Australia’s reputation is the biggest advantage for exporters trading globally, an Australian Chamber of Commerce and Industry (ACCI) survey found.
The 2024 National Trade Survey, released in association with ANZ, provides insight into the most important trade issues impacting Australian businesses of all sizes.
Asked about their international competitive strengths, 70% exporters rated their reputation as an Australian producer being a competitive strength.
Access to markets with a free trade agreement (FTA) ranked second at 35%.
ACCI Chief Executive Officer Andrew McKellar said the results reinforced Australia’s strengths in a competitive global market.
“Australia’s positive reputation is a big plus for businesses conducting trade. The value of a good reputation makes dollars and sense, and it is important that our standing remains a favoured one,” McKellar said.
“While Australian traders can never hope to operate in a risk-free environment, there are things Australia can control.”
Trade barriers and concerns
Almost 70% of businesses reported labour costs to be Australia’s biggest international competitive weakness, followed by Australian tax rates (50%), government red tape (about 47%) and energy costs (about 45%).
Labour costs (73%) were also the primary concern for goods, services and ancillary trading businesses. ESG including supply chain due diligence was a close second (72%).
In terms of exporters’ global concerns, cyber security topped the list (more than 80%) followed by war in the Middle East (about 76%) and tensions between the United States and China (around 70%).
Shipping costs rated as a ‘major’ or ‘moderate’ concern for nine in 10 businesses surveyed.
For businesses that don’t engage in international trade, the main reason (53%) was because they hadn’t considered it.
This suggests an opportunity for increased promotion of the benefits of international trade and information on how businesses can successfully engage in trade.
Key markets and opportunities
China and the US jointly ranked as Australia’s most common trade markets – both at 47.8% – followed by Singapore and the United Kingdom (tied second at 36.7%), and New Zealand (35.3%).
India is seen as the most attractive market for future opportunities, likely due to the Australia-India Economic Cooperation and Trade Agreement (ECTA) enacted in December 2022 and ongoing negotiations to conclude the Australia-India Comprehensive Economic Cooperation (CECA).
CCIWA’s International Trade Services help businesses reduce the time, cost and risk of going global. Contact the team for a free consultation on (08) 9365 7620 or via [email protected].
