Well, my dear students, the course is Labour Policy Pakistan and the topic in hand is steam power during the industrial revolution. My dear students, the development of the stationary steam engine was an important element of the industrial revolution. However, during the early period of the industrial revolution, most industrial power was supplied by water and wind. Dear students, in Britain by 1800, an estimated 10,000 horse power was being supplied by steam. By 1815, steam power had grown to 210,000 horse power. My dear students, the first commercially successful industrial use of steam power was due to Thomas Savry in 1698. My dear students, he constructed and patented in London a low-lift combined vacuum and pressure water pump that generated about 1 horse power and was used in numerous water work. And in a few mines, Savry's pump was economical in small horse power ranges but was prone to boiler explosions in larger sizes. Dear students, Savry pumps continued to be produced until the late 18th century. My dear students, the first successful piston engine was introduced by Thomas Newcomen before 1712. My dear students, a number of Newcomen engines were installed in Britain for draining, etc., from deep mines. My dear students, these were large machines requiring a significant amount of 5 horse power. They were also used to power municipal water supply pumps. They were extremely inefficient by modern standards but when located, where coal was cheap at pit heads. My dear students, despite their disadvantages, Newcomen engines were reliable and easy to maintain and continued to be used in the coal fields and until the early decades of the 19th century. My dear students, by 1729, when Newcomen died, his engines had spread to Hungary in 1722, Germany, Austria and Sweden. Hope you have understood the topic. Thank you very much indeed.


We are ready to begin. Chinese companies are on a spending spree. More than 36 years ago, China opened its economy to the world. And now, for the first time in its history, China's overseas investments are on the brink of surpassing foreign direct investment. A role reversal on a global scale. Overseas Chinese investment is on track to exceed 120 billion US dollars. Beijing's support with its decreased regulations and a slowing domestic economy are helping to fuel investments from Africa to the United States. The tradition of Chinese state-owned companies investing in energy is shifting as more private players are putting their money into the likes of real estate and technology. China's investments are bringing new opportunities but are also delivering challenges, political risks, legal barriers and cultural misunderstandings. So as Chinese companies continue to pursue acquisitions overseas, what is China's impact as a global investor? Welcome to the Sai Xin debate from Davos. Ladies and gentlemen, it's great to see all of you here sharing our interest in such a fascinating question. China's impact as a global investor. I'm Houshul Li, editor of Sai Xin Media. Sai Xin is a powerful financial news organization in China offering content across a range of platforms. Video, digital and print. We are well-known for being passionate champions of journalism and we want to be a bridge between China and the world. We will be using today's debate on all of our platforms. Our primary language is Mandarin. So please take out your headsets as I will switch to Chinese. We know internationalization of Chinese companies is secular-rating at the APEC meeting last year. The leaders of China said that in the next ten years we would invest 1.5 trillion US dollars. We know this is not a new topic but it's heating up. So what are the challenges? At the end, what will be the impact of that investment on the rest of the world? Those are the subjects for today. In other words, we are looking forward towards a new situation. I would like to do in three parts. The first part is where are we now? What are the priorities and trends? The second part is challenges we are facing but of course opportunities as well. The third part is the impact on industrial structures of destination countries. Let me introduce my panelists today. Perhaps I can start from the left. Mr. Cai Jingyong, he is CEO of International Finance Corporation, an expert. Three years ago he was CEO of IFC and has been since then. He travels between US and many developing countries. He has his fingers on the pulse of our Chinese overseas investment. Let me start with then Chinese panelists. Mr. Lin Yi-Fu, he is a leading economist. He used to be chief economist of the World Bank. Now he is a professor at Beijing University. Dong Mingzhu, she is chairman of GERLIT. GERLIT is one of the leading white appliances manufacturers in China. It is biggest also in the world of white appliances manufacturing. She is a representative of Chinese companies here. Next is Minister of Trade and Industry of South Africa, Rob Davies. 2014 was the South Africa year in China. And they did the year of China. South Africa welcomes Chinese investment to help their economy succeed in its transition. So we look forward to hearing his views. The next speaker is Bob Diamond, ex-CEO of the Barclays Bank. He is now working at a merchant capital. He founded the company and is the CEO. He will be talking about Chinese investment overseas from a practitioner's point of view. We know they have very large investment in Africa. The last, but not the least, perhaps the many Chinese audience know about him. He is a Francisco consulate. He is CEO of Mexican Trade and Investment Promotion Association. This is a trade promotion organization he works for. He is a professor of finance. He used to be commercial councillor in China. And I'm battered off Mexico to Germany. Clearly he's an expert in international economics. Now let's start. The first round of questions will be focused around the fact that the Chinese companies are accelerating in their investment. So where are they now? We know this is not a new subject. But it is at a new stage because earlier China focused on developing countries to develop these markets. Now the focus is shifting towards the developed countries. Is this a new trend? I would like also to know what is special about this new trend. Perhaps we could start from Mr Tsai Jin Yong. Then we will speak in touch. Indeed this is a new trend in China that is known as going out of China, going global. At an early stage it was focusing on oil and minerals. The change is that investment is now going into developed countries, even in developing countries. There are different models of investment. This is a reflection of the gradually more mature economy in China. And Chinese brands are becoming more attractive. Given that there are many opportunities for Chinese companies as well as challenges. I'm sure we'll talk about those. But what I'm focusing on is the developing countries, particularly in Africa. There has been Chinese investment playing a major role. Causing controversies too. Our friend from Mexico, perhaps you could tell us what you think. Thank you very much. I can tell you that we see in Mexico really a very fast change in the way China is investing. At the very beginning there was the raw material, as you said, and it was mostly in South America. After that China moved to the infrastructure and also to the manufacturing, buying existing companies abroad. And what we see now in Mexico are Chinese companies with Chinese trademarks investing in Mexico so they can expand the market in the NAFTA area and in Latin America. Then we have seen these four stages of the Chinese investment. Also very much with what said the global and corporate governance. And this is a really nice way of dealing in this new way that China invests. Okay, thank you. Mingzhu, can you tell me about the earliest investment in Brazil? You are the earliest investing in Brazil, starting at the beginning of the century and perhaps the year before you set up manufacturing facilities in the U.S. and also you're going to Vietnam. I'm just wondering why you have moved around like this. What is your particular experience? Well, in Brazil we had a market there. There was demand. Our positioning was to sell our own brands. So we sell domestic appliances. For 10 years running we are number one in sales around the world. But it's still domestic appliances. But through our own research we have new products. Our range of products has been broadened not just domestic but also commercial appliances now. These are proprietary development. Therefore our technology is already showing better properties. So we want to serve the rest of the world with technology. So our plant was shut down after three years. Because of the investment environment to us we do need to consider risk. The reason we withdrew was because the risk was beyond our control. In Europe we are considering setting up manufacturing facilities. It's not simply to put on our label there what is more important is to grow with the local economy. We have the capacity and capability now because what we bring to other countries now is technology for example central refrigeration system or air conditioning system. We do not use electricity but we use photovoltaic power, heat, wind. We use new energy to power central air conditioning system now. And therefore with new advanced technology we are already a step ahead of our competitors. It's no longer like in the past when we were just investing to produce but we are now servicing now. In other words you feel that there are opportunities even in developed markets. Yes indeed in the US we sell gris as a brand. It's well recognised. Lin Yi Fu, I'm keen to hear your