Australian Ambassador to the Philippines Rod Smith is encouraging more Cebuano exporters to take advantage of the free trade agreement between Australia and the Philippines.
Smith said that in Southeast Asia the total trade value of Australia is $90 billion.
Of this volume, the Philippines accounts for P2.5 billion which is less than 3 percent.
Indonesia is Australia’s largest trading partner followed by Singapore, Thailand and Malaysia.
“Two of these – Thailand and Singapore – are your competitors and you can very well compete with them by maximizing the benefits of AANZFTA (Asean-Australia-New Zealand Free Trade Agreement), which provides for free tarriffs for 96 percent of Philippine export products to Australia,” he said.
The remaining four percent of Philippine products would soon be included in the zero-tariffs list within the next few years, he said.
Top exports of the Philippines to Australia from 2009 to 2010 include electrical machinery, radio broadcast receivers and telecommunication equipment and parts.
Meanwhile, the Philippines imports from Australia copper, copper ore and concentrates, veterinary products, milk and cream.
Tourism and the food sector are the promising industries for the Philippine and Australian market.
“Australia has a population of only 22 million but it’s a large economy worth $1.2 trillion, the 12th largest economy in the world and fourth in the Asia Pacific region. It’s a community of affluent consumer markets which food exporters can tap,” he said.
He cited Australia as a destination of many other races seeking education.
“They can use Australia as a gateway to other countries to promote their products. One Cebuano has already done that. Kenneth Cobonpue has tapped the Australian market. In fact it’s easier to buy his products there than come to Manila and buy them there,” he said.
Tourism is another industry that Smith said could encourage more trade between the two countries.
“The Philippines can market its destinations for families and can create attractive airline and accomodation packages for Australian tourists,” he said.
Australians are the fifth largest tourist group to the Philippines with at least 6,000 visiting Cebu, said Ross Bray, senior trade and investments commissioner to the Philippines and Micronesia.
“The Philippines has such diversity that most tourists would love. What we need to do is to promote this more to Australians, who are big travellers. Last year we recorded about 124,000 Australians who travelled to different destinations abroad. This is a big tourism market that Philippines can also tap,” Bray said.