There's a dynamic marketplace 'down under.' - Australia

"The Australian market is receptive and there are opportunities on the table." That was the message U.S. Ambassador to Australia Mel Sembler brought to American exporters recently. Sembler spoke to business groups brought together by the U.S. Department of Commerce District Offices in Tampa, Kansas City, Memphis, and Houston and met with officials of the National Association of Manufacturers in Washington, D.C. Everywhere he went, the Ambassador's advice was loud and clear: Australia is an excellent market for U.S. products and services, and if companies are not currently doing business in Australia, they should be.

Very few people are aware of the fact that Australia is our twelfth largest export market for manufactured goods in the world, Sembler told his American audiences. To put this in perspective, the Australian market for U.S. products is bigger than Spain, Italy, and, for that matter, all of Eastern Europe combined. It is larger than the highly touted Middle Eastern markets of Kuwait and Saudi Arabia. It is larger than Brazil, India, and China. In 1991, the United States sold Australia over $8.2 billion worth of products, which was about 23 percent of the total Australian import market. Even more important, that meant 160,000 jobs in America.

Ambassador Sembler reminded his audiences that the Asia-Pacific region is the fastest growing market area in the world. Transpacific trade surpassed transatlantic trade in the early '80s and its growth will continue. Areas of China, the Mekong Delta economies, and Soviet Asia will be emerging Asian markets, Australia knows this, and its economy is increasingly linked to the dynamic economies of Asia. The Asia-Pacific Rim is on a roll. And Australia is positioning itself to be a part of that growth, offering expanding opportunities for U.S. business.

Australia is determined to open up its markets to expose its industries to internationally competitive pressures, Sembler observed. To make this happen, it is accelerating tariff reductions which will make U.S. products more price competitive in the Australian market. The Australian government is aiming for an average tariff rate of 5 percent by the end of this decade. This will be only slightly more than the average tariff rate in the United States.

The Ambassador acknowledged that many potential exporters worry about the costs and complexities of doing business overseas. Australia is not a very complex market in which to operate. There are virtually no import licensing requirements and, most importantly, it is easy for exporters to get paid because Australia does not have restrictions on foreign exchange. Most of the commercial transactions between the United States and Australia are through simple bills of exchange, and even sometimes open account.

Australia is among the most urbanized societies in the world. This is also good for business because one only needs distribution centers in five or six cities to reach 85 percent of the market. Further, there is a high degree of transparency in government contracts and major projects. The Australians not only buy on the basis of price, but also carefully factor in quality and service in their purchasing decisions. Sembler estimated that the United States has about 70 percent of the Australian government procurement market for imported products and services. This suggests that the Australians buy the best technology and quality. Local business practices will also seem familiar to U.S. companies.

The Ambassador urged the small- to medium-size companies to expand their international horizons. Opportunities in Australia are excellent, not just for traditional exporters, but for a wide variety of American companies that have not yet tried exporting.

Some examples of companies that have recently booked orders through the U.S. and Foreign Commercial Service's commercial support program for Australia are:

* A company from Louisville, Ky. that sold ankle braces;

* A Cincinnati company that sold skin care products; and

* A company from Conshohocken, Pa. that has sold electromagnetic pulse simulators.

The list goes on and on, but this small sample is reassuring, Sembler said. If one has a product that is unique, of good quality, and has acceptance in the United States, the chances are one may do well in Australia.

There is a natural Australian affinity for things American, and the United States is Australia's largest supplier of imported goods. But we cannot rest on our laurels, we cannot be complacent, Sembler declared. American firms with new products and services must be energetic in facing the competition if we are to maintain our leading position in the market.

The Australian market is receptive and there are opportunities on the table. But the market won't come to the exporter. Companies are going to have to go after the market.

On each speaking occasion, the Ambassador closed saying, "Exports are the lifeblood of America's economy and we need more American players in the international markets. Our future well-being rests with the entrepreneurs who are willing to go after new business opportunities. Only they can make it happen. But your Ambassador, the Department of Commerce, and its U.S. and Foreign Commercial Service are ready to help American business enter this dynamic marketplace. We look forward to helping you export to Australia, that land of opportunity 'Down Under.'"

Ten Best Export Prospects

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