According to a recent study, New Zealand tops the Australian export trade list, with 56 per cent of local exporters conducting business with NZ over North America (51 per cent) and China (42 per cent).
The 2016 DHL Export Barometer indicates that trade between Australia and New Zealand is likely to continue on the ongoing growth path, with 50 per cent of Aussie exporters expecting demand of export orders to NZ increase in the next 12 months.
Growth outlook for both North America and China is slightly more optimistic, with up to 60 per cent exporters expecting export orders to both regions to increase in the next one year.
The report also reveals that up to 59 per cent Australian exporters perceive China as one of the biggest competitive threats, followed by the United States (29 per cent), India (14 per cent), and the United Kingdom and New Zealand last on the list (12 per cent each).
“Australia and New Zealand have traditionally been very significant trading partners and we have seen very solid growth in shipment volume over the past five years, with double digit volume growth,” Edstein says.
AusTrade data had earlier reported that Australia-New Zealand trade increased at an annual rate of approximately eight per cent since the implementation of the ongoing Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA).
“While exporters see a lot of opportunities in North America and Asia, New Zealand remains one of our most popular trading partners and continues to be an important source of revenue for Australian businesses,” Edstein says.
“The free trade agreement has proven to provide a range of benefits including the smooth transition of goods.
“With comparable markets and business cultures, Australia and New Zealand make ideal export destinations for small and medium-sized businesses that are starting to export internationally.”
(Reference: Australian Transport News, Australian Export Confidence Strong: Report, May 11th 2017).