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This report aims to provide an insight into Australia for potential investors, drawing out introductory information on the Australia – Chile relationship, Australia´s economic performance, legislative structure, investment opportunities and recent investment trends by foreign entities.
Australia offers investors one of the world´s most politically stable, uncorrupt, innovative and economically stable investment environments, whilst at the same time, exposure to the largest growth region in the world.
As Australia continues to pursue foreign investment interest; investors from Chile are in the position of having the Australia – Chile Free Trade Agreement and long standing bilateral diplomatic relations to support their ambitions in Australia. Unlike any others in the Latin American region, Chilean investors have great access to the Australian market and the Asian growth drivers from which it seeks to benefit.
Prior to the Australia – Chile Free Trade Agreement, the two countries entered a double taxation treaty. This provided more certainty and stability for Australian – Chilean cross border investors, reducing tax-related barriers to economic development between the two countries. Subsequent to the treaty, both countries have experienced improvements in cross border investment and trade.
In the main, the global economy has suffered sluggish economic growth since the 2007 Global Financial Crisis, whilst during the same period, beneficiaries of the `commodity super cycle´ such as Chile and Australia have somewhat prospered throughout the historically challenging period. Now, lower commodity prices are seemingly set for the long term. Both countries face similar headwinds in this regard but with very different economic foundations in which to rely on in navigating towards successful outcomes. Investors and businesses from both countries face similar macroeconomic challenges though face vastly different opportunities.
Investors looking to explore new markets do so for their own unique purpose, however, fundamentally they should consider if their destination market:
- Permits and promotes the entry of foreign investment through regulation.
- Offers balanced standards in foreign entities over national domestic entities’ interests.
- Provides local market efficiency, transparency and opportunity.
- Facilitates economic and political stability.
Australia has a strong reputation for capturing these elements as well as being defined by:
- Strong domestic economic activity and innovation
- Abundance of natural resources
- Skilled labour force
- Transparency and corruption free environment
- Geographically close to the world´s rising economic growth region – China and South East Asia