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Australia Now

Exporting to Australia

As a global trader, Australia seeks to break down trade barriers by liberalising international trade and investment rules. Australia supports foreign investment and promotes two-way trade between countries.

Since the 1970s, Australia has progressively dismantled or cut many of its former protectionist tariffs, introduced domestic competition laws, deregulated its financial markets and floated the exchange rate. There are now substantially lower barriers to trade and investment with Australia.

Internationally, Australia is a strong supporter of the World Trade Organization, is an active member of the Asia–Pacific Economic Cooperation forum and chairs the Cairns Group of agricultural exporting nations. Australia also pursues comprehensive bilateral free trade agreements that are consistent with World Trade Organization rules.

Australia is a founding member of the Pacific Islands Forum, the key regional political organisation in the Pacific. Under a regional agreement, Australia and New Zealand provide (on a non-reciprocal basis) duty-free and unrestricted access to their markets for raw materials and manufactured goods from Pacific Islands Forum countries, provided the manufactured goods comply with a 50 per cent rule of origin requirement.

All exporters to Australia must comply with certain requirements, including customs, quarantine and labelling.

Two-way trade

Australia’s total two-way trade in goods and services in 2006–07 was valued at $444 billion, or about 1 per cent of total world trade.

Australia’s exports in 2006–07 were the highest on record, up 10 per cent to $216 billion—about 21 per cent of the country’s gross domestic product. The biggest export sectors were minerals and fuels, followed by the services, manufactures and rural sectors.

In 2006–07, Australia exported 17 per cent of its goods and services, valued at $36 billion, to Japan, followed by China (12 per cent, $26 billion), the United States (7 per cent, $15 billion), the Republic of Korea (7 per cent, $15 billion) and New Zealand (6 per cent, $13 billion).

Australia’s imports rose by 8 per cent to reach $228 billion in 2006–07, with high oil prices and rising petroleum imports playing a significant role. Imports of consumption goods increased by 9 per cent and service imports by 8 per cent. Imports of capital goods grew by 3 per cent to $41 billion, reflecting strong investment in the Australian economy.

Australia’s largest source of imports in 2006–07 remained the United States, which accounted for almost 15 per cent or almost $33 billion of imports, followed by China (13 per cent, valued at $28 billion), Japan (9 per cent, $19 billion), Singapore (6 per cent, $14 billion) and the United Kingdom (5 per cent, $11 billion).

Trading arrangements

Australia pursues its trade relationships, promoting both imports and exports, through multilateral, regional and bilateral arrangements.

Multilateral trading arrangements

Australia is a strong supporter of the World Trade Organization and the Cairns Group of agricultural exporting countries, which it chairs. A robust multilateral trading system is the most effective way of providing exporters with increased access to world markets—including Australia—for their products and services.

Regional trade and economic cooperation

Australia is an active member of the Asia–Pacific Economic Cooperation forum and is driving efforts to strengthen APEC’s policy agenda and institutional structure to reinforce APEC’s ability to contribute to the region’s prosperity and security. APEC economies represent around 60 per cent of global gross domestic product and around 50 per cent of world trade, as well as accounting for around two-thirds of Australia’s trade. Australia chaired APEC in 2007 and hosted the leaders’ meeting in Sydney.

Under the South Pacific Regional Trade and Economic Cooperation Agreement (SPARTECA), Australia and New Zealand provide (on a non-reciprocal basis) duty-free and unrestricted access to their markets for unmanufactured raw materials and manufactured goods exported from Forum island countries, subject to manufactured goods meeting a 50 per cent rule of origin requirement.

Special rules apply to exports of textiles, clothes and footwear from Fiji under the provisions of SPARTECA–TCF.

Forum trade ministers agreed in 2005 to move beyond SPARTECA towards a more comprehensive framework for trade and economic cooperation between Australia, New Zealand and Forum island countries, as provided for under the Pacific Agreement on Closer Economic Relations (PACER). Discussions on ‘PACER Plus’ negotiations will continue in 2008.

A new ‘PACER Plus’ comprehensive trade agreement will offer opportunities to drive regional economic growth and spur greater economic integration that will deliver prosperity and provide increased social stability to Forum island countries.

