1. Austrade’s LATAM strategy and activity
7/11/2018
Austrade’s LATAM strategy and activity
October 2018

2. 7/11/2018
Michelle Webster
Manager – Americas, Europe and Commercial Diplomacy Section
Government and Partnerships Division
Austrade Sydney

3. our footprint in latin america
7/11/2018
Mexico – Mexico City
Colombia – Bogota
Peru – Lima
Chile – Santiago
Brazil – Sao Paolo
Argentina – Buenos Aires

4. 2018 Australia’s International Business Survey (AIBS)
7/11/2018
178 respondents are doing business in LATAM
63% of this group work across two or more markets in the region
Australia’s International Business Survey 2018 (AIBS) looks into the perceptions of internationally engaged Australian businesses, with a particular focus on small and medium-sized businesses.
AIBS 2018 surveyed 713 Australian businesses, 60 per cent of which had revenue of less than $5 million and 19 or less employees.
AIBS 2018 reflects the opinions of the 629 of these firms that are undertaking international activities in 19 sectors in over 90 overseas markets.
The survey was conducted by amr Australia between April 2018 and May 2018.
The AIBS is the largest study of its kind. The longitudinal survey is commissioned by the Export Council of Australia (ECA) with the support of Austrade and Efic (Export Finance and Insurance Corporation).
Much of Australian business activity measured by the survey is concentrated in 6 markets in the region.
Brazil is the standout economy with almost 60 percent of surveyed companies doing business in the region’s largest economy. The market is set to retain this leading position, attracting a similar share of interested firms planning expansions into the region over the next few years.
Three markets attracted almost one quarter of surveyed firms operating in the region: Chile, Argentina and Mexico
Colombia (14%) and Peru (9%) are emerging markets of interest for AIBS respondents, attracting one quarter of firms interested to expand in the region.

5. Aibs survey – increasing attractiveness of latam
7/11/2018
Largest opportunities are being capitalized based on accessing:
Growing consumers markets
Making direct product or service sales
esp Argentina and Chile
Accessing global or regional value chains
Ongoing economic reforms
FTA access

6. Aibs survey – Main barriers to latam
7/11/2018
Language (32%)
Market access issues (24%)
Corruption or security (16%)
Tariff barriers (11%)
Currency volatility (11%)
Esp Argentina
Interestingly, three barriers identified by Australian firms doing business in Latin America – market access issues, language and corruption/contract security - are also the main identified barriers cited by firms currently not doing business in Latin America.
Of these, market access is the barrier identified by the largest share of companies – by up to 20 percent of companies not currently in the region.
Other results also suggest greater potential to promote the region to internationally-active businesses.
Thirty percent of firms not in Latin America have not specified why they are not doing business in the region, ten percent are ‘not sure’ why they are not doing business there, and (seemingly in contrast to the pull of the consumer market identified by firms in the region) ten percent feel the Latin American market is too small/too poor for their firm’s product or service.
Q40b - Why no business in LatAm -
31%
None of the above
22%
Market access issues
16%
Language
11%
Corruption/contract security issues
10%
Not sure 8%
Latin American market too small/too poor for what we sell
Geopolitical issues 7%
We are not big enough/don’t want to extend ourselves/focused elsewhere
Social unrest/community relations disputes
Early days/looking into it/developing/not tried yet/not thought of it 5%
Tariff barriers 4%
Currency volatility 3%
Timezones/distance/logistics 1%
Non-tariff barriers
Latin America makes enough of what we sell/exports it
Have indirect links/brokers/other parts of company (eg USA) cover it 0%
Regulation NFI

