The Government of Canada has prepared this report based on primary and secondary sources of information. Readers should take note that the Government of Canada does not guarantee the accuracy of any of the information contained in this report, nor does it necessarily endorse the organizations listed herein. Readers should independently verify the accuracy and reliability of the information. This report is intended as a concise overview of the market for those interested in its potential and is not intended to provide in-depth analysis which may be required by the individual exporter. Although every effort has been made to ensure that the information is correct, Agriculture and Agri-Food Canada assumes no responsibility for its accuracy, reliability, or for any decisions arising from the information contained herein.
Please address any comments or suggestions you have on this report to: Ben Berry ben.berry@agr.gc.ca
Austria occupies a strategic position in the centre of Western Europe, bordering on Germany, the Czech Republic and Slovakia in the north, Hungary in the east, Italy and Slovenia in the south, and Switzerland in the west. Though it may seem relatively small with a population of only 8.2 million people, Austria boasts one of the most modern and successful economies in the European Union (EU). Since its accession to the EU in 1995, Austria's GDP has grown to 277.17 billion Euros in 2009, with the 4th highest GDP per capita in the EU-27 at 30,000 Euros. Austria continues to be a strong and stable country with an ever expanding economy.
As a benefactor of European unification, Austria is now focusing its attention upon EU expansion and the incorporation of its Central and Eastern European neighbours. The EU's eastward expansion and Austria's geographic location makes it an attractive hub for regional trade. Trade relations between Canada and Austria continue to be beneficial to both countries and look to be similarly successful in the future. The country's export-oriented manufacturing sector was a major economic driver in recent years. However, Austria's growth began to slow sharply when its major trading partners were hit by the global recession. The opening up of the economies of Central and Eastern Europe boosted Austrian business, but in 2009 most of that region was more negatively affected by the recession than its Western European counterparts. However, a gradual export-led recovery is underway.
Over the last few years, the Austrian food sector has seen successful development based on the sustainable production of high-quality raw materials and products. At present, importers of Canadian food products in Austria primarily import fish and seafood, maple syrup, wild boar, beef, wild rice, jelly, juices, corn, frozen vegetables, processed fruit, spices, eggs and egg products, pulses, whisky and wine. Busier lifestyles coupled with a growing health and wellness trend will bring about further opportunities for Canadian exporters in the areas of: packaged-food, ready-meals, diet and organic products.
Canada and Austria enjoy a positive bilateral relationship, which has been strengthened since Austria's accession to the EU, an organization with which Canada has benefited from a long economic and political partnership. In fact, outside of Europe, Canada is Austria's fifth largest export destination. Canada and Austria share similar goals, values and perspectives on international issues, which are demonstrated by cooperation in international organizations, such as: the United Nations, World Trade Organization (WTO), and Organization for Economic Cooperation and Development (OECD).
Governed primarily by WTO agreements, trade and investment between Austria and Canada continue to grow. Due to its strategic location, skilled workforce and access to EU markets, Austria has become an attractive market for Canadian investment. Currently, Canadian firms, and large investors doing business in Austria include Magna, and Bombardier. Austrian foreign direct investment (FDI) in Canada has more than doubled since 2005, from $220 million to $1.2 billion in 2009, moving up to rank as Canada's 18th largest investor. Canadian direct investment in Austria totalled $428 million in 2009, ranking the country as Canada's 48th largest destination, and accounting for 0.1% of Canada's total direct investment abroad.
Austria is a member of the EU, and therefore adheres to EU bilateral trade agreements. For more information on Canada-EU relations and agreements, visit the following websites: Department of Foreign Affairs and International Trade (DFAIT) CANADAEuropa www.international.gc.ca/europe
English is widely spoken throughout Austria, making the country a desirable market for Canadian companies of all size-structures. Imports into Austria are very diverse, and include a wide range of products from aircrafts and machinery to maize and corn seed, creating many opportunities for Canadian exporters in a wide variety of products and services. Canadian exporters will continue to see greater opportunities in the areas of packaged food and ready-meals, diet and organic products and regional specialties as the current health and wellness trend continues and consumers lead increasingly busier lifestyles.
| Austria Total Trade $304.9 billion | |
|---|---|
| Exports | $149.8 billion |
| Imports | $155.1 billion |
| Trade balance | ($5.3 billion) |
| Canada-Austria Trade $1.5 billion | |
| Exports | $370.5 million |
| Imports | $1.2 billion |
| Trade balance | ($805.5 million) |
| Canada-Austria Ag Trade $19.8 million | |
| Exports | $4.6 million |
| Imports | $15.2 million |
| Trade balance | ($10.6 million) |
Austria's agriculture industry provides employment for 5.5% of the workforce and accounts for 1.5% of GDP. Austrian farms lack efficiencies and have struggled in recent years. This has prompted the government to look for new ways to help struggling farmers. As a result, there is a wide market and opportunity for Canadian companies to export their agricultural products to Austria, as there is a demand due to the supply shortage. With an export rate of approximately 60%, the agricultural and food industries are a key driver of exports in the Austrian market.