Trade (in goods and services) between Australia and Forum island countries in 2006–07 totalled $7 billion (including New Caledonia and French Polynesia). As a group, Pacific island countries had a trade surplus of $397 million with Australia.

Free trade agreements

Australia is pursuing free trade agreements that are comprehensive and consistent with World Trade Organization rules as a way of improving its access to the markets of key and emerging trading partners; building closer economic and strategic ties with those countries; and promoting global trade liberalisation and reform.

Australia has finalised comprehensive agreements with four of its 10 largest trading partners—New Zealand (since 1983), Singapore (since 2003) and the United States and Thailand (since 2005). Negotiations are also currently under way with the Association of Southeast Asian Nations (jointly with New Zealand), China, the Gulf Cooperation Council, Malaysia and Japan. Australia is holding preparatory free trade agreement talks with Chile and joint studies with the Republic of Korea and Mexico.

Financial services

Following the structural and policy reforms that began in the 1970s, Australia today has a sound, stable and modern institutional and regulatory structure that provides certainty to business and offers a welcoming destination for investment.

Australia is a major regional financial centre, with a sophisticated financial system and transparent markets. The depth, liquidity and sophistication of Australia’s markets underpin Australia’s strength as a global financial services centre.

Australia is also an attractive location for international companies wanting to establish a regional base to take advantage of the growing business opportunities in the Asia–Pacific region and to enter Australia’s highly developed domestic market.

Foreign investment

Australia welcomes foreign investment. It recognises the important role foreign investment plays in boosting economic growth, developing competitive industries, creating jobs and increasing exports. Total foreign investment in Australia in June 2007 (portfolio, direct, financial derivatives and other investment) was $1.6 trillion.

The Department of Innovation, Industry, Science and Research promotes Australia as a competitive investment location. With investment specialists in key locations worldwide, it offers a range of services to potential investors, including providing expert advice on Australia’s industry capabilities and strengths, arranging site visits and linking businesses with potential investment or research partners.

Australia’s import requirements

All goods imported into Australia must comply with customs, quarantine and labelling requirements.

Customs

Goods entering Australia must be cleared by the Australian Customs Service. Depending on the type and value of the goods or products, there may be costs involved, including clearance fees, customs duty, goods and services tax and other taxes. The Australian Customs Service website (www.customs.gov.au) provides general advice on clearance requirements. It also provides listings of prohibited goods, which cannot be imported into Australia under any circumstances, and restricted goods, which require written permission for importation. The Customs Information and Support Centre can provide advice and information on specific queries. The centre can be contacted on 1300 363 263 or by email at information@customs.gov.au.

Quarantine

Managing the risk to Australia of unwanted pests and disease is essential for the conservation of the nation’s plants, animals and agricultural industries. Australia’s quarantine measures are among the most stringent in the world. Designated products must be inspected and, where appropriate, treated by the Australian Quarantine and Inspection Service (AQIS) for pests or diseases.

Quarantine conditions applying to the importation of specific products are detailed in the AQIS Import Conditions database, known as ICON. Some products have been assessed as posing significant risk and are not allowed to enter Australia. Other products are only allowed into Australia on the granting of an import permit from AQIS.

The first step is to check the ICON database, which can be accessed through the AQIS website (www.aqis.gov.au). Information on specific issues is available from AQIS on 1800 020 504.

Labelling

The Australian Trade Practices Act prohibits the making of certain false and misleading representations, including on labels. In some circumstances, the law requires that labels provide certain specific information to consumers.

The Act also prohibits businesses from making false or misleading claims about the place of origin of goods. The Australian Competition and Consumer Commission country of origin website (www.accc.gov.au) provides information on country of origin labelling and regulations governing the ‘Australian Made’ logo. Information on specific issues is available from the commission on 1300 302 021.

Some categories of goods (such as food and pharmaceutical products and agricultural and veterinary chemicals) are subject to separate, detailed labelling provisions.

Key Facts

Further information

This fact sheet is also available to download ( PDF)

Note: Unless otherwise stated, all dollar amounts are in Australian dollars. The term ‘billion’ means ‘a thousand millions’ (one billion therefore equals 1,000,000,000); the term ‘trillion’ means ‘a million millions’ (one trillion therefore equals 1,000,000,000,000).

last updated April 2008