views. Chinese investment overseas traditionally has been of three types. One is for resources because China is a fast developing country and does not have enough resources itself. Secondly infrastructure because China has competitive advantage developing countries or need infrastructure. The third is to enter the local markets. Investing locally you'll be able to overcome tariff barriers. But these three types are all mutually beneficial. Looking ahead I think there are two new increasingly more important types of overseas investment. One is to go into developed countries to acquire technology. China needs to continue to develop it needs technology innovation and upgrading. In many industries we are still behind compared with developed countries. Overseas acquisition or acquisition of patents will help us to accelerate our own technology. We know developed countries will welcome that too since the crisis of 2008 economy has been struggling therefore developed countries welcome foreign direct investment including from China including investment acquiring technology. Apart from that I would like to highlight one more thing. The labour intensive industries in China are now under pressure from increased cost of labour rather like the 60s in Japan when it moved its manufacturing to Asian countries creating the four tigers. Great. In the 80s the four tigers moved their manufacturing to China that's helped China to become the manufacturing plant of the world in the last 30 years. Now China is reaching the stage Japan did in the 60s and the four tigers in the 80s because the cost of labour is increasing very fast in China. Labour intensive industries in China are now real under real pressure to move out of China. I would like to say that this is a very good thing for other developing countries. This will increase their employment, export and income. It's a great opportunity. On that if you look at the trend Japan in the 60s Asian tigers in the 80s have all gone through this period but there's a difference in quantity. In the 60s the manufacturing sector in Japan employed 9.7 million people. In the 1980s the careers the total employment is 2.3 million and now the Chinese total employment according to the third issue of the economy is 12 billion. So I think this is 12 times than those countries seen before. So very possibly in the labour intensive industries when it's shifted to developing countries it will have a new wave of the industrialization and this will be a win-win situation and that is very encouraging. So what's the opinion of the Minister Davis? Thank you very much. Thanks for the opportunity. I think I should say that from a South African point of view since 2008 China has been our largest trading partner both for exports and imports but the investment relationship is still one where China is behind OECD countries and even countries like India have a larger quantum of foreign direct investment and even actually at this moment in time the value of South African investment in China is larger than the value of Chinese investment in South Africa although there are more Chinese companies involved in South Africa than there are South African companies involved in China but we are seeing a very important structural change and I think that is a change that we've been working energetically with the Chinese government with the Chinese private sector to bring about and it is the one that I think has been described here a lot of the investment in the earlier period was around extractive industries, mining projects and things of that sort there was one significant exception one of the largest foreign investments by China at the time was a joint venture with the South African Bank also to finance Chinese projects on the African continent but now we see a number of Chinese companies actually investing in manufacturing foreign direct investment bringing in their own brands I think one of the high water marks was the opening last year of the first auto works plant automotive products there's another Beijing auto works plant as well we see in the Chinese television manufacturing there's quite a significant presence in manufacturing of products for the green economy particularly energy generation and energy saving projects and I think that all of this does indicate that there is a change in the pattern and I think this qualitative change is what we want to see because as China itself is making structural changes in the economy and I think Justin Lim was alluding to that just now as China is focusing on the quality of growth is moving towards inclusive growth so is the African continent and a critical element of that is that we need to occupy a much more space of value addition and industrialization so I think that's something which we see and something which we're welcoming and something which we are working energetically with our partners in China to promote okay Bob your turn can I tell some so we're a New York based investor we're focused on financial services and what I've seen in the last year in China has been remarkable to me prior to the financial crisis and in my time at Barclays we would see small investments small shareholding in western banks from many of the sovereign wealth funds and others in China now it's very very direct it's very targeted there's a new confidence I've been in Beijing and Shanghai four times this year in the entrepreneurial spirit to develop a capital market of private equities hedge funds venture capital so one of our businesses that we've invested in is a financial technology company in an asset management platform and one of the large financial institutions instead of just investing in our building it invested but also has done a memorandum of understanding with us where we're doing a joint venture to develop the asset management local business in China that's amazing for us to have that access to the domestic market and it means that the Chinese financial institution is bringing in technology and expertise to build their domestic business one of the largest banks in China also was our one of our key strategic investors in Atlas Mara which is our integrated bank in Africa what was interesting about this is it wasn't really an investment in Africa we raised equity and it's on the LSE so it's on the big board in London so it was actually an investment through the London Stock Exchange but giving them access to banking in Africa and finally we're beginning to see an interest from a variety of investors in China to work with us to invest directly in Europe where so many of the financial institutions in Europe are spinning off non-core businesses and non-core assets so it's a very very different environment than it was five or six years ago so thank you very much for it and we have heard the the hopes and visions on China's investment abroad so the next question will be what are the challenges there is especially for Minister Davis and the Africa will be the peak of the next growth but there are diversities in African countries and be it a Chinese company or any company from anywhere in the world what do they need to meet the challenges and what do they pay attention to well thank you very much I really started to mention what I think is the common challenge of the African continent I think the recent oil price shift is simply meaning that oil producing countries are following what many of the rest of us who are involved in the export of other primary mineral products faced a few years ago and that is that the super prices are no longer with us if I move up the value chain what we've got I think compared to China is that China had the great advantage of colonialism not dividing it into 54 different countries which was the fate of the African continent and so our domestic markets are all too small to support on their own or even to contribute significantly to the size of the domestic market that can support and sustain industrial diversification and industrialization so we're embarked on some very ambitious regional integration programs essentially seeking to broaden integration across our existing regional communities create large markets across the African continent but also to address a very very significant infrastructure deficit the infrastructure deficit exists in particular in infrastructure that links up our economies one to another in fact Donald Kabaruka of the African Development Bank he said that infrastructure deficit is costing our continent equivalent of 2% growth and so one of the areas where we've been working very strongly through the BRICS framework is the BRICS New Development Bank which will now be launched with its headquarters in Shanghai but the first regional branch office will be located in Johannesburg to serve the African continent and we think that there is a way in which the contributions coming from the BRICS countries and I think this is very much part of the trend as China being one of the most important BRICS countries where capital can now find an outlet in productive investments in infrastructure development and so on now I think you're asking another question we have different legal regimes in place we have different ways in which we work with foreign investors and so on and so forth but I think what you will see is increasingly that the environment is being made more attractive to foreign investors across the board and what I think investors across the board including investors from China need to realise is that many investors are finding that the rewards way out outrun the risks it's very well worth while looking at the African continent and many I think strategic investors have found that the African continent