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Australia now turns to Asian Tigers'
SYDNEY. May 10: Bitterly disappointed by stagnating trade with Europe and North America and hurting from a deep recession, Australia is looking toward nearby Aslan Tigers' to reverse its economic fortunes, reports IPS.
In recent months, business leaders have sought to promote greater trade with Asia, arguing that Australia must learn to identify Itself as a part of Asia and begin to integrate with the region if the country is to succeed as a trading nation.
"If Australia 1s to have any influence on the world stage, tt must participate as a nation of the Asia Pacific region.' the Australian Society of Certified Practising Accountants said in a paper presented at a recent major business meeting here.
Added John Ralph. Chief Executive Officer of Cra) Ltd. "How well we do as a nation will arguably be determined by
how well we do in Asia.'
Australia's trade with Asia has grown, accounting for about half of its exports and 40 per cent of its imports. 1n comparison. Canberra's trade with the United States makes up about J 2 per cent and with the European Community 24 per cent of Its total trade.
Australian exports to Asia, especially to South Korea, Taiwan, Singapore and Hong Kong, are growing at 22 per cent a year.
But while seven of the country's top 10 export markets are In Asia, analysts say it has failed to capitalise on the region's booming trade tn manufactured goods. About 80 per cent of Australian exports to Asia are agricultural and mineral products.
A report released by the business council of Australia in March described the performance of Australian firms In Asia as "underwhelming."
It said only a few Australian companies had tried Integrating themselves into the Aslan business community while majority choose to stick of Europe and the United States. But data showed companies that invested in Asia earned more profits — about US 429 million dollar — than the others.
Canberra has already taken the cue. Foreign Minister Gareth Evans has set up a steering committee made up of trade officials and economists to develop a plan for Australian trade and Investment activities In South-East Asia over the next decade.
The government's overseas trade promotion arm— Austrade — has been allocated an additional US three million dollar to open and build up offices particularly in South-East Asia.
Austrade Managing Director Ralph Evans said many
Australian firms have been forced to go offshore because of the recession and a growing awareness of Asia's potential
The government has cau Honed companies to first do more market research and learn the Aslan way of doing business. Said Frank 11am of Sydney s Research Institute for Asia. "You've got to do longterm planning, build personal relationships and understand the cultures you're dealing with.'
One example of Australian success in Asia Is pet food maker Uncle Ben. which sells the pedigree Chum brand suited to Japanese needs. The brand now enjoys a 20 per cent share of Japan's pet food market worth US 40.5 million dollar.
Australian media generally portrays trade with Asia as going one way — with Australia exporting goods and technology.