Geoff Prosser (Forrest, Liberal Party) Share this | Hansard source

As a member of the Trade Subcommittee I was one of the delegates, along with my committee colleagues, who visited the countries of Algeria, Egypt, Libya, Tunisia and Morocco during November 2005 to review the trading and investment opportunities for Australian exporters. Egypt, Morocco and Tunisia are members of the World Trade Organisation, with Algeria and Libya expecting to join shortly. Most countries have free trade agreements with the European Union—that is, Italy, Germany, France and Britain—as they are keen to take advantage of their proximity and historical ties with Europe. Most also have or are negotiating free trade agreements with the USA.

There is no doubt that the oil, gas and agribusiness sectors are Australia’s dominant investments in the region. However, there is significant opportunity to develop Australia’s exports in other areas and commodities by way of value added consumer goods, manufactured products as well as expert consultancy services. Export opportunities exist in areas such as supplying mining and drilling equipment, farming equipment telecommunications infrastructure and equipment, banking systems and information technology development and in services such as hotel management and catering; training in tourism; civil engineering; high-tech goods and services; and consultancy in a wide range of areas. Last but not least is the opportunity to expand Australian education exports. More needs to be done to attract students to Australia, as most students currently travel to France or the USA.

North Africa is a very special part of the world and its infrastructure in some countries could certainly be enhanced by Australian commercial activities exporting to the region. The economies of Algeria and Libya are dominated by the oil and gas sectors, in which are involved BHP Billiton and Woodside Energy, with its onshore and offshore exploration interests. Santos also have a strong presence in North Africa and are clearly doing very well. These three companies have been active in the market, with BHP Billiton being the most successful in winning contracts and Woodside and its partners being the second largest holders of exploration acreage in Libya. I commend all three companies for their foresight.

Algeria is the principal destination for Australian lamb and mutton, and our main competitors are the New Zealanders. Algeria would welcome Australian assistance in its infrastructure development for aquaculture and is also in need of assistance in infrastructure projects for roads, ports, airports, railways, electricity, water and housing. BHP has a major investment in Algeria. Given the opportunities for Australian companies investing in North African countries, they should use BHP’s presence as a staging post for investment export opportunities into Europe. Because of the greater sophistication of the Algerian market, and its strong ties to Europe, the committee recommends that high priority be given to the establishment of a consulate-general in Algiers.

Although Australian wheat exporters are faced with competition from Russia, which has the major share of the Egyptian wheat market, there is potential for Australian companies to supply expertise in the sectors of scientific and technical urban planning, landscape architecture, construction services, air transport and management consulting. With higher incomes and more spending power, developing purchasing habits offer opportunities in the food manufacturing area. Health and medical opportunities also exist for Australian companies to supply Libya and Egypt.

Egypt is undergoing extensive modernisation of its telecommunications infrastructure and there are emerging opportunities for information and communication technologies. Impediments are not necessarily insurmountable to the region, but perhaps the biggest impediment for Australian exporters is the distance to markets. North African countries look to France and other European countries for trade opportunities and currently enjoy more favourable tariffs. Australia’s attempts to enter new markets and existing strongholds face competition from the European Union and the USA, due partly to their domestic production subsidies and historical links with North Africa.

I support the recommendation for improved access for Australian exports to be sought by negotiating lower tariffs on a bilateral basis, particularly in agribusiness. Australia does have a good presence in North Africa, and opportunities certainly exist to grow more export markets. Once Australian export markets develop then greater opportunities for future foreign direct investment will prevail. BHP, Woodside and Santos are good examples of this. I commend the report to the House. (Time expired)

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