is indeed the next growth frontier so I think that all of those are things that we are doing to enhance the significance of the African continent and I think we do see Chinese investors among those who are responding I think one of the things that we have said and what I was coming in earlier is we do see a greater resonance perhaps in our engagements with China in understanding our ambitions and our development trajectories and I think that's what we really need to build on and I think that could give China a very significant role in the future of the development and industrialisation of the African continent It's very encouraging and exciting and I think that you mentioned about BRICS Development Bank while we see the complexity of the African continent and the political eco is also very complicated and if we play the card of government and there will be risks and so you mentioned the international cooperation in terms of BRICS and apart from that what will be our guarantee to guarantee the success and I think that this is a very good subject to discuss and when China goes out to invest it's all mostly is led by the technology companies and together with the government and one of the Chinese companies characteristics is that they bring about the way they work the method from China and they think that it will work in Africa but this is a good thing but we should find out that the project the completion of the project is important but what's more important is that we need to get the value that we invested in that project and this should pay attention to this and it's not the end of the job after you've completed the project but also you need to make profit and to get back what you invested you have invested and also in addition you need to minimize the political risks by making the benefits going to the local people so the common interests should be established with the local people and in this area there are lots of opportunities so we should establish partnership and it's not that you'll reap all the benefits on your own so any any project there will be risks so the investment means you'll carry out the project and also you should make this project a good project and the Chinese government is a strong government so they could the government can help to resolve many of the problems in the process of carrying out projects in other foreign countries that might not be the case and secondly when you make an investment for Chinese for abroad and it's now termed the end of the job after you've completed the project and the cost of the Chinese project is rather low but one should think of the whole lifetime of your products and you should think of the the benefit that you would give to the local community so in this way you can become popular among the local population and the vast there will be minimized the political risk so when you talk about the partnership you think of the relationship between the Chinese enterprises with the local people but what are the Chinese government relationship between the Chinese enterprises and other companies so I would like to know that the outbound the Chinese investment how do we establish this partnership with the local countries and what are your experiences in this field so I think we've talked a little bit about Africa talking a little bit more about Africa and if you think about financial services and the opportunity for the Chinese banks to expand into Africa one way would be to just become more global to build bricks and mortar in branches institutions in China they are very cautious about that so they followed a pattern primarily which is following their customers so the Chinese banks are doing a lot of business in Africa with Chinese companies but they haven't expanded beyond that so the first case was one of the big banks now owns 20% of standard bank so they have a big stake in one of the banks there more about banking in Africa before they expand too far away from the Chinese companies that's very similar to what one of the big banks our strategic investor is doing with us by being a strategic investor in us through London they're learning more about how to run banks on the ground rather than jumping too quickly from a Beijing based or Chinese based bank into Africa to Robert's point they're 46 different countries 46 different currencies now it's changing there's really four key trading blocks so these are the things that they need to learn and I think what's smart about the investment that the Chinese banks are making in Africa is they're beginning by following their customers customers they know customers they're comfortable lending to and doing business with and they're just beginning that next stage which is investing in domestic banks thank you China is the third largest FDI sources in the future it will be even bigger for Chinese companies the biggest challenge is psychological preparation and talent preparation are far from sufficient 5 to 10 years ago China was talking about how to attract investment suddenly China has become a net investor overseas now companies now can't survive now unless the investor overseas to give you a specific example I visited a labor intensive base Guangdong province Fujian province Jiangsu and Shandong you'll be able to see labor intensive manufacturers started in the 80s with investment from Taiwan and Hong Kong and most of that has already gone but indigenous companies find that the profit margin is coming down it's difficult to employ people they want to go out of China but they're scared because the change of environment is happening too fast ministers have said this already there are 54 countries in Africa they are all slightly different and we as labor intensive manufacturers we used to receive orders we don't really know what's going on outside China now you are telling them to move out to China completely that's a big challenge I think Chinese companies well the governments said already leverage resources domestically and internationally and markets domestically and internationally but we haven't got people to do it this is a major barrier can I just ask you about this then Chinese companies are still thinking about how to invest overseas foreign countries probably think about investment so is it the multinational companies should Chinese companies restructure themselves to become a multinational company it's not just a Chinese company it's a transnational company is that a stage of process well I think it's a question of mentality how do you define multinational company you are a labor intensive company even if they are Chinese-owned if they go to India or Africa or Latin America it's not going to be a multinational company we are talking about big group of companies they have a whole value chain both in their own countries and globally in technology in finance it's essentially managed so this is a different kind of multinational looking ahead it's not going to be the model for Chinese companies just yet but irrespective of that if you want to invest overseas you have to understand the local culture political context legal context and the risks and there is an issue of language too we are doing it in a hurry perhaps not like Greece you have prepared well I think you have prepared well I just like to share my view with you I think being global how can you become an international company one thing is talent the second thing is I think the mindset needs to be different we need to think about mutual benefit you shouldn't just think about how to make money by setting up a factory you need to bring with you technology indeed cost control quality about many other things made in China often gives people the impression it's a low quality product it's not a high quality product that is perhaps the perception we need to change I'm from manufacturing we are in the US in Europe we are thinking very hard how do we set up a factory what factory to set up if it's just processing plant it's no good it's got to be something that can work locally with local economies and therefore you need to bring technology quality, management so for me it's much more important to bring your culture a mutually beneficial culture so that people will accept you there are big risks in Brazil we've been there for 15 years for the first 10 years we almost gave up plus we talk about corruption in China China is not alone and pretty bad elsewhere too we can't control finance whatever company you set you do with a company if a company is not profitable then your company has no value so it's not just price competition there are other things to do well so first thing is we need to know it's got to be mutually beneficial for this many years China is perhaps the best FDI destination but when we go to other countries we feel quite strongly perhaps it's because of our culture clashes with theirs but very often if you really want to have a very transparent operation that's a hard we have a challenge there I can understand that excellent I think the impact cannot be ignored so perhaps we can ask Mr. Gonzalez to talk about the most Mexican situation sure thank you very much I want to bring again Latin America to the discussion I will start with common understanding with global value chain you said that the minister said common understanding is important of course this is the first step in this sense you should start with the political assessment and this happened between Mexico and China two years ago President Xi Jinping and President Peña Nieto met and started a roadmap to review all the things needed to have a really strong relationship two weeks ago many presidents of Latin America met just President Xi Jinping at the Celac