Trade Offices

The Hon. D.G.E. HOOD (14:46): My question is to the Minister for Trade and Investment. Can the minister please provide an update to the council about the success of the South Australian trade offices?

The Hon. D.W. RIDGWAY (Minister for Trade and Investment) (14:46): I know the members opposite are very excited today, but it is particularly important that we participate in the global economy and that participation cannot be overstated. We cannot grow our economy and create jobs for South Australians unless we look outwardly, and our trade offices will allow us to connect with key industry investors and exporters in-market and on the ground. Furthermore, during the midst of this ongoing coronavirus, our trade offices are crucial to maintaining business as usual. Having people on the ground provides vital in-market intelligence and support for South Australian businesses, as we see more travel bans being implemented.

Since opening in November 2019, the China office has introduced many new trade partners and business opportunities to South Australian exporters. One such outcome has been the $140 million investment into the Lucky Bay project on Eyre Peninsula. The China office was proactive in facilitating and assisting the Australia China Investment Fund with its investment in an alternative grain storage and export facility. Having commenced in late 2019, the Lucky Bay project will save grain growers approximately $15 to $20 per tonne on freight expenses. It will create approximately 100 jobs for the local community and introduce a new shallow port and tranship model for many grain production areas in Australia.

Similarly, since opening a year ago, our North Asia office has grown from strength to strength. The team has opened doors for six South Australian companies to export their products into the Japanese market for the first time, including Hither and Yon winery and Kangaroo Island Spirits. Furthermore, we have seen Japanese companies invest into South Australia, including six into our renewable energy sector—a key sector for South Australia's growth.

Next to open will be the United States trade office, which offers a huge opportunity for South Australia. In 2019, South Australia exported some $912 million of merchandise goods to the US, making it our third largest export market. Additionally, the US is our number one source of foreign direct investment. Between November 2009 and October 2019, a total of 53 FDI projects from the US to South Australia were recorded, representing a total capital investment of some $2.88 billion, and a total of 5,095 jobs were created.

The United States represents a significant opportunity for South Australia to grow. Houston was selected as the best strategic choice for South Australia, due to the many synergies our two states share and the sectors that will be key to our state's future growth. I am pleased to announce that we have appointed a new regional director for the Americas, Ms Regina Johnson, who comes with significant experience. She is already on the ground, as we speak, meeting with influential members of the Houston business community. I look forward to bringing another update to the council soon regarding the opening of the US trade office.