Page 1

February / march 2017

YOUR GUIDE TO GLOBAL BUSINESS PROTOCOL Pages 24-27

Qantas

worth billions to Australia Pages 6-7

Aussie exporter takes PowerPoint to the world Pages 8-9

SPECIAL DELIVERY Bao Bao the giant panda takes trip to China //

february / march 2017

Pages 12-13

// 1

Top tips to beat Jetlag Pages 30-31


a smarter way to trade

From the editor

D

espite looming threats of protectionism in the West, free trade is alive and well in Asia. The future of global trade dominated proceedings at this year’s Asian Financial Forum (AFF), held in Hong Kong earlier this year. The potential rise of trade protectionism was high on the agenda at the two-day forum held in Hong Kong just three days before the inauguration of US President Donald Trump. With Sino-US trade ties likely to suffer the biggest fallout, speakers warned against any moves towards protectionism. “As the world’s number one and two largest economies, it is important to work together to achieve a smooth working relationship,” said Ding Xuedong, Chairman and CEO of China Investment Corporation. “There is no need for a trade war. Instead, I believe China and the US should collaborate to develop new business models.” Amid the spectre of growing protectionism, Asia stands as a beacon to expanding free trade. ASEAN, in particular, which formed the ASEAN Economic Community two years ago, has become China’s major trading partner, with bilateral trade worth US$472.16 billion in 2015. And despite Washington officially withdrawing from the Trans-Pacific Partnership Agreement, ASEAN remains on track to draw up a separate free trade agreement with China, Japan, Korea, Australia, New Zealand and India, under the Regional Comprehensive Economic Partnership (RCEP). Closer to home a trade deal with Indonesia gained momentum with the recent visit to Australia by Indonesian President Joko Widodo. Trade Minister Steven Ciobo is confident the IndonesiaAustralia Comprehensive Economic Partnership Agreement can be wrapped up before the end of the year. Indonesia and Australia already enjoy a strong trade relationship, but the new agreement is expected to take two-way trade to a new level. President Widodo's whirlwind two-day tour also handed Australian exporters a sweet deal on sugar exports with lower tariffs and farmers longer cattle import quotas. Australian exporters will have sugar tariffs in Indonesia reduced to five per cent, and in return Canberra has agreed to eliminate tariffs on pesticides and herbicides for Indonesian exporters. Australia will also open a new consulate in Surabaya, Indonesia's second largest city, while three more Indonesian language institutes will be opened in Australia. With the TPP Agreement all but dead and cremated, our trade relations with our Asian neighbours is looking extremely healthy. Australian exporters can look forward to the remainder of 2017 with great optimism.

//

Asia remains Australia’s gateway to free trade

Our team Director and National Sales Manager

Julie Fletcher

julie@dynamicexport.com.au

Editor

Tim Michael editor@dynamicexport.com.au

Production

Veronica Avant IT Manager

Rob Fearn Contributors

Patricia Butera, Anthony Fensom, David Gray, Andrew Watson Advertising enquiries:

advertising@dynamicexport. com.au

Editorial submissions: editor@dynamicexport.com.au

Tim Michael Editor editor@ dynamicexport. com.au

Published by: Think Positive Pty Ltd PO Box 221 Waverley NSW 2024 Australia www.dynamicexport.com.au

@dynamicexport

Think Positive Pty Ltd cannot be held liable for any person(s), company or business acting upon or using the information provided in this e-magazine in any way. Information and content in Dynamic Export e-Magazine is provided to the best of our knowledge. We advise that you should seek independent professional advice to verify that all information is accurate and correct.

february / march 2017

// 2


news

news

4-5

New global agreement will make trade cheaper, easier and faster

BUSINESSFINANCE

8-9

Aussie exporter taking PowerPoint to the world

australian made 10-11 Food producers welcome new country of origin labelling laws

FREIGHT

12-13

Special delivery: Bao Bao the giant panda

FEATURE

14-15

Australia’s cyber security mission to US

FEATURE

16-19

Future of Asian trade post TPP

FOOD & BEVERAGE

Australian exports reach record highs The value of Australia’s exports reached $32.6 billion in December – the highest level on record.

T

his record export performance

and services including both tourism and

resulted in a trade surplus

education. This growth comes despite a

of $3.5 billion – also the

slowdown in global trade.

largest ever recorded – and represents a $7.9 billion

secured with China, Japan and Korea have

turnaround in the monthly trade deficit

played a key role in lifting Australia’s export

from December 2015.

potential and have provided a boost to

The strong outcome was underpinned by record levels of exports of both goods

Australia’s economic prosperity,” Mr Ciobo said.

($26.5 billion) and services ($6.2 billion).

“Exports to China, Japan and Korea have

Trade and Investment Minister Steven

all increased substantially through the year

Ciobo said the figures released today by

to December 2016 to remain key export

the Australian Bureau of Statistics reinforce

markets

the government’s economic plan to pursue trade agreements and open markets. Australia’s annual exports in 2016 also rose by 4.2 per cent to a record high of

“Overall, our net exports contributed 1.4 per cent to economic growth in 2015-16 when Australia’s economy grew by 2.7 per cent. “Net exports are expected to contribute

$329 billion. This record growth was driven by large

21-23

“The trade agreements the Coalition

increases in LNG, coal, gold, iron ore

positively to growth until 2017-18 at least.” • ••

China gets a taste for Margaret River wines

SPECIAL FEATURE

24-27

Your guide to business protocol in key trade regions

TRAVEL

Steven Ciobo … record growth

30-31

Top tips to beat jet lag

feature

34-35

The Aussie start-up set to make big noise globally

//

february / march 2017

// 3


news

New global agreement will make trade cheaper, easier and faster The World Trade Organization’s Trade Facilitation Agreement (TFA), that has been nearly three years in the making, has finally come into force. Tim Michael

T

he new agreement is

out of the 164 WTO members had to

costs of manufactured goods by 18%

designed to expedite

ratify the Agreement to bring it into

and of agricultural goods by 10.4%.

trade and reduce

force.

Developing countries, particularly

The full implementation of the TFA

African countries, are expected to see

tape and streamlining

this month is expected to reduce total

the greatest reductions in trade costs.

cross border

trade costs by more than 14% for low-

procedures.

income countries and more than 13%

countries is estimated to be on

for upper middle-income countries

average 1.8 times higher than for

(OECD).

developed countries.

costs by cutting red

It is the first multilateral trade

agreement concluded under the WTO umbrella in 21 years. At least 110

It is also expected to lower trade

//

The cost of trade for developing

Red tape, incompatible systems

february / march 2017

// 4


news

across borders, opaque ways of collecting revenue and ensuring other compliance controls, lengthy waiting times that leave food rotting before it can be traded – not to mention poor roads and crumbling ports – all hamper international trade. This wastes billions of dollars and weighs heavily on those developing

‘The TFA could mean export gains of between $750 billion and $1 trillion’ committees in Africa, South America

welcomed the activation of the new

and Asia.

trade agreement.

Fifteen developing countries and

“When an agreement has the

and least developed countries that

least developed countries have

potential to add $1 trillion to the

can least afford it.

so far taken part in UNCTAD's

world economy, it’s worth pausing

Empowerment Programme

to welcome its entry into force,” said

of the Trade Facilitation Agreement

for National Trade Facilitation

Business Council chief executive

as a huge step forward in making

Committees, which was launched last

Jennifer Westacott.

trade around the world cheaper,

year to provide intensive professional

easier and faster," said United

training in implementing the

Trade Facilitation Agreement has

Nations Conference on Trade and

agreement.

that potential, as well as to create

"We welcome the entry into force

“The World Trade Organisation’s

Development (UNCTAD) Deputy

The WTO has estimated that the

21 million jobs by removing red tape

Secretary General Joakim Reiter.