China meeting and also to set the whole roadway to review what's needed to have a very strong relation after that starting of common understanding I have to say language is of course a barrier but common understanding goes far beyond the language laws are different of course but rules of business are the same rules of business are stable between Latin America and China and in this sense what is needed to do real business between both areas you said of course we need the financials currency Latin American currency China currency that's needed that banks in our area and Mexican banks or Latin American banks also in China we just announced that ICBC started operations in Mexico a few months ago this is very important also that you can handle all the money that flows from one country to the other also very important to this part of engagement is to have solid funds China and Mexico are managing a fund managed by IFC thank you very much and precisely the idea is to enhance the way small and medium-sized businesses can come to Mexico and also go to China to have business professor you said that it was very hard to change the mind to change the way you started being one of the FDI incoming and now you have to go and invest the same happens to Mexico and this is part of the understanding we were also very interested in investing in Mexico of course we're interested in China investing in Mexico still but the idea is that we have also this change of mindset we are also investing in China and this part of the common understanding is very interesting so you can have the idea in which areas we are in in Latin America and in Mexico and what how we can enhance business of both areas and in this part is the enhancement is the most important one and it's the personal one and you can help me with one she and Mian's thank you relationship and networking is very important and that's what we're doing in this moment I traveled eight times past year to China I had also my counterparts coming to Mexico but also with about 500 entrepreneurs going to China, coming to Mexico and also to all the region to know each other and how they can work and really the mindset is very similar I said language is different but not only the part of the Mian's you can have a face-to-face meeting that you can know the people that you can eat their food this is something that's very important to go through and in this direction Latin America and China are working very good together not stopping that it's the last the global value chain at the moment the imports of Mexico of Chinese goods is mainly materials we use to build home appliances and cars and the new Chinese investment coming to Mexico is precisely not importing that part but manufacturing those parts in Mexico and integrating a real value chain between China, Mexico and rest of the world thank you let's turn to the impact of a Chinese investment on the world Mr. Yi Fu in the 80s American companies were shocked by Chinese investment coming over now you are talking about the scale of Chinese overseas investment it's quite strategic that will have a big impact on the world, won't it could you elaborate on that so with a view to considering what happened in Japan what will be the major impact next I think I said Chinese investment overseas is an economic activity based on the law of economics and therefore Chinese investment will be beneficial also to destination countries that's a very important principle whether it's Africa or Latin America a lot of that at the moment is into resources basis of economics and the market principles the countries with resources receiving Chinese investment benefits from such investment for example in the last 10 years of the fastest developing countries 7 are in Africa if you look at those 7 many of them are resource intensive of their development is linked to investment from China that investment brings finance and GDP growth the second thing is investment into infrastructure developing countries have a big issue in their development and that is the bottleneck of infrastructure without it trading cost will be high some industries are very good in industry trading cost is very important whether it's China or South East Asia or Africa investment into infrastructure is China's strength but it brings benefits to Africa this also brings local employment providing better products with technology content this is good for the value chain of local economy too so the two trends one is going to developed countries in order to acquire technology we know in 2008 developed countries suffered recession many countries with technology face bankruptcy because of the overall economic environment that's a great opportunity for Chinese companies to go and acquire these companies turning companies about to be out of the game into a good company so China also benefits it acquires technology speeds up its own technology upgrading and also investment into labor intensive industries I'd just like to highlight that since the industrial revolution we've seen 250 years and barring a few oil and resource big countries any country that's gone into middle income and into high income any of these countries have gone through the process of going from labor intensive into high employment industries and to change the large number of peasants working manufacturing populations so they could gradually upgrading the industry and these are the common points from all successful countries on the other hand China has such a huge manufacturing and this can be used and we can shift part of those manufacturing capability to outside China so we could we could seize the opportunity that's offered by this golden age and for instance we Chinese company as a result can be developed as fast as South Asian countries so the I think that one of the big contribution that China will make that in the end it will be a joint rapid development in the world so what do you think of China's impact and in comparison to what happened to Japan a few decades ago I think that if we take into consideration of what's happening in history and we should also take into consideration that China's investment is rather big it's of a big scale and that's different from many decades ago and I think that the good green company has already mentioned this in China among all the opportunities China will have more opportunities whether it is a developed country or the developing country facing challenges for instance developed countries are facing challenges of deflation China's investment will lay foundation for some countries economic growth so I think there are really a lot of opportunities and China has started to make investment abroad and the Chairman of the Board of Green has mentioned about a common mutual beneficial and so Minister Davis please go ahead China emerging as a major investor it needs to be understood if we're talking about emerging economies in the African continent that you're not the only ones that there are many other investors that are beginning to see that they need to move an increasing proportion of their investments into these areas including investors coming from the developed world including investors coming from elsewhere in Southeast Asia other BRICS countries I've mentioned as well and so I think that the environment is becoming much more competitive and the interview of the recipients that's no bad thing and it enables us to well, you know, pick the best and I think that some of the things that have been said about way of advice about understanding the local environment relationships and things like that I think those are where the competition will be it's not going to be just about financials it's going to be about who is going to be relating to the developmental projects of the country and region concern who is going to be creating employment who is going to be raising skills and all of those kinds of things so I think that it's very important to partner with the objectives I mean just an outline no one has actually gone from being a underdeveloped or a poor country to being a rich country without diversifying and adding more value there are global value chains are we going to continue to be the recipients of Finnish goods are we going to be involved in value chains and producing some part of the Finnish goods that we consume I think those are the critical questions and if Chinese companies position themselves appropriately in that competition then they've got a very, very good opportunity one of the things that Chinese companies have is they carry no historical baggage which is a very, very great advantage in the developing world the post-colonial work so I think that all of that does create some opportunities but it also does mean that things have to happen something that we've learnt as South African companies in the rest of Africa that our companies may carry their own brands but whether they like it or not they also carry another brand and that is of the country concern so if we have people that sully the national brand name that's also a problem as well so I think that there is a need to watch the quality, the way in which these investments relate to national and even regional or continental developmental aspirations okay, thank you so do you want to add anything from the other three impacts do you want to add anything yes, thank you very much I think that in the case with China for example there are also the area of services in this case the approach of both presidents two years ago brought many ideas to the table and one of those was communications in fact we are the only Spanish speaking country with a direct flag to China and this brings also more Chinese people