7. greater potential to promote the region to internationally-active businesses
7/11/2018
Evolution of the latam narrative
Beyond education and trade
Significant developments in investment beyond the traditional resources sector which shows the scale and growing attractiveness of Latin America for Australian investors, principally from Brazil and Argentina in the agribusiness sector
collaboration opportunities
innovation for productivity gains
counter seasonal produce
access to Australia’s network of FTAs throughout Asia.
FTA seminars around Australia
In-market promotion eg Peru customer outreach event (for food, agritech, transport and niche mining – social licence, skills and automation) on 23 October
Austrade is working with 18 companies at various stages of their investments, in areas such as biofuels production, agtech and farm management software, animal nutrition supplements and the conversion of pastoral lands to cropping in northern Australia. 
This opportunity to analyse cotton and soybean cropping potential in northern Australia has been warmly embraced  by a number of Brazilian and Argentine agribusiness conglomerates who see similarities between the opening up of Australia’s north and their own development of frontier agricultural land decades ago in South America.
Significant Australian investment in Peru and Mexico includes  IFM, a major infrastructure fund management company, has invested over A$2.8 billion in Mexico since 2015 and sees other ongoing investment opportunities in infrastructure projects such as toll roads, airports, processing  and renewable energy in the region. Macquarie Group also has investments in Mexico covering shopping malls and commercial property as well as communication towers. By way of illustrating this trend, Australia was the 6th largest investor in Mexico in 2017 and the 7th largest investor in the first semester of In 2016 Australia was  ranked 20th, moving up 13 places in one year.
Other the material you already have, I would note that IFM’s acquisition of OHL is a AU$1Bn market entrance into Colombia under the new name Aleatica and FMG has recently applied for 64 mining concessions and have opened an office in Bogota.
Also for your interest – but not public yet, Coachlear will announce at the end of the month the opening of their 1st office in LATAM to go direct in the market. They go via distributors in other countries.

8. Sectors – Americas Americas: FY2018–19 Plan Markets
Highly Active Trade Highly Active Investment
Markets
Cross and Pan – Regional
Argentina
Brazil
Canada
Chile
Colombia
Mexico
Peru
USA
Agribusiness & Food
Advanced Manufacturing & Defence
International Health
International Education
Resources & Energy
Tourism & Regional Development
Major Infrastructure & Urban Development
Services & Technology

9. Focus areas by subsector / market
Trade & Investment Division: FY2018–19 Plan
Focus areas by subsector / market
Highly Active. Selective Opportunities. Watching Brief
TRADE
Highly Active
Selective Opportunities
Watching Brief
Defence & Advanced Manufacturing
Aerospace Manufacturing
Mexico
Civil Security Sector Aftermarket
Food & Agribusiness
Meat & Livestock
Andean LATAM
Agtech / Foodtech
Premium Food
International Education
Higher Education
Brazil
North America
Andean Latam
Vocational Education & Training (VET)
English Language Intensive Courses for Overseas Students (ELICOS)
Schools, Hospitality Training & Education
Edtech
Latam
International Health
Senior Living & Health
Major Infrastructure and Urban Development
Rail Transport Services, Technology
Smart Cities

10. Chile, Brazil, Argentina
Trade & Investment Division: FY2018–19 Plan
Focus areas by subsector / market
Highly Active. Selective Opportunities. Watching Brief
TRADE
Highly Active
Selective Opportunities
Watching Brief
Resources & Energy
METS
Andean LATAM
Mexico
Brazil
Mining
Oil & Gas Services
Andean LatAm
Smart Grid & Energy Storage
Services & Technology
Cyber Security
Chile, Brazil, Argentina
Blockchain & Fintech
Tourism
Hospitality training & education
INVESTMENT
Food and Agribusiness
Meat & Livestock
Grains & Legumes
Fibre – Cotton
Agtech / Foodtech

