|
|
 |
| |
| Australia |
| Guide
to the research |
December 2003.
Prepared by
H.D.C.D Gunasekara
B.Com (International Trade)
University of Sri Jayawardenepura.
For the
Marketing Division
Sri Lanka Export Development Board
42, Navam Mawatha
Colombo 02
Sri Lanka.
Tel: 2300705 - 11
E-mail: mktd@edb.tradenetsl.lk
Web:
www.tradenetsl.lk
Research inquires:
Mr. A.K Azeez
Tel: 2300726 / 7
E-mail: azeez@edb.tradenetsl.lk
ISBN 955-98236-1-4
|
Values in this report are in
Australian $ (A$), US $ and Sri Lankan Rupees (SL Rs).
On 31 December 2003, US $ was equivalent to SL Rs 96 and
A$ was equivalent to SL Rs 69. |
| Trade Statistics and other
information in this report are sourced from various institutions,
publications and the Internet. Whilst every care has been
taken in preparation of this report, no responsibility
is taken for any errors, in respect of the information
obtained from outside sources, mentioned in the research. |
| |
| Acknowledgement |
Many dedicated people have assisted me in producing this market research study in a successful manner.
My sincere appreciation goes to the Chairman Mr. R. Sivaratnam, and Mr. L.S.G. Thilakarathne the Director General of the Sri Lanka Export Development Board for providing me the opportunity to carry out this research study.
I am very much thankful to Ms. L.R Tudugala, Director Marketing, SLEDB for the guidance and directives provided by preparing and giving the framework for this study and also for her overall supervision of this study without which the outcome of this research would not be a success.
I would express my deep gratitude to Mr. Nihal Mawella, Deputy Director, Mr.A.K Azeez, Assistant Director/ Marketing, SLEDB for their effort in guiding and supervising me to carry out this research study successfully.
My sincere gratitude goes to Mr.Will Nankervis, High Commission for Australia in Sri Lanka, and Mrs.Sifarah Rumi, Executive Assistant / Ceylon Chamber of Commerce who gave me support by providing valuable information and publications of Australia.
Special thanks should go to the entire staff of the TradenetSL, EDB, for granting me the computer facilities and enormous support and co-operation made during the study period.
I also extend my gratitude to Mr. P Darmadasa, Lecturer, University of Colombo for his guidance. And Mr.D.K. Sisil, Computer Programmer in Trade Information Service of SLEDB, who was kind enough to take time off from his busy schedule to provide me the necessary statistical data.
Further thanks are due to all the institutions for their comments, assistance and the support where deserved.
Last but not least, I should thank all the private sector organizations that supported me by giving invaluable information based on their experience on the Australian Market.
H.D.C.D Gunasekara
B.Com (International Trade)
University of Sri Jayawardenepura.
December 2003.
|
|
| |
| Executive Summary |
At a very broad level Sri Lanka's
export growth performance over the period 1990 to
2001 is not satisfactory enough when compared with
the dynamic East Asian developing countries.
Sri Lanka's total world exports have remained small.
In addition to this, declining prices for key exports
have eroded dollar earnings. As a result Sri Lanka's
share in global exports has not increased. But there
has been some diversification of exports both in
terms of commodities exported and the direction
of exports.
In the light of growing awareness about the importance
of exports for a developing country like Sri Lanka,
an in-depth analysis of the export market opportunities
is essential for any meaningful future planning.
As a first step towards this requirement, the Marketing
Division of the Sri Lanka Export Development Board
has decided to carry out a market research study
on Australia, with the objective of strengthening
trade co-operation with strong countries.
This report is divided into ten chapters including
conclusion and recommendations. The first chapter
gives a brief overview of Australia. Australia is
situated in Oceania and Canberra is the national
capital. Despite the country's large area and small
population, most Australians live in the major cities
of Sydney and Melbourne and the nearby cities or
towns.
The total population of Australia is reported as
19,546,792 in year 2002 and over 4.3 million live
in Sydney, which is the largest city in Australia.
English is the official language and there are three
major religious denominations namely, Anglicans
(26.1%), Roman Catholics (26%), and other Christian
sects (24.3%). Australia's multicultural society
includes its indigenous peoples and migrants from
some 200 countries worldwide.
The second chapter gives the picture of Australian
Economic Indicators. Australia continues to transform
into a dynamic, open and competitive economy wholly
integrated into both global and Asia-Pacific trade.
Strong growth over the past decade has been accompanied
by low inflation and interest rates and a solid
productivity performance. Australia's workforce
is relatively large and highly trained. Australia
has one of the most stable political and social
environments in the region, which has led to increased
inwards investment in recent years.
The Gross Domestic Product was US $ 386,759 millions
for the year 2002 and GDP Growth Rate was 4 percent
during that period while GDP per capita being US
$ million 19,486.
Part two of this chapter explains the economic affairs
of the Australia. It elaborates the performance
of major agricultural sectors.
