Export study reveals barriers for Australian companies

The most comprehensive export survey of its type, Australia’s International Business Survey, was conducted to understand and highlight the major issues facing exporters.

The study was the most comprehensive investigation into Australian international business in more than 15 years and captured data from more than 1600 exporting businesses nationwide. The research, conducted by the University of Sydney on behalf of the Export Council of Australia, provides a strong case for government action on trade support and domestic deregulation.

The research shows that more than half of Australian exporters (59%) state a lack of information on local culture, business practice and language are all major barriers; 49% claim they need to know more about local regulation; and a staggering 45% admit they struggle to obtain payments from international counterparts. While the most significant factor affecting international competitiveness has been identified as the high Australian dollar, there is still a strong requirement to break down domestic barriers to trade in order to improve Australian businesses’ ability to compete globally.

The top 10 markets that Australian companies are currently doing business with are an even split between advanced and developing economies, with the United States, United Kingdom and New Zealand in the top five. Interestingly, advanced economies make up six of the top 10 countries nominated as future target markets. When asked to rank countries that are the most difficult to do business with, the United States came in third, further highlighting the need for ongoing support across all economies.

The Export Council of Australia says the Australian Government must invest more resources in trade support to overcome the barriers faced in international markets across both advanced and developing economies, as well as addressing the barriers that negatively impact Australia’s international competitiveness.

Chief Operations Officer for the Export Council of Australia Lisa McAuley says there is no question that ongoing research is vital to informed decision-making on trade policy in Australia.

“We’ve identified the challenges faced by the exporting community and urge the government to make the necessary changes required to promote the growth of Australian exports,” she said.  

The Export Council of Australia is calling for more in-market assistance, particularly in the markets identified as having the highest barriers.

“We also call for greater access to market information and continuing support for programs such as TradeStart and EMDG, which provide vital services to SME businesses,” McAuley said.

“International competitiveness begins at home and therefore trade considerations must be central to Australia’s economic policy setting.

“Overall, respondents earmarked 81 countries they would like to target in the future and results show China at the forefront with 19%, closely followed by the United States 15%, India 6% and the United Kingdom and Indonesia at 5%.

“Despite some of the challenges identified by exporters, the Export Council of Australia is pleased by the level of optimism from exporters, with 74% of respondents indicating plans to expand into two or more markets over the next two years.”

For a summary of the report, please contact Richelle Ward at the Export Council of Australia at richelleward@export.org.au or 0414 290 526