Global network
Through a global network of offices, Austrade aims to assist Australian companies to connect with buyers in offshore markets, attract foreign direct investment into Australia, and promote Australia's education sector internationally. In Australia, Austrade's services and programs are delivered through a national network of offices and TradeStart locations in metropolitan and regional areas, operating in partnership with Australian state and territory governments, industry associations and regional development bodies.Historical overview
Austrade was established in 1986 initially tasked with coordinating and facilitating the country's export promotion schemes (Fletcher, as cited in Chung and Mascitelli, 2017, p. 417). Since then, it lies at the forefront of both Australia's bilateral and multilateral trade agreements and is also tasked with organising policies on imports. This extended role since its establishment has increased the international competitiveness of Australian businesses post globalisation, a vision arranged by John Dawkins, former Trade Minister under the Hawke government. Austrade has allowed for countries to be economically integrated more than ever and is described as one of the most ambitious changes on the government trade promotion landscape since the creation of the Trade Commissioner Service in 1933 (Nicholls, as cited in Chung and Mascitelli, 2017, p. 417). There are four separate government entities under the original export promotion scheme, including a segment of the Department of Trade, Trade Commissioner Service, Export Finance Insurance Corporation and the Export Market Development Grant scheme (Dawkins, as cited in Chung and Mascitelli, 2017, p. 417). Dawkins was a key proponent for focusing on markets that needed assistance and has stressed the importance of directing attention to sunrise industries in order to help them compete on a global scale. According to Ferris in Chung and Mascitelli (2017), under these goals; the Australian economy and many around the world have naturally shifted their dependence on agriculture and slowly transitioned to manufacturing, following a similar journey to China's economic breakthrough.Vision
Following World War II, both Doug Anthony and John McEwen who were instrumental in Austrade's rapid growth saw an opportunity to target the issue of Australia's balance of payments as the forefront of broader objectives. Policy objectives were achieved whenever difficulties emerged and the result can be characterised as leakages in the economy being filled at a timely manner. The 1960s saw the establishment of a global network of offices. It is important to note that the original focus placed upon regulating instability within the balance of payments has shifted over time to boundaries beyond Austrade. The balance of payments is not to be confused with the fundamental objective of Austrade in stimulating the Australian economy through trade initiatives in the form of export programs. This sentiment was the main proponent that allowed for the expansion of the commission as a substitute for more flexible tariff and exchange rate policies. An overview of Austrade's broader vision has reveals concerns have arisen regarding what exactly role Austrade was supposedly created for. Charles Jameson, who was managing director at the time (1986) was mainly concerned that there was little to no background of the commission's history, especially when it came to preceding contemporary trade commissioners.Industry focus
Facilitating investment, particularly within industries of potential growth lies at the forefront of what Austrade is widely known for. An era ofServices
For Australian companies
Austrade provides advice to exporters on prospective markets and opportunities; on-the-ground support in target countries; trade exhibitions; and assistance in finding potential investors. No charge is made for general information which includes extensive online information, though fees may be required for specific tailored advice. Austrade provides information and advice to assist Australian companies in exporting goods and services to markets including Asia, Africa, Latin America, the Middle East and Russia. For Australian exporters and education providers, Austrade has a comprehensive mix of information and customised services to assist doing business within overseas markets and to understand foreign regulations and business practices. Historically, Austrade has concentrated most of its initiatives in North America, Western Europe and Japan due to the maturity of their economies. This has allowed for the Australian economy to engage in international trade through programs such as the Export Market Development Grants scheme, aimed at developing support for exporters by organising free trade agreements. Other initiatives include Australia International Education 2025 to bolster opportunities for international students to study abroad and the Tourism 2020 Implementation Plan which will help strengthen one of Australia's most important industries. Eligible companies may apply for an Export Market Development Grant which provides funding for small to medium exporters for eligible promotional expenses. A range of newsletters, webinars and in person events and activities are available to businesses with many strongly promoted via social media.For international investors
Austrade is responsible for the promotion, attraction and facilitation of productive foreign direct investment (FDI) into Australia, and is the first national point of contact for all investment enquiries. Services to international companies are free, comprehensive and confidential. Working in partnership with Australian state and territory governments, Austrade provides international investors with information needed to establish or expand a business in Australia.For international buyers