Trade Facilitation Agreement could

and streamlining unnecessary border

reduce trade costs between 9.6 and

clearance processes,” she said.

"New technologies and institutional reforms can improve governance,

23.1% for its members worldwide. This

“The OECD estimates that full

reduce entry barriers and pull the

means export gains of between $750

implementation of the agreement

informal sector into the formal sector.

billion and $1 trillion.

could reduce the costs of cross

And with less paperwork to dodge,

Between now and 2030 this would

border trade by more than 10 per cent for developed countries.

and fewer palms to grease, public

add 2.7% a year to world export

revenues go up. This generates new

growth at a time when world trade

resources for spending on essential

desperately needs a boost and

regime is already best practice,

services," Mr Reiter said.

add more than half-a-percent to

our exporters of goods, including

growth of world GDP providing

food manufacturers, will be

to identify compliance gaps and

crucial additional resources for the

among the biggest beneficiaries

design projects aimed at closing

international development agenda.

from streamlined procedures in

"We work with developing countries

those gaps," Shamika Sirimanne,

But developing countries stand to

“While Australia’s trade facilitation

other countries, particularly for

Director of the Technology and

gain the most. Some of the world's 48

perishable and other time-sensitive

Logistics Division of UNCTAD,

least developed countries can expect

consignments.

added. "We offer advisory services

to see an increase in the export of

for countries that face specific legal

traditionally exported products to

negotiators – both Labor and

or technical barriers in complying

existing markets of between 13% and

Coalition – have played a pivotal

with the agreement. And we help to

36%.

role in the successful conclusion

establish and maintain national trade

As doing business gets easier,

“Australia’s trade ministers and

of this agreement and should be congratulated.

facilitation committees that bring

the range of goods exported by

public and private sector to work

the world's poorest countries will

together."

increase, lessening commodity

the only way to provide the sustained

dependence and strengthening

economic growth that funds real

vulnerable economies.

increases in wages and living

UNCTAD has supported the successful establishment of more than a dozen national trade facilitation

Australia’s Business Council has

//

“Trade is Australia’s lifeblood. It is

standards.” • • •

february / march 2017

// 5


business & finance

‘Qantas Group plays an instrumental role in supporting tourism in Australia’

Qantas

worth billions to Australian economy: report Qantas is worth $A22 billion to Australia and generates almost 60,000 jobs, according to a report that highlights the economic value of airlines to local economies. //

february / march 2017

// 6


business & finance

T

he airline-commissioned study found the Qantas Group’s direct and indirect economic impact totalled $A11.5 billion, or 0.7 per cent of Australian GDP, but it also facilitated $A10.4 billion in additional value through the tourism spending of its passengers. The airline’s contribution to GDP was bigger than many industries and about a third of the direct contribution made by coal mining, the report said. The airline group directly and indirectly supported almost 60,000 jobs, more than 29,000 employed by the group itself and another 29,535 employed indirectly as a result of its operations.

The report’s authors estimated that one in eight tourism jobs were attributable to the spending of

passengers on Qantas Group airlines. “In addition to the contribution generated by its operations, the Qantas Group plays an

instrumental role in supporting tourism in Australia, both through facilitating air travel by domestic and international passengers and through marketing Australian tourism destinations to domestic and international consumers,’’ the report said. “In particular, the extensive network operated by the Qantas Group plays a pivotal role in allowing tourists to access many regional destinations throughout Australia." A breakdown of states showed NSW and the Australian Capital Territory, which account 29 per cent of group passenger departures, were the biggest beneficiaries with a direct and indirect economic contribution of $A4.2 billion. NSW is also the site of the Qantas headquarters. Victoria, the headquarters of Jetstar, come next at $A2.8 billion followed by Queensland ($A2.5bn) Western Australia ($1bn), South Australia ($538m) Tasmania ($A185m) and the Northern Territory ($156m). In terms of business units, Qantas was the biggest contributor with a direct economic contribution of $5.2 billion and indirect contribution of $A3.45 billion. Jetstar added another $A1.35 billion in direct and $A942 billion in indirect contributions, followed by Qantas Freight with $237 million direct and $298 million indirect. The airline also released a report of its tax payments for the 2015 and 2016 financial years, showing it paid $SA2.5 billion in tax during 2015-16 and $A2.3 billion in 2014-15. But the airline did not pay company tax due to previous losses and a write-down of the value of its aircraft fleet in 2014. “Qantas continues to work through accumulated tax losses – including from its record financial loss in 2014 – meaning it’s not currently required to pay company tax,’’ it said. “However, its overall tax contribution is spread widely across a range of categories, including ticket taxes, payroll tax, fuel excise and the GST. “Company tax payments will resume once Qantas’ tax losses have been used up, in accordance with tax law, resulting in an even more significant contribution to public finances and the Australian economy.” • • •

//

february / march 2017

// 7


business & finance

Australian exporter taking its PowerPoint expertise to the world Recent figures from the Australian Bureau of Statistics show that Australia’s annual exports rose by 4.2 per cent in 2016. Andrew Watson

T

his growth has translated into a sense of optimism among small business exporters about the year ahead. The competitive

dollar and a number of Free Trade Agreements signed in recent years have created excellent conditions for export in Australia. One company that is taking advantage of these conditions is corporate presentation specialists, PowerfulPoints. From small beginnings to large ambitions Founder and CEO of PowerfulPoints, Lee Featherby, recalls having the idea for his business back in 2003, when he

businesses, PowerfulPoints

“We developed this relationship

helped develop a PowerPoint

produces an extensive range of

and started providing services to

presentation for a friend on

presentations in a variety of formats

their offices in Singapore. Through

the ‘pathophysiology of the

from traditional slide shows to full-

word of mouth inside McDonald’s,

gastrointestinal tract’.

scale video productions.

this spread to China, the US and the

Established as a response to

“In 2007 we were able to secure

UK. We have even done the crew

a clear market gap for better

McDonald’s (Asia Pacific, Middle East

induction video for McDonald’s in

presentations in Australian

& Africa) as a client,” says Featherby.

China, in Chinese.”

//

february / march 2017

// 8


business & finance

it takes time, usually about 60 days

“I think our success is based on the fact that all of our account

after the end of the project. This

managers have a background in

means we have to fund the project

business and we have a very strong

for up to four months. That’s a real

account service ethos. We focus on

challenge when you’re a small

working with the client and making

business.”

sure that they are addressing the Financial support for business

right business challenge and that

growth

the presentation narrative is right,”

Exploring potential financing

says Featherby.

solutions, Featherby was referred

The key to his company’s growth, Featherby says, is constant

to Efic by a couple of business

communication with the client.

colleagues. “Working capital is going to be one of the key challenges for

“We talk to the

building our export business, so

client to understand what their objective is and what they want people to think and

Andrew Watson is Executive Director, Export Finance, Efic

finding a quick and easy solution is crucial,” says Featherby. Efic’s Small Business Export

feel at the end of the

Loan provides small businesses

presentation. We work

with unsecured funds in as little

with them to make

as nine business days. Tailored for

sure the content and

businesses with revenue of between

structure is right.

of local opportunities. “We now

$250K and $10 million, the loan can

Then we work on

also have four people within the

provide a cashflow boost of up to

the design. A pretty

organisation who can speak Chinese

$250,000.

presentation without

and English fluently.”

“What I really liked about Efic’s Small Business Export Loan was

the right structure is

During a visit to China earlier in the

just a waste of time.”

year, Featherby was introduced to a

being able to borrow the funds over

large public relations company and

12 months even though the project

was invited to quote for a job for a

was only four months. If I had to

major financial service provider. The

pay the loan back in four months,

company won the contract.

