State eyes up new markets

JAPAN, Malaysia, Singapore and the United States are tipped to be Tasmania’s next top export markets as businesses look to diversify in the wake of the coronavirus pandemic and rising trade tensions with China.

The state’s business community is also eyeing Indonesia, India, Thailand, the Philippines and Vietnam as some of the next big growth markets.

Taiwan, New Zealand, Britain, South Korea, the European Union and Latin America are also part of longer-term plans to grow the state’s trade to $15 billion by 2050.

Exporters were being urged to look beyond China even before COVID-19 hit, but the push has ramped up in the past week after Beijing slapped an 80 per cent import tax on Australian barley and blocked four Australian abattoirs.

“I believe there is a real need to diversify away from China, and I have been saying that for over 12 months now,” Tasmanian Chamber of Commerce and Industry’s international trade adviser Sally Chandler said.

While China remains the state’s biggest market, taking $1.2 billion worth of Tasmanian goods in 2019, Ms Chandler flagged Indonesia, Vietnam, Thailand and India as major growth markets to watch.

Indonesia was “very much on the radar” with a free trade deal with Australia starting on July 5, which will axe or lower duties for 99 per cent of Australian goods entering the country.

“Vietnam is another one that is really starting to make an impact and is wanting more global products and services,” Ms Chandler said.

“It has huge manufacturing bases, so it’s one to look at.

“Thailand is also in the mix. It’s a big manufacturing country and a lot of our aluminium, tin and zinc go there as base metals for making machinery.”

India was also “really one to watch for the future”.

TCCI will be holding webinars for businesses every fortnight for the next three months, with Australian trade officials in Malaysia, Thailand, the Philippines, New Zealand and Vietnam to help companies look at new opportunities.

The State Government is also looking at how China, the US, Japan, Malaysia and Singapore will rebound as it draws up Tasmania’s next trade annual action plan.

Trade Minister Jeremy Rockcliff said the next 12month strategy, to be released later this year, would largely focus on a recovery plan for post COVID-19 trade.

Market diversification and risk management had always been “fundamental considerations” for Tasmania’s trade strategy, he said.

“Even prior to the COVID-19 pandemic, we recognised that the global trading market is volatile due to a range of factors, including geopolitics, biosecurity, global supply and demand, and financial fluctuations.

“While China is an important market for many Tasmanian exporters, there are other key markets such as beef and cheese into Japan, lamb into the Middle East and onions into Europe.

“Mainland Australia is also a key priority market for Tasmanian exporters, and often an important interim market for those progressing from intrastate supply.”

Federal Trade Minister Simon Birmingham will officially begin negotiations with Britain for a post-Brexit free trade deal shortly and is continuing talks with the European Union.

I BELIEVE THERE IS A REAL NEED TO DIVERSIFY AWAY FROM CHINA, AND I HAVE BEEN SAYING THAT FOR OVER 12 MONTHS NOW

SALLY CHANDLER