1. Australia

2. Angus M Robinson Chief Executive, AEEMA WEF Panel on Trade 10 th World Electronics Forum, Washington DC 22 September 2004

3. AUSTRALIA’S Australian Electronics Industry - 2003  Employment 31,500  Wages & Salaries (US$b) 1.0  Turnover (US$b) 6.0  Value Added (US$b) 1.6  Establishments 2,500  Exports (US$b) 2.6  Imports (US$b) 13.3  R&D (US$b) 0.8

4. AUSTRALIA’S Australia’s Top 10 Export Destinations - Electronics Manufactures Country 2002 – 2003 % (and 10 year trend) New Zealand27.7  USA21.6  China (inc Hong Kong) 6.0  Singapore 5.7  UK 4.4  Germany 3.1  Malaysia 2.4  Japan 2.1  India 1.9  Taiwan 1.6 

5. AUSTRALIA’S Australia’s Top 10 Import Sources - Electronics Manufactures Country 2002 – 2003 % (and 10 year trend) China17.5  USA13.5  Malaysia10.4  Japan10.2  Republic of Korea 9.1  Singapore 8.7  Taiwan 7.2  Philippines 2.6  UK 2.2  Thailand 2.2 

6. AUSTRALIA’S  Defence  Automotive and Telematics  Home Networking  Medical Electronics & Devices  Environment  Mining  Avionics  Photonics Australian Electronics Capability Sectors

7. AUSTRALIA’S Opportunities to Engage with the Australian Electronics Industry  Product design and prototype development  Microelectronics design network  System integration and software development  Contract manufacturing - complex product developm’t & customer support  Collaborative R&D  Test beds in advanced western markets  Technology and product design licencing

8. AUSTRALIA’S AUSTRALIA’S COMPETITIVE ADVANTAGE – CONTRACT ELECTRONICS MANUFACTURING OF COMPLEX PRODUCTS Australian contract electronics manufacturers can competitively manage the production of low volume, complex products, particularly prototypes, with high quality, design value add and engineering and fast turn-around. COST RISK USA / Europe AUSTRALIA ASIA

9. AUSTRALIA’S Trade Agenda Australian Electronics Industry  Maximise market penetration on the back of negotiated bilateral FTAs – Singapore, Thailand, USA, China and Malaysia  Removal of non-tariff and technical barriers to trade  Removal of Australian Government Tariff Concession Scheme on imported electronic components (3%)

10. AUSTRALIA’S Key Non Tariff & Technical Barriers  Customs-related issues: - import tariffs, onerous customs procedures, including customs valuations, other import taxes and charges, rules of origin/certificates of origin, market access quotas  Technical issues - standards and certification: conformance testing and certification requirements  Other internal regulations issues:  internal taxes, restrictive import licensing agreements  visa requirements and work permits  ownership and investment restrictions  banking and foreign exchange issues  governance and competition-related issues  differing processes for obtaining government approvals  transparency and fairness in tendering procedures for government contract and in the award of tenders  ineffective enforcement of intellectual property rights  Social or market-related issues: staff recruitment, local business culture

11. AUSTRALIA’S Australian Trade Policy and the Australian Electronics Industry  Longstanding Closer Economic Relations Agreement with New Zealand  Australian Government commitment to multi-lateral trade liberalisation through the Doha round of WTO  Key bilateral FTAs with Singapore, USA and Thailand  Government/industry commitment to feasibility studies for new FTAs with China and Malaysia  Shared commitment to APEC and then potential for regional trade agreements with ASEAN  Shared commitment to studies aimed at strengthening relationships with Japan and South Korea

12. AUSTRALIA’S AEEMA Committed to Australia’s ICT, electronics and electrical manufacturing industries www.aeema.asn.au arobinson@aeema.asn.au +61 2 62 47 4655