign Affairs and Trade (DFAT), in partnership with the Commonwealth Business Council, hosted a series of launch events in key overseas markets to promote the Commonwealth Business Forum. The forum will be hosted in Perth on 25–27 October 2011, just prior to the Commonwealth Heads of Government Meeting (CHOGM). The theme of the forum is ‘Partnering for Global Growth: The Commonwealth, Indian Ocean and Pacific Rim’.

Of the 20 overseas launch events, Austrade took a lead role in managing those in Johannesburg, Kuala Lumpur, Singapore, Delhi, Mumbai, Hong Kong and Toronto. The launch events reflected Austrade’s commitment to the Commonwealth Business Forum by targeting senior-level business leaders to encourage their involvement in the forum in 2011 and to promote Australia as a destination for investment.

Hosting CHOGM and the parallel events is a priority for the Australian Government and provides an excellent opportunity to showcase Australia as a desirable business and investment destination, and Australian firms as potential commercial partners.

L–R: Ann Harrap, Australian High Commissioner to South Africa; Greg Hull, Austrade’s Senior Trade Commissioner, Sub-Saharan Africa; Dr Mohan Kaul, Director-General of the Commonwealth Business Council; and the Hon Joel Fitzgibbon MP, Head of Delegation and ALP Member for Hunter, NSW, at Austrade’s launch of the Commonwealth Business Forum in Johannesburg in April 2010. Back to top

Forbes Global CEO Conference

The Australian Government was a co-host and sponsor of the Forbes Global CEO Conference, held on 28 and 29 September 2010 in Sydney. The NSW Government was also a co-host and sponsor.

The conference brought together 400 CEOs, entrepreneurs, businesspeople and thought leaders from around the world. The theme was ‘Full Sail Ahead’ and featured Australia as a nation that out-performed other advanced economies during the global financial crisis.

Austrade managed the Government’s sponsorship of the conference, which included a 12-month advertising campaign across the Forbes suite of publications, Forbes Asia, Forbes US and Forbes Life, with a combined circulation of over 8 million readers.

Key messages developed through the Australia Unlimited program were aligned to Brand Australia’s country research findings—to advance Australia’s standing as an attractive investment destination, with a record for economic strength and resilience.

In addition, the Australia Unlimited brand was implemented through extensive onsite branding in the sponsor area of the Forbes conference, the Australia magazine was distributed to delegates, and marketing literature—including key economic data on Australia—and advertising appeared in delegates’ handbooks.

An example from the Australia Unlimited advertising campaign that featured in Forbes Life, with an audience of 5.2 million. Back to top

Shanghai World Expo 2010

The Shanghai World Expo 2010, held between May and October, attracted more than 73 million public visitors, most of whom came from China. The Australian Pavilion was one of the most popular national pavilions at the Expo, attracting more than eight million visitors. Austrade utilised this platform to further Australia’s trade and investment relationship with China.

Austrade managed 32 events over six months as part of the Expo’s official business program. The events showcased Australia’s trade and investment strengths across key industry sectors, including financial services, automotive, clean technology and environmental services, mining and resources, infrastructure, agribusiness, education, biotechnology, ICT, consumer, food and beverage, and sports business.

Austrade also worked closely with DFAT on information dissemination about the Australian Government’s involvement in Shanghai World Expo 2010. Austrade collaborated with Commonwealth and state and territory government agencies and formed partnerships with Australian and Chinese industry associations to maximise guest participation and the quality of content.

Austrade worked with the Industry Capability Network to link companies with Expo opportunities. Austrade introduced Australian companies to the organisers of the Expo and provided market advice and referrals to suppliers of Australian products and services already in China to official Australian pavilion contractors.

Austrade’s Expo events supported the objectives of the China country strategy, as well as industry sector strategies. Events included business missions to China, focusing on regions beyond Shanghai, where industry-specific trade and investment opportunities had been identified by Austrade’s China network.

Highlight events at the Expo included:

international launch of the nation brand, Australia Unlimited, featuring guest chef, Guy Grossi, and singer, Bernadette Robinson

automotive partnerships dinner and mission to China, in partnership with the Victorian Government, led by John Conomos AO, automotive envoy and attended by the Hon Simon Crean MP, the then Minister for Trade, and the Hon Jacinta Allen MP, Victorian Trade and Industry Minister

VIP dinner focusing on financial regulation attended by Mr Crean, with a key note speech given by Greg Medcraft, ASIC Commissioner

two-day financial services summit opened by the Hon Wayne Swan MP, Treasurer

Australian packaged food and beverage product promotion luncheon showcasing more than 40 Australian brands.