| Fruits & edible nuts | $933,800 |
| Eggs | $772,800 |
| Maple sugar & maple syrup | $464,600 |
| Dextrins & other modified starches | $345,000 |
| Bovine hides | $216,200 |
| Non-alcoholic beverages | $4.7 million |
| Beer made from malt | $2.5 million |
| Grape wines | $0.9 million |
| Natural gums and resin | $0.8 million |
| Chocolate | $0.8 million |
Complete statistical summary available: www.ats-sea.agr.gc.ca/stats/da-do-eng.htm
Canada Austria bulk, intermediate and consumer exports/imports:

Austria enjoys a thriving market-economy based on long-standing commercial and cultural ties to its surrounding EU neighbours, particularly Germany. Its strategic geographical location at the intersection of Eastern and Western Europe, have made Austria a natural candidate for investment and continued economic success.
To successfully integrate with EU standards, Austria's former government pursued comprehensive economic reforms to streamline the government and create a competitive business environment. This has paid long-term dividends.
With the addition of Eastern European countries to the EU, Austrian trade has increased and its attractiveness as an investment location has grown. Austria is also focusing its increased FDI in Central and Eastern Europe. However, Austria must also meet with increasing competition from new EU members and Central European countries.
Austria's economy enjoys a fairly large service sector, employing approximately 67% of the labour force and accounting for 69.1% of GDP, while the industry sector employs approximately 27.5% of the labour force, accounting for 29.4% of GDP. Austria has a small agricultural sector that employs approximately 5.5% of the labour force yet makes up only 1.5% of GDP.
Austria's economy was challenged by the global economic crisis. With exports making up a significant portion of GDP, Austria's real GDP dropped by 4% in 2009 as the global demand for Austrian exports fell. To highlight the stability of this economy, the economic drop in 2009 represented the country's worst recession since the 1940's. However, with the global economy improving, and recovery in new EU member states, Austria's economy is also recovering, with GDP growth of 1.6% in 2010.
| GDP | US$366.3 billion |
| GDP (PPP) | US$330.5 billion |
| Real GDP growth | 3.7% 2007 2.2% 2008 (3.9%) 2009 1.6% 2010 |
| GDP/capita | US$43,723 |
| GDP/capita (PPP) | US$39,454 |
Current:
Forecast:
The Austrian consumer base is drawn from a population of 8.2 million. While this is a relatively small consumer base, the market does enjoy the benefits of being very concentrated and compact. One quarter of the population is situated in the capital of Vienna, which is considered to be the most densely populated area in Austria, followed by Graz, Linz, and Innsbruck. As a result, these urban centres provide many export opportunities for Canadian companies. Austria has a well-developed, modern consumer market with many sophisticated and diverse tastes; the Austrian population eats a variety of foods that have been shaped by many international influences. Austrian cuisine is derived from the cuisine of the Austro-Hungarian Empire. In addition to regional traditions, Austrian cuisine has been influenced by Hungarian, Czech, Jewish, and Italian cuisines, from which both dishes and methods of food preparation have often been borrowed. This established but open market allows for easy introduction of new products from abroad.
The ageing population is one of Austria's most significant trends. In 2009, 1.6 million Austrians were pensioners or consumers aged 50 and over, approximately 19% of the population. This segment of the market possesses considerable purchasing power (approximately 70% of total disposable income). With this relatively high propensity to spend, this segment is an extremely powerful consumer group. Consumers in this group are willing to spend more money on high quality products; for example, consumers are prepared to pay a higher price for animal products from animals bred and kept in a natural environment. This consumer group was largely unaffected by the global recession and did not substantially reduce its spending, since the majority had already saved large sums of money and were used to economic fluctuations. This consumer group also favours health and wellness products, such as organic food and food supplements.
The popularity of organic food has proliferated all consumer segments. The primary motivation for the purchase of organic products is health awareness. Of those consumers who purchase organic products, 13% prefer organic products because of the absence of artificial additives, 9% think that it tastes better, 9% wish to support organic farmers and the environment, and 4% prefer the higher quality and monitoring of the products. Interestingly, roughly 10% of the population abstain from buying organic products because they are too expensive or the consumers do not trust the organic label.
