Latin America The Good News

1
Latin America The Good News

• Gerard Seeber
• Senior Trade Commissioner
• Austrade Latin America
• May 2003

2
LATAM Key Figures

• POPULATION 488 Million
• GDP US 1,500 Billion
• LARGE, SOPHISTICATED AND DIVERSE MARKET

3
LATAM Features

• TIME DIFFERENCE 12 to 14 HoursFLIGHT
  TIMES 17 hours to Santiago 30 hours to Sao
  Paulo
• LANGUAGES Spanish, Portuguese and English
• DIFFERENTIATION 22 Markets all with unique
  features

4
Latin America is a small proportion of
Australias total exports
Merchandise Exports 2002
Source ABS data on DFAT STARS
5
For instance, exports to Latin America are still
small relative to comparable economies in Asia
Source ABS data on DFAT STARS
6
However, the good news is that exports have been
growing to most Latin American Economies except
Argentina
Source ABS data on DFAT STARS
7
Comparisons

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LATAM Good News

• Argentina Elections Stable exchange
  rate Economic positive news
• Brazil New President Stability in the
  exchange rate Attractive to the Financial
  MarketsChile Stable and familiarMexico Stable
  and an untapped market
• Peru Highest economic growth in the region

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LATAM Good News

• Positive view of Australia!!
• Looking for new partnerships
• Enhanced Government to Government Relations
• Complementary economies
• Familiar business environments
• Logistics

10
LATAM Caution

• World economic environment
• Instability in some economies
• Trade Agreements
• Legal Complexity
• Shipping Times (15 to 60 Days)
• Business Development time (the long and the
  short of it)

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Where is the opportunity
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Where is the opportunity

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Austrade LATAM

• Buenos Aires Argentina, Uruguay and Paraguay
• Brazil
• Santiago Chile and Bolivia
• Mexico Mexico, Central America and Caribbean
• Lima Peru, Ecuador, Colombia and Venezuela

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Austrade LATAM

• One entry point
• In market services
• EMDG
• 14 years Commissioner Experience
• Regional Promotional Programs
• Work closely with interest groups

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Austrade Initiatives 2003-04

• Australia Festivals (Brazil, Argentina, Chile,
  Mexico, Peru)
• Exhibition of Education, Tourism, Food Beverage
  and Business
• (in Brazil also includes Culture, Sport and
  Gourmet)
• Seminar Program
• Seminar Programs to the public about Australias
  capabilities in specific sectors
• Specific Programs, eg visits, roundtables, press

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Austrade Initiatives 2003-04

• Defence
• Education
• Food and Beverage
• Sport
• Culture

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TRANSPORT THE NUTS AND BOLTS

• Tariff rates 6
• Shipping Cost 20Container US2,000
• Transit Time 25 days
• Direct flights from Australia to Santiago

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SOME FINAL THOUGHTS

• Big Chilean community in Australia
• Chile hosts APEC in 2004
• Price is important but quality more so
• Good potential for new exporters