Trade Stage 5 - GTANSW

Ian Sanders

Education Advisor

Austrade

March, 2007

Geography Stage 5

Stage 5 Focus Area 5A4, Outcomes: 5.6 and 5.7

Australia’s regional and global contextregional and global trendsregional and global links

Strategies for a better futureecologically sustainable developmenttrading agreements and treaties

Electives: Australia’s Neighbours, World Political Geography, Communities, Work and Settlement, Development Geography.

Where we are:

AAP Newswire 06/03/2007

Export benefits: employment opportunities

The changing nature of work

Internet for sales & marketing

Niche products & markets (p10 11/12)

Smart use of technology (p78+ 11/12)

Supply chains (p9+ 11/12)

Our time zone for services (p9 11/12)

Proximity to Asia

Emerging industries

Austrade exporting poster series + activities (employment opportunities p3, growth opportunities p5 & future openings p7)

Year 11/12 book pp 30-32

Australian exporters are quick to pick up the Internet

Exporters Non-exportersInternet connections

Technology has also played a role and an Advanced Australia has fared well

Niche Exports

Adelaide Advertiser, 11/07/06

Niche Exports

Daily Telegraph, 29/06/06

Emerging Industries

Burnie Advocate, 13/07/06

Asia’s rise means that we are now in the right place at the right time: ‘The Tyranny of distance’ has become ’The Power of Proximity’

Who we sell to:

Australia - Exports by Country

Mill

ions o

f A

ustr

alia

n D

olla

rs

January - December 2006

0

10000

20000

30000

40000

Japan Korea, South New Zealand United Kingdom Singapore

China United States India Taiwan Indonesia

Who we buy from:

Australia - Imports by Country via All States

Mill

ions o

f A

ustr

alia

n D

olla

rs

January - December 2006

0

5000

10000

15000

20000

25000

30000

China Japan Germany Malaysia United Kingdom

United States Singapore Korea, South Thailand New Zealand

Broad export categories

Non-monetary gold

3% ($5.8 b)Rural

14% ($24.7 b)Manufactures21% ($37.0 b)

Services21% ($37.2 b)

Non-rural other

6% ($11.3 b)

Resources33% ($58.4 b)

Other goods2% ($2.6 b)

ABS, December, 2005

Barriers to Trade

Cultural differences

Political instability

Barriers to Trade

Quarantine

Barriers to Trade

Local regulations

Subsidies

Trade liberalisation and protection

Trade protection issues - tariffs Protection in high-income countries (average tariffs)

0.83.4

9 1012

20

0

5

10

15

20

25

Trade agreements

• Multilateral agreements – WTO• Regional agreements – APEC• Bilateral agreements – Free trade agreements (FTAs –

NZ, Singapore, Thailand, USA)

Find information on the four current agreements at:

• www.fta.gov.au fact sheets, minister’s speeches

The status of current negotiations can be found at:• www.dfat.gov.au feasibility, negotiations• Austrade: www.austrade.gov.au/economistscorner

Trade agreements

Trade agreements

Trade agreements

China Australia trade

Before entering the WTO in 2001, China’s average tariff rate was 15.3% but has been steadily reduced to 9.0% in 2005.

•The tariff on most mechanical products is 5%•The average tariff on agricultural products is 15.3%

Australia has an average tariff of 3.5%, with 85% of tariffs falling between 0 and 5%.

An FTA could boost trade by US$18-64 bn over 2006-2015.

China’s tariff regime

Sustainable development and exports

Areas in which Australia has internationally-recognised expertise include:

•arid land and water resources management•clean mining and mineral processing•pollution monitoring and controlling•waste management•organic foods•renewable energy•contaminated site remediation.

Triple bottom line reporting

• Few currently report on triple bottom line

• Business responsibilities & accountabilities will adapt to suit business structures and activities in the post-industrial era

• Growing interest & feasibility studies

• Multinationals now adopting triple bottom line - WMC Resources (www.wmc.com 2002 Sustainability Report), Shell

Transparency and accountability by business for their economic, social & environmental performance

Sustainable futures

Source : DFAT, 2000

Global benefits: higher wages

Foreign manufacturers pay more than local firms, $US ‘000s, 1996

See www.dfat.gov.au/publications/globalisation_gains/faqs.pdf

Globalisation poster activities booklet p8

Globalisation issues - poverty

Globalisation poster series – poverty p16

World poverty 1820–1998

Globalisation

FOR:

•Global, open economies perform better with improved living standards, reduced poverty, increased literacy

•Better health care leading to longer life expectancy, reduced infant mortality

•Reduced costs and greater access to goods

•Interdependence encourages peace and democracy.

•Improved environmental awareness, better technology

Globalisation

AGAINST:

•Restructuring causes loss of traditional skills, job loss

•Increased migration, brain drain, worsened labour conditions

•Uncompetitive economies may fall further, vulnerable to downturns

•Health impacts – migration, cigarettes, pollution

•Monoculture, land clearing

Globalisation issues

Austrade globalisation posters and activities

• Globalisation means … • Globalisation in history• Globalisation drivers• Globalisation and the world economy• Globalisation and culture• Globalisation and world politics• Globalisation and the environment• Globalisation and poverty

Austrade education resources

• Exporting for the Future Years 9/10

• Exporting for the Future Years 11/12

• Trends in Australia’s Trade – statistics

• Understanding the Global Economy – articles

• Going Global export strategy game

• CD – references from Austrade & DFAT

• Posters plus activities booklet with answers

• Market research resources online

• Web Quests and case studies online

Your suggestions, requests and contact

details to:

The future

education@austrade.gov.au

Phone: 02 6201 7430

Fax: 02 6201 7304

Education Program