Fair trade retailers represented a small but increasingly growing category in 2009. Consumers are choosing grocery retailers on the basis of whether or not they stock fair trade products. Main fair trade product groups in terms of sales were bananas, chocolate, and coffee. Other important fair trade products are: fruit juice, cut flowers, cotton, pineapple, mangoes, avocados, organic vegetable oils, and dried fruit.
Export Development Canada (EDC) has cited excellent export opportunities for Canadian companies in a wide range of sectors, including food and beverages. In EDC's Trade Opportunities Matrix of the Top Ten Potential Sectors for Austria, the agriculture, hunting, forestry and fishing sector is ranked fourth, with domestic market growth for this sector forecasted at 18.7% in 2010.
Canada's Trade Commissioner Service outlines opportunities for exporters of fish and seafood (salmon, lobster etc.), maple syrup, honey, wild boar, beef, wild rice, jelly, juices, corn, frozen vegetables, processed fruit, spices, eggs and egg products, pulses, whisky and wine.
Due to increased health awareness, the demand for organic foods continues to rise providing a lucrative market for Canadian exporters of these goods. Imports roughly account for 30% of organic foods consumed. Fruits and vegetables are the most popular organic imports.
Canada's main competition in this market comes from Austria's neighbouring EU countries. As an EU member, Austria relies heavily on its European neighbours for much of its importing needs, making the country a more challenging market for Canadian firms and exporters to penetrate. The countries of the EU act as a single market, and trade within EU borders operates without tariffs applied to goods. EU internally-traded goods are therefore offered at a cheaper price to Austrian consumers.
Austria's strategic location as the crossroads between Eastern and Western Europe, coupled with limited arable land, has determined its long-established reliance upon foreign trade. Austria has formed strong trading ties with Germany, which represents 30.2% of their export market. Other major competitors include Italy at 7.4% and Switzerland at 5.0%. Nevertheless, Austria remains an excellent location for exporters looking to enter the EU or Central and Eastern European markets. With respect to Austria's imports, Germany still remains the most important partner, representing 40.3% of Austria's imports, while Italy represents 6.6% and Switzerland represents 5.9%. Primary organic food suppliers to Austria are: The Netherlands, France, Germany and Italy.
Free trade agreements also exist between the EU and the European Economic Area (EEA), which includes Norway, Iceland, Liechtenstein and Switzerland. Under these agreements, most industrial products and certain processed agricultural products are exempt from import duties if sold within this trading block.
The EU also grants preferential tariffs to roughly 100 developing countries, mainly Africa and the Middle East as well as roughly 40 overseas territories under the EU's Generalized System of Preferences (GSP). A system of providing certificates of origin has been established to ensure that the goods are not diverted through GSP countries to take advantage of lower tariff rates.
As a country of continual trade and investment interest for Canadian exporters and investors, Austria offers excellent potential for Canadian firms wanting to penetrate the EU and/or Central and Eastern European markets. To facilitate successful market entry, joint ventures and licensed production arrangements in Austria offer Canadian firms the advantages of free access to this EU market, reduction of transportation costs to European destinations, and high-quality production facilities.
As a member of the EU, OECD, and WTO, Austria implements international accords and policies from these bodies. The majority of Austria's requirements governing its imports correspond to EU regulations, while others are specific to the country. Austria adheres to EU tariffs which are based on the International Harmonized System of product classification. European food and drug legislation differs somewhat from that in Canada. It is advisable to strictly conform to these requirements, especially concerning permitted additives.
For further information on market access to the EU, visit
Agriculture and Agri-Food Canada's Agri-Food Regional Profile European Union
27 at:
www.ats-sea.agr.gc.ca/eur/4148-eng.htm
Canada-European Union - Trade and Investment Enhancement Agreement www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/eu-ue/index.aspx
Retail chains do import directly, but only high-volume products. A local importer is essential to doing business in Austria for products in low-volume niche positions. Local partners provide vital insight into Austrian business practices, market characteristics and strategies, as well as legal and importation procedures.
English is widely spoken in Austrian business circles. Therefore, initial communications with potential business partners can usually be conducted in English. Nevertheless, German product literature, information, and communication will increase chances for success. Dress is conservative and arriving late for meetings is not excused easily. Austria applies all EU regulations, as a member of the European Union.
A Canadian passport is required for travel to Austria. The passport must be valid until your departure from the country. Tourist and business visas are not required for stays less than 90 days.
For more travel tips regarding Austria, please visit the Department of Foreign Affairs and International Trade Canada's Travel Report for Austria: www.voyage.gc.ca/countries_pays/report_rapport-eng.asp?id=18000
For more business tips regarding Austria, please visit the Top 20 tips for doing business in Austria: www.worldbusinessculture.com/Doing-Business-in-Austria.html
The Austrian agricultural sector has many strengths; such as competiveness and favourable geographic conditions. Austria serves as a western gateway to Central and Eastern European markets due to its advantageous location, political neutrality, and historical, cultural, and linguistic ties to the region. The cost of land is high and can be attributed to the agricultural sector operating in a densely populated and prosperous country.
