With China’s latest ban on Australian food product imports due to contamination, businesses based in Australia can consider doing export to Singapore to expand market and grow sales.
According to a South China Morning Post report, China has banned imports of Australian barley, sugar, coal, copper, log timber, lobsters and wine. Customs inspections claimed to have found contamination in food products such as barley and log timber. As such, all food imports are banned and these products are facing blocks at Chinese ports.
Officials also contended that Australian wine is being sold at cheaper prices (dumped) at China than in their home market. Hence, they have imposed taxes of up to 212% on Australian wine. Australia has rejected allegations of wine being dumped in China and this new tariff will make Australian wine unviable and unmarketable in China.
The impact of the China ban on Australian export
China is Australia’s largest export market for barley and wine. 70% of Australian barley and 39% of wine are exported to China.
Without China as a main market for Australia’s barley and wine, Australia will need to find other export markets for its products. If not, many exporters of these food products will go out of business. The whole industry, be it businesses or ordinary people whose livelihood are dependent on this, will be affected.
If you are based in Australia and are looking at exporting your products to other markets, you can consider bringing your products to Singapore. But why you should consider doing export to Singapore? Here are some reasons to persuade you.
Consider export to Singapore with strategic e-commerce
Singapore is one of the few countries in Asia where it is relatively easy to set up a business. The city-state island has a highly efficient infrastructure, free market economy, a stable socio-political environment, and an attractive tax regime for setting up your company. New companies can also enjoy low corporate tax rates of about 4.25% up to $100K profits.
Aside from this, it is the optimum time for you to export to Singapore as the Regional Comprehensive Economic Partnership (RCEP) pact was signed recently in November 2020. With the RCEP, businesses in the ASEAN region need only follow a single set of rules and enjoy a more fuss-free procedure when exporting to other markets – for instance, from Australia to Singapore.
Are you an Australian-based business looking at exporting to Singapore? Let Digital 38 provide you with cross-border e-commerce, as well as build an e-commerce website that drives sales from across the ASEAN borders. Talk to us to get started.
Related article: RCEP Benefits for Cross-border E-commerce & Export
About D38 Ecommerce Agency
D38 is a South East Asia-focused ecommerce agency that provides end-to-end Ecommerce solutions to grow your business on the digital space and generate ongoing monthly revenue. Our e-commerce solutions range from website development, store management, logistics, CRM, customer loyalty programs, automated email marketing, SEO, marketing tools, product press-release (PR) to reputation management – helping international companies simplify e-commerce management across ASEAN Economic Community (AEC).
Our team consists of certified Shopify eCommerce experts, designers, developers, content creators and strategists working together to support and provide a seamless online shopping experience for our clients’ eCommerce websites.
We also have a market-specific digital channels team focusing on providing support for LINE Thailand and Japan, Naver for Korea, and ZhaoVN for global Chinese readers for social news and updates.
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