Their major crops include wool, cereals and meat,
seafood, grapes for wine, sugar, and cotton. The
manufacturing industry is an important sector of
the Australian economy, contributing about 13 percent
of Australia's gross domestic product (GDP) and
total employment. Food and beverage manufacturing
holds the largest share (22 percent) of total manufacturing
sales. Other significant contributors to sales are
machinery and equipment manufacturing (20 percent),
metal product manufacturing (18 percent) and petroleum,
coal, chemical and associated product manufacturing
(16 percent). The importance of the services sector
to the overall Australian economy has increased
significantly and account for around 68 percent
of the country's gross domestic product (GDP).
Australia's regional economic presence is enhanced
by two key agreements. The Australia New Zealand
Closer Economic relation Trade Agreement and the
ASEAN Free Trade Area Closer Economic Partnership.
Australia is open to concluding bilateral and other
free trade agreements that deliver meaningful gains
in market access across all sectors. Australia has
recently concluded a Free Trade Agreement with Singapore.
Similarly broad-ranging agreements are under negotiation
with Thailand and the United States.
Third chapter analyses the Australia's foreign trade.
This has divided in to two parts. i.e. Trade with
world and Trade with Sri Lanka.
In 2000, Australian exports grew by 25 percent to
reach a total value of $145 billion, representing
the best export growth Australia had experienced
for 21 years. This figure increased again in 2000-01,
to $ 154 billion. In 2001-01, the total value of
exports dropped by one percent, reflecting a more
difficult global trading environment.
Australia's export structures have changed considerably
over the past 10 years. Although trade in commodity
remains strong, new services and sophisticated manufacturing
export markets have emerged. Merchandise exports
were valued at A$121 billion in 2001-02. During
the same year, Australian exports of services totalled
A$ 31 billion. Exports have recorded 8 percent average
annual growth since 1991-92. They now account for
21 percent of GDP, compared with around 17 percent
in 1991-92. Australia is generating new strengths
as a supplier of advanced goods and services.
Japan remains Australia's largest single export
market, buying 19 percent of total merchandise exports
in 2001-02. The United States accounts for 10 percent.
Korea New Zealand, China and Singapore are also
significant markets.
Australia's imports have always been dominated by
manufacturers. (In 2001/02 - 84 percent ) The major
suppliers to the market are the European Union,
USA, Japan, China, Korea, New Zealand. Developing
countries supply 30.2 % of the total value of imports
and new suppliers have an opportunity to secure
a share of the market. The competition from China
and other law cost suppliers is very strong.
The second section of this chapter consists of an
analysis of import and export between Sri Lanka
and Australia. The trade balance between Sri Lanka
and Australia has always been in favor of Australia.
Sri Lanka's exports to Australia and imports from
Australia both have followed an increasing trend
during last ten years except in 1999. In year 2002,
Sri Lanka exports to Australia increased by 11%
and it is SL Rs 479.36 million and imports were
SL Rs.16, 052 million indicating a rise of 10% over
the year 2001.
This section comprises a brief analysis of major
export and import items to the Australian market.
The fourth chapter contains an overview of Australia's
tariff structure and barriers to trade. This report
has illustrated several trade, service, investment
and other barriers of this market. Australia has
established stringent prohibitions and quarantines
imposed against a number of products, particularly
those considered to be of potential public danger
and agricultural products that are considered to
have the potential to introduce pests or disease.
The information on transportation and communication
within Australia as well as the freight rates between
Sri Lanka and Australia are included in the fifth
chapter. Sixth chapter considers the information
of how to market, distribute and promote in Australian
market. Australia has been ranked as one of the
safest and most secure countries in the world, and
its style of living is virtually unsurpassed. Most
of the countries have long been attracted to the
Australian market, given its stable legal and political
systems, common language and values, sophistication
in high technology, excellent communications and
transportation infrastructure, and diverse population.
The seventh chapter deals with future market research
proposals such as selling factors and pricing techniques
best suited to the Australian culture.
Finally, the eighth chapter contains the opportunity
analysis, which is the most important section in
this report. First part of this chapter reviews
the performance of the top ten product categories
exported to Australia. This analysis includes details
concerning fluctuations in quantities, values and
volumes, comparative growth rates of Sri Lankan
exports to Australia and to the world, Australian
imports from other countries and the performance
of the Sri Lankan exporters to that market. Those
product categories are classified in 6 digit Harmonized
System codes.
Tea has continuously been a top foreign exchange
earning product for Sri Lanka in Australia and it
comprised nearly thirty five percent of the total
exports with US $ 11,107,806 (SL Rs 1,287,998,130)
of black tea in year 2002.
Other major export items include ladies ware, Ceramic
products, Activated Carbon, and gloves. Milk food
items, vegetables, wheat, Cotton and fabric, Tallow,
Electrical parts and machinery are the major import
products.
The second part of the opportunity analysis indicates
the result of the preliminary study on Australia
imports from the world. Potential Products identified
through the analysis of import statistics of Australia
comparing exportable products of Sri Lanka have
categorized in annex 8 under the following two categories. |
| |
| 1. |
Top 25 products exported to Australia according
to 2002 export statistics and countries that
are mainly competitive to Sri Lanka. |
| 2. |
Other Potential / exportable products for
Sri Lanka (but currently exported or not exported
or exported in small quantities) - classification
is based on the products that are included
in the 'exportable product list' of the EDB
and the import statistics of Australia. |
|
|
|
| |
| |
|
|