Australian wagyu beef prepared for Austrade’s Australian food and wine dinner at the Shanghai World Expo 2010. Menu designed by the chef, Kate Lamont, and wines matched by wine critic, Jeremy Oliver. Back to top

Exporting for the Future

In 2010–11, the Exporting for the Future program provided educators with practical classroom resources and professional training to help them teach courses relating to international business and globalisation.

In June 2011, Austrade distributed the Australian Music Exports kit to Australian higher education institutions. The kit provided detailed insight into nine music industry professionals operating in the global market.

The Exporting for the Future interactive, multimedia teaching resource platform in DVD and print was expanded for secondary school educators to use with students on their new whiteboard equipment. A Business Management kit was added to the Exporting for the Future interactive whiteboard series for secondary schools. The kit contained up-to-date, interactive, graphical video and audio information with student-based activities, to extend understanding of issues in developing global business.

Video clips in the Student Centre on Austrade’s website provided information about international business issues and opportunities in overseas markets for students and businesspeople.

Students from the Royal Melbourne Institute of Technology won the 2010 competition to prepare an international business plan for local small and medium-sized enterprises to expand into new markets. A number of university and TAFE educators incorporated the competition into their assessment programs.

Australian Music Exports kit cover, part of the Exporting for the Future program. Back to top

Attracting productive foreign direct investment to Australia

Performance measure

Outcome

Attraction of high value-added inward investment in targeted industry sectors through delivery of high-quality foreign direct investment prospects, leads and project commitments.

Austrade assisted in the attraction of 77 inward investment projects to Australia in 2010–11. Two of the projects had an estimated investment intention of $10.3 billion and the remaining 75 projects had a total investment intention of $5.2 billion. According to investors, these projects safeguarded or created an estimated 8,029 jobs, and will add some $5.1 billion annually to Australia’s export capability as projects become operational.

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Austrade’s role

Austrade is the lead Commonwealth Government agency that facilitates and attracts productive foreign direct investment (FDI) to Australia.

Austrade promotes Australia’s advantages as an investment destination and works closely with state and territory governments and other Commonwealth agencies to attract investment projects to Australia. FDI makes a significant contribution to building the productive capacity of the Australian economy. This includes job creation, innovation and technology transfer, workforce skills development, knowledge networks, capital investment and access to global supply chains. In 2010, Australian inward FDI stock made up 35 per cent of gross domestic product.

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National and global economic environment

Levels of FDI in Australia reached $500 billion for the first time during 2010 (Figure 9). It was supported by $35 billion in new investment flowing into Australian projects during calendar year 2010. FDI into Australia continued to grow during the global financial crisis, albeit at a slower pace, largely attributable to increased FDI from Europe, Japan and China. However, during the last five years and more significantly in 2010, there has been greater diversification in FDI source and destination markets, with a shift to Asia.

Figure 9: Levels of foreign direct investment in Australia

Source: ABS, Balance of Payments and International Investment Position, Australia, 2011, cat. no. 5302.0, March quarter, 31 May 2011.

Competition for global FDI inflows is intensifying, with developing and transition economies receiving an increasing share in total FDI inflows. In 2010, for the first time, developing and transition economies received more FDI inflows than developed countries, 52 per cent against 48 per cent. While the value of global FDI inflows in 2010 (US$1.2 trillion) increased over 2008 and 2009 values, it is still significantly lower than the 2007 high of US$2 trillion. ³

These dynamics highlight the competitive nature of FDI flows into developed countries, including Australia, and reinforce the challenges investment promotion agencies face when competing for a finite number of investment projects.

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Performance — attraction and facilitation

Seventy-seven inward investment projects (57 in 2009–10, 58 in 2008–09) were verified during 2010–11, with a total investment intention of $15.5 billion and intention to create or safeguard 8,029 jobs once operational.

Austrade prioritises investment activities in order to achieve the most productive outcomes for Australia. This includes recognising qualitative benefits of investment in addition to the quantitative benefits that are more easily measured. Qualitative benefits which Austrade recognises include multipliers for innovation, looking at innovation that was new to the world, sector or industry and collaborative innovation; supply chain or clusters, delivering supply outcomes, filling supply chain gaps or aligning with government priorities; and sustainable economic development—the overall net benefit to Australian industry with respect to various multipliers.

