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Beyond Virginia
 
Rise Above Your Competition by Going Down Under - Australia & Singapore Trade Mission

The U.S. is the #1 exporter to Australia and #2 exporter to Singapore. U.S. products and services are more competitive than ever, because tariffs have been eliminated by free trade agreements and the dollar is weaker. Introduce your company to these attractive markets by joining us on the VEDP's first-ever trade mission to Australia & Singapore in June 2006.

Export volume to Australia and Singapore may not be in the Top 10 list of destinations, but the U.S. ranks number 1 and 2 respectfully as the source of imports for these countries. After all, our nations speak English, have been good friends for decades, have open and safe investment climates, and want the best products at the lowest prices for our citizens. Your competitors may not realize this, but both countries are largely dependent on imports.

Despite the long distance from Virginia, here are some considerations why Australia & Singapore may be better markets than Europe right now.
  • Both nations have very low inflation and high GDP with a more positive economic outlook for 2006 than the Big 4 in Europe.
  • A 2004 survey of ex-patriots perceived Singapore then Australia as the only 2 countries ahead of the U.S. for quality of corporate governance.
  • Furthermore, they have stable governments and business environments that welcome American companies.

    • All in all, the future looks bright for the relationship between our 3 nations-and the opportunities for international trade are plentiful.

    Australia
    The U.S. and Australia signed a free trade agreement (FTA) eliminating over 99% of tariffs on January 1, 2005. U.S. exporters seized the opportunity during the first year of the FTA by increasing exports by $1 billion consisting largely of machinery. Australia has an economy comprised of 70% service industries, 25% manufacturing, and the rest agricultural. Beyond the opportunity for direct sales, many U.S. companies consider Australia a safe and comfortable position to launch their initiatives into China, India, and Japan.

    Singapore

    The U.S. and Singapore free trade agreement went into effect January 1, 2004 making it the first U.S. FTA with an Asian country. This FTA includes state-of-the-art commitments in e-commerce, customs cooperation, transparency, and the protection of intellectual property rights. Before the agreement was signed, there were over 1300 U.S. firms already operating there-many serving as regional headquarters-now there are over 1500. With the world's highest volume port, Singapore is considered a commercial hub for SE Asia and an excellent launching point into neighboring markets. Although, Singapore has few natural resources, it benefits largely from re-exports and services which account for 70% of their GDP while manufacturing accounts for 28%.

    Would Australia and Singapore welcome your Virginia products?
  • In 2004, Australia imported more goods from the U.S. than any other country.

  • In 2004, the U.S. ranked 2nd in imports by Singapore, following Malaysia.
  • U.S. exports to Australia rose 10.5% from 2004 to 2005 and rose 5.33% to Singapore.
  • Virginia exports to Singapore increased a whopping 71% from 2004 amounting to $310.8 million in 2005.
  • In October 2005, Australian Customs Service raised the threshold for applicable duties and tariffs from AU$250 to AU$1000 which makes smaller shipments cheaper and arrive sooner.
  • In 2004, Australia's principal imports were: vehicles, telecommunication and sound equipment, office machines, and industrial machinery.

  • Primary U.S. exports to Australia for 2005 were: machinery, vehicles, electrical machinery, optical & medical instruments, aircraft, and pharmaceuticals.
  • Key Virginia exports to Australia in 2005 were: machinery, pharmaceuticals, plastics, paper & paperboard, electrical machinery, cosmetics, organic chemicals, and optical & medical instruments.


    • In 2004, Singapore's principle imports were: electrical machinery & parts, petroleum, office machines, telecommunication & sound equipment, and industrial machinery.
  • Primary U.S. exports to Singapore for 2005 were: machinery, electrical machinery, aircraft, optical & medical instruments, plastics, and organic chemicals.
  • Key Virginia exports to Singapore in 2005 were: electrical machinery, other machinery, optical & medical instruments, plastics, tobacco, paper/paperboard, and cosmetics.


    • What else should I know?

    Download Australia or Singapore FastFacts 2006 at:
    http://www.exportvirginia.org/publications_fastfacts2.htm

    What will it take to get started?
    1) Let your local International Trade Manager know you're interested in these markets! Find Trade Manager contact info at: http://www.exportvirginia.org/contact_itm.htm

    2) Do your research!! Conduct preliminary data on your product going into Australia and Singapore or identify possible contacts in these countries through the VEDP's research staff. For assistance, contact your local International Trade Manager or email ITR@YesVirginia.org.

    Consider an in-country Global Market Research (GMR) project to verify market information and survey prospects. This primary research is subsidized and guaranteed by the VEDP! For more details, click here: http://www.exportvirginia.org/programs_gmr1.htm or contact Butch Sarma, our GMR Manager, directly by email: BSarma@yesvirginia.org

    3) Join us May 29- June 7, 2006 on our first-ever Trade Mission to Singapore and Australia (Sydney & Melbourne). Let the VEDP coordinate your travel, pre-screen your prospects, arrange networking events, and schedule your individual agenda of meetings to make the most of your investment in these exciting markets. Space is limited!! Don't miss the boat!

    Please contact Kim Weir, Mission Leader, for details: KWeir@yesvirgina.org.

    Click here for our Trade Mission flyer: http://www.exportvirginia.org/Event%20Flyers/Singapore%20Australia%20FLYER.pdf

    For more information on the VEDP, please visit our website at: www.ExportVirginia.org

    Sources / References:

    1. World Trade Atlas. U.S. State Export Edition. Annual 2006. Global Trade Information Systems. http://www.gtis.com/state
    2. Comtrade. Commodity Trade Statistics Database. Annual 2006. United Nations Statistics Division. http://unstats.un.org/unsd/comtrade/
    3. Asia Risk. www.AsiaRisk.co
    4. Asian Development Bank On-line. 2005. http://www.adb.org/Documents/Books/Key_Indicators/2005/pdf/SIN.pdf
    5. Beyond Business Connections: www.beyondbusiness.com.au
    6. Orissa Associations: www.orissa.com.sg