South America still maintains a high percentage of the earth’s ecosystem

that has not been disturbed by human activities. Unfortunately, the rate at
which these are being degraded is alarming. The Amazon rainforest, spread
across many countries in South America, is the world’s biggest tropical
rainforest.

Major cause of deforestation is logging.

Of the 5 countries, the Amazon extends across:

Brazil
Colombia: deforestation has been immense in Colombia
Ecuador

The remaining two:

Chile
Argentina – link to charcoal manufacture.

are the world’s second largest area of temperature rainforest. This includes
the Valdivian Rainforest filled with forever greens which are unique to south
Chile and Argentina. Deforestation occurs in this forest to export woodchips
in the form of processed boards to the US. Government policies allow for
logging, but law protecting forests are being rejected by the Parliament. The
abolishment of Chile’s native forest is having a major affect on the world’s
biodiversity.

Reference: Deforestation, http://www.tqnyc.org/2005/NYC052139//home.htm

By providing our product here, we have an ethical spin. Help reduce

deforestation for charcoal purposes. Deforestation goes against the core of
our mission statement – to look after the environment. We can help to
ensure a positive impact on the environment by exporting to Brazil, or
Argentina – both linked to deforestation for charcoal purposes.

Gov schemes for export:

Dept Foreign Affairs and Trade:

Argentina: Australia and Argentina have a mutually beneficial relationship based on many shared interests and similar
perspectives. (The Argentine economy is expected to have recorded growth of 6.5 per cent in 2008. The impact of the current
global financial instability, in particular weak demand and lower prices for Argentina’s commodity exports, are likely to dampen
economic growth expectations in 2009.)
Trade with Argentina is modest, with the balance in trade generally favouring Argentina since the onset of its economic crisis in
2001. Two way merchandise trade in 2008 of AUD 660 million is the first time it has exceeded the half billion dollar mark.
Australian exports to Argentina are varied, and include coal, medicaments, fertilizers and civil engineering equipment. Australian
imports from Argentina include animal feed, leather and soft vegetable fats and oils.
Export opportunities: Export and, in particular, investment opportunities for Australia can be found in mining and
most areas of primary production and agribusiness sectors as well as the revitalisation of Argentine industry and the overhaul of
communications, transport and public utilities.

Brazil:
Australia and Brazil celebrated 60 years of diplomatic relations in 2005.

Bilateral economic and trade relationship

Australian economic engagement with Brazil has grown steadily since the mid-1990s, most notably in the mining, agribusiness

and services sectors. Two-way merchandise trade between Australia and Brazil was A$3 billion in 2008-09, a 70 per cent

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increase on the previous year. Merchandise trade comprised exports of A$1,483 million to Brazil and imports of A$1,040 million

from Brazil (refer Brazil country fact sheet). Major exports to Brazil included coal, nickel ores and medicaments.

Major Australian exports, 2008-09 (A$m): Major Australian imports, 2008-09 (A$m) (e):

Coal 1,137

Ecuador:

Export opportunities

Opportunities to strengthen bilateral trade and investment ties exist in the energy and mining sectors. There may also be

potential for Australian companies to invest in telecommunications services and equipment, port infrastructure and information

technology (though many of these opportunities will depend on the ongoing privatisation process). Cooperation in agribusiness

and tourism could also lead to further business opportunities. The educational services sector holds good potential, and is

growing, albeit from a low base.

Chile
Major Australian exports, 2008-09 (A$m): Major Australian imports, 2008-09 (A$m):

Coal 136

Chile and Australia share a healthy and growing economic and trade relationship. Chile is Australia's third largest trading partner
in Latin America, with two-way trade totalling $1.275 billion in 2008-09. Total merchandise trade reached $883 million in 2008-
09 (up 14.2 per cent from 2007-08). Major exports to Chile include coal ($136 million in 2008-09), beef, civil engineering
equipment, and specialised machinery and parts.

Energy

The energy landscape in Chile continues to create opportunities for Australian companies, notably in the areas of renewable

energy and coal in the short to medium term, and liquefied natural gas (LNG) in the long term. Chilean energy demand is

forecast to grow at 6-7 per cent over the next 5-10 years and demand for Australian coal has the opportunity to see significant

growth over the next five years due to the increased energy demands in both the commercial and residential sectors.

Colombia

Australia and Colombia share a good and expanding relationship. We cooperate on a range of international issues including

agricultural trade reform, the environment, climate change, transnational crime and disarmament. Australia and Colombia work

together to pursue free and fair agricultural trade through our joint membership of the Cairns Group.

Export opportunities

A number of areas, principally in the agriculture, mining and telecommunications sectors, have potential to provide further long-

term opportunities for Australian investment in Colombia, although much depends on continued improvements in the security

situation.

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Author: Amar Abdulrahman Buali
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 Document: 42132851.doc
Author: Amar Abdulrahman Buali
Save Date: 19/03/2010
Page 3 of 3