The value of agricultural output is heavily concentrated in field crops, meat, and dairy products, with most of it coming from animal husbandry. Since large parts of Austria are mountainous, only the lowland areas of eastern Austria and some smaller flat portions of the west, and northern parts of the country are suitable for crop production.
Austria's main agricultural products include grains, potatoes, sugar beets, wine, fruit, dairy products, cattle, pigs, poultry and lumber. Traversed by the Alps, much of Austria's landscape is mountainous; therefore, only 40 sq. km of irrigated land exists. Arable land accounts for approximately 16.6% of total agricultural land, and permanent crops make up only 0.85% of this land.
With the highest percentage of organic farmland in the EU, organic farming in Austria has prospered due to public and political support. There are around 200,000 farms in Austria of which approximately 19,000 grow organic products, and this number has increased tenfold over the last twenty years. The government pursues policies and programs designed to support organic farming and increase organic consumption. For example, due to the lucrative market segment that exists, most supermarket chains in Austria have their own organic label. Since Austrian sentiments remain firmly opposed to genetically modified organisms, government policies prohibit foodstuffs that may be a product of such practices.
The Common Agricultural Policy (CAP) is the cornerstone of the EU's economic integration, and it is a policy that guides the agri-food industry in Austria. It guarantees food supplies at stable and reasonable prices, as well as the modernization of agricultural structures and a fair standard of living for farmers. The EU has established a system of common prices, production and marketing aids, storage arrangements, mechanisms for import controls, export restitutions and specialization of production. This common approach to all European agricultural markets is based on the principles of market unity, joint financial responsibility and community preference.
Since the nineties, growth of agricultural production has slowed down and the number of farms is declining rapidly. This can be attributed to reforms of the CAP, as well as new developments in environmental policies. However, there are still many smaller farms which have continued to enlarge their operations and broaden the services that they offer.
The Canadian Embassy in Austria
Street Address:
Laurenzerberg 2 ,
Vienna, A-1010, Austria
Mailing Address:
Laurenzerberg 2 ,
Vienna, A-1010, Austria
Tel: (011-43-1) 531-38-3000
Fax: (011-43-1) 531-38-3906
E-Mail: vienn-td@international.gc.ca
Web Page Address (URL): www.tradecommissioner.gc.ca/at
Other URL: www.kanada.at
Territories/Responsibilities: Austria
Office Hours: Mon-Fri: 0900-1730
Time Difference E.S.T.: +6
Mrs. Susanne Schmidt-Knobloch
Trade Commissioner
Agricultural Technology and Equipment, Agriculture, Food and Beverages,
Bio-Industries, Fish and Seafood Products
Email: susanne.schmidt-knobloch@international.gc.ca
Austria at a Glance ATS 2009
www.ats-sea.agr.gc.ca/stats/5148-eng.htm
Austria Country Fact File Euromonitor - 2009
www.portal.euromonitor.com/Portal/Magazines/GeographiesHeavy.aspx
Austria Foreign Direct Investment Statistics Department of
Foreign Affairs - 2009
www.international.gc.ca/economist-economiste/statistics-statistiques/investments-investissements.aspx?lang=en
Austria Import, export and Trade Information Global
Trade Atlas 2009
www.gtis.com/gta
Austria Agri-Food Sector Profile - ATS 2009
www.ats-sea.agr.gc.ca/info/eur-eng.htm#Austria
Austria World Fact Book CIA - 2010
https://www.cia.gov/library/publications/the-world-factbook/geos/au.html
Austria Country Information - EDC - 2010
www.edc.ca/countryinfo/countryinformation.aspx?sLang=e&target=Austria
Austria Country Brief Australian Department of Foreign
Affairs - 2009
www.dfat.gov.au/geo/austria/austria_country_brief.html
Austria Travel report Department of Foreign Affairs - 2010
www.voyage.gc.ca/countries_pays/report_rapport-eng.asp?id=18000
Austria Profile Australian Government - 2010
www.austrade.gov.au/Austria-profile/default.aspx
Austria Agri-Food Sector Profile Trade Commissioner Service
2009
www.tradecommissioner.gc.ca/eng/document.jsp?did=77962
International Monetary Fund Austria 2009
www.imf.org/external/np/sec/pn/2010/pn10126.htm
World Business Culture Austria - 2010
www.worldbusinessculture.com/Doing-Business-in-Austria.html
CE Marking European Commission 2010
ec.europa.eu/enterprise/policies/single-market-goods/cemarking/index_en.htm