Legislative Council Fifty-Fourth Parliament, First Session (54-1) 54 1 Parliament of South Australia Legislative Council published Question Time International Trade International Trade The Hon. T.J. STEPHENS Legislative Council International Trade The Hon. T.J. STEPHENS (15:09): My question is to the Minister for Trade, Tourism and Investment. Can the Minister for Trade, Tourism and Investment update the house on how the Marshall Liberal government is regaining ground in international trade? The Hon. D.W. RIDGWAY Legislative Council Minister for Trade, Tourism and Investment International Trade The Hon. D.W. RIDGWAY (Minister for Trade, Tourism and Investment) (15:09): I thank the honourable member for his question and for his long and enduring interest in international trade. The Marshall Liberal government had a significant amount of ground to regain. We will implement a comprehensive policy to boost South Australia's international trade and support our exporters. In recent years we have lost ground in major markets like China. Over the past three years, South Australian goods exported to China have dropped by more than 30 per cent, from 2016-17 versus 2013-14 figures, while Australia's trade in goods declined by only 5.4 per cent during the same period. Three years ago, South Australia accounted for more than 3 per cent of Australia merchandise exports to China. However, over the past 12 months, South Australia has dropped to just 2.3 per cent. The government believes that a new approach to international representation is required. To regain the ground in exports and foreign investment, my initial emphasis will be on the new trade arrangements to boost our presence in China and the United States, South Australia's largest and second largest markets. I have recently returned from an intensive visit to China, visiting the city of Guangzhou, where we are considering deploying an officer. I visited Shanghai, as the location for our new office, and Jinan in Shandong to cement our government's relationship with the province. I should add that it is 32 years that we have had a relationship with the sister state of Shandong, and we have had an office there for some 23 years. During the visit, I was able to meet with Australia's senior trade diplomatic representatives and observe the activities and presence of other Australian state governments in these key commercial centres. There is a significant opportunity for South Australia in China as a provider of world-class services, premium food and wine and a collaboration in high-tech centres, including health care and other areas of research and development. The government is considering other offices in Japan, Malaysia and the United Arab Emirates. Malaysia is the state's third most important export destination in goods and top four source of international students in 2016-17, whilst Japan is our fifth largest export market. Japan and South Australia enjoy an extensive economic, educational and cultural engagement through Okayama—South Australia's sister state relationship that commenced in 1993 and celebrates 25 years this year. I met with the governor of Okayama in Adelaide earlier this month, and he was very pleased to hear of our renewed and sharpened focus to work with his region in sectors such as health industries and premium food and wine. The South Australian government has maintained an overseas representative officer since 1970, but their role and function has frequently changed to reflect the different focus of successive governments. At the peak of our representation in the 1990s, there were 12 stand-alone offices. It is interesting to note that during the term of the previous Liberal government, our exports grew from some $3 billion to $9 billion. The Hon. T.J. Stephens Legislative Council The Hon. T.J. Stephens: How much? The Hon. D.W. RIDGWAY Legislative Council The Hon. D.W. RIDGWAY: From $3 billion to $9 billion. Following the election of the Rann Labor government, the premier then declared that he would treble the exports from $9 billion, I think, to $25 billion by 2013. But then, of course, he closed all but two of the offices. Over that period of time, our exports have gone from about 8 per cent of the nation's share of the exports in 2002 to less than 4 per cent in 2018. We have a lot of ground to make up and we have a strong plan to regain that ground.