11. Education forthcoming events 2018-19
7/11/2018
Dates
Service
Markets
29 November 2018
LATAM education agent matching making service
Mexico, Colombia, Brazil, Peru, Chile, Argentina
10-13 February 2019
Australian research mission to the AUTM Conference
Austin, Texas
February – April 2019
Australia Future Unlimited mission to FPP EduExpos including options for consortia and “Spotlight on ELICOS”
Mexico City (16-17 Feb 2019)
Bogota (6-7 April 2019)
Lima (9 April 2019)
Santiago (15 April 2019)
Spotlight on ELICOS
Mexico City (18 Feb 2019)
Bogota (8 April 2019),
Lima (11 April 2019)
Santiago (14 April 2019)
Australian education marketing campaign in LATAM
April-May 2019
LATAM Education Fairs: virtual presence
8-10 April 2019
Australian mission to the ASV-GSU Conference
San Diego, California USA
May 2019
Mining training mission to Peru and Chile
Peru
Chile
Specialist Australian customer sales training for education agents
Austrade Lima's digital campaign about Australia education has entered a second phase, with articles published on eight sites generating more than 50 million click-throughs.
Among these was an interview by our Education Manager Jorge López Palma with the news program ‘Ojo en familia’, the leading online streamed news program in Peru. The interview reached 3,276,789 viewers. This online media campaign not only drove greater numbers of visitors to but also generated a large volume of enquiries about Australia at the recent FPP EduExpos, much to the disappointment of our Canadian colleagues, who were featured at the event.
We continue to use digital media to drive greater consideration of Australia education to leverage the soon-to-enter-into force Peru-Australia FTA. Our key messages centre on eight reasons to choose study in Australia (aligned with the Future Unlimited brand proposition), especially the quality of education, the rankings of universities and the expertise and relevance to the Peruvian economy of Australian institutes of technical education.
Against the background of the new Peru Australia FTA, which has enabled recognition of Australian higher education qualifications in Peru, Austrade Lima launched its first digital campaign promoting Australia as a destination for undergraduate, postgraduate and vocational education. The campaign reached million people (almost half the population of Peru) in just three weeks.  It generated 11,000 visits to the Study in Australia website from Peru (the highest ever) and an associated television interview by Jorge Lopez, our Education Manager, reached 1.35 million people.  
Timed to coincide with a period in which students are making choices about further study, the campaign was based on a press release entitled "8 reasons to study in Australia".
The release referenced the Future Unlimited brand proposition, including the quality of Australian education, the rankings of some of our most prestigious institutions, degree recognition and the relevance of Australian teaching and knowledge for the acquisition of skills for industries of the future, particularly in mining and agriculture, which are of central importance to Peru's economic success. 
It also highlighted the importance of our education agents in guiding students through the application process.  The media release was published in four newspapers and in seven electronic news sites and republished in numerous social networks, including in a Facebook publication done by Publimetro, which obtained 1 million likes. 
The return on investment was impressive, given the campaign cost approximately A$6,000 to run thanks to the support of the FTA team in Australia.

12. Hilary Boreham Americas lead for Resources and Energy Section
7/11/2018
Hilary Boreham
Americas lead for Resources and Energy Section
Trade and Investment Division
Austrade Brisbane

13. AUSTRADE’S strategies in LAtam
7/11/2018
Aim – INCREASE EXPORTS AND TRADE TO lataM
HOW?
Austrade services
Introductions (companies, Allies, relevant service providers, badge of government)
Market research and briefings, missions, customer visits to Australia
Tailored services (partnership, distributor searches, tailored research)
Targeted migration within the region, matching Australian capability with specific needs in the mines/countries
Understanding the differences within the markets and their stages – assist matching capability
Export Market Development Grants
Across all sectors and markets
Bread and butter
Teams – industry specific

14. Next level – Different strategies
7/11/2018
Understand customer – match capability
Mining Supply Chain Access - tailored access program
Understand the market and customer needs – be engaged
Targeted program with LATAM mine – creating over 15 contracts and growing – understanding their needs and matching capability
Providing support to miners
Leveraging EFIC’s Financing
Financing projects with requirement of Australian SME content
Working with Latam miners/EPCM to provide Australian SME suppliers into projects assisted by EFIC
Working with Expande (Chile) and Mets Ignited – open innovation challenges – BHP, Codelco
Policy and regulation engagement – where can Australia add value?

