Australia and ASEAN: A relationship with a promising future

Australia and ASEAN’s commitment has revolutionised the standard for international trade and business within the Indo-Pacific region. By understanding the history and relationship between the two parties, the common barriers to trade and economic relationship and the strategies presented to challenge these barriers, this partnership will improve the business and trade relationship of the region.

According to the Reserve Bank of Australia, the country’s position and reputation within the ranks of the global economy has established it as a relatively open, trade-exposed economy, defining the changes from other international parties for importation of Australia’s goods and services which has significant implications for the country’s economy. The growing need for international trade has accelerated growth and opportunities for Australian businesses and attracted the resources and attention of the Association of Southeast Asian Nations (ASEAN).

With an expanding population of over 637 million, Australia and ASEAN are always working together to address and challenge regional issues regarding the improvement of international trade and economics. To help improve the relations between Australia and ASEAN, companies should grasp the skills and talent required to assess the risks and benefits

legal and regulatory framework. Unexpected regulatory changes can pose a risk to some ASEAN markets. Being mindful of governance in some ASEAN countries, where the impact of corruption poses a challenge, it is being highly recommended that Australian businesses be aware of anti-bribery laws to avoid Australian businesses and individuals from being prosecuted for committing bribery overseas. Additionally, the likelihood of financial risks when associated with upcoming economies can be avoided through planning for these risks by considering the costs and restrictions for ASEAN and Australian markets.

Across the ASEAN-Australia region, poverty is declining rapidly with businesses needing to pay attention to development and logistical challenges by considering factors such as electricity, water and transport infrastructure in various regional areas and discussing the availability of qualified personnel, local labour laws and local and national governments to handle such issues. Within the Indo-Pacific region, there are several states currently involved in territorial disputes with several ASEAN states facing internal security challenges. That is why Australian businesses should consider the political instability and security risks by assessing the political situation of the region’s countries along with the risks