Australia - Latest News/Current Events, Economic Overview & Trade Relations
Quick Facts about Australia
| Official Name | Commonwealth of Australia |
| Capital | Canberra |
| Location | Oceania, continent between the Indian Ocean and the South Pacific Ocean |
| Area | total: 7,686,850 sq km land: 7,617,930 sq km water: 68,920 sq km note: includes Lord Howe Island and Macquarie Island |
| Climate | generally arid to semiarid; temperate in south and east; tropical in north |
| Terrain | mostly low plateau with deserts; fertile plain in southeast |
Editor PicksBrowse Asia News Archive
CSR Planning to Increase Sugar Value
CSR Ltd., Australia's second-largest maker of building products, is planning to spin off its sugar unit to take advantage of a 27 percent jump in prices for the sweetener in the past year and improving capital markets.
CSR Ltd., Australia's second-largest maker of building products, is planning to spin off its sugar unit to take advantage of a 27 percent jump in prices for the sweetener in the past year and improving capital markets. The demerger plan is targeted for completion by the end of the year ending March 31, the Sydney-based company said today in a statement. The sugar business is valued at A$1.2 billion ($958 million), UBS AG said in a report last month. CSR has a market value of A$2 billion. Shares of CSR, Australia's biggest sugar refiner, rose 6 percent on investor optimism for the plan, flagged by the company more than two years ago. Sugar is the best-performing commodity in the past year because of a world wide production shortfall. "They'll lose diversification of earnings but that will probably be viewed as less significant than investors now gaining a pure exposure to sugar and building materials separately," said Will Seddon, who helps manage $250 million at White Funds Management Pty. in Sydney.read source article
Australian Airlines Addresses $66 Million Shortfall
National Australian airline Qantas has committed $66 million to cover a shortfall caused by the current economic crisis.
National Australian airline Qantas has committed $66 million to cover a shortfall caused by the current economic crisis. The injection of funds will be spread over three years in order to reflect "the adverse performance of financial markets over recent months". Previously, there were concerns that Quantas could be forced to inject an estimated $283 million to fix shortfalls caused by investment losses. Merrill Lynch recently estimated that the investment losses have cost Quantas' pensions plan $394 million since last June, turning a $296 million surplus into a a $98 million deficit.Canadian Fund Bids for Australia's Mac Satellite
A Canadian superannuation fund has launched a friendly $1.37 billion takeover bid for Macquarie Communications Infrastructure Group, in a move that put the squeeze on short sellers yesterday across the constellation of Macquarie's struggling listed satellite funds.
A Canadian superannuation fund has launched a friendly $1.37 billion takeover bid for Macquarie Communications Infrastructure Group, in a move that put the squeeze on short sellers yesterday across the constellation of Macquarie's struggling listed satellite funds. Coming on the last day of the group's financial year, the deal should also bring in some eleventh-hour fees and help justify asset valuations which have come under scrutiny. The Canadian Pension Plan, a government-backed fund, will offer $2.50 per MCG stapled security and its associated management vehicle. While this represents a substantial premium to Monday's closing price of $1.50 for the satellite fund, which owns a collection of broadcast assets including television transmission towers, the offer falls well short of MCG's record high of $6.83.read source article
Australian Banks Optimistic
The big bank bosses have declared Australia has weathered the worst of the global financial crisis, with some predicting official interest rates as low as 2 per cent later this year as the Reserve Bank attempts to keep the economy pumping.
The big bank bosses have declared Australia has weathered the worst of the global financial crisis, with some predicting official interest rates as low as 2 per cent later this year as the Reserve Bank attempts to keep the economy pumping. Bankers acknowledge their image has taken a battering in the crisis, with National Australia Bank admitting there was a perception banks had been profiteering from fees or failing to pass on in full interest rate cuts. In a wide-ranging speech to the Australia-Israel Chamber of Commerce, NAB's chief executive, Cameron Clyne, said banks had failed to explain the pressures on their own funding costs and how these had affected their ability to price mortgages. Still, Mr. Clyne remained upbeat, given the signs of confidence emerging in economic indicators. With markets finally responding to moves by governments around the world to stabilize the financial system, he said the downturn in Britain and the US appeared to be "relatively close to the bottom".Australian Shares Surge to One-Month High
Australian stocks jumped 3.1% to a one-month closing high as banks and mining companies climbed on hopes for an economic recovery taking hold, while agriculture stocks were boosted by strong rains.
Australian stocks jumped 3.1% to a one-month closing high as banks and mining companies climbed on hopes for an economic recovery taking hold, while agriculture stocks were boosted by strong rains. At the close, the benchmark S&P;/ASX200 index was up 3.1%, or 103.5 points, to 3451.9, while the broader All Ordinaries index was up 2.9%, or 96.1 points, at 3393.4. The Australian dollar continues to get a boost from the stronger equities prices. It had recently lost some ground to 66.09 US cents, but was still up from yesterday's local close of 66.07 US cents. It was also worth 64.99 yen, 50.75 euro cents, 46.794 British pence and $NZ1.244. The three-day rise in the stock market has provided some confidence to investors and some expect the uptrend to continue.read source article
Australia's Packer Buys His Way Out of US Casino Deal
James Packer's company Crown has agreed to fork out the best part of $400 million to save the company from having to go ahead with a $1.75 billion US casino deal made at the top of the market.