15. 1 2 3 4 5 6 Global Supply Chain Development and Access
TAILORED ACCESS PROGRAM
This diagram steps through the typical approach we use for the Access Programs we are working on.
The Programs target O/s companies, and are demand-driven approaches. They are designed to give a structure and focus to how these companies engage with Australian industry, and are aimed to maximise the value for the o/s company in the areas the program is focused on. While the individual programs are different, each have similar elements to the above steps.
Austrade has initially focused these programs on advanced manufacturing industries such as aerospace, defence, automotive and marine sectors; and also the resource and energy industry. and we are working to broaden this approach.
The first two steps are often done in tandem. We first seek to establish awareness of Australian capability relevant to o/s organisation. And we seek to do this in the context of the needs or opportunities across the entities value chain of highest priority to them. We look to bring in Australian industry expertise as early as possible to scope where the Access Program is best placed to focus, to ensure maximum benefit to the o/s entity and also relevance to the capability Australia has to offer. This could involve arranging for Australian experts to meet with the operations team of organisation or to conduct a scoping study of certain operational areas.
We then discuss and agree on the focus areas of the program.
The most difficult step is step 4, as we seek to gather sufficient information for Australian industry to respond with solutions. This can take time and is where we lose some of the programs. If the organisation won’t share information, then we can’t proceed. We want to ensure there is awareness of how Australian industry can benefit an o/s organisation’s value chain, so that they invest the information and time needed. If we can get past this step, this is where a program can really deliver results for Australian industry.
EOIs are then sent broadly to industry network organisations, also to state governments as well as Austrade’s national trade advisers to identify suppliers. Austrade also uses our existing database as well as undertakes research to find the companies best placed to provide solutions. Typically these are suppliers with proven capability and already active internationally but this doesn’t have to be the case.
We then provide the o/s organisation with a tailored response from each supplier, and they select the companies they want to be introduced to.
Our initial approach is to match their needs with Australian solutions, and as we build more connections, we look for areas to leverage Australian industry involvement into more holistic and integrated value chain offerings. Ultimately we hope to build a long term and beneficial relationship wit the o/s organisation and Australian industry. 1 2 3 4 5 6 2 3 4 5
Understanding Australian capability
Needs Assessment
Agreed Areas of Interest
Gathering information / Send out EOIs
Customer selects supplier solution
Facilitate Introductions 15

16. GVC CASE STUDY - COMPANY ACCESS PROGRAM
'The difference and success is due to the targeted efforts by both organisations, rather than general supplier activities.
The scoping work conducted at the commencement of the program enables working together on priority areas
for the mine with the relevant companies.' 
Chief Operations Officer
This slide outlines our experience in implementing an Access Program in a large coal mine in Colombia. The approach we use in the mining industry is called our Mining Technology Access Program or MTAP.
is one of the largest open-pit integrated pit to port coal mining operations in the world.
is independently operated, but owned equally by BHP Billiton, Anglo American, and Glencore.
We selected the mine as the company had low levels of engagement with the Australian METS industry by comparison to others.
Also, it certainly helped that Cerrejon saw the potential of the program early on, and was open to sharing the operational information we needed to develop the program.
As a first step, we engaged an Australian open cut mining experts to visit the mine and conduct a scoping study
From this we identified over 30 opportunity areas suitable to Australian capability, and Cerrejon agreed to work with us on close to 20 of these. To date we have delivered on 10 of these areas.
This involved very broad Australian supplier canvassing, seeking recommendations from industry associations such as Austmine and others, as well as state and federal government networks, and also using our own database and conducting supplier research.
Through this approach, In the last 9 months we have confirmed over $10mil of Australian supplier sales already and with strong growth prospects to double or triple this in the near to medium term
Cerrejon has also become a Country advocate for Australian METS and the MTAP initiative. And we expect a flow on effect into other mines in Colombia and the LATAM region.
Austrade engaged with a large mine in Colombia, to scope Australian solutions for the mine’s particular needs.
Austrade collected EOI’s from targeted Australian suppliers offering solutions
A number of equipment trials were held as a result of introductions
Multimillion dollar sales of Australian companies over last 18 months. Further introductions and trials underway
Austrade’s engagement strategy is long term. Seeking an integrated industry approach
Austrade – Global Supply Chain Development and Access

17. METSTECH PASSPORT part of Latam passport
7/11/2018
METS Ignited, Australia’s METS industry growth centre, together with Fundación Chile, a Chilean Foundation promoting innovation and entrepreneurship, will partner for ‘METStech Passport’, an exchange and collaboration program – to help Australian and Latin American mining technology companies gain international exposure, cross pollinate ideas and facilitate international expansion.
The program allows METStech scale-ups to immerse into the Aussie and Chilean mining ecosystem in order to test their ideas, gain international exposure and learn from each others‘ experience.
Aussie companies have already visited Chile during the week of 8 October and Chileans will travel to IMARC end of Oct.
Latam passport is formalising the linking of eco systems between LATAM and Australian industry research, like minded companies and incubators to cross pollinate.
METS tech passport is the Mining Equipment Technology component and Austrade, METS Ingited and Fundacion chile have developed this program to allow scale ups to do an exchange within the Chile/Australian ecosytems.

18. 7/11/2018
Questions
Preguntas
QuestÃos

19. 7/11/2018
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