This report presents the perspectives and concerns of Australian businesses involved in international trade, covering aspects such as market preferences, barriers to trade, trade risks, logistics concerns, and the utilisation of trade support services.

The survey conducted in partnership with the Australian Centre for International Trade and Investment (ACITI) was completed by 239 companies from mid-July to the end of August 2024. 

Key findings

•  China and the United States remained the most common trade markets – with the United Kingdom rising in prominence due to a new trade agreement.
•  Almost two-thirds of respondents were exploring new market opportunities – with India ranked as the most promising future market.
• Labour costs and environmental, social, and governance (ESG) compliance emerged as significant concerns, along with labour availability, regulatory requirements, and skills shortages.
• Other notable concerns for respondents were cyber security, geopolitical tensions, and the adoption of artificial intelligence.
• Businesses adopted various strategies to manage international market risks, including increasing inventory holdings, expanding sales in existing and new export markets, and diversifying sourcing arrangements. 
• Only 23% of respondents used trade finance products, with cash flow liquidity and risk management the primary motivations.

Recommendations

1. Address the key barrriers to competitiveness by:
   • ensuring labour costs are matched by productivity enhancements,
   • ensuring Australian companies are not at a competitive disadvantage because of the tax system, 
   • make the reduction of red tape and regulatory burden a core priority, and
   • ensure access to affordable, reliable and secure energy.
2. Take action to encourage Australia's success in international markets by:
   • capitalise on Australia's network of free trade agreements and trade support services,
   • work more closely with businesses to ensure new and existing agreements are fit-for-purpose, and
   • progress the trade simplification agenda.