Russia opens the door for business

Countries aspiring to membership of the European Union are providing new trade potential  for Western Australia, according to WA’s Agent General to the EU, Noel Ashcroft, who visited Perth last week.

Countries such as Turkey and Ukraine are emerging markets for WA, Mr Ashcroft said, although Russia was perhaps of most interest to exporters and those seeking business opportunities.

“That economy is running along at about seven or 8 per cent regularly now. It has changed,” he said.

Given the importance of mining to Russia’s economy, Mr Ashcroft said there were good opportunities for WA in mining services and investment.

He also pointed to the increased investment by Russian companies in WA during the past 12 months.

“It’s changing overnight, and whether we want to be part of the Russia situation or not, we are already,” Mr Ashcroft said.

Agricultural trade remained heavily protected in the EU, Mr Ashcroft said, although Russia was attracting WA’s meat exporters, with abattoirs in the eastern states having already entered the market.

“There’s a huge market there and our meat sales are actually going very well,” he said.

Turkey, which was of strategic interest to WA, given its aspirations to join the EU, also held opportunities in agricultural services and trade, particularly in the areas of genetics and herd improvement.

Outside of meat exports, the rock lobster market was growing in Europe, with WA on the verge of securing a quota with reduced tariff for UK exports.

While the UK remains WA’s biggest wine export market, Mr Ashcroft said there were worrying signs of a plateau effect at the top end of the market, for bottles priced at more than £8.

“I think what it’s saying to me is, while the industry is looking for new markets, it’s got to be extremely careful not to stop massaging its existing markets that it’s fought so hard for, because the competition is huge,” he said.

Mr Ashcroft said exports from South Africa, the US and Chile, as well as the deregulation of the EU wine market, would put further pressure on WA wine producers.

Outside agriculture, skilled migration, education services and value-adding in mining services were among the main priorities for WA in its engagement with Europe. Biotechnology and ICT sectors were also of interest, although WA would not be competitive across the board and should focus on areas such as biomedical technology and digital content in ICT.