I would not have achieved much

It’s all in the presentation In five years the

because I would have had to have

business has grown

With exports currently making

from four people to

up approximately 15 per cent of

paid it all back before I actually got

18, and has added

business revenue, Featherby says

paid. Having that flexibility is a real

training to the

the plan is to expand. “The biggest

asset,” says Featherby.

portfolio of services

challenges we’ve found are finding

So what’s next for PowerfulPoints?

offered. “The training side of our

the right person to talk to in an

According to Featherby, “our plan

business grew organically,” says

organisation and having enough

is to have offices in Singapore,

Featherby.

time to spend overseas to develop

Shanghai, Seoul, Tokyo and

the relationships and networks

Melbourne by 2020.” • • •

With a growing presence in China, Featherby decided to establish a

needed to expand.”

wholly-owned foreign enterprise in

Featherby explains that another

the country in March 2015, allowing

challenge in his industry are long

the business to take advantage

payment terms. “You get paid but

//

For more information on Efic’s Small Business Export Loan click here.

february / march 2017

// 9


aussie made

Food producers welcome new country of origin labelling laws Australia’s vegetable industry has welcome the latest reforms to Australia’s country of origin labelling system.

N

ational body

said AUSVEG National Manager –

AUSVEG saying

Public Affairs Jordan Brooke-Barnett.

the changes will

“By clarifying the requirements

help consumers

of the ‘made in’ label claim, these

have confidence

reforms will benefit Australian

about the true

consumers, who deserve to know

source of their

where their food comes from – not

food.

The new reforms, which were first

where some ingredients were frozen or chopped up.”

attempted last year but which were

Deputy Prime Minister and Minister

interrupted by the Federal election,

for Agriculture and Water Resources,

alter the definition of “substantial

Barnaby Joyce, said clearer

transformation” as it applies to

country of origin information helps

country of origin labelling and make

Australians make more informed

it clear that minor processes do not

decisions about the food and other

count as substantial transformation.

products they buy.

Specifically, the new definition of

“Australians want to know where

substantial transformation requires

their food was made or packed, and

that products be “fundamentally

how much was sourced for Australian

different in identity, nature or

growers,” Mr Joyce said.

essential character from all of their ingredients”. “These changes will help to protect

“This is something consumers have been wanting for a long time now. “Thanks to our work in this area, we

supermarkets. “With the new requirements passing through the Senate, businesses that have not already started the process

Australians from importers who mask

are already seeing food products

can begin rolling out the new labels

their products’ country of origin by

such as Beechworth Honey, Birdseye

with confidence.

making superficial changes to the

Country Harvest Garden Mix and

ingredients and claiming that this

Angas Park dried apples displaying

a key measure of the Agricultural

changes where the food was made,”

new country of origin labels in our

Competitiveness White Paper. The

//

“Country of origin labelling was

february / march 2017

// 10


aussie made

‘This is something consumers have been wanting for a long time now’

providing greater transparency about where food was made or packed, and how much was sourced from Australian growers.” For food businesses, an online tool to assist businesses in creating labels, along with a range of other Coalition Government has listened

including where it is made, produced

information and support for business,

to consumer and producer demands

and grown.

is available at business.gov.au/

for clearer labelling information,

“I look forward to more businesses

//

foodlabels or by calling 13 28 46. • • •

february / march 2017

// 11


freight

There’s a bear in there: Giant panda takes a trip from US to China FedEx Express gets some unusual requests to transport freight to all parts of the globe – including live animals.

//

february / march 2017

// 12


freight

Did you know? • All giant panda cubs born in captivity to foreign zoos, when lent out, are the property of the Chinese Government and must be returned. • Not all giant pandas are black and white. A few are brown and white, but these are very rare. • Pandas are usually born in August, because the panda's mating months are March to May and gestation is 3-5 months.

E

• Females mainly produce two offspring, but only the stronger one survives in the wild. arlier this month

once again with such a valuable

the carrier was

and symbolic shipment," said Karen

chosen to ship a

Reddington, president, FedEx Express

giant panda from

Asia Pacific.

the United States to Chengdu, China. The giant panda

"We've assisted with giant panda shipments several times in the past and have considerable experience of

Bao Bao landed at China’s Chengdu

managing the process, which involves

Shuangliu Airport on February 22

months of planning and cross-

onboard a custom-decaled FedEx

disciplinary teamwork. Transporting

B777 Freighter (B777F) – known as

Bao Bao is also an act of good global

the FedEx Panda Express – from

citizenship that leverages our unique

Washington DC.

network and specialized capabilities

On arrival, Bao Bao was transported to her new home in Sichuan province,

to help connect the world." Bao Bao, a three-and-a-half-year-old

the China Conservation and Research

female panda born in August 2013 at

Centre for the Giant Panda’s

the Smithsonian’s National Zoo, is the

Dujiangyan City Reserve.

offspring of Mei Xiang and Tian Tian,

Chengdu is well-known in China as

both currently living in the US. She

the hometown of Giant Pandas and

has been living separately from her

one of the best places to view these

mother, Mei Xiang, since March 2015.

cute black and white bamboo-eating

Giant pandas are solitary in the wild,

bears.

• Bamboo is the favourite food of giant pandas and accounts for 99% of their diet. • Adult pandas can weigh up to 150kg and spend 12-16 hours eating between 10-18kg of bamboo a day. • Pandas like to eat and sleep and breeding is not high on their list of priorities – one of the reasons they are so rare – and an endangered species. • Cat type eyes help them to see in the dark and they have seven toes for bamboo grasping • They have a life expectancy in the wild of 20 years and 30+ years in captivity (the oldest recorded panda was 37 years)

and cubs separate from their mothers to establish their own territories

transportation company, provided a

to be able to support this latest

between 18 months and two years

dedicated aircraft to bring Bao Bao's

mission by donating our expertise

old.

brother Tai Shan to China in 2010, and

"It's a great honour for FedEx Express

and resources, and to be entrusted

FedEx, the world’s largest express

//

her parents to the US in 2000. • • •

february / march 2017

// 13


cyber security

Australia’s world-class cyber security capabilities and researchers will be showcased to global players attending the RSA Conference in San Francisco this month.

Australia’s world-class cyber security capabilities on show in US

A

lastair

Australian Cyber Security Growth

MacGibbon,

Network, will jointly lead Austrade’s

Special Adviser

delegation to the United States.

to the Prime

The mission will provide Australian

business opportunities. Nicola Watkinson, Austrade’s Senior Trade and Investment Commissioner for North America, said the US is

Minister on Cyber

companies with briefings from key

recognised as the global leader

Security, and

American cyber security experts,

in cyber security, with four of the

Craig Davies,

industry updates and connections

top five cyber security vendors

to leading companies with potential

headquartered in the US.

the recently appointed CEO of the

//

february / march 2017

// 14


cyber security Nicola Watkinson: ‘opportunities for Australia’

New York Tri-State Area and the San Antonio-Austin Corridor. “US companies across finance, defence, critical infrastructure and healthcare are rapidly gearing up to address cyber security threats. Australian companies looking to grow their business should consider working with Austrade to tap into market trends, new government initiatives and the extensive network of contacts available to capture this market opportunity,” said Watkinson. cyber threats provides some great

RSA Conference 2017, to be held

technology centres which are

examples of industry best practice,

from February 13-17, marks the 26th

mapped out in our recently released

and a chance for Australian solution

anniversary of the world’s leading

Cyber Security US Clusters Report.

providers to see where the trends are

information security conference.

The US federal government is the

heading and how they can capture a

primary driver of the US cyber

piece of this growing business.”

“The industry is based around

security industry, followed by the

San Francisco’s Bay Area is a cyber

Last year’s event attracted over 40,000 attendees. The mission also builds on

banking and finance, healthcare,

security hotspot in the US and

the ongoing initiatives being

critical infrastructure and ICT

receives the most venture capital

implemented by Australia’s Landing

industries,” said Ms Watkinson.

investment in the country. A total

Pads program, launched in February

of US$12 billion (A$15.8 billion) was

last year in San Francisco – the first of

initiative to improve cyber security for

invested in the first two quarters of

five global locations.

critical infrastructure positions it as

2016.