Austrade also assists international buyers to source goods and services from Australia or to identify strategic Australian business partners. Areas of development such as mining which has historically elevated Australia's economy continue to be a main policy objective for Austrade moving forward.For Australian education providers
Austrade's role includes the international marketing and promotion of Australian education and training. Austrade co-ordinates and promotes the brand programs "Future Unlimited" which advertises Australian education and training institutions, and "Australia Unlimited" which promotes awareness of Australian skills and capabilities. It previously co-ordinated the "Building Brand Australia" program, a 4-year, A$20-million program to promote Australia's credentials as a "global citizen, global business partner and world class destination".For tourism businesses
Austrade provides information, support and grants to tourism businesses. Austrade's Tourism Research Australia provides free statistics, information and insights and can provide specific tourism research and analysis on a fee-for-service basis.Initiatives with countries
Organising initiatives with other countries that share attuned roadmaps to growth has been necessary in expanding Austrade's global footprint. Landis (2012) explains Austrade's new streamlined structure following reforms due to the difficulty exporters faced accessing foreign markets. Introduced in 2011, Austrade has moved from regional to global management with oversight of its international network based in Sydney. Landis, a correspondent with offshore initiatives with regions such as Latin America and South Asia describes how an extensive review found that Austrade was too ambitious in priorities and did not direct engage enough with growth markets. Brewer (2010) says that Austrade's focus on tackling large economies led to the program employing “aspirational” targets that were not tangible within an organisation in the long run and that they were simply publicising unrealistic prospects. This overlocking of significant resources pooled into already established markets such as Europe and the US did more harm than good because exporters did not require Australia's help as much as sunrise industries in emerging markets. Similar to Landis, Piper (2012) outlines the obvious potential for trade and investment between Australia and Latin America. Austrade's efforts to engage with regions such as that of Latin America has been eased by an increasing number of companies realising how successful business could be conducted regionally. Within the framework of globalisation, Austrade has found unique expertise in assisting partner markets by providing contacts, market intelligence for individual jurisdictions and networks on the ground.Financial support for exporters
Austrade provides online information on export financing and other government financial assistance programs. It also administers the Export Market Development Grant (EMDG) Scheme, the Australian Government's financial assistance program for aspiring and current exporters, which encourages small and medium-sized Australian businesses to enter into and develop export markets. Under this scheme, eligible businesses are reimbursed for part of the export marketing costs they incur. The scheme supports a wide range of industry sectors and products, including inbound tourism and the export of intellectual property.Governing legislation and changes
Established under the ''Australian Trade Commission Act 1985'', Austrade is a prescribed agency subject to the ''Financial Management and Accountability Act 1997'' and the ''Public Service Act 1999''. Austrade operates as a statutory authority within the portfolio of Foreign Affairs and Trade, its chief executive officer reporting directly to the Minister for Trade and Investment. From its establishment until 30 June 2006, Austrade was governed by a board. As a result of a report by John Uhrig published in June 2003, the board was replaced from 1 July 2006 by a chief executive officer.Australian Trade and Investment CommissioAgency heads
Controversies
Firepower International
Between 2004 and 2006, Austrade reportedly granted special access privileges and funds totalling $394,009 to the fraudulent company Firepower International, which also provided employment to two former senior Austrade managers in Europe and Russia. The agency denied Firepower had received special treatment. However, perceived legitimation of Firepower's activities by Austrade undoubtedly helped promote tens of millions of dollars in fraudulent share sales to the Australian public "without proper disclosure documents in breach of the Corporations Act". Possibly because of the close involvement of senior diplomats and politicians, including then prime minister John Howard and senior minister Julie Bishop, in the scandal, Austrade did not initiate prosecutions against Tim Johnston and other Firepower principals, as it had previously done against relatively minor perceived offenders such as Western Australian town planner and inventor Paul Ritter, who was imprisoned in the late 1980s on charges of making inappropriate export-grant applications.Securency
It has been alleged that Austrade officials knew about alleged bribes paid by officials from the Reserve Bank of Australia's Securency scandal. RBA subsidiaries were involved in bribing overseas officials so that Australia might win lucrative polymer note-printing contracts, and it has been alleged that Austrade officials knew of payments to a Vietnamese spy chief to secure contracts for printing banknotes.See also
* Australian economy *References
{{Authority control Commonwealth Government agencies of Australia Foreign trade of Australia Department of Foreign Affairs and Trade (Australia)