Australia Arab Chamber of Commerce and Industry, Media Release, 18 May 2021
The Australia Arab Chamber of Commerce and Industry’s (AACCI) latest report emphasises the importance of the Middle East and North Africa (MENA) for Australia’s export market recovery.
When China imposed an 80 per cent tariff on Australian barley 12 months ago, it was the Middle East who stepped in. Saudi Arabia became our biggest export market taking 1.5 million tonnes of the grain with just 33,000 tonnes being exported to China over the same period.
This is just one export market where MENA quickly responded to serve Australia’s interests at a time when real action on trade diversification is critical to our economic recovery.
As the trade dispute between Australia and China escalated presenting a long-term issue for exports, AACCI sought to determine the sentiment among Australian exporters for a viable way forward on diversification.
Of the findings, the obvious and long-standing proposition to engage in free trade agreements (FTAs) was a key focus for the inquiry. The clear message, a resounding thumbs up to bi-lateral, rather than a regional FTA approach as previously sought.
Further insight from Australian exporters highlighted that unlike Canada and the UK who have established double taxation agreements (DTA) in the region, Australia is yet to establish similar.
AACCI President and National Chairman, James Harb noted the vital lifeline presented to Australia in alternative markets.
Now, more than ever, Australia needs to look further west and seriously consider the expanding opportunities presented by its allies in the Middle East. There is an abundance of opportunity not only for Australian exporters but also for strategic investment in sectors such as Australian infrastructure which will greatly assist the recovery of the Australian economy with no strings attached.
AACCI Vice President, Treasurer and NSW Chairman, Mohamed Hage in highlighting AACCI’s key role in advocacy strongly emphasised the critical role that thought leadership plays in bringing about real solutions in a very real time of global uncertainty for many markets.
Thought leadership is especially important. This is not only a report which speaks to the necessity of trade agreements, it amplifies the voices of real exporters and industry experts and speaks to the critical need for real policy reform on trade diversification to non-traditional markets.
Australia’s 2017 Foreign Policy White Paper almost exclusively focused on the Indo-Pacific region, with China as the golden goose. Considering the Australia-China trade crisis and the devastating impact of the pandemic in India, in a COVID recovery world, this Foreign Policy approach no longer serves the new paradigm we, as a nation are in and the necessity to seek trade alliances with non-traditional markets.
It is about fostering knowledge, finding real solutions and ways to move beyond the traditional focus that we saw in the 2017 White Paper. Mohamed Hage added.
With the World Expo Dubai 2020 just five months away, our outstanding Australian Pavilion ripe, ready and ‘open for business,’ and digital offerings to engage for those unable to travel, the event serves as a panacea for Australian exporters and a solution served on a silver platter offering remedy to the current issues of maintaining a narrow traditional trade market focus.
AACCI’s second report into trade diversification, Trade Diversification Trade Agreements: A Case for increasing trade with the Gulf Cooperation Countries, canvasses first-hand experiences and insights of Australian exporters and industry experts, and elevates the national conversation forward and beyond the well touted adage of, not placing all our eggs into one basket.