The US federal government’s

the biggest spender and supporter of

The Landing Pads program,

Ms Watkinson said leading global

managed by Austrade, is part of the

cyber security in the US, with US$19

cyber security firms Symantec, Intel,

Australian Government’s National

billion (A$25.1 billion) budgeted for

Palo Alto Networks, Cisco and FireEye

Innovation and Science Agenda to

2017.

all have their headquarters in the

help Australian entrepreneurs bring

Bay Area and have established a

their ideas to market and build high-

presence in Australia.

growth, high-return enterprises.

Outside of the government, the banking and finance sector spends the most on cyber security, which is

“This provides Australia’s cyber

With a network of six offices in New

projected to exceed US$68 billion

security businesses with an added

York, San Francisco, Washington

between 2016 and 2020.

advantage. We are also assisted

DC, Boston, Chicago and Houston,

because Australia is a popular

Austrade is well placed to assist

million on cyber security, while Bank

testbed for technology, as well as

Australian businesses. • • •

of America has announced cyber

the home of some of the best cyber

security is its only division without a

security research institutions, making

spending limit.

us an attractive ecosystem,” noted

Last year JPMorgan spent US$500

“Recently I had the opportunity to visit the Citibank Cyber Fusion

Watkinson. “Beyond The Bay, other established

Centre,” said Ms Watkinson. “The

clusters are found in DMV

way in which leading private-

(Washington D.C., Maryland and

sector players are grappling with

Virginia), Massachusetts (Boston), the

//

Visit Austrade’s US Market Profile for more information about doing business in the United States. http://www.austrade.gov.au/ Australian/Export/Exportmarkets/Countries/UnitedStates-of-America/Marketprofile

february / march 2017

// 15


focus on europe

The future of Asian trade post-TPP and how Australian exporters can benefit US President Donald Trump’s decision to withdraw his nation from the TransPacific Partnership (TPP) agreement shocked Asia and has thrown into doubt the future of free trade. By Anthony Fensom //

february / march 2017

// 16


focus on europe

H

owever, fortunately for Australian exporters, a number of other regional and bilateral deals under negotiation still offer significant potential gains. Having pledged to “fight for free trade” as part of his “America first”

strategy, Trump announced on January 23 that he was formally withdrawing the United States from the TPP, instead promising to pursue bilateral trade deals. Had it been implemented, the 12-nation TPP would have created the world’s biggest free trade zone, with a collective population of around 800 million people across the Asia-Pacific region and accounting for 40 per cent of global economic output. The pact had the potential to boost world income by as much as $295 billion a year over the next decade, helping revive sluggish global trade, and giving Australian exporters a competitive boost in some of the nation’s biggest export markets, such as Japan and the United States, although not including China. Australia actively campaigned for the TPP’s implementation, even suggesting that a “TPP minus one” excluding the United States could still be negotiated. However, with Canada, Japan and Singapore expressing caution towards such a prospect, it appears unlikely to

‘The 12-nation TPP would have created the world’s biggest free trade zone’

progress further without a policy change in Washington. Nevertheless, on February 8, Australian Trade Minister Steven Ciobo said the government was determined not

have plenty of work to do progressing a number of other bilateral and multilateral trade agreements.

to lose the “hard fought gains” achieved under the TPP.

According to the Department of Foreign Affairs and

“I don’t want, and I know a number of other countries

Trade (DFAT), these currently comprise:

don’t want to let those gains slip through our fingers. That’s why I put a focus on whether or not we could

• Australia-Gulf Cooperation Council (GCC) – pact

have for example a TPP 12 minus one … We’ll be having

with GCC comprising Bahrain, Kuwait, Oman, Qatar,

a meeting in Chile in March of this year to canvass all of

Saudi Arabia and the United Arab Emirates, spanning

the options,” he told Bloomberg News.

US$1.6 trillion in gross domestic product and current

Mr Ciobo said he was keen to pursue a “minimalist

merchandise trade with Australia of $12.3 billion a

approach” that would keep the gains currently

year; under negotiation since 2007 but talks currently

negotiated under the TPP and apply them to “as many

suspended

member states that are willing to sign up on those terms.”

• Australia-India Comprehensive Economic Cooperation Agreement – pact with India, with US$1.87

New trade deals on the drawing board

trillion GDP and current trade with Australia of $15.2

Even without the TPP, Canberra’s trade negotiators still

billion a year; under negotiation since 2011

//

february / march 2017

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feature

• Environmental Goods Negotiations – Environmental

• Trade in Services Agreement (TiSA) – services-

Goods Agreement under negotiation with 17 members of

only trade agreement led by Australia, the European

the World Trade Organisation, aimed at removing tariffs

Union and the United States, with US$50 trillion GDP

on a range of environmental goods in an estimated US$1

and services trade with Australia of $82 billion; under

trillion global market; Australia joined talks in 2014

negotiation since 2012.

• Indonesia-Australia Comprehensive Economic

Given the scale of these agreements, the TiSA pact on

Partnership Agreement – pact with Indonesia, with

services and the RCEP would appear to be the priorities

US$872 billion GDP and trade with Australia of around

for Canberra, both being multilateral deals spanning a

A$15 billion a year

number of major markets. According to DFAT, an informal meeting of the 23-member TiSA parties in Switzerland on January 23 last

• Pacific Agreement on Closer Economic Relations (PACER) Plus – pact with Cook Islands, Federated States

year agreed to complete negotiations by the end of 2016,

of Micronesia, Fiji, Kiribati, Nauru, New Zealand, Niue,

however talks are still continuing.

Palau, Republic of the Marshall Islands, Samoa, Solomon

According to the European Union, a study by

Islands, Tonga, Tuvalu, Vanuatu, with US$1.4 trillion GDP

consultancy Ecorys on TiSA estimated it could reduce

and trade with Australia of around $28 billion; under

the cost of trade in services by 3.4 per cent in the OECD

negotiation since 2009

and 5.8 per cent for low and middle income countries. Collectively, the TiSA parties represent 70 per cent of global trade in services, and with services representing a

• Regional Comprehensive Economic Partnership (RCEP) – regional free trade area including the 10 ASEAN

similar share of Australia’s economy but only 19 per cent

member states along with Australia, China, India, Japan,

of exports, there is significant room for further growth.

New Zealand and South Korea, spanning US$23 trillion

Meanwhile, RCEP is seen opening a pathway towards

GDP and current trade with Australia of nearly $400

a free trade area in the Asia-Pacific. Representing nine

billion; under negotiation since 2012

out of Australia’s top 13 trading partners, it offers scope

//

february / march 2017

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feature

‘Canberra’s trade negotiators still have plenty of work to do’

Union, Australia and Britain have already established a working group to progress free trade talks once “Brexit” is concluded. Currently the world’s fifth-largest economy, a trade pact with Britain offers the prospect of potential gains for Australian agricultural and other exporters, who faced higher tariffs after Britain joined the European common

for major benefits, although talks are proceeding slowly, with the 17th round of negotiations scheduled for Kobe,

market. Consultancy A.T. Kearney predicts the world’s global middle class will reach 3.2 billion people in 2020 and 4.9

Japan in late February.

billion by 2030, with Asia’s comprising 2.9 billion people

Along with these multilateral deals, bilateral negotiations with India and Indonesia are progressing

by the end of the next decade. With total estimated

steadily. However, talks with Jakarta appear to be

spending of $56 trillion by 2030, Australia’s exporters can

advancing faster, with the latest negotiations held last

only hope the nation capitalises on this growth through a

November, while the last official talks with New Delhi

continued push for freer trade. • • •

were in October 2015. Other potential deals include a free trade pact with the European Union, which represents Australia’s secondlargest trading partner (including Britain) and the world’s second-largest economy, with talks having commenced in November 2015. Mr Trump’s preference for bilateral talks could even spur pressure from Washington for a renewed AustraliaUnited States trade deal, which came into force in

Anthony Fensom is an experienced business writer and communication consultant with more than a decade’s experience in the financial and media industries of Australia and Asia.

