Strategic Insights Update

BRICS (an intergovernmental organisation comprising Brazil, Russia, India, China and South Africa) expanded to BRICS+ earlier this year. The inclusion of Egypt, Ethiopia, Iran and UAE, and Indonesia considering joining boosts member nation’s influence in trade, energy and control over critical minerals used for renewable technologies and advanced manufacturing. With countries increasingly tending towards trading along geopolitical lines, this may increase demand for Queensland minerals from non-BRICS+ countries, including the US, UK and EU.

On 6 November 2024, Australia and the UAE signed a Comprehensive Economic Partnership Agreement (CEPA), a bilateral free trade agreement. This agreement is expected to generate $135 million in tariff savings in its first year, rising to $160 million annually. It will eliminate tariffs on over 99% of Australia’s exports and boost goods exports to the UAE by approximately $678 million annually. The strong alliance and effective elimination of tariffs present opportunities to grow the $316 million exported in 2024 alone (up to September 2024). 

The annual Conference of the Parties (COP29) on climate change is underway in Baku. This year's conference takes on heightened importance following the election of Donald Trump, who is expected to again withdraw the US from the Paris Agreement like in 2016. The core focus is expected to be around climate finance, and the role of wealthier nations to support developing countries in their energy transition. US withdraw from the Paris Agreement could increase the relative attractiveness of investment into Queensland’s renewable energy sector.

At the Vietnam-China business forum in Chongqing, Vietman’s Prime Minister highlighted the benefits of attracting Chinese investors, with a number of Memoranda of Understandings (MoUs) signed. A notable MoU involved Vietnams T&T Energy Group and Cospowers, supported by Goldwind to develop Battery Energy Storage Systems in Vietnam, highlighting the close ties between the two countries. At a time where countries are increasingly pivoting towards China or the United States, Vietnam has maintained strong strategic relations with both.

India’s reliance on imported energy transition minerals continues to grow, with demand expected to more than double by 2030. To address this, India is diversifying its mineral sources while exploring domestic mining opportunities. The primary focus of this diversification is forming strategic partnerships with geopolitically stable, resource-rich countries, such as Australia. India may seek investment opportunities in Queensland due to its rich deposits of minerals including Graphite and Cobalt.

AI applications are rapidly evolving, offering streamlined efficiencies and comprehensive outcomes. Singapore startup ProfilePrint is using AI to assess the quality of agricultural raw products, reducing the need for logistical operation and minimising human error, highlighting how AI and agtech can be used to boost productivity in Queensland. AI also continues to revolutionise biotechnology, particularly in disease treatment with potential to personalise healthcare solutions and address field challenges. This could open additional opportunities for Queensland universities to engage in research and development, integrating AI into the health sector. 

With support from the CSIRO’s Kick-Start Program, Ochre Sun, a First Nations Queensland-based business has combined Indigenous knowledge with modern science to create high-protection sunscreen. Ochre is now looking to expand into the US, a market that requires understanding and relationship building for successful scale-up. Trade and Investment Queensland has an identified First Nations business development specialist to support our local businesses export and attract investment.