Austrade demonstrated its value-adding through proactive targeting, cultivation and maintenance of longstanding relationships, site visit support and provision of relevant regulatory and commercial information. In some instances, this value-adding can influence an investor, who would not otherwise have considered Australia, to make the decision to invest in Australia. In other cases, this value-adding reduces the time, cost and complexity for investors to compare Australia’s capabilities with other locations. As a result of Austrade’s national coordination, all state and territory governments have an equal opportunity to attract new investment.

In 2010–11, 19 per cent of Austrade-assisted investment successes were related to mining and 16 per cent were in the ICT sector (Figure 10). The majority of mining successes involved investment in exploration activities with Australian joint-venture partners. Other mining successes included establishment of company regional headquarters in Australia and investment in service provision to the industry.

Other sectors that featured in Austrade-assisted investment commitments included environment and clean energy (12 per cent), health, biotechnology and wellbeing (10 per cent), finance and insurance (9 per cent) and transport (8 per cent).

In 2010–11, the United States and India were the two largest source countries of Austrade-assisted investment commitments, each contributing 17 per cent of the overall FDI (Figure 11). Other Asian countries that were significant sources of Austrade-assisted FDI were Japan (12 per cent), China (10 per cent), Malaysia (7 per cent) and Singapore (5 per cent). Germany was the lead European source country, with 6 per cent of total investment commitments. Spain and Italy also accounted for 4 and 3 per cent of total investment commitments respectively.

Thirty-eight per cent of Austrade-assisted projects were located in New South Wales (Figure 12). Queensland received 22 per cent and Victoria received 18 per cent of projects. Western Australia and South Australia received 10 and 8 per cent of projects respectively.

Overall, one in three Austrade-assisted projects involved joint ventures or strategic alliances with Australian partners, and three in four projects involved greenfield projects.

3. World Investment Report 2011, UN Conference on Trade and Development, released on 26 July 2011.

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Building capability

Under the auspices of the National Investment Advisory Board (NIAB), Austrade delivered the Winning Investment in Australia program, the national flagship capability development program for FDI attraction. The program was reviewed by NIAB in 2010–11, with a revised pilot course delivered in June 2011 for Austrade staff and stakeholders from state, territory and local governments.

Working with allies

As part of the agency’s directive to lead a whole-of-government approach to FDI attraction, Austrade chairs NIAB, which is made up of the heads of state and territory investment promotion agencies. This forum discusses a range of strategic and operational issues, including investment priorities, shared research projects, joint development of investment products and marketing collateral, protocols for coordinating leads between the Commonwealth and states, and site visits. NIAB held two meetings during 2010–11, in Adelaide in December 2010 and Brisbane in May 2011.

Austrade designed and ran training on the implementation of several changes to the way the agency works with the states and territories when gathering information for specific investment projects.

This included the Request for Information process, a new option to collect information from state and territory agencies. Conducted in partnership between Austrade and state and territory investment agencies, the initiative promoted inter-agency cooperation to enable delivery of a consistently high level of client service.

Austrade launched the Team Australia FDI Community on the govdex website in December 2010. This is an important tool for collaboration with state and territory agencies to achieve best practice in inward investment promotion.

Figure 10: Number of inward investment projects assisted by Austrade, by industry, 2010–11

Figure 11: Number of inward investment projects assisted by Austrade, by source country, 2010–11

Figure 12: Number of inward investment projects assisted by Austrade, by location of investment, 2010–11

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Contributing to the whole-of-government policy agenda and collaboration with key stakeholders

Performance measure	Outcome
Effective contribution to whole-of-government policy development utilising Austrade’s global, commercial perspective on export and investment.	In 2010–11, Austrade contributed to whole-of-government policy development, program management and service delivery, including: comprehensive internal review of Austrade, consulting widely with government and business and drawing on the views of external consultants (see page 2 and Appendix B) National Long-Term Tourism Strategy alternative fuels policy, in particular with respect to the US market promotion of the new regime of autonomous sanctions market access into China for Australian table grapes (see page 25) review of Australia’s eligibility requirements for the APEC Business Travel Card.
Increased collaboration and engagement with stakeholders, including businesses and industry associations, institutions and state and territory governments. Note: this measure is also reported on page 65.	Austrade chaired the first meeting of the National Trade Development Working Group in December 2010. Austrade and EFIC officials worked on joint activities in a number of markets and industry sectors. Austrade provided support throughout the year to a number of business and industry chambers, including the Australia Arab Chamber of Commerce and Industry for its inaugural Australia Arab Business Forum and Expo held in Melbourne.

Austrade seeks to contribute a trade and investment development perspective to the whole-of-government policy agenda. This is achieved through leveraging Austrade’s global and commercial insights and through collaboration and partnerships with stakeholders, including Australian Government agencies, state and territory governments, industry associations, chambers of commerce and business councils.