January 2005. And with Britain exiting the European

//

february / march 2017

// 19


food and beverage

China FTA gives Manuka honey exports a big boost Australian honey exporters are tipping the already booming trade to China to grow further now tariffs have been slashed under the China Australia Free Trade Agreement (ChAFTA). "There's a lot of interest in Hong Kong and mainland China, and with the tariff cuts we think the potential is

I

going to be a lot larger than what it is now." Honey Australia is supplied by "around a dozen" small ndustry body, the Australian Honey Bee Industry

family beekeeping operations near Mudgee in central

Council (AHBIC) said sales were already strong,

west NSW, as well as some in southern Queensland. Mr Maiolo said as exports continued to grow, he

but thanks to tariff cuts it had the potential to

was excited to see the benefits delivered back to his

become a lucrative trade.

suppliers and the Mudgee community.

"We've had a very good export base into China

Honey exporters have not faired as well in trade

even with the tariffs, so without them it can only get better," AHBIC executive director Trevor

deals with Korea, where there will be no changes to

Whitehead said.

export rules, and Japan where tariffs will be cut, but accompanied by import quotas.

On December 19, tariffs on a range of Australian food

Outside of Asia, honey exporters are keen to crack the

and agricultural products dropped from 15 percent to nine percent and from January 1, this year they dropped

Middle Eastern market, where under Gulf Cooperation

down to 6 per cent.

Council rules honey imports are barred from sources where varroa mite, small hive beetle, European foulbrood

The cuts make a big difference for exporters of high-

and American foulbrood are present.

end Manuka honey, which in Australia can be worth

"We're not free of small hive beetle," Mr Whitehead said.

anywhere between $120 to $150 a kilogram for the

"I know the Department of Agriculture is talking with the

highest grades.

Saudi Arabian authorities about having a condition where

In China, exporter Honey Australia told ABC Rural

honey is allowed in if it's been though a very fine micron

Manuka could retail for around 30 per cent more.

filter.

"With the reduced tariff we're able to export to China and have the end consumer pay less tax on the product so we're excited to see some improvements there,"

Mr Maiolo will travel to the Gulf Food Show this month to meet potential customers. • • •

director Nicholas Maiolo said.

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food and beverage

China’s growing thirst for our finest Margaret River wines By David Gray

All across China, the word is out and so are the corks on Margaret River’s finest wines.

D

The wines of the Margaret River, south of Perth in

iners in some of the most fashionable Chinese city restaurants,

Western Australia, are famous for their smooth mellow

including those in major regional

flavours and lush fertile pedigree. Margaret River

centres, are discovering that unique

wines are a gourmet’s addition to any table along with

Margaret River wine taste and

the companionship, shared amity and the pleasant

texture.

enjoyment of social dining with friends.

It’s no surprise they are coming

back for more and demand is rocketing. And why not?

//

By 2020 projected annual sales of Margaret River fine wine just to China is expected to reach more than

february / march 2017

// 21


freight

250,000 cases with yearly sales

hard work of associates, colleagues

wines into China and China even

approaching $35 million.

and strategic alliances with Chinese

produces some if its own wine from

importers Geoff has placed Margaret

a relatively modest harvest of state

such as this one conceived and

River wines on the world trade map

owned “wine suitable” grapes. It may

brought to fruit in the Margaret

as well as onto the dining tables of

sound like a crowded market but

River region bring with them many

Chinese wine connoisseurs.

where the best matters Australian

Commercial export successes

Traditionally Chinese consumers

wines such as those from Margaret

Margaret River but for Australia and

have been presented with a limited

River are fast becoming the wine of

Australians.

choice of mainly rice wines but with

choice.

economic benefits not just to the

As with most success, it comes

Chinese westernisation and middle

In the $25-$75 range Chinese

from hard work, seeing the export

class ‘consumerist’ urbanisation the

consumers are selecting Margaret

opportunity and of course good

last twenty years have seen Chinese

River wines choice based on price,

timing.

consumers increasingly embracing

value, quality and that prized clean,

grape wine as a sign of discernment

refreshing taste from Margaret River

Rivers’ Watershed Premium Wines

and enhancing the gourmet dining

grapes and Australian fine wine

is a proud Australian and a leading

pleasure experience.

production skills.

Geoff Barrett CEO of Margaret

wine producer in some of Margaret River’s finest wine country.

The Chinese Government has

For Chinese consumers red wines

even dedicated a mini city to wine

are a symbol of success even good

Watershed Premium Wines

including a museum at Yantai in one

fortune and considered a healthier

received the prestigious West

of the major Chinese grape growing

alternative to beer and spirits. Some

Australian Winery of the year award

provinces of Shandong.

Chinese believe red wine is good

in 2014. Along with such wine pedigree, the

Other winemaking regions of the world such as France are also selling

//

for the function of the heart and arteries. Adult Chinese consumers

february / march 2017

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food and beverage

of all ages are participating in the

restaurants and shop tastings of

attracting tourists and Chinese

new wine revolution and increasingly

Margaret River wines are just part of

tourists include many restaurant

doing so with the pleasant taste and

the marketing process.

owners and business people

experience of Australian Wines.

Watershed Premium Wines Chinese

associated with the wine industry

import partners are also planning

and the catering industry more

from the Margaret River region

a big sales campaign through

widely.

include Shiraz, Cabernet and Merlot.

their own retail stores. Already 10

Over 95% of Margaret River wine

retail wines stores are set to open

Chinese tourists are expected in the

exports are red wines.

during the course of 2017 with a

Margaret River wine region this year,

breathtaking rate of follow up store

creating many new jobs.

The most popular red wine exports

As well as being an accompaniment to dining, Australian wines are also

openings leading to a projected 300

sought after for serving at banquets,

stores by 2020.

other important social occasions,

More than 4,000 wine and dine

The opening of a new airport in the Margaret River wine region near

Today, almost 50 supermarkets in

Busselton will bring even more

business and official engagements

Beijing and nationally have Margaret

tourists and wine connoisseurs to the

and also as gifts.

River wines on prominent sales

area.

The future for Margaret River wine

display. Add to this the restaurant

We have heard some whispers that

sales to China has never been better.

trade and the growing online

a special Margaret River wine store

Due to the recently signed Free

sales promoted through, among

may take pride of place in the new

Trade Agreement with China import

others WeChat online media, it is

Busselton airport shops.

tariffs on Australian wine will be

not difficult to see how Margaret

reduced to zero from a once hefty

River wines are set to become an

Geoff said: “we will just have to wait

14%. These Chinese Government

important player on a world stage.

and see” with a grin only a winning

imposed tariffs gave a price

The Chinese partner is also

When asked about the rumour

wine producer can have. So what’s all the fuss about? Why

advantage to other wine producers

seriously committed to training their

such as from South America. But no

specialty wine sales representatives

not find out for yourself. Ask your

longer – and CEO of Margaret Rivers’

with up to eight hundred Chinese

local wine retailer when is the next

Watershed Premium Wines Geoff

sales trainees attending wine sales

tasting of Margaret River wines or

Barrett sees Australian wines and

training, product knowledge and

go on-line (www.watershedwines.

particularly those from the Margaret

familiarity courses. The training

com.au) and see where the next wine

River as having ‘a corker’ of a future.

starts with the basics, with CEO Geoff

tasting is being held in your area.

