Drive for countertrade agreements proving successful

Western Australia has negotiated almost $200 million worth of countertrade agreements.

Minister with special responsibility for trade, Gordon Hill, said $20 million of those commitments had already been discharged.

Among the agreements already producing results was that between Caterpillar World Trading Corporation of Hong Kong and Tiger Engineering Pty Ltd, a West Australian company.

"Tiger makes earthmoving and mining equipment and under the countertrade arrangements has exported additional gear worth $2.15 million to the US," Mr Hill said.

"Through the connections it has made with Caterpillar, Tiger has also exported other equipment worth $470,000 to Singapore and now has orders for Europe.

"Caterpillar also holds stock of Tiger's products in the US and Europe so they are available immediately a buyer needs them."

Mr Hill said the agreement was negotiated by the Government after Caterpillar's subsidiary, Solar Turbines, won the contract to supply SECWA with six gas turbine-driven compressors for the Dampier to Bunbury natural gas pipeline.

"'The WA Advantage', recently released by the Premier, recognises that one of the main focuses WA has to have is trade - and countertrade is an important facet of that," he said.

"In this instance, countertrade is an instrument used by the WA Government to stimulate overseas trade.

"It is a marketing tool that enables WA firms to gain access to new markets or new customers in existing markets."

Mr Hill said that although these may not be big contracts in dollar terms they represented important inroads that countertrade agreements could make into the world trading arena.

He said other companies had enjoyed spin-offs from Caterpillar's connections with Western Australia.

"Through Caterpillar, Barclay Engineering Pty Ltd - a WA environmental engineering firm - has contracts to supply silencers for three tug boats in New Zealand," he said.

"It also has agreements to provide silencer filters, exhaust systems and combustion systems valued at about $300,000 for use in Caterpillar generator sets to be installed in a desalination plant in Dubai."