Senior officials of the Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA) and Australia’s Northern Territory (NT) have agreed to prepare a preliminary scoping report for a supply chain study designed to gauge existing products and their supply networks between the sub-region and the Australian territory.
According to the BIMP-Business Council, the decision to conduct the study was one of the outcomes of the Senior Officials Meeting during the 4th Darwin Dialogue held on April 27 in Australia. The study was one of the proposals to promote trade and investment, which is one of the seven priority areas of cooperation under the BIMP-EAGA and Northern Territory Plan of Action 2016-2020.
The other priority areas are connectivity; social, cultural, arts and sports; education; tourism; agriculture; and health.
The study aims to benchmark goods and supply channels between Australia and BIMP-EAGA, and identify regional supply chain opportunities to promote inclusive growth between the parties. The plan also seeks to engage the private sector in the study to be presented at the next BIMP-EAGA and NT Ministerial Meeting.
In a separate statement, the Philippines’ Department of Trade and Industry Undersecretary Prudencio Reyes, who represented the country in the dialogue, said the study “is extremely relevant as we aim to strengthen EAGA’s trade relations with the NT government.”
He said, “Data on the kind of industry, products, commodities, and services are necessary to actualize the intention to engage business and trade between the two areas to determine the viable routes that could provide direct access for both sea and air transport systems.”
Apart from the supply chain study, which will have the support of key NT organizations such as the Australian Agency for International Development, complementation of the BIMP-EAGA cattle industry to support its growth is also being explored.
Australia is known for its well-developed cattle industry and is considered as one of the world’s largest exporters of quality livestock. It exported more than 1.2 million heads of live cattle in 2014 valued at over P47. 7 billion free-on-board. Darwin is Australia’s largest port for live exports, with shipments that reached more than 541,000 heads in the same year.
Reyes said complementation will allow players from the Philippines and BIMP-EAGA to study and replicate the best practices of NT’s cattle industry.
During the dialogue, the Philippine delegation recommended partnerships in the establishment of training centers within EAGA on breeding, pasture management, abattoir operations, and marketing. The recommendation is seen to facilitate exchange of technology between EAGA member countries and NT.
BIMP-EAGA was established in 1994 to address the socioeconomic development gaps within and across the sub-region. Ten years after its launch, NT became EAGA’s development partner. The partnership offers opportunities for trade and business for both sides, particularly in the oil and gas industry, agribusiness, and sociocultural exchanges due to the two regions’ proximity to one other.
