Export business is essential for the Australian economy to stay competitive in the world. Complementary medicines currently contribute $3.5 billion to the Australian economy, providing jobs and supporting local manufacturing. This figure is expected to grow to $4.6 billion in 2017-2018.
Recently, free trade agreements have been negotiated with some of our Asian neighbours. There is no doubt that these free trade agreements can advance the growing Australian CMs industry, with significant potential to expand exports. Despite this, many obstacles, such as continued tariffs and regulatory controls, could still exist and constrict access to these markets.
Given this series of free trade negotiations with countries in Asia, CMA has initiated, on behalf of the complementary medicines industry, an ‘export project’, which focuses on target markets of particular interest to CMA members: China, Vietnam and Indonesia.
Following intensive research on these markets, CMA launched “Advancing Market Access for Complementary Medicines in Australia” in September 2014. The report includes the following:
- Examination of the nature of barriers to trade and investment faced by CM product companies in each of the target markets*;
- Estimation of the size of the potential export market in each of the three countries that could result from more open markets and liberalization of barriers; and
- Details on the positions the Australian Government should take to remove these barriers and increase exports to the target markets.
Contents of the Report “Advancing Market Access for Complementary Medicines in Australia”:
- Barriers to trade and investment
- Potential exports in Asian markets
- Removing barriers and expanding exports in free trade agreements
- Regulatory Regimes for CM products in China, Indonesia and Vietnam
- Tariff Rates for CM products
- Trade in supplements by Australia & target countries
- International competitiveness of Australian supplements in China, Indonesia and Vietnam
The report is now available for purchase. If you are interested, please contact Miho Kikuchi at email@example.com
or by phone 02 6260 4022
About the Target Markets:
Australia and China reached a free agreement in November 2014. More than 85% of Australian goods exports will be tariff free upon entry into force, rising to93 % in 4 years. With the full implementation of the ChAFTA, 95% of Australian goods exports to China will be tariff free.
The Free trade agreement with Vietnam through the TPP (The Trans-Pacific Partnership Agreement) is under negotiation.
Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA) is under negotiation.
The deterioration of health in Australia is a crucial problem. Characterised by such medical problems as the rapid increase of obesity and chronic disease, there is a pressing concern about the excessive burden of associated medical costs on the economy. People are naturally aware that prevention is better than cure and that, therefore, we should focus on preventative health research. This is definitely one field in which the CM industry should be able to play important and innovative roles.
Unfortunately, government focus on preventative healthcare is limited and the CM industry does not receive adequate research funding and support. One factor necessary to promote the increased use of CMs in Australia is scientific research proving their effectiveness.
The CM industry is advocating for more research and innovation funding and support for the development of evidenced-based medicine, which is essential for the competitiveness of the industry
Available research funds
According to 2013 Global Manufacturing Competitiveness Index
, “talent-driven innovation” was chosen as the most critical driver of a nation’s competiveness among the 10 major categories of drivers such as quality and availability of scientists, researchers, engineers and skilled production workers. This clearly indicates that companies must innovate to stay ahead of competition within the global market. Yet, research indicates that 90% of executive in the EU and 79% of executives in the US admit that the current intellectual property policies give them an advantage in manufacturing competitiveness. We therefore, need government’s support by playing an active role in protecting intellectual property in order to protect the national interest.
- The R&D Tax Incentive
It provides targeted research and development (R&D) tax offsets designed to encourage more companies to engage in R&D.
In the wake of the increasing intensity of competition for global markets, the CM industry may be able to utilise the Innovation patent proactively when applicable.
The innovation patent system was established in 2001 to stimulate innovation in Australian small to medium business enterprises. It protects incremental or low level inventions that do not meet the inventive threshold required for standard patent protection and are not covered by design legislation.
In February 2011, the then Minister for Innovation, Industry, Science and Research requested that the Advisory Council on Intellectual Property (ACIP) investigate the effectiveness of the innovation patent system in stimulating innovation by Australian small to medium business enterprises.
- Standard patent
- Standard patent VS Innovation patent
- Australian innovation
Seminars and Event Info
China Business Training
New Zealand Trade and Enterprise has announced that registrations for the China Business Training programme 2014 are now open. The purpose of this programme is to help NZ companies conduct better business in China by providing information and training resources.
Invitation to Attend Industry Focus Group by Export Council of Australia
The Export Council of Australia has surveyed the international business landscape; now it’s time to build the foundation for positive change. The ECA invites exporters to join the discussion in a series of focus groups intended to provide an opportunity to share experiences that have shaped international business, learn from your peers, network with other exporters and unpack the results of the Australian International Business Survey 2014.
Webinars organized by Austrade
They will provide overviews of the Indonesian and Chinese markets and include information on key events, registration processes and opportunities.
- 1. Indonesian market
The proposed date: Thursday, August 28 at 1:30pm ( this is 10:30 am Jakarta time) - finished
- 2. Chinese market – the detail will be informed shortly
Other Useful Links
The Global Competitiveness Report 2013-2014
highlights that one of Australia’s disadvantages for remaining competitive within global markets is the “burden of government regulation”. On the other hand, according to The Coalition’s Policy to Boost Productivity and Reduce Regulation July 2013
, the Coalition Government is currently working on reducing this regulatory burden.