to work in the area of services and the service related companies and in this sense we are very interested in opening sectors like infrastructure like communications like energy these three new areas in which Chinese companies can work together with Mexican companies it's also very interesting they can come alone they can find a partner and we think that this is a challenge you will see many many good news in the papers in the next weeks, months, years because it's working Huawei just announced 1.5 billion investment there was also one in the railroad the high speed railroad that will be moving from Mexico City to Quereta or the tender was opened four days ago then we will be really looking forward for the next generation of Chinese investments in Mexico we are already working with manufacturing we are already working with parts for consumer parts and this is very interesting very interesting thank you because of the time I would like to allow some questions from the audience so I will give you two questions and please introduce yourself when you raise hands who has the question I would pose this question to Professor Lin you emphasize that it's important to have an infrastructure but there is another saying that in the developing countries to invest on infrastructure this is a less disadvantage point and it's not that you can be successful when you have the will to do it and even countries like Germany they haven't had the supporting system for building the infrastructure this is a crucial question and I wanted to say any investment has risks it's not only investment on infrastructure and the green group had risks in Brazil but firstly you should have a rationalization of the economy and from the economics you don't have logic then you cannot make money and also when I was working in World Bank there is a multi-investment insurance mechanism and you need to buy it and so some of the risks you can sell out and some of the risks the investment that without risk you can buy so this is one way to diversify the risks and I think in this way you could guarantee the investments return and the political risk can be reduced yes we have another question from here China one often hears that outbound investment will have a boomerang effect in China and so my question to you as China is trying to become more of a service sector economy and more knowledge intensive economy how will outbound investment contribute to those kinds of transformations in China you should answer this question so how can we shift this out but in the reprocessing and those among this the high value ones for instance the brand the management and the R&D and this can be kept in China so in all the practices of the history for instance the 1960s Japan and 1980s four dragons in Asia they all did this so from the manufacturing point of view we should have more service oriented part that means so we need to making the existing manufacturing production lines into more oriented service oriented if you raise the living standards of the people and then you will have the opportunities on the other hand with the development of the production there will be more complexity in terms of R&D so I think the outbound investment is beneficial for China to have more more necessary I think the investment that the Chinese bank did with our asset management and financial technology platform was only done in conjunction with a memorandum of understanding where we are doing a joint venture in the domestic market so by investing in a firm that's incorporated in New York they're bringing some of the skills and some of the technology back to their home market as well so I think a investment into a financial services organization in New York is benefiting the domestic economy thank you I have about 30 seconds I want everybody to make a conclusion I want you to make a conclusion I think that we have already the integration of the economies in the world and some more advanced countries maybe they are different from ours so we we should firstly have the mutual beneficial concept and secondly you need to improve the living standards of the local people thirdly you should make a contribution to the local environment the local economy so China is a big investor and I think this will be the new beginning for the world thank you and that's it for today we would like to thank you for your time


Hey guys got a little bit of a running stream of thought going on right now and it has to do with kind of the writing landscape of television and movies. Obviously we always try or at least filmmakers try to have some kind of current relevance or whether it be political, economical, something about history or any sort of current day out aspect to life into their films. Sometimes now when it is part of that demographic that kind of structure but it's also been bleeding into a lot of fantasy genres like sci-fi, actual fantasy. There's these aspects of current day life that are put in even if they don't really make sense even if they're more so for the political message than the actual story itself and it's very much kind of imploding in on itself and some of these screenwriters are kind of going oh what do you mean like these are just holes and traitors and trolls and whatnot and maybe in like a small demographic that is true but not on the hole. There is much more of a vocal element to film and television and critique and criticism but when you immediately have any kind of disagreement you are put into a box with people who are extremely against something almost to a hateful degree whether they are justified or being a dick about it even if you have a small issue you get put into that. That really kind of came about with The Last Jedi. I had issues with that movie. I had problems. I didn't think it was the worst thing to ever come out ever but I was being categorized with those people. I was being put into that group by people who absolutely loved it and there were people who liked it but also had issues with it but because they liked it more than they disliked it they were getting put into the groups who were absolutely loving that. The reason why I'm kind of going on in this tangent is the whole idea of movies was escapism. That was the idea of cinema for a long time ago taking you to a different place taking you out of your current day living arrangement and just putting you somewhere out of body out of mind for an hour to two hours to three hours. People didn't go and see the original Star Wars movie back in 1977 because they wanted political aspects in that film or they wanted to see how it was dealing with anything that was going on.  You had the Vietnam war going on.  Then you also had the cynical 70s in terms of cinema. Depressing movies were coming out by the trainload in the 70s. Not that they weren't bad. There actually are a few in my shelf here that I would count for the cynical 70s that are very very good but it's not like I'm going to put a woman under the influence on.  No, people went and saw Star Wars for escapism literally in the opening of the film in a galaxy far far away. That idea of irrelevance from the current day aspects is something that people went to watch movies for. It's what we watch television for for the most part unless you're watching cop beat shows and medical dramas and whatnot. But my two big kind of aspects right now are rings of power and the Witcher. Now the rings of power I still have absolutely no idea how the two writers got their job considering if you look up them on IMDb they have no prior big experience. They were ghost writers for Star Trek 3 and under under all that. They were JJ's bootlickers for a long time. He was the one who suggested them to Jeffrey Bezos and as the story supposedly goes they came into the writers meeting and spoke a bit of elvish to Jeffrey and Jeffrey was really like oh yeah these guys are it. Now obviously that's kind of uh probably a little bit over exaggerated but the amount of interviews they've been doing the amount of damage control they've been doing both before during and especially after the show has come out the first season has come out is exponential. These guys have it feels like they've put more effort into these interviews into this damage control than they have to the actual show in the writing. They keep on saying that oh we wanted Sauron to be hiding in plain sight yet everyone who was watching this show anyone who actually was like had put more than I don't know five minutes of thought to it knew that Hal Brown was going to be Sauron. I thought that at first he might be a witch king or something because I was like no it can't be that easy but lo and behold and then for the dialogue the writing all of it was just so less in stature less in quality definitely less in academic feel than that of Tolkien you would all of a sudden just get these contrasts when they would take lines verbatim from the books and put them in the show even if some of them didn't make sense and all of a sudden the writing quality would just like did this little tick and these guys are now doing more and more interviews talking about why they dated these decisions what this actually means what are the what's going to happen for season two but a lot of it has been about just the decisions they made with how the first season went about and then why they did them and they're justifying explanations as to why and that's a lot of what JJ would do when JJ made his movies especially for the Star Trek films for Force Awakens that was all we were doing it's just kept on asking him questions after question after question Lord of the Rings is not supposed to be that that's not what Tolkien wrote these