The potential to build bilateral services trade and its value for productivity Andrew McCredie Australian Services Roundtable
Outline of Talk ASR Who we are Global and bilateral services trade and investment trends India s growth in Services Exports Barriers for Australian business in India Value of Services Trade to Productivity
Australian Services Roundtable- who we are Member-based association Around 50 members mix of: Sector associations Individual companies and other organisations Through our association members we represent many thousands of companies (tourism, IT, design, engineering, law, education, financial services, social sciences, entertainment, accounting) Individual members include major services exporters Cox Architects, Mallesons, Minter, IAG, IBM Australia, CSIRO, NICTA, major universities Board of Directors elected by members Covers all services industries, works on issues common to all services industries, represents Australia in Global Services Coalition.
UTS Executive Education in-house MasterClass for Commonwealth Bank of Australia
Factors underlying growth of modern services economy Growth in financial and legal services - privatisation/deregulation/outsourcing Growth in international trade and particularly investment Growth in international services value chains Expansion of knowledge and the business capacity to capture value from knowledge including through managerial, professional and education services Information and communications technology Increased understanding and application of innovation in services systems Increased realisation of economy of scale and customisation processes Self service/ better understanding the client interface co-creation through value chains/ open innovation and standards Application of research, including social sciences, humanities and arts as well as science and technology Health services increasing in importance as a function of wealth and ageing Rise of cities and urban living
US$ billion 4500 World Trade in Commercial Services 4000 3500 3000 2500 2000 World Imports Commercial services World Exports Other commercial services World Imports Other commercial services World Exports Commercial services 1500 1000 500 0 2006 2007 2008 2009 2010 2011
US $ billion 160 India/Australia Services Export Trade with World 140 120 100 80 60 40 India Exports Commercial services India Imports Commercial services India Exports Other commercial services Australia Imports Commercial services India Imports Other commercial services Australia Exports Commercial services Australia Imports Other commercial services Australia Exports Other commercial services 20 0 2006 2007 2008 2009 2010 2011
A$ million 7000 Australian Services Trade 6000 5000 4000 3000 Exports to China Exports to India Imports from China Imports from India 2000 1000 0 2007 2008 2009 2010 2011
India-Australia Investment Trends Australian investment in India Investment in Australia by India 10954 4691 4938 4299 3169 2109 609 2007 2008 2009 2010 2011
Services Trade and productivity Financial Services Australian value add in Financial Services bigger than India (US$104b vs $US69b) World Bank Ease of Doing Business Australia ranked #10, India #132 Legal and other professional services Retail Malaysia experience
Next Steps ASR would like to build relations with India services business groups Priority reform areas are: Financial services Legal and other professional services Green services The Business Partnership Group providing advice to the Australia- Indonesia Comprehensive Economic Partnership Agreement is potential model