Austrade worked with these agencies throughout 2010–11 to provide input on key industry, trade and investment policy issues of significance to exporters and investors.

Within the Foreign Affairs and Trade portfolio, Austrade worked closely with the Department of Foreign Affairs and Trade (DFAT), Export Finance and Insurance Corporation (EFIC) and the Australian Agency for International Development (AusAID).

Austrade also engaged with other Australian Government departments, including the Department of the Prime Minister and Cabinet, the Department of Broadband, Communications and the Digital Economy, the Department of Defence, the Department of Education, Employment and Workplace Relations (DEEWR), the Department of Immigration and Citizenship (DIAC), the Department of Innovation, Industry, Science and Research (DIISR), the Department of Agriculture, Fisheries and Forestry (DAFF), the Department of Resources, Energy and Tourism (DRET), and the Treasury.

Austrade contributed to whole-of-government policy processes and forums through a number of initiatives, including the National Long-Term Tourism Strategy, on which Austrade worked with DRET to investigate recommendations and actions to address supply-side constraints to tourism industry growth and development, including through investment facilitation and regulatory reform.

Austrade also worked with DRET and other agencies that have carriage of alternative fuels policy, in particular with respect to the US market, providing ongoing market intelligence and support. Austrade provided input to the process for development of an Alternative Fuels Strategy for Australia through the introduction of a key US executive’s perspective to the Alternative Fuels Strategic Issues Group. Austrade also contributed to the Sustainable aviation fuels road map which was released in May 2011.

Throughout 2010–11, Austrade provided timely information and advice about overseas markets to ministers, government departments and agencies and sought to identify and help resolve barriers to trade and investment impacting on Australian businesses.

During October and November 2010, Austrade assisted DFAT, together with the Defence Export Control Office, to promote the new regime of autonomous sanctions and the application of broader UN trade sanctions by hosting and participating in targeted seminars held around Australia.

Austrade worked with DIAC throughout the year in the context of a review of Australia’s eligibility requirements for the APEC Business Travel Card. Austrade assisted DIAC by identifying a broad range of business organisations for consultations, including peak business bodies, bilateral business councils and overseas-based Australian chambers of commerce. These consultations led to the development of a new eligibility model which, at the time of reporting, is under consideration by the Minister for Immigration and Citizenship.

In May 2011, Austrade provided support to the Australia Arab Chamber of Commerce and Industry (AACCI) for its inaugural Australia Arab Business Forum and Expo held in Melbourne. The event attracted more than 300 participants, including a high-level Gulf Cooperation Council delegation from the United Arab Emirates, led by HE Reem Ibrahim Al Hashemi, UAE Minister of State.

Following the forum, the delegation undertook a trade and investment mission to Queensland, for which Austrade provided on-the-ground and business matching support. The event also attracted a strong ministerial presence, including the Hon Kevin Rudd MP, the Hon Dr Craig Emerson MP, the Hon Martin Ferguson AM, MP and Senator the Hon Nick Sherry. A clear message to emerge from the forum and expo was that the region is enthusiastic for increased engagement with Australia.

The opening address to the plenary of the AACCI inaugural Australia Arab Business Forum and Expo in Melbourne in May 2011. L–R: HE Reem Ibrahim Al Hashemi, Minister of State, United Arab Emirates; the Hon Martin Ferguson AM, MP, Minister for Resources and Energy, Minister for Tourism; the Rt Hon the Lord Mayor, Councillor Robert Doyle, City of Melbourne; and Mr Ray Najar, Chairman, AACCI. (Image courtesy of AACCI and the Australia Arab Business Forum and Expo.) Back to top

Ministerial Council for International Trade

The Ministerial Council for International Trade (MCIT) was established in 2008 to increase collaboration and alignment of trade and investment objectives and programs between the Australian Government and state and territory governments.

In February 2011, the Council of Australian Governments agreed to reform the ministerial councils system, following a Review of Ministerial Councils conducted by Dr Allan Hawke AC. As a result, a number of ministerial councils, including the MCIT, concluded in June 2011 and no longer have a corresponding body in the new system.

The officials-level National Trade Development Working Group, comprising representatives from Austrade and state and territory trade development counterparts, will continue to progress trade promotion collaboration, and ministers responsible for trade will meet on an ad hoc basis as issues arise.

National Trade Development Working Group

Austrade chaired the first meeting of the National Trade Development Working Group (NTDWG) in December 2010 in Adelaide. The NTDWG was formed at the recommendation of the MCIT in June 2010 and operates as a senior official–level forum for collaboration between Austrade and state and territory government agencies on trade promotion and facilitation.