stories are as they weren't mystery box writing and the fact that they're trying to do it at a discount wall Walmart brand level is a little bit insulting why I'm kind of referring to these guys is I know a lot of people a few people like meh I know a lot of people who are writers out here in Vancouver I know a few who are very good writers out here and these guys they struggle they break their backs they write and they write and they write and they write and they write and nothing comes around they submit their scripts and they maybe get a little far in contests and in judgments some of them are really really good and they never get that up end but then you see people like the two writers for Amazon's Rings of Power and then also the writers who apparently don't like the source material of the Witcher getting jobs left and right even the guy who wrote Obi-Wan who wrote Army of the Dead and that was apparently his credential that that was all the credential he needed to write about one of the most beloved characters in Star Wars history a return that so many people had been dying for begging for and this schmuck got to write it how does this happen how does hollywood still allow people who clearly are not the right people for the job to get these jobs how do they get the golden ticket now obviously it it does come down to people who you know that's the film industry in a nutshell you do need to know people and I get that is that fair no but you do have to sell yourself you do have to be able to explain and articulate yourself in a way that can get you into that doorway into that room put your foot in that door but unfortunately there are some who are just I don't know they're just so much better at it than others even if their skill is actually not worth it and I find that's one of the most unfair things about writing in in the not just writing but the film industry in general is if you can shit talk really well it will get you so much further than actually being good at your job well in nine times out of ten I know some people in a show that I've worked on who are absolute numbskulls like not good at what they do but they have either kissed ass well enough or we have pretty much just kissed ass well enough to get higher positions also in combination with that the industry out here in Vancouver is exploding it is literally at the brim it's frothing over so you there's a ton of positions being filled in by people who do not have the experience for it but there's not enough people to go around so that's kind of where you wish it was like that for writers but it's not it's a lot of these writers who just don't have the actual experience to do so but they get the job anyways like I I keep waiting every day I wake up I type in Witcher showrunner response because I am waiting for her to explain why things fell apart with Henry considering he was so hell bent so focused and so forthcoming with that I want to be a part of this show for as long as it can just so long as you guys respect the stories and do good stories and they cocked it up after three seasons they still have apparently four more to go so what happened the only person outside of the guy who's the lead writer for X-Men 97 and Henry that's talked about it is one of the producers one of the Polish producers and he had some kind of obscure thing that like oh Geralt can be like the new James Bond that he is one of the Polish producers and I don't know I think he was just trying to write it in a way but his excuse has been very much so cast aside because Geralt is the same character like this is not James Bond James Bond is if anything short stories with a character that's interchangeable because of how he's portrayed throughout the films and throughout history Geralt's literally on his third outing and we're already replacing him I don't know it's a very strange situation well what do you guys think how do you feel about this state of writers and the fact that there are so many people who have great talent who have exceptional talent and keep on getting past aside for these people who apparently can walk the walk but cannot talk the talk whether it's having very little very lacking experience with writing television shows are dislike the source material entirely and instead of learning how to adapt their writing style and kind of making it you know working with this material working against your displeasure to try and make a good story no apparently they think that they know better than the right the source material and the fans who enjoy that source material and they'll write it in a way that completely undermines the actual fan base Halo is a massive example of that I enjoyed a little bit of the show I thought that the props team and the sound department with the most loyal people in that entire department of the entire creation of that show somehow the props were the most were the most authentic and respectful to the source material but aside from that that was it the writing was completely different the lead actor had never played a goddamn Halo game and I remember when he said that it made me instantly think of Mark Wahlberg saying that he wasn't gonna play Max Payne for the Max Payne movie because it's like I don't need to play a video game to play a character and it's like man you'll read a book if you're watching a you know if you're gonna make a movie about a book you should at least read the book goddamn don't even read the book at least you know audiobook it or something or for god forbid have a big Max Payne fan explain to you what it is one of my favorite stories about a character or an actor getting inspiration for a character is John Berenthal's his introduction to the Punisher he walked into I think this is how does it go I believe he had just been announced that he was gonna fill a the Punisher it was like kind of on the table and he walked into a comic book shop and he explained to the guy about it and the guy said all right you need to read these and he late he went around the store and he grabbed the best Punisher stories obviously welcome back Frank was one of them and he's like these are the stories you need to read you to understand the character you were playing and Berenthal took all of those comics how many read them and he understood it and that is that's respect that's respect done correctly when you're doing source material another thing that I can think of is some people think they can write like this but I only really know a couple of writers who can one of them being Mike Flanagan Mike Flanagan has proven that he can take a source material completely write it in a totally different means than that of the original material yet still be incredibly respectful to the original material I'm talking about the haunting of Hill House not at all like the book yet at the same time still so much a blind manner that's the turn in the screw I believe it's based on one of the stories it's been regarded actually it was regarded as one of the better horror stories of the earlier centuries of the early 19th century but after a while it just like a lot of people just criticize now like it's not a good story if you want an example of it oh god Finn Wolf Wolfhard did the turn the turning or something he did it at the in the beginning of the year the same year that blind manner came out that was based on the same source material and it was awful and it's because the story is awful and then he did he's doing he just did the midnight club which I will now be very interested to read the book and see how much different it is from the show but yet at the same time how similar the show was to the material but yeah those are my thoughts I just wanted to have a little bit of a talk before while I was away I'm in Mexico right now but I figured you guys you know I just have this running stream of consciousness again I'm still playing with the lights here I know that having a hat on is not exactly the best but if I take the hat off I look like some sort of I don't know discounted that history guy and I like wearing hats so I don't know maybe have to have an underlight or something anyways guys those are my thoughts just wanted to give you guys a little bit of running stream of consciousness say that I'm I'm still kicking around even though I'm not here hope you guys are enjoying your day I hope you guys are enjoying things going on with you hope you enjoyed this video if you did leave a like and if you're interested in more subscribe and yeah give me your guys thoughts of what you think it is do am I speaking sense am I kind of out of my mind talking about this or do you know where I'm coming from anyways let me know in the comments below otherwise see you guys next time


