There are three issues to address for any business regardless of whether you plan on exporting or not: Is there an opportunity to develop your product overseas? Do the FTAs represent a competitive threat to the industry you are in? And, is there an investment opportunity?
FTAs are generally implemented over time and with that, you can expect opportunistic businesses to focus their products and services in areas where the greatest gains can be made. The benefits will not be immediate for most as Australia is not first on the list of FTAs with Japan and Korea. Also, as you would have seen, the list of ‘winners’ is selected and different terms of trade apply to different sectors and different products. With some, tariffs are removed immediately, others over 15 years.
The first step is to understand that an opportunity exists and what the parameters are. And for some, what the competitive pressures will be. For those interested in expanding overseas, Austrade has a lot of resources about international markets. And of course, we can help you with your strategy, approach and local professional contacts.
Don’t forget that small and medium businesses in Australia have access to an Export Market Development Scheme that reimburses up to 50% of your eligible export promotion expenses above $5,000 as long as you are spending at least $15,000 – and you can receive up to 8 grants.
If you feel like you need support in making your way through the uncertainties and tough times ahead, or simply have a question or want more information, please contact PJS Accountants on (07) 33903177 or click here to contact us.