As Geoff enthusiastically points

Barrett showing how to identify and

Better still, why not visit the

out, the Margaret River has

categorise the different red wine

beautiful Margaret River vineyards

climactic conditions very similar

grapes such as Bordeaux and Merlot

and partake in the many local wine-

to the Bordeaux region in France,

grapes.

tastings and complement your

considered the birthplace of modern red wines. Will the Margaret River be the

On completion of the four weeks

River cuisine. After all, 1.4 billion

a certificate of proficiency from

Chinese can’t be wrong. • • •

next Bordeaux of wine making? It’s

Watershed Premium Wines to each

possible says Geoff if we all work

cadet. They will return to China

hard and stay focused on producing

equipped and ready to professionally

the very best wines and marketing

market Margaret River wines in

them properly to the Chinese

Beijing, Shanghai, Guangdong and

consumer.

across China.

Marketing wines online, through

experience with some fine Margaret

training course Geoff will present

For further information on Watershed Premium Wines contact Geoff Barrett: 08 9758 8633

Margaret River wines are also

//

february / march 2017

// 23


education training

Your guide to business protocol in six key export markets Etiquette is something that is more or less understood in general business.

B

Patricia Butera

is a cultural awareness trainer and crossborder business protocol specialist. Her company Business Cultures International specialises in global business etiquette and cross-cultural communication.

By Patricia Butera ut when we expand business

hands. Expressing thanks for their time or referencing a

internationally we must learn to

previous meeting at this point is also respectful protocol.

understand and adapt to different

Given the language barrier, it is highly advisable to enlist

cultural behaviours and protocols.

the services of a skilled interpreter. There is also a slower pace to doing business in Japan

Consequently, the definition of protocol has expanded in recent

which should not be seen as cause for frustration but

years to include various other

as an opportunity to increase success in this business

areas besides diplomacy.

culture. In essence, a measured pace is required to foster strong business relationships and business

For Australian exporters, many of their most important

markets are those with a long historical and economic

people who first enter into cross-cultural ties will need

timelines with deeply ingrained values and traditions.

to demonstrate patience.

These cultural differences are important to understand

A deal will generally take time to come to fruition. In Japan, getting to know the people with whom

when doing business.

partnerships will be formed is not only a priority but

Having protocol knowledge can greatly influence the

signals respect for the individual.

interaction with foreign counterparts and can lead to

Japan is as much about following proper protocols and

positive, successful partnerships.

understanding hierarchy as it is about respect and the

This is a basic guide to business protocols in six key

fundamental requirement by the Japanese to know they

export markets:

can build lasting relationships with business associates 1. Japan

they can trust. When preparing for business in Japan,

Contemporary greetings in Japan business circles no

businesses need to apply a long-term view of strategic

longer require business people to bow as deeply or as

objectives because, for the Japanese, business is not

often as their Japanese counterparts – what is important

about the individual deal but about the longer term

is that respect and humility are displayed which can

benefits which that partnership can potentially produce.

be done by slightly nodding your head as you shake

Prepare your strategy for the long-haul.

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february / march 2017

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education training

2. Singapore

3. United Kingdom

As an important financial hub in Asia, Singapore is a

Probably the most obvious differences between

melting pot of cultures; one whose population is made

Australian and British business dealings is the level of

up of almost 50 percent of people from outside its

formality. Despite the many younger UK organisations

borders. With a significant portion of this percentage

that have recently impressed upon global business, the

consisting of people from countries within Asia, business

British still maintain a formal approach to business.

styles will most likely skew towards Asian nuances.

This characteristic manifests itself in every aspect of

Within this context, however, it is important to know

business from the humble email (almost always “Dear”

which part of Asia will be the representative culture

and very rarely “Hi”), a very formal and sophisticated

at your meetings. Checking the name origin of your

style of business attire, to timing where punctuality is a

counterparts will provide more clues.

must. The British are masters of soft diplomacy and take

Singaporean business people consider themselves global citizens; they are well travelled and have a lot

business etiquette seriously and in this regard, knowing

of experience working with foreigners. As such they

who to and how to extend due courtesy is important.

have a flexible style which they readily adapt in order to

Keep in mind that “British” refers to people from England, Wales, Northern Ireland and Scotland. People

establish strong associations.

from England are known as “English”. “Irish” refers to

Business cards are very important to Singaporeans and exchanging them is an expected protocol. The

people from the Republic of Ireland which is not part

exchange takes form in the same manner as seen in

of the UK. Understanding these differences will help to

other Asian countries (held with two hands, writing

avoid any likely offense.

facing the receiver), however whereas in most other countries it would be wise to have the reverse of your

4. New Zealand

business card appear in the local language, in Singapore

In an Australian International Business Survey

that will not be necessary as English is the language

conducted in 2016, exporters ranked New Zealand

used for all business dealings.

amongst the top three markets in terms of ease of doing

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feature

business. Whilst Australians and New Zealanders share

New Zealand as the Maori culture is celebrated and

a sense of solidarity there exist a number of cultural

embedded in every aspect of life in New Zealand

differences which mainly pertain to New Zealand’s

to the extent that most non-Maori New Zealander’s,

indigenous peoples, the Maori.

speak some Maori or at the very least use many words

This is an important factor when doing business in

//

intertwined with the English language.

february / march 2017

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feature

finished with your meal to leave some food on your

When doing business in New Zealand with the Maori business community, you may find yourself playing

plate. Leaving an empty plate will be an insult to your

a part or attending a Powhiri – a formal welcome

host, signalling they have not served enough food and

ceremony for business dealings which observes strict

therefore causing a loss of face. This is important to note

protocols. One of these protocols includes the hongi, a

also for it applies not just during the New Year’s eve

greeting which involves foreheads coming together and

banquet but to any other business dinners where you are

the tips of the nose touching. These formal business

the guest. In general, when invited to any social event, it

gatherings take place on a Marea which is the central

would be offensive to decline.

traditional building located in the community’s grounds

If you happen to find yourself in China to welcome in

where important events are presided upon. In general,

the Year of the Rooster, to be on the right side of ‘luck’,

doing business with the Maori business community may

you might also want to pay attention to some of the

call for stricter observance of protocols and ceremony.

many superstitions that are not only intriguing but which colour aspects of daily and business life. This might

5. United States

include numbers (the number 8 for example signifies

One of Australia’s closest trading partners – one

prosperity because the word for ‘eight’ is pronounced in

would think we know everything there is to know about

a similar way to the word for ‘prosperity’), colours (red is

our American friends. Because the US is such a large

a symbolic colour for happiness or joy and is considered

country, it is no surprise that there may be different

good luck but forbidden at funerals where white is

regional customs. The practices of its businesspeople

predominantly the colour of mourning), symbols (giving a

can vary greatly from state to state but restaurant

clock as a gift augurs the end of a partnership or pointed

entertaining is common throughout.

implements such as a letter opener which would be seen

What many may not be aware is that there is such a thing as American and European style dining etiquette

as intent to sever a relationship). As a general rule, it is advisable to research the region

which differs dramatically. In Australia, we apply the

where business will be conducted. Understand the

European style of dining etiquette (knife on the right

logistics of the meeting venue, the background of the

hand, fork on the left hand throughout the meal) whilst

people who will be in attendance at any meeting and the

the American style of eating starts the same but the

corporate environment of the organisation that will be

knife is rested, flat, on the top of the plate at an angle,

hosting you and your colleagues.

and the fork swapped to the right hand to transfer

Above all, don’t forget business cards and learn how

food from plate to mouth. Then the fork is swapped

to properly exchange them. Even in the digital age, the

back again to the left hand, knife picked up from plate

traditional business card is an important symbol that

and another portion cut, knife rested, fork swapped

is used in an equally important ritual of introductions

back and motions are repeated. This method is called

amongst business people, especially in many of

American zig-zag.

