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Strengthening Trade Ties Between Australia and ASEAN: Opportunities and Challenges

Strengthening Trade Ties Between Australia and ASEAN: Opportunities and Challenges

Moore Australia

Australia's trade relationship with the Association of Southeast Asian Nations (ASEAN) has long been a cornerstone of our economic strategy. In 2023, the Department of Foreign Affairs and Trade published the report, Invested: Southeast Asia Economic Strategy to 2040. The report sets out the opportunity for growth and practical two-way pathways to signifcantly increase two-way trade and investment between Australia and Southeast Asia. The potential for further growth in this region has never been clearer.

Wen-Shien Chai, Audit Partner at Moore Australia (WA) and Chair of the Moore Australia Asia Desk, highlights, "ASEAN represents a dynamic and rapidly growing market for Australian businesses. The region's collective GDP is projected to reach $10 trillion by 2030, presenting vast opportunities for investment and trade."

Anthony Hayley, Transfer Pricing expert and Director at Moore Australia (QLD/NNSW), underscores the importance of favourable tax policies in enhancing these trade relations. "Tax incentives and agreements play a critical role in facilitating smoother trade flows between Australia and ASEAN countries. These measures not only reduce the cost of doing business but also encourage more Australian firms to enter the ASEAN market."
 
"Tax incentives and agreements play a critical role in facilitating smoother trade flows between Australia and ASEAN countries."
Anthony Hayley, Transfer pricing expert, Moore Australia (QLD/NNSW)



Lisa Canale, a food business expert, and Director at Moore Australia (SA/NT) points out the significant opportunities in the agriculture and food sector. "Agricultural trade between Australia and ASEAN is poised for substantial growth. According to the Department of Foreign Affairs and Trade, agricultural exports to ASEAN countries have grown by over 50% in the last decade. The demand for high-quality Australian produce is robust, and with ASEAN's population expected to surpass 700 million by 2030, this demand is set to rise further."

The chapter on Agriculture and Food from the report provides key insights into the evolving landscape, and highlights that Australian agribusinesses can capitalise on ASEAN's growing middle class, which is increasingly seeking premium and safe food products.


Vanessa Wu, Director at Moore Australia (VIC/TAS), Business Advisory expert and Vice Chair of the Moore Australia Asia Desk, emphasises the broader economic context, "Southeast Asia is not just a market; it's a strategic partner. The region's focus on enhancing education and skills, aligns perfectly with Australia's strengths in these sectors. By investing in education and skills development, Australian businesses can build long-term partnerships that drive mutual growth."
 
"Southeast Asia is not just a market; it's a strategic partner."
Vanessa Wu, Director, Business Advisory, Moore Australia (VIC/TAS)


However, there are challenges to navigate. Regulatory differences, trade barriers, and logistical issues remain significant hurdles. "It's crucial for Australian businesses to understand and adapt to the regulatory frameworks within ASEAN countries," says Wen-Shien Chai. "Working with local partners and leveraging regional trade agreements can mitigate some of these challenges."

The strategic importance of ASEAN to Australia's economic future cannot be overstated. As Anthony Hayley notes, "Enhanced collaboration in areas such as digital trade, services, and sustainable development will be key to deepening our economic ties."

Lisa Canale highlights the role of innovation in driving future growth. "Investing in technology and sustainable farming practices will not only increase productivity but also ensure that Australian agriculture remains competitive in the ASEAN market."

In the realm of green energy, the collaboration between Australia and ASEAN is crucial. The report's chapter on the green energy transition outlines how both regions can benefit from joint initiatives. "Australia's expertise in renewable energy technology can significantly contribute to ASEAN's green transition goals," notes Vanessa Wu. "This not only supports environmental sustainability but also opens new avenues for trade and investment." 

The opportunities for strengthening trade relations between Australia and ASEAN are immense. By addressing the challenges and leveraging our competitive advantages, Australia can solidify its position as a key trading partner in this vibrant and diverse region.


For more information about Australia's South East Asia Economic Strategy to 2040, please visit the DFAT website.