Envoy urges Cebuano traders to explore the Aussie market

CEBU, Philippines - Australian Ambassador to the Philippines Rod Smith is encouraging Cebuano traders to consider the huge potential of Australia as a market for different products and services in Cebu.

Smith, who was in Cebu together with other Australian Embassy executives, said that Australia can be a potential market specifically for Cebuano exporters, considering that it has a good number of affluent consumers.

Although its total population is only 22 million, but its economy is six times compared to the Philippines, making it the fourth largest economy in Asia Pacific.

“Philippine exporters are slow to see Australia as a market,” said Smith in a press conference held recently, adding that Cebu and Visayas should see the big potential and opportunity in seeing Australia as one of its major markets.

Capitalizing on the potential of Cebu as an important trade partner of Australia, Smith said the Australian Embassy is starting to partner with different organizations, specifically in the Cebu Chamber of Commerce and Industry (CCCI) to let the traders know and discover the trade opportunities in his country.

At present, he said the Philippines is only getting three percent of the total US$90 billion trade of Australia in different countries in the ASEAN market. Thailand and Singapore is two of its largest trading partners in the region.

Australian investors are also looking at putting their money in the Philippines, particularly in the fields of mining, Business Process Outsourcing (BPO), infrastructure via the Public-Private-Partnership (PPP) program of the Philippine government, among others.

Because of the existing bilateral agreement between the Philippines and Australia, including New Zealand, Smith said exporters can take advantage of 96 percent tariff-free products for exports to Australia.

At this point though, only few Filipino exporters have taken advantage of the free trade agreement, thus he is encouraging traders to be aggressive in availing of this tariff-free mechanism.

Smith mentioned the iconic brand of Kenneth Cobonpue in furniture, as one of the in-demand products among Australian consumers.

Likewise, aside from tapping the wealthy Australian market, Filipino exporters could also hit the growing number of Filipino immigrants residing and working in his country.

Today, there are a total of 250,000 Filipinos living in Australia.

Two-day merchandize trade between Australia and the Philippine was worth AUD$1.6 billion (approximately P60 billion) in financial year 2009 and 2010.

Major Australian merchandize exports to the Philippines include; Copper ores and concentrates; medicaments; copper; milk and cream; electrical machinery and parts, radio broadcast receivers; telecommunications equipment and parts, and Iron ore and concentrates.

The entry-into-force of the ASEAN-Australia-New Zealand Free Trade Agreement (AANZFTA) on January 1 last year, represented a significant development in the trade relationship in these countries.

According to Smith, the agreement locks in existing access to both the Australian and Philippine markets, with tariffs to be eliminated on around 96 percent of tariff lines in the Philippines, while Australia will eliminate all tariffs on imports from the Philippines by 2020, most within the next few years. (FREEMAN)