Export Opportunities for U.S. Businesses
KEY TRADE INDICATORS
$30.8 Billion of
of U.S. Services
Ranked #10 on
World Bank Doing
ECONOMIC AND BUSINESS ENVIRONMENT
Australia is the world's 12th largest economy, with a GDP of US$1.5 trillion. It is the fourth largest economy in the Asia-Pacific region. Australia’s per-capita GDP of over US$68,000 is among the highest in the world. The economic outlook for Australia is favorable, led by private investment in mining and commodity exports to emerging Asia, including China. Australia’s economic stability has been supported by prudent fiscal policy and structural reforms. The 2015 Australia-U.S. Free Trade Agreement (AUSFTA) lowered barriers for bilateral goods and services trade and the elimination of tariffs provided new market opportunities for U.S. companies.
TOP INDUSTRY EXPORT OPPORTUNITIES
Australian consumers are oriented toward the same factors that many U.S. consumers seek - freshness, wholesomeness and healthy lifestyles. To a large extent, they are prepared to pay extra for them. The organic, healthy and natural products market in Australia continues to grow rapidly. Prospects are excellent for organic and natural ingredients as well as consumer ready processed foods and beverages. Examples of growing segments are the nutritious snacks category, gluten free foodstuffs, iced tea and energy drinks.
In 2013, the Australian cosmetics and toiletries market value was US$1.6 billion, with imports representing 50 percent. Of the import market, the U.S. holds a substantial share at 30 percent. The three sub sectors experiencing growth are color cosmetics, hair care and beauty salon products. Color cosmetics, which account for 45 percent of retail sales, is key to growth. Note that as a result of the Free Trade Agreement between the United States and Australia, the general import duty on cosmetics and toiletries from the United States is zero.
Australia is the eighth-largest export market for U.S. manufacturers of medical technology products. Australia is a mature market for medical technology and there is demand for the full range of sophisticated medical equipment. Products that serve Australia’s ageing population are likely to experience growth. Diseases and illnesses for which incidence and prevalence rates are projected to increase include diabetes, cerebrovascular disease (stroke), ischaemic (coronary) heart disease, lung cancer, and musculoskeletal disorders.
TRADE REGULATIONS & CUSTOMS INFORMATION
The U.S. - Australia Free Trade Agreement (AUSFTA) The Free Trade Agreement between the United States and Australia (AUSFTA) came into effect on January 1, 2005. AUSFTA eliminated import tariffs on 99 percent of U.S. manufactured industrial and consumer goods, and 100 percent of U.S. agricultural products. This has continued to create export opportunities for U.S. manufacturers and farmers. Tariffs on non-U.S. products average 5 percent or less, with a few exceptions, such as motor vehicles, clothing, and footwear.
Import Requirements and Documentation
The Australian Customs and Protection Border Service has sole jurisdiction to clear imports. Local importers are responsible for obtaining formal Customs clearance for goods.
Goods and Services Tax (GST)
Goods entering Australia may incur duty, Goods and Services Tax (GST), and/or additional charges. The liability to pay a 10 percent GST for imports rests with the importer. Payment of GST may not be required for temporary importation of goods.
The Australian Quarantine and Inspection Service (AQIS) is the federal body responsible for enforcing Australia’s quarantine regulations, including issuing permits and inspecting shipments. Australia has stringent prohibitions and quarantines against a number of products. Australia has very strict sanitary and phytosanitary restrictions affecting imports of fresh fruit and vegetables and imports of meat and poultry products.
Download Australia's Country Commercial Guide for more Customs and Trade Regulation Information
IMPORTANT COUNTRY GOVERNMENT ENTITIES
LOCAL U.S. SUPPORT CONTACT
Download the complete Country Commercial Guide
Source: U.S. Commercial Service