Australia’s top export markets. You will need to have plenty at your disposal and then

6. China

some more. Be sure to have one side translated in the

Not only the biggest export market for Australia but

relevant market language. This detail is highly regarded

a giant in many other respects, China’s history is long

and seen as a sign of respect for the local culture. • • •

and rich and its culture deeply rooted in centuries-old beliefs and traditions. With the recently celebrated Chinese New Year it is fitting to highlight one important custom. As food is a central feature of the New Year’s eve

Business Cultures International 02 9199 4529 www.business-cultures.com

celebrations, as a guest, be sure that when you are

//

february / march 2017

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feature

Corruption in global business: A taboo subject When speaking on the topic of international business protocol, there are numerous do’s and don’ts as well as some taboo subjects that are best avoided in conversation, no matter how candid that cross-cultural discussion may be. Corruption is one such subject. By Patricia Butera

A

voiding it in conversation may be wise, but ignoring it exists and failing to understand how it might

impact your export venture may prove disadvantageous. Corruption exists on some level within national borders and around the world. Yet it is not often regarded by those entering into partnerships as a factor that might influence their cross-border engagement. For Australian exporters, whose key markets lie predominantly within the Asia Pacific region, data released by the World Bank

done”. In East Asia and the Pacific,

governments. In South Asia, 40% of the

16% of respondents considered

in December 2016 would be of

companies surveyed consider

corruption is a major constraint,

particular interest.

corruption a major constraint. In

36% and 39% expect to give gifts

The data reveals that 1 in 3

this region, over 45% expect to give

to secure contracts or “get things

companies feel constrained by

gifts to secure contracts and 26%

done” respectively.

corruption when dealing with

expect to give gifts to “get things

//

As exporters from a relatively

february / march 2017

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feature

stable economy with checks and

point, what characterises this value, is

balances that facilitate efficient

a variable concept.

trade, the behind-the-scenes complexities of doing business

Trust and credibility

in markets that are culturally and

What attributes of an individual

politically diverse can hamper joint

respond to gaining the trust of

venture progress. Even when there

another? Track record may be what

is no language barrier or the legal

settles the question of trust and

system is closely attuned, a lack

credibility for some but perhaps a

of knowledge or understanding of

strong, long-standing connection to an

the structures that are intrinsically

associate may be all that’s needed to

related can jolt optimistic outlooks.

inspire confidence in others.

‘Strong relationships are paramount to doing business in the Asia Pacific region’

Ethical approaches or standards can What can exporters do to avoid getting into strife? The answer is – do your homework.

also vary. Contracts may be seen as a guide in some cultures whilst in others the document that is ultimately signed

Seek the assistance of the relevant

is treated as a very specific framework

Business Council or Austrade and

by which both parties must adhere to.

invest time and resources to clearly

When something does not go to the

understand a potential partner’s

letter of the contract document, how

ecosystem.

is that perceived by the parties? Is

In some countries, governments

the contract suddenly “broken” and

and businesses have a symbiotic

subject of litigation or merely open

relationship and is one that is

for flexible interpretation and ongoing

fundamentally vital to partnerships

modification?

getting off the ground.

For Australian exporters, strong

Investigate what are the values

relationships are paramount to doing

that drive the undercurrent of your

business in the Asia Pacific region – a

target market culture and which

region that is diverse as it is complex

inevitably impact business in

and one that includes six of Australia’s

that region. Religion and law may

top 10 export markets.

not only be intertwined but also

These are markets with business

permeate every aspect of society

cultures that place a high level

including trade. Being sensitive to

of importance on interpersonal

this aspect of a business culture will

connections and look to partners with

help make it easier to work within

whom they can foster strong, long-

that complexity.

term business relationships.

Most important, take the time to

International business will continue

build strong personal relationships.

to be influenced by the nuances

And whilst this may seem simple

of culture. Building capability and

enough, in terms of interpersonal

conducting thorough background

capability, “trust” is the central

research into the partnerships and

theme.

networks involved will help clarify the

However, trust and, more to the

Patricia Butera is a cultural awareness trainer and cross-border business protocol specialist. Her company Business Cultures International specialises in global business etiquette and cross-cultural communication. They are planning a series of exporter workshops in 2017 focusing on region specific business protocol. Register your interest at www.business-cultures.com Business Cultures International 02 9199 4529 www.business-cultures.com

optimum approach to take. • • •

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travel

Twelve expert tips to help you beat jet lag Moving across different time zones can play havoc with your body.

I

f you've ever travelled across several time

4. Avoid alcohol and drink plenty of water

zones on a long haul flight, you will be aware of

During the flight don’t use alcohol to help you sleep.

the discomfort and fatigue that can follow.

While it is true a few glasses of wine will help you nod

Your body clock often takes several days to

off, alcohol actually adversely affects your sleep cycle

adjust and you find yourself waking in the early

making it harder to get into a normal routine. That also

hours of the morning. However, there are ways

applies for the few days after you land. It also dehydrates

to minimise the “fallout” that often results after

you. So it’s a definite no-no. Drink plenty of water instead.

a long flight. Here are 12 tips from frequent travellers to help you

avoid that jet lag nightmare:

5. Stay away from coffee Similarly, caffeine is a real disruptor of the normal sleep cycle. It is best to stay away from coffee, cola and

1. Get plenty of rest before you travel

caffeinated drinks for a few days before the trip, during

Make sure you get enough sleep before your flight.

the flight and the first couple of days after you land.

Thinking you can catch up on sleep on the plane

Caffeine also dehydrates you.

doesn’t usually work. And starting the trip exhausted is only going to make the jet lag worse.

6. No heavy meals Airline food can be heavy, starchy, and bloats you. Eat

2. Schedule breaks

small, nutritious meals frequently. Digestion is linked to

Flying east to west is better from a jet lag point

the sleep/wake cycle so eating large meals can interrupt

of view than flying west to east. This has to do with

the adjustment of your body clock to the new time zone.

our normal body clock registering a normal day as

You should also try to avoid heavy meals on the first day

slightly longer than 24 hours and so we are naturally

of arrival.

more in synch with travel that sees us “gain time”. Whenever possible it is best to schedule more breaks for the “higher risk” journeys.

7. Move to the new time zone As soon as you board the plane, change you watch to the time zone of your destination and try to schedule your sleeping accordingly.

3. Prepare ahead If you are travelling to a destination with a very different time zone, try shifting your sleep/wake cycle

8. Do not disturb

at least a bit before you leave. For example, if you’re

As much as being sleepy during the daytime is a

travelling from Sydney to London, try going to sleep

feature of jet lag, equally distressing is being awake

much later (say 1am) for the few days before you

during the night time. Recognise that you are much more

leave.

easily woken when trying to sleep at the appropriate time in a different time zone, especially initially. Reduce

//

february / march 2017

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travel

the risk of disturbance – wear ear plugs, use an

conjunction with your normal sleep ritual once you are in

eyemask, make sure you are as comfortable as possible

the new time zone.

in terms of bed, clothes and ambient temperature. 11. Opt for overnight flights By taking an overnight flight you will have dinner at

9. Welcome the natural light Once you arrive at your destination – as soon as

a normal time and be more likely to sleep than on an

possible get into the sunshine. Natural light exposure

afternoon flight. Depending on the length of the flight

will stimulate melatonin release and get your normal

and the number of time zones you cross, you'll arrive at

sleep/wake cycle in synch with the day/night cycle of

your destination in the morning or afternoon, making it

the place you are visiting.

easier for you to reset your clock.

10. Medication

12. Get some exercise

Hopefully you won’t need it but if you suffer badly

After sitting on a plane for long periods it is important

from jet lag talk to your doctor about the possibility of

to get some exercise. During the flight you should stand,

getting some short-acting sleeping tablets or the more

walk and stretch regularly. Exercise is also important

recently available melatonin which has the advantage

when you land. Where possible it is best to exercise early

of having less side effects than the other prescription

in the morning before starting your business day. • • •

sedatives. If you do need to take medication, take it in

//

february / march 2017

// 31


travel

QATAR AIRWAYS ROUTE Doha-Auckland FLIGHT DURATION 17 hr 30 min FLIGHT DISTANCE 14,535 km FLIGHT NUMBER QR921

Late last year Qantas revealed plans to launch non-stop flights between London and Perth from March next year.

