Queensland and Latin America by the Hon Peter Beattie - Commissioner for the Americas

Queensland is keen to accelerate our companies and universities doing business in Latin America and hence the upcoming trip this month by the Premier to Latin America is very important to Queensland’s future.

I was the first Premier or indeed Australian leader to visit Latin America which I did with a large cane grower’s delegation in 2004 to Chile and Brazil and I have enjoyed the last two years as Trade and Investment Commissioner expanding Queensland’s involvement in the region.

This month Premier Anna Bligh will be the first sitting Queensland Premier to visit Peru and Colombia. She will also visit Brazil and Chile.

If Queenslanders were asked today to predict the state’s 10 major trading partners in a decade’s time, few would include any Latin American countries. I am hoping the Premier’s trip will change that perception in Australia.

China, Japan, Korea, Europe, the US and the Middle East would head the list. Yet the global investment bank Goldman Sachs predicts that by 2050 the world’s five biggest economies will be China, the US, Brazil, India and Mexico. Having two Latin American countries in the top five will surprise many.

The same could have been said about China, Korea and India just 25 years ago. Queensland has been smart in the past by getting into the Japanese, Korean, Chinese and Indian markets early. Now we have to do it again in Latin America. That is why Queensland is targeting business opportunities in Latin America for Queensland companies.

One in five Queenslanders get their jobs from trade. It is the backbone of our economy.

That’s why Queensland Premiers - on both sides of the political divide - have focused on helping target Queensland into emerging markets, opening the doors for Queensland companies and giving them first-mover advantage.

Latin America is a huge continent and Queensland has had to pick the best opportunities. Our strategy has focused on Mexico, Brazil, Chile, Colombia and Peru. In doing so, we have put aside the out-of-date misconceptions about these countries and focused on the opportunities for our companies.

Today Queensland companies are increasingly engaged in Latin America. There are about 30 operating in Chile including Mincom, Supavac, Austin Engineering, Runge, Russell Mineral Equipment, Ludowici, Sedgman and Industrea. This critical mass enables these exporters to work together to expand in this market.

Our companies are now also successfully finding significant opportunities in Brazil, Peru, Colombia, Chile and Mexico.

As the basis for expanding trade, Queensland recently signed cooperation agreements with the Chilean mining region of Antofagasta, the Federal Government of Mexico and the state of Antioquia in Colombia. We have renewed a vital agreement with Minas Gerais in Brazil which I initially signed in 2004.

There's a lot of business already being done in Latin America and, as usual, Queenslanders are leading the way for Australia. Two way merchandise trade between Queensland and Chile was worth $569 million in 2009/09 - that's more than 64% of Australia's trade with Chile.

It's a similar story in Brazil, where trade between Queensland and Brazil was worth $1.4 billion, or 57% of Australia's trade with Brazil which is rapidly becoming a world power house economy.

These are impressive numbers but when you consider that Brazil's economy alone is worth around $2 trillion, that they are hosting the Olympics and the World Cup soccer and that they've discovered massive oil reserves which will make them one of the biggest producers in the world, there's more business to be done in Brazil, Chile, Colombia, Peru and Mexico.

It will surprise many Queenslanders but Latin America is a secure investment destination with generally stable government and sound economic policies in the five targeted countries. Not only that, but Latin America has successfully navigated the global financial crisis and is predicted to grow around one percent faster than global growth. Brazil is already implementing policies to prevent their economy from overheating.

Queensland has made a good start in Latin America. We are better placed than any other Australian state, but now we need to move to the next level. The World Cup in 2014 and the Olympics in 2016 will focus the eyes of the world on Latin America. We need to take full advantage of the opportunities before the rest of the world dominates trade with Latin America.

Any Premier worth his or her salt would be working to give our companies a bigger foothold in Latin America regardless of their politics. Latin America should be a target for Queensland regardless of which party occupies the 15th floor of the Executive Building in George Street or the Lodge in Canberra.

The Honourable Peter Beattie
Commissioner for the Americas

In Brazil, the Premier will have key meetings in Rio de Janeiro and Belo Horizonte with Mayors, Brazilian mining giant Vale, CEMIG, Mr Antônio Augusto ANASTASIA, Governor of Minas Gerais, key Brazilian and Australian companies, open a business workshop and host a major reception. In Rio de Janeiro the Premier will be supported by the Mr Ronaldo Veirano, Honorary Australian Consul who has just been awarded an Order of Australia.