The group’s objectives included developing and refining protocols to advance trade development interests between members, sharing knowledge and intelligence on tradecraft and opportunities, driving greater consistency and efficiency in service delivery, forging closer alignment of target industries and markets, coordinating events and promotional activities, and conducting joint training activities.

A second meeting of the group was held in Brisbane in June 2011 where senior officials received a briefing on the Austrade Review, Commonwealth Business Forum, Brand Australia, Austrade’s education activities, Dr Emerson’s Trade Policy Review and export finance.

John Angley, General Manager, Government and Communications, Austrade, presents an update on Brand Australia to a joint session of the National Trade Development Working Group and National Investment Advisory Board, Adelaide, December 2010.

The group will meet biannually with meetings hosted by states and territories on a rotating basis.

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Collaboration with Export Finance and Insurance Corporation

Austrade and EFIC officials are progressing joint activities in a number of markets, including Latin America, the Middle East, Mongolia, Central Asia, South East Asia, India and Africa, and in industry sectors, including manufacturing, engineering, consulting, pharmaceuticals, scientific instruments, mining services, construction, agribusiness and infrastructure.

Collaboration objectives also extend to joint marketing, client referrals, missions, hot-desk arrangements for EFIC staff visiting Austrade offices and Australian Export Awards sponsorship.

For example, Austrade worked with EFIC in China to secure the purchase of the Tasmanian-built Incat high-speed, wave-piercing catamaran, the Cat Hull 059. Built in 2002, the vessel was operating for Bay Ferries in Canada, before being purchased earlier this year by the Fujian Cross Strait Ferry Corporation, to operate between China’s Fujian province, Pingtan Island and Taiwan.

The vessel has been renamed Haixia Hao and will start its service after the passenger terminal at Pingtan Island officially opens later in 2011. It can carry 900 passengers and 267 cars and will be able to cross the Taiwan Strait in three hours, with a top speed of 40 knots (74 kilometres per hour).

EFIC approached Austrade in Shenzhen to undertake corporate research and investigations prior to finalising the deal, capitalising on Austrade’s knowledge of the China market.

Incat’s high-speed craft are among the largest, most fuel-efficient diesel-powered catamarans in the world.

The Australian-built Incat catamaran being readied for service in China. Back to top

Attached agency agreements

Austrade has in place a number of service level agreements for property and administrative support in overseas locations with attached agencies, including AusAID, AusFilm, Australian Federal Police, Wine Australia, Australian Education International, DAFF, DFAT, DIAC, the Department of Trade and Economic Development (South Australia), Trade Queensland, and the Victorian Government.

In 2010–11, new service level agreements were concluded with DFAT for administrative support services in Mumbai, Chennai and Lima; AusAID for administration of the Australian Education Scholarships program in Latin America; DAFF in Dubai; DEEWR in Shanghai; and with Trade Queensland in Kolkata.

Austrade delivers services to and works with these agencies and departments overseas to seek to ensure that government efforts, both Commonwealth and state, are coordinated and targeted.

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Parliamentary inquiries and briefings

In 2010–11, Austrade provided input to members of the Joint Standing Committee on Foreign Affairs, Defence and Trade, including for example:

briefing and support for the committee’s visit to South Africa, Zimbabwe, Ghana and Ethiopia in April 2011, led by the Hon Joel Fitzgibbon MP, as part of its ongoing inquiry into Australia’s re-engagement with Africa

briefing, in conjunction with DFAT, to the Trade Sub-Committee’s ongoing inquiry into export pricing.

Austrade provides support to parliamentary delegations both in Australia and overseas. In 2010–11, Austrade delivered a commercial briefing to a parliamentary delegation to the United States led by the President of the Senate in May 2011. Austrade also supported other visit programs around the world, including in Asia, the Middle East and Europe, using its local commercial knowledge and contacts to provide assistance where required.

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Services to Government

Throughout 2010–11, Austrade provided services to the Minister for Trade and the Parliamentary Secretary for Trade, including through the provision of two full-time liaison officers to support their respective parliamentary offices. The Hon Stephen Smith MP was the Minister for Trade until 14 September 2010, with the Hon Dr Craig Emerson MP appointed to the position for the remainder of the reporting year.

The Hon Anthony Byrne MP was the Parliamentary Secretary for Trade until 14 September 2010, at which time the Hon Justine Elliot MP was appointed to the position.