T

AIRCRAFT Boeing 777200LR The flight that has secured

he 14,498km journey is expected to take over 17 hours, making it one of

Qatar Airways the crown for

the world’s longest commercial flights.

now, QR921 is the longest

And Qatar Airways launched its new 17.5-hour non-stop flight between

Doha and Auckland this month – the world’s long non-stop commercial route. But this record is likely to be broken next year when Singapore Airlines launches a non-stop flight to Newark International Airport, New Jersey, with a

commercial flight by time returning from Auckland to Doha. The flight from Doha to New Zealand’s most

flight duration of 18-19 hours. It is part of a growing trend among world airlines to avoid stopovers on major

populous city, meanwhile, is approximately one hour

routes. Business Traveller Asia-Pacific has revealed the world’s longest current flights and soon-to-emerge ultra-long-haul flights …

shorter. qatarairways.com

//

february / march 2017

// 32


travel

And launching soon … EMIRATES

QANTAS

ROUTE Auckland-Dubai

ROUTE Perth-London

FLIGHT DURATION 17 hr 20 min

FLIGHT DURATION Approximately 17 hours

FLIGHT DISTANCE 14,200 km

FLIGHT DISTANCE 14,498 kilometres

FLIGHT NUMBER EK449

FLIGHT NUMBER TBC

AIRCRAFT Airbus A380

AIRCRAFT B787-9 Dreamliner LAUNCHING March 2018

A similar route that previously gave Emirates the title of longest commercial flight prior to

Originally taking four days and nine stops when

Qatar Airways’ new service. Dubai is slightly

Qantas first began flying the “Kangaroo Route” in

closer to Auckland than Doha, making the

1947, Qantas’ Perth-London non-stop flight is due to

flight that little bit shorter in both duration

take about 17 hours when it launches in March 2018.

and distance.

Qantas lost its position as titleholder of the world’s

Emirates recently upgraded to an A380 on

longest commercial flight when Emirates’ Auckland

the route, replacing the B777-200LR that

to Dubai flight unseated Qantas’ Dallas-Sydney

previously operated.

flight. And with a distance of 14,498 km, Qantas’ new London flight would have regained it the title from Emirates, were it not for Qatar Airways’ newly

emirates.com

launched route. qantas.com.au

AIR INDIA SINGAPORE AIRLINES ROUTE Delhi-San Francisco FLIGHT DURATION 14 hr 30 min

ROUTE Singapore-Newark

FLIGHT DISTANCE 15,110 km

FLIGHT DURATION 18-19 hours

FLIGHT NUMBER AI173

FLIGHT DISTANCE 15,344 kilometres

AIRCRAFT B777-200

FLIGHT NUMBER TBC AIRCRAFT A350-900ULR

Air India’s Delhi-San Francisco is perhaps the

LAUNCHING 2018

longest commercial flight by distance covered – not specifically to do with the distance

Originally operated by the only aircraft that could

between the destinations but the route the

make the journey, the A340-500, Singapore Airlines

airline takes. Originally flying a shorter route

scrapped its Singapore-Newark route in 2013, due in

over the Atlantic Ocean, the airline switched

large part to the fuel-intensive nature of the aircraft.

to a longer trans-Pacific route in October,

However in October 2015, the airline said it would

according to Forbes. The Pacific Ocean route

resume the route – which takes between 18 and

is about 2,000 km longer but takes almost two

19 hrs – in 2018 using an A350-900ULR. At 15,344

hours less time to fly due to more favourable

km, the route is reportedly the longest non-stop

tailwinds.

commercial route ever, according to Bloomberg.

airindia.in

singaporeair.com

//

february / march 2017

// 33


feature

Listen up:

Melbourne startup Nura ready to take on the world A Melbourne-based startup that makes groundbreaking new headphones is set to make a big noise globally

N

ura has raised $6 million in seed-funding to take its unique “Nuraphones” to the world.The company, founded by Kyle Slater, Dragan Petrovic and Luke Campbell – with

backgrounds in physio-acoustics, electrical engineering and hearing science respectively – previously raised an Australian record $US1.8

million on crowdfunding platform Kickstarter last year. Almost 8,000 people backed the Nura campaign, and they will be among the first to receive the product when it starts shipping in May this year. The founders will use the newly raised funds to complete an initial production run in Shenzhen, China – where almost all the major headphones brands in the world are manufactured. Their proud Australian design is destined to change the way the world listens to music. Nura’s innovative headphone design adapts sound specifically to your ears to create a crystal-clear audio experience. Its headphones not only let you listen to sound, they listen to how you hear. Inbuilt microphones listen to human ears and automatically adjust sound to suit each user’s hearing. You won’t know which sounds you’re missing out on until you’ve tried them. The new technology has the potential to be a game-changer for the world’s audio

//

february / march 2017

// 34


feature

industry. “The additional money is really to help us accelerate our growth, help us get the word out even more and also to ramp up productions,” Nura co-founder Dragan Petrovic told StartupSmart from California recently. “We started global and there’s no going back,” he said. Investors in Nura include Sydney-based Blackbird Ventures, former Google Access chief executive Craig Barrett, and music industry veterans Ric Salmon and Brian Message from UK-based ATC Management, which represents artists like Nick Cave. “We have seen Nura grow from three to 12 people in 15 months, build a sophisticated global supply chain, and become Australia’s biggest Kickstarter campaign,” Blackbird Ventures partner Rick Baker said in a statement. “They have a long-term vision and a talented team. We love partnering with founders that have that level of drive and ambition.” Nura uses each listener’s own “sound print”, to enhance the quality of audio we hear. In the same way humans have unique fingerprints, everyone has a unique way of hearing. For example, some people hear more mid tones, while others hear more high or low tones. The Nura headphones can measure which sounds are being heard, and adapt the sounds to enhance those aural black spots. "I liken it to putting a pair of glasses on," Rick Baker said after trying the product the first time.

‘You won’t know which sounds you’re missing out on until you’ve tried them’

He met the two Nura co-founders when they were supervising him at Melbourne’s Royal Victoria Eye and Ear Hospital. They were so impressed by his attitude and work ethic, they offered him a job. Shao brings a strong mix of bio-engineering and electronic engineering to the team, as well as his native language, which has been a huge advantage for the company while doing business with Chinese manufacturers and

"You can still read without them, but put them on and suppliers.

the print comes beautifully into focus."

Enough Nuraphones are now being made to fulfil the

“It’s a totally new experience,” says co-founder Kyle

Kickstarter pre-orders and back the startup's own first

Slater. “The Nura headphones are creating richer and deeper

sales efforts. Surprisingly, they will bypass retail and be

sounds. This way of sonically moulding to your hearing is

entirely direct – though the founders admit most people

entirely new.”

would want to try an unusual product like theirs before

Within 30 seconds, the founders claim, the Nuraphone

buying.

has saved the listener's hearing profile, which it will

Mr Slater says music professionals and audiophiles

respond to within a few seconds of the same person

would be important early adopters and evangelists for

donning them again.

Nura.

Each unit can save three different hearing profiles. Nura’s first employee was Wilson Shao, who moved

“Nura headphones are benefiting not only the consumer, but also the artist who’s making the

from China to Australia in 2008 to study engineering at

music. You think about how much effort goes into the

the University of Melbourne.

production of a song, it's important to preserve all the

//

february / march 2017

// 35


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february / march 2017

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Dynamic Export e-magazine Feb/Mar 2017  

Latest news for Australian exporters

Dynamic Export e-magazine Feb/Mar 2017  

Latest news for Australian exporters