Thanks. It's really great to be here at another ABS Outlook conference, and I thank ABS for their continued commitment to the conference and to providing quality information for the agricultural sector in Australia. Information and research that's recognised both here and globally, and very, very important. I can recall many hours pouring over reports, particularly around agriculture and agricultural trade. So thank you again for the opportunity to be here. Today what I was looking to talk about in my new role, having left the agriculture portfolio in September last year and moved into the trade and investment portfolio, specifically having responsibility for tourism and international education, but also the opportunity to represent Australia in a number of forums in a trade and investment perspective, is about positioning Australia and our deliberate strategy around what I call and are increasingly becoming recognised as a Australia's super growth sectors. Now agriculture is obviously one of those, but so is tourism, international education, gas, energy and wealth management. That's been recognised by a number of key agencies over recent times, in fact some of our best and brightest Deloitte's, McKinsey's, BCA, the Future Economy Forum and of course one of our own agencies in Ostrade. The size of these five collectively matched that of mining at its peak. Together these sectors are predicted to add more than $250 billion over the next 20 years. With the right tailwinds there is a very real possibility we could see much more than that added to the economy and there's every reason to believe now is the time to capitalise on Australia's advantage. In fact in my view we ought to be capitalising on that right now. International engagement removes the constraints for growth in a nation with a population of only 24 million and gives us access to more than 600 million people in our neighbouring countries alone. Of great significance is that this population has age profiles that align to our service strengths, particularly tourism and education and a growing middle class seeking what we have to offer and that's protein, food, energy and wealth management. The world wants what we have got and the more we play the stronger we get. As well as talking today about the success of agriculture exports I want to mention the intersection of three of the super growth sectors, agriculture, tourism and international education. They intersect as major contributors to the economy, they intersect as demand for Australia's food and wine offerings continue to skyrocket and also because agriculture is much more than selling produce. It's also about the world wanting to know how we farm, how we produce such great food, wine and also Australia's education expertise in agricultural production systems and in that space I believe we have a huge amount to offer and in some cases we actually don't even understand what we've got. The other intersection point is around international investment. Australian agriculture has performed very solidly in recent years. This is the result of a strong economy overall on the back of global food demand that is both growing and at the same time becoming more discerning. The increasing middle class of our major trading partners means the demand for protein is increasing rapidly. Farm exports are forecast to reach nearly 45 billion dollars in 2015-16 and that's a 37% increase since 2010-11. These figures are edging closer to our top exporter in mining. Iron ore currently tracking at 49 billion dollars and surpassing the number two on the list, coal at 37 billion dollars and are exports to Asian markets in particular are expected to grow even more as a result of the entry into force of FTAs with our three major markets in North Asia and eventually the TPP. There have already been major commercial successes as a result of these three North Asian FTAs which I'll come to later. At the same time there have been success stories in other markets. Our beef exports to the US are a case in point. Last year US demand for Australian beef was so high that export volumes exceeded the US WTO beef quota. Our producers had recourse to the special beef quota negotiated under the Australia-US Free Trade Agreement for the first time since it came into force. Since 2013 the government under the able leadership of my good friend and colleague Andrew Robb has negotiated free trade agreements at a very steady clip and Andrew will go down deservedly as I think based on the numbers as our most successful trade minister in history. When you negotiate free trade agreements that cover 60% of your trade by virtue of the numbers no one can do any better. Bilaterally we've signed free trade agreements with Korea, Japan and then China all of which have entered into force. In addition the government has recognized the importance of active implementation and follow-up of these free trade agreements. It's not simply enough to negotiate a great agreement we need to explain to producers how to use it. Accordingly we've invested significant resources in explaining to business the opportunities these agreements have opened up through free trade agreement information seminars across the country and through the creation of an FTA portal which provides easy access to clear technical information on how to use FTAs. We've made good progress in bilateral negotiations with India and reinvigorated negotiations with Indonesia and I have to say these are not easy negotiations but the important thing is that we have the political will to succeed. We've started the progress towards a comprehensive and high quality free trade agreement with the EU and officials have already begun the work on an FTA scoping exercise. This is important for the agricultural sector as the EU is the only one of our top 10 export markets with which we have not already negotiated an FTA or with which we do not have FTA negotiations in train. Regionally the Trans-Pacific Partnership was signed by Australian and 11 other countries on the 4th of February and TPP countries are working to achieve ratification so that it can into into force as soon as possible. We've also made good progress in the regional comprehensive economic partnership RCEP negotiations. This will build on and expand Australia's existing FTA with ASEAN and New Zealand and it complements the TPP including the involvement of China and India and I don't think we can underscore the importance of having solid basic frameworks that span across all of these negotiations and agreements that provide similar terms for the management of trade. Those underpinning frameworks which we're looking at across all our free trade agreements, people understanding a common set of rules make a real difference. At the multilateral level we've even been able to rack up some gains in a forum that many thought was moribund to be friendly. Some thought dead, the WTO. In December last year Australia played a key role in securing agreement to end agricultural export subsidies. These subsidies have long been recognised as the most trade distorting form of support. They are a key piece of unfinished business from the Uragray around and importantly this will help level the playing field for our farmers. Collectively these agreements arguably represent the most significant opening of agricultural markets negotiated by any Australian government and certainly since the Uragray around started more than 20 years ago. Just a little bit on the difference that they'll make for our rural communities and farming communities. The Korea Australia FTA has already set off seen three sets of tariff reductions since it entered into force late in 2014. CAFTA immediately eliminated tariffs on wheat, sugar, wine, fodder and many horticultural products. Tariffs on beef, cheese, lamb and other products will be eliminated over time. As a result Australia's beef exports to Korea grew by 30% in 2015. Exports of fresh cherries to Korea have grown tenfold and the value of bottled wine exports has grown by more than half. All these things are making a real difference. Tasmanian cherry grower reed fruits and you've probably heard this state a number of times saw exports to Korea grow from five tonnes before the FTA to 183 tonnes after the 24% tariff was eliminated under CAFTA and I can tell you knowing Tim quite well it's made a real difference to his business. Lismore based Macadamia marketing international has seen its sales to Korea grow from 100 to 250 tonnes and expects to see further doubling each year for the next five years. The tariff on Macadamias has now been reduced three times from 30% down to 12% and will be completely phased out by 2018. The CAFTA outcome was crucial when you consider that competitors from the US, EU and ASEAN already enjoyed preferential access to Korea and given that Canada's own FTA with Korea entered into force shortly after ours. When we come to Japan, one of the things that really has made a difference and I was fortunate to see that firsthand last year was the look again effect of negotiating these free trade agreements and the impact that they had in there in those markets where there are changed economic circumstances. It really does make those economies have another look at Australia in a circumstance where we would probably all consider Japan to be quite a mature market and one that we've understood very well. Under the Japan free economic partnership agreement tariffs on exports of fresh beef to Japan have already fallen from 38.5% to 31.5%. They will fall again on the 1st of April this year to 30.5% and as a result, exports of fresh beef to Japan grew by 22% in 2015. Queensland based Australian Agricultural Company, which is the largest vertically integrated livestock producer in Australia has doubled the size of its market in Japan in the last couple of years and continues to expect that continued growth as a result of the agreement. The 15% Japanese tariff on bottled wine will be eliminated by 2021 and immediately in the case of larger volumes of bulk wine. Australian bulk wine exports to Japan doubled in 2015. Birch family wines, a family owned winery in Western Australia has been receiving rising levels of interest from larger Japanese distributors and partners as a result of that process. In horticulture, we've seen a tin fold increase in exports to Japan of fresh table grapes and shelled almonds between 2014 and 2015 along with increases of 53% for rolled oats and 23% for fresh asparagus. The Japan-Australia economic partnership agreement was important in a broader sense. It, as Japan's first real agreement with a major agricultural