Austrade reports to the Minister for Trade on its progress towards achieving the Government’s objectives through regular reports and ongoing briefing material. Austrade also provides advice and assistance to the Parliamentary Secretary for Trade, other parliamentarians and state and territory governments.

During the year, Austrade produced 91 written briefs, 84 submissions and received and prepared responses to 475 items of ministerial correspondence.

Austrade also regularly meets with both the Minister and Parliamentary Secretary and their offices to give context to written briefs and discuss ongoing issues.

Supporting ministers abroad

During 2010–11, Austrade provided support to various ministerial visits overseas, including visits by the Prime Minister, the Minister for Foreign Affairs, the Minister for Trade and the Parliamentary Secretary for Trade.

Austrade provides information and advice on opportunities to advance Australia’s export, education and investment interests in overseas markets, including through facilitation of business delegations and missions.

For example, in March 2011, Austrade supported a visit to China by the Parliamentary Secretary for Trade. Mrs Elliot visited the Austrade-organised Australian Pavilion at the 16th China International Education Exhibition Tour (CIEET) in Beijing where she met with Chinese students and alumni, as well as Australian exhibitors and local media.

CIEET recorded 47,800 visitors during its tour of seven cities in China and included representation from 18 Australian education providers and stakeholders. Austrade worked closely with CPA Australia, the Australia–China Alumni Association and state bodies, including Brisbane City Council’s economic development agency Brisbane Marketing. Promotional activities included ‘alumni sessions’, workshops to introduce the Australian education sector to prospective students, Australian and Chinese media interviews with Australian alumni, and prize draws. Two education networking evening events were also held at the Australian Embassy in Beijing and Australian Consulate in Shanghai.

In addition to visiting CIEET, Mrs Elliot also met with a large number of Australian companies, Chinese companies and investors in Beijing. She also opened the newly refurbished Austrade office in Chengdu.

The Hon Justine Elliot MP, Parliamentary Secretary for Trade, joined by Jane Wallis, Trade Commissioner, Austrade, at the China International Education Exhibition Tour in Beijing in March 2011.

Austrade supported overseas visits by the Minister for Trade throughout 2010–11. Countries visited included Korea, China, Japan and Singapore in November 2010; India in January 2011; China, Indonesia and New Zealand in April 2011; the United States in May 2011; and China in June 2011.

Ministerial activities in Australia

Austrade, along with DFAT, provided support to ministers for visits by foreign government delegations over the year, including the Californian Secretary for Food and Agriculture in July 2010; Minister of Foreign Affairs and Regional Integration of Ghana in July 2010; Singapore Minister of State for National Development and Education in August 2010; German State Secretary, Federal Ministry of Economics and Technology in November 2010; Indonesian Minister for Trade in November 2010; Mongolian Prime Minister in February 2011; Malaysian Prime Minister in March 2011; UAE Minister for Economy in April 2011; Russian Minister for Agriculture in March 2011; European Commissioner for Trade in March 2011; German Foreign Minister in May 2011; Commerce and Industry Minister for India in May 2011; Philippines Secretary of Trade and Industry in June 2011; and the New Zealand Prime Minister in June 2011.

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Delivering services to individual enterprises

Performance measure	Outcome
Austrade services are valued by Australian businesses.	The Client Service Improvement Study for 2010–11 showed 87 per cent of businesses surveyed valued Austrade’s services.
Increased collaboration and engagement with stakeholders, including business and industry associations, institutions and state and territory governments. Note: this measure is also reported on page 60.	Austrade partnered with state, territory and local government and private sector organisations through the re-funded TradeStart program, designed to assist Australian small and medium-sized businesses to pursue opportunities in international markets. In 2010–11, the Corporate Partnerships program contributed to over 150 trade and investment-focused initiatives around the world and throughout Australia.
Number of clients assisted through Austrade’s onshore and offshore networks and delivery channels.	The number of Australian businesses that accessed Austrade services in 2010–11 was 12,976. This included businesses that received a defined service from Austrade, submitted an application for EMDG assistance or registered to attend an Austrade-operated event.

In 2010–11, Austrade delivered services to individual Australian businesses, including advice and market intelligence through Austrade’s onshore and offshore networks and delivery channels. Austrade’s services were also delivered through TradeStart, Corporate Partnerships and industry associations.

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Client services in Australia

Austrade’s network of export and industry advisers provides knowledge, advice and practical support to assist Australian companies to succeed in international business, attract productive foreign direct investment into Australia and promote Australia’s education sector internationally.

Austrade’s services help Australian businesses on their international journey, through programs such as ‘Getting into Export’, to prepare new exporters and by delivering customised services to access overseas markets and understand foreign business practices and regulations.

