One big market

The following is the edited text of an address by Deo Chand, Marketing Officer, Austrade, to mark Australia Day, January 26, 1996.

Historical and traditional linkages have significantly contributed to the growth of trade between Australia and Fiji and the other countries of the South Pacific.

The dynamics of the business culture and ever-changing needs of customers continues to exhaust conventional means of doing business.

As trade barriers give way to deregula tion and communications links between markets improve, the world is more than ever becoming “one big market”.

The responsibility of developing trade and economy in many South Pacific coun tries is now being passed from govern ments to the business community.

To be able to survive in this one big market, business operators have to become internationally competitive and have to take the initiative in developing trade and attracting investment.

Business linkages are being increasing ly recognised as an important tool to pro mote trade and investment.

Successful business linkages can prove equally, or even more, successful as for mal trade agreements.

A recent example of putting the con cept into practice was in August last year when Emperor Gold Mines, together with a Fiji government ministerial mission, jointly managed to secure investment funds by talking together with potential investors in Australia.

Austrade played an important part in the mission thus confirming the Australian

government’s commitment to Fiji.

Emperor, as a direct result of this con certed effort, have announced plans to spend $35 million on capital expansion, plus two new mines in Fiji, by the year 2000.

The company plans to invest $4.5 mil lion each year on exploration works and possibly $5O million on the development of new mines.

the company anticipates that it will be producing 200,000 ounces of gold per annum by the turn of the century, amount ing to some $llO million per annum.

The South Pacific continues to remain a big export market for Australia; the mar ket is the world’s largest consumer of Australia’s Elaborately Transformed Manufactures (or ETMs).

It constitutes 60 per cent of Australia’s total exports to the South Pacific.

Australia views the South Pacific as an important and valuable market.

Australia’s trade collectively with the South Pacific market for the 1994/95 financial year was worth approximately $A6.5 billion.

Amongst the region, Australia sees Fiji as a valuable export market.

Australia’s export to Fiji has risen steadily each year, from $229 million in 1990 to A 5377 million in the 1994/95 financial year. (In the first 10 months of 1995, the total exports to Fiji was valued at A 5336.5 million).

Fiji’s export to Australia in 1994 were valued at SFI74 million.

Australia’s principal exports to Fiji include processed foods, telecommunica

tions equipment, petroleum products,

machinery and equipment, building mate

rial and hardware supplies, and textiles and fabrics.

A range of expertise and professional services also constitute an important export component.

Australian firms have continued to invest in Fiji; a total of 19 projects origi nating from Australia were implemented in Fiji in 1995.

The 19 projects involved total invest ment worth more than $l6 million and were in the tourism, garment and service sectors.

These investments created employ ment opportunities for more than 600

people.

The willingness by Australian compa nies to invest in Fiji and the continued growth of Australian exports clearly demonstrates the commitment to Fiji by

Australian companies.

Austrade will continue to act as a cata lyst for business and trade promotion between the two countries to enhance the growth of trade.

The commitment and willingness to satisfy a range of South Pacific customers needs demonstrates the degree of serious ness and importance that Australian sup pliers place in the market.

Australia is undoubtedly recognised as a reputable source of a comprehensive range of internationally competitive goods and services at the door step by a large majority of Pacific Island customers.

Australia is committed to the develop ment of two-way trade between Australia

and Fiji.

Austrade views that two-way trade between Australia and Fiji is an integral part of continued friendly relationship and to this effect it is on constant lookout to facilitate this wherever possible.

Austrade is committed to providing support and assistance to the Fiji- Australia/Australia-Fiji Business Councils in their endeavours to foster and facilitate trade and commerce between the two countries.

The Fiji-Australia and Australia-Fiji

Business Councils have now formed a very mature and enduring relationship as was evident in the very open and forth coming discussions during the very suc cessful meeting in Sanctuary Cove in Brisbane in 1995.

The councils have the blessings of both the Fiji and Australian governments in their efforts to develop, promote and facil itate successful linkages. ■