IMPORTS & EXPORTS

The Australian market is insulated from the world paint market by a number of factors which provide effective barriers to entry. The principal of these is the cost of freight but a tariff barrier of 8%, reducing to 5% by the year 2000, is also significant.

Existing manufacturers are further protected from competition by their established position and knowledge of the market. These advantages include existing control of the paint distribution and technologies developed for Australian climatic conditions. The need to be familiar with Australian regulations relating to formulation, labelling and packaging requirements is a further barrier to importers.

Imports for the year ended 30 June 1995 amounted to $45.174 million with the main countries of origin being the United States, the United Kingdom, New Zealand and Germany. FOB per litre was about $65 exports of the same period amounted to $33.683 million with the principal countries of destination being New Zealand and Indonesia. FOB per litre was about $5.20.

In recent years a number of Australian paint manufacturers, have established subsidiaries in Asia and the Pacific rim countries.