exporter, it was a key step in the RBA government's economic reform agenda and helped ease Japan's path to a more ambitious agriculture outcome in the TPP. And I can tell you, having been to Japan in 2004 when we were commencing, 2005, sorry, when we were commencing negotiations on the free trade agreement, the first argument was whether we actually had agriculture in the Japan negotiations for the Japan agreement at all. So in that context, the outcome we got, I think, was very good. The China free trade agreement completed our trifecta in Northern Asia. The chapter will play a level of playing field against other agricultural exporters that have FTAs with China and deep in Australian exporters competitive advantages over key competitors, such as the US and Brazil. Under chapter tariffs on dairy, beef, wine, all of which range up to between 20 and 25% will be eliminated by 20, 24 and 2019, respectively. Although it only came into force nine weeks ago, it is already delivering results. Western Australia's gelatin fisherman's co-op says it has strengthened its market position as the 15% tariff on live lobster exports to China was cut to 9% for Australian produce and will be completely phased out by 2019. The cooperative has established a dedicated warehouse for live lobster at Bayoune Airport near Guangzhou. The first time an Australian seafood company has held its produce on Chinese soil. The cooperative has said that chapter has helped them to forge partnerships to supply live lobsters from Australia to their tanks in Guangzhou in less than 16 hours. One of the most efficient live rock lobster supply chains in the world, and they're now positioning themselves to be the market leader ahead of tariff free trade in 2019. A key outcome of the tariff cutting commitments we've achieved in these three North Asian FTAs is that they've made Australia a go-to location to invest in in order to export to North Asia. No other major economy can provide such extensive preferential access into these important growth markets. This in turn makes our economy more attractive to international capital looking for growth opportunities, not just from North Asia, but from all over the world. The same will be true from the Trans Pacific Partnership. So with the case for opportunity built, the story now gets a little bit more interesting. To grow, we need capital. Australia is a small, open and trading economy within capital markets. Australian savings are simply not sufficient enough to fund the investment opportunities and consequent standard of living that we expect. So not only should we welcome foreign investment, we need it. Between now and 2050, Australia's food industry will need up to $1 trillion in additional capital investment to increase its size and productivity and global investment and competitiveness. We must look both onshore and offshore for capital that drives innovation and in turn productivity, jobs and growth. The alternative is to boost our savings by spending less. Spending less really is not necessarily an attractive proposal in that space. The recent modelling based on data since 2000 shows that a $1 billion increase in international investment would result in the creation of around 1,000 jobs. Historically, I think we all understand most of our capital has come from Europe and the United States. But as the global economy recalibrates towards Asia, we have the opportunity to refocus our attention to regions closer to home. It is important that Australians are assured and understand that new money coming to our economy drives jobs and growth. But equally we must provide clarity and certainty and transparency to investors. One of the most common questions that I get asked when I am working internationally, talking to major investors in and around our economy and particularly in agriculture, is are you genuinely interested in investment from us? We say we are, but some of the rhetoric coming out of Australia doesn't necessarily indicate that we welcome it. And that message does resonate and it's heard. In fact, I was in the Middle East only in January and it was put to me in those simple plain terms. Are you genuinely interested in international investment? And that comes down to those who criticise the government's approval decisions for international investment as a betrayal. They should realise that the real betrayal would be foregone jobs and growth. And having Australia's potential growth stymied. We've grown up as a nation that competes internationally and that's what has actually positioned us so strongly. The fact that we are an open economy drives innovation and it drives productivity. And that's why I would back us in any international trade competition because we are such an innovative nation that has benefitted from the fact that we have had to work hard and continue to innovate to be amongst the leaders in the world. And that's why I indicated earlier that our knowledge and understanding is such a valuable asset internationally. A couple of different sorts of agricultural opportunities that feature in my work in tourism and international portfolio. Two of the other five super growth sectors. Farm food and wine tourism figures released today show some amazing trajectories. In addition to almost half of all tourism dollars being spent in regional Australia it's 44 percent. Visits to farms increased so farm tourism increased by 14 percent last year. And to wineries there was a remarkable increase of 37 percent. So again the quality of our food and agricultural offering is actually being demonstrated in these visitation numbers. In my discussions with trading partners during recent business trips overseas what is quite clear is that the new luxury is not about star ratings. It's about experiences. Genuine experiences surrounded by natural beauty and unsurpassed quality food and wine. Australia and Australian farming has this in spades. We all know that. We all understand that. And talking to the high end providers tour operators guides they are the features that we're talking about. When tourism Australia started its restaurant Australia campaign a few years ago we were ranked number 10 in the world for the recognition of our high quality food offering. That is now number six. And talking to some of the leading players in tourism in the United States last week the thing that they talked about was our food. And I don't know how many of you might have seen it. But Condé Nast one of the major international tourism magazines based out of the US did a feature on Australian tourism naming us as the single destination to attend in 2016 and talking to them last week they said it has been their most successful campaign ever. And interestingly at the National Tourism Awards just a few weeks ago four of the 26 categories were taken out by food, wine and farmstay businesses. So Keringa Farm Tours in Tasmania, Green Olive at Red Hill, Pezzini Wine Celladour in Victoria and Food and Wine Farmgate in South Australia all featured highly in those National Tourism Awards. So huge opportunity I think to continue to grow in that space. And I've had a number of people talking to me over recent times about their proposed developments for tourism in around the agricultural space from all over the country. The other opportunity that I see for agriculture is in the international education space. Australia's offerings in agriculture education are world renowned. Not only do we already educate close to half a million students onshore here in Australia but the potential to extend our reach offshore through provision of online learning and consortia approaches to particularly vocational education is outstanding. Our closest trading partners have identified the need to train millions of people at many in primary production systems and I'm not sure if I spoke about it last year or not but certainly when I was in India last year talking to their dairy industry in particular when you consider that their dairy sector is its productivity rate is five litres per cow per day and ours is 25 litres per cow per day. There are so many things that our farmers that our industry do by way of just everyday business that are done for this farming sector in India by government or some other provider. There is huge opportunity in my view to develop an offering there and that's what I mean when I say I don't think we actually really understand what we have. So in conclusion we I believe have achieved a great deal for agriculture through the activities of our trade negotiations so far. There's already been a significant impact but as the figures show this impact is going to grow as agreements achieve full implementation and we continue to do the work with additional resources we've allocated towards some of those particular market access issues that we've still got to resolve. We have a very very proud history of energy and activity and achievement in trade diplomacy. We've been a leader in many of those settings and we will continue to play a significant role and given that agriculture is such a key part of our economy and is one of those five super growth sectors obviously it will be foremost in our minds as we continue those international trade negotiations. What we're looking to do is to provide the basis and the frameworks for the agricultural sector in this country to continue to prosper and to grow. We can't do it for you but what we can and should do is put the settings in place that provide for you as a sector to be able to do it and that will be the focus of our continued negotiations and work. So thank you for the opportunity to be here and thank thank you for your attention this morning. Thank you.