Austrade provides tailored industry intelligence, identification of international partners and arrangement of visits with potential buyers. Support for globally competitive Australian companies includes facilitating engagement with global supply chains, and accessing information on establishing joint ventures, selling intellectual property and investing overseas.

In 2010–11, Austrade supported a consistent mix of business activity in terms of trade value, as in previous years, with 50 per cent (or $8.3 billion) in the services area; 22 per cent ($3.6 billion) in primary production, 18 per cent ($2.9 billion) in the manufacturing area; and 11 per cent in the wholesaling area ($1.7 million) (see Figure 13).

An overview of Austrade’s service delivery in Australia is provided on the following pages.

Figure 13: Trade value by business activity

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TradeStart

TradeStart is an Australian Government initiative that delivers Austrade’s services through local, public sector and industry organisations across Australia. In the 2010–11 Budget, the Government announced funding of $14.4 million during the next four years to continue the program, which has been in operation since 1998.

The prime objective of the TradeStart program is to assist small and medium-sized enterprises in their international business endeavours. The program flexibly addresses the needs of individual businesses, drawing on the combined resources of Austrade and its TradeStart partners. By partnering with organisations like state, territory and local governments and industry bodies, the Australian Government provides local companies with on-the-ground technical support and access to Austrade’s international network of offices. The new TradeStart program commenced in 31 locations across Australia in December 2010. The location of these offices is shown at Appendix C.

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Austrade Direct

Austrade provided assistance to Australian businesses that contacted the Austrade Direct telephone number, 13 28 78. In 2010–11, a total of 15,847 calls were made to the Austrade Direct number, compared to 20,446 in 2009–10. During the same period, Austrade Direct staff made 10,665 outbound calls to potential new clients—slightly down from 10,743 in 2009–10. Austrade staff handled 5,887 web and email enquiries—a reduction from 6,477 in 2009–10. The high Australian dollar and a number of natural disasters during the year have likely had a significant impact on total export enquiries.

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International visitors to Australia

Austrade’s onshore team supports visits to Australia by international customers, delegations, investors, and overseas specialist staff. In 2010–11, visitors had appointments with Australian companies across a diverse range of industries, state and territory governments, and business groups and associations. The appointments covered all states, including regional areas, and industry sectors.

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Seminars

In 2010–11, Austrade delivered a range of seminars that focused on key markets, industry sector opportunities and the Austrade-operated Export Market Development Grants scheme. Many of these seminars were run in partnership with, or in support of, state and territory governments or business organisations. Over 6,000 business representatives registered for events around Australia.

Seminar topics ranged from ‘Getting a record deal in the US’ to ‘China Education—Market Update’. Webinars and videoconferences were used in addition to traditional seminar formats. Presentations from many of the seminar speakers were also made available on Austrade’s website

The entrance to CISMEF 2010 in Guangzhou, where Austrade operated a program for 267 companies. (Photo courtesy of Auga International Advertising Media.) Back to top

Support for overseas events

Austrade’s team in Australia supports an extensive program of international trade exhibitions, business missions and other overseas events, covering a wide range of sectors and markets. In 2010–11, Austrade provided services, including marketing events to Australian companies, pre-departure briefings, market entry advice and making information available on Austrade’s website. Collaboration with state and territory governments and industry groups is also an important element of Austrade’s event work.

A major international event supported by Austrade was the China International Small and Medium Enterprises Fair (CISMEF) in September 2010. Australia was a co-host country and Austrade delivered an ambitious program for 267 companies, including 1,450 business matching meetings with customers brought to the fair by Austrade. Nearly 1,000 Chinese businesses attended 16 industry-focused seminars and functions, and more than 1,000 guests attended a networking event, ‘Night of Australia’.

Australia’s 10,000 square-metre pavilion featuring the new nation brand, Australia Unlimited, impressed Australian and Chinese visitors alike with live music and dance performances, fashion shows and exhibitions on Australia’s Nobel Prize winners and the history of Chinese in Australia.

There were exhibitions from companies in the areas of green building and clean technology, professional services and education, consumer products, food and beverage, and wine. All state and territory governments participated, along with Tourism Australia and the Green Building Council of Australia.

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Austrade’s web presence

With the adoption of the Australia Unlimited brand identity as Austrade’s corporate brand, Austrade’s web team implemented a new visual design on its website, www.austrade.gov.au.

The new design focused on a contemporary modern feel, utilising strong imagery that is balanced and inviting.