James Packer's company Crown has agreed to fork out the best part of $400 million to save the company from having to go ahead with a $1.75 billion US casino deal made at the top of the market. The suite of three casinos Crown had agreed to buy have plummeted in value since Crown signed an agreement nearly 15 months ago. The compromise deal is a face-saver for both sides and was welcomed by the market with shares in Crown closing up 70c, or 13 per cent, to $5.90. The deal came after intense negotiations between Crown and Millennium Gaming Inc, which owns the casinos - two in Las Vegas and one in Pennsylvania.Browse Asia News Archive
Trade Agreements
Australia – New Zealand Closer Economic Partnership
The Australian New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) aims to strengthen the partners’ relations, to eliminate trade barriers between the two countries, to develop closer economic relations, promote fair competition in trade within the two countries. ANZCERTA was entered into force in 1983 and began as an effort to integrate the two countries through free trade in goods and services. Once the initial goals were met, the governments from both countries have moved to a deeper integration of the two economies. http://www.fta.gov.au/default.aspx?FolderID=285&ArticleID=231
Papua New Guinea – Australia Trade and Commercial Region
http://www.austlii.edu.au/au/other/dfat/treaties/1991/37.html
Singapore – Australia Free Trade Agreement
The Singapore – Australia Free Trade Agreement was signed in 2002 after 10 rounds of meetings and negotiations. SAFTA will be the first bilateral free trade agreement the Australia has entered into, as the last one was in 1983 with New Zealand. According to the agreement, all tariffs will be eliminated, Australian exporters will gain more market access and the market will be more open and predictable. Investors from Singapore will have more opportunities to invest in Australia. The customs procedures will be improved and Singapore will have access to the Australian workforce. The FTA will not only benefit the economies of both countries but the service industry as well. http://www.fta.gov.sg/fta/pdf/FTA_SAFTA_Agreement.pdf
South Pacific Regional Trade and Economic Cooperation Agreement
Cook Islands
Fiji
Kiribati
Marshall Islands
Micronesia (Federated States Of)
Nauru
Palau
Samoa
Solomon Islands
Tonga
Tuvalu
VanuatuNew Zealand, Australia and the countries of the South Pacific Forum signed the South Pacific Regional Trade and Economic Cooperation Agreement in 1981. Under the agreement, the products coming from South Pacific Forum countries will have duty free access to the markets in both Australia and New Zealand. http://www.austlii.edu.au/au/other/dfat/treaties/1982/31.html
Thailand – Australia Free Trade Agreement
In Force since 2005, the Thailand-Australia Free Trade Agreement (TAFTA) is a market opening agreement which allows Australian products greater access. Upon entry into force, Thailand eliminated more than half of its tariff, which over a significant amount of Australian exports. While Australian exports were previously pushed out of the Thailand market due to quotas and high tariffs, it now has access in numerous areas. http://www.thaifta.com/english/eng_au.html
United States – Australia Free Trade Agreement
United States of AmericaSigned in 2004 and in force since 2005, the Australia-United States Free Trade Agreement opens up to Australia the world’s largest economy. The United States is perhaps the most significant trading and investment partner to Australia as it aims to create a transparent business environment. The United States will also allow Australia access to its market. http://www.ustr.gov/Trade_Agreements/Bilateral/Australia_FTA/Final_Text/Section_Index.html
Trade Organizations
Asia-Pacific Economic Cooperation (APEC)
Asia-Pacific Economic Cooperation (APEC) is a forum for 21 Pacific Rim countries or regions (styled 'member economies') to discuss the regional economy, cooperation, trade and investment. The membership is claimed to account for approximately 41 percent of the world's population, approximately 56 percent of world GDP and about 49 percent of world trade. The activities, including year-round meetings of the members' ministers, are coordinated by the APEC Secretariat.
Council for Security Cooperation in the Asia Pacific (CSCAP)
The Council for Security Cooperation in the Asia Pacific (CSCAP) is a non-governmental (second track) process for dialogue on security issues in Asia Pacific.
East Asia Summit (EAS)
The East Asia Summit (EAS) is a Pan-Asia forum of 16 countries in East Asia, with ASEAN in a leadership position.
Pacific Islands Foum (PIF)
The Pacific Islands Forum (PIF)is an inter-governmental organization which aims to enhance cooperation between the independent countries of the Pacific Ocean and represent their interests. It was founded in 1971 as the South Pacific Forum; the name was changed in 2000 to better reflect the correct geographic locations of its member states both in the north and south Pacific. The Forum's member states are: Australia, the Cook Islands, the Federated States of Micronesia, Fiji, Kiribati, the Marshall Islands, Nauru, New Zealand, Niue, Palau, Papua New Guinea, Samoa, the Solomon Islands, Tonga, Tuvalu, and Vanuatu. Since 2006, associate members territories are New Caledonia and French Polynesia.