Other enhancements to Austrade’s website during 2010–11 included a major software upgrade to improve overall site accessibility and the inclusion of more content in other languages, including Chinese at www.austrade.gov.au/china.

The web team also worked with Austrade’s education unit on refreshing the Study in Australia website, www.studyinaustralia.gov.au, including the new education brand, Future Unlimited. For more information on Future Unlimited, see page 44.

On the Austrade website in 2010–11, there were approximately 1.3 million visits and four million page views.

Austrade’s corporate website homepage showing Australia Unlimited branding. Back to top

Corporate Partnerships program

Austrade takes an open, non-exclusive and collaborative approach to the delivery of government and industry trade and investment initiatives alongside legal, business, financial and risk advisory firms.

The Corporate Partnerships program links Australian businesses, international investors, Austrade staff and other federal and state government departments with professionals who can share their knowledge, insights and expertise on Australian industry and international trade and investment. One of the team’s key objectives is to build international networks in business for the benefit of the Australian economy and community.

In 2010–11, the Corporate Partnerships program contributed to over 150 trade and investment-focused initiatives around the world and throughout Australia. Highlights included clean energy, financial services and infrastructure trade and investment activity in Europe, the Americas and North East Asia; resources export and investment seminars in Sub-Saharan Africa and Asia; and support and profiling for the promotion of international education with Australia’s corporate community.

A Corporate Partnerships newsletter was published fortnightly during the year. Austrade reached more than 1,200 professionals worldwide who were active in international trade and investment. The newsletter provided Austrade with a strong and targeted communication channel to the corporate sector, promoting Australian international business success and government initiatives.

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Women in Global Business program

Austrade has long recognised the need to provide tailored support for women involved in exporting and has been supporting ‘women in export’ events since the late 1980s. Female-owned and operated businesses are now one of the fastest growing business segments in Australia.

The Hon Justine Elliot MP, Parliamentary Secretary for Trade, launched the Women in Global Business program at the 48th Australian Export Awards event in Sydney in December 2010.

In 2010, Austrade joined with the six state governments and the ACT Government to establish a national ‘Women in Global Business’ program. The aim was to leverage existing programs, networks and knowledge of government agencies and avoid duplication. The joint effort creates a whole-of-government platform to encourage, advance and support women in achieving international business success.

The Women in Global Business program was launched by the Hon Justine Elliot MP, Parliamentary Secretary for Trade, in December 2010 at the 48th Australian Export Awards.

The program is the only nationally coordinated government women’s network focused on the international stage. It connects businesswomen who are successfully exporting, as well as women who are considering export, or just starting out.

The objectives of the Women in Global Business program are to:

bring together women involved in international trade and investment across Australia and its trading partners to help them develop sustainable business

encourage, support and advance the involvement of women achieving international business success

increase the profile of Australian businesswomen involved in international trade within the local and international business community

connect Australian women with other women around the world to create business opportunities.

The program is an extension of the assistance provided through Austrade to support Australian businesses in export.

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Income tax exemption under section 23AF

Austrade works in conjunction with the Australian Taxation Office to administer the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936. Since 1980, section 23AF has provided an exemption from Australian income tax for the earnings of Australian individuals while working overseas on approved projects for more than 91 days.

This provision helps Australian businesses and government organisations to be more internationally competitive in bidding for overseas tenders. In 1996, the Minister for Trade delegated power to Austrade for determining which projects are eligible for the purposes of the exemption.

In 2010–11, 33 applicants submitted a total of 218 applications ⁴, with 196 granted approval for exemption, in comparison with the previous year’s figures of 34 applicants, 250 applications and 203 approvals. A total of 914 applications, worth $29.6 billion, have been granted approval over the past five years, with the majority of these coming from engineering and consulting businesses. Of the 914 applications approved over the past five years, 23 per cent have been successful in securing contracts worth a total value of $4.15 billion.

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Achieving high standards of client service

Austrade delivers services tailored to the needs of Australian businesses seeking international trade and investment business. The agency monitors its service delivery standards through adherence to a Client Service Charter and ongoing monitoring of client satisfaction.

Austrade’s Client Service Charter is available at Appendix D. The charter reflects Austrade’s commitment to the delivery of high-quality and consistent service worldwide. It sets out the service standards that businesses can expect from Austrade and the process of providing feedback.

Clients provide feedback on Austrade’s service delivery in Australia and offshore through a number of mechanisms, including Austrade’s website, annual telephone surveys and quarterly online surveys.

The Client Service Improvement Study for 2010–11 showed 87 per cent of businesses surveyed valued Austrade’s services.

4. Section 23AF applicants can submit multiple applications for approval.