Trade Minister Mark Vaile today welcomed the announcement of Australia's $1.089 billion trade surplus for July.

"This is the sixth consecutive month that Australia has recorded a surplus on the balance of trade in goods and services, and is an increase of $468 million (seasonally adjusted) on the June 2001 figure," Mr Vaile said.

"On the back of yesterday's balance of payments data, which saw the current account deficit decrease by an impressive $804 million in the June quarter, this is more good news for Australia."

The latest monthly trade data confirms that Australian exports continue to outperform imports.  Australian exports grew by 20 per cent in the 12 months to July, well ahead of import growth at seven per cent.

"This strong trade performance has been the main reason for the improvement in Australia's current account deficit," Mr Vaile said.

"In the 12 months to July, merchandise exports to East Asia, our most important market taking over half of our exports, were up 23 per cent.  Australian exporters have been particularly successful in boosting exports to the important markets of China and Japan, achieving growth of 41 per cent and 23 per cent respectively over the past year.  It is a credit to our exporters that this very respectable performance has been achieved at a time when the East Asian region is entering a period of slower growth."

Australian exports to our other major markets have also performed well over the past 12 months, with exports to the US and EU rising by 19 per cent and 14 per cent respectively in 2000/01.

Mr Vaile drew particular attention to the positive performance of rural exports. 

"Exports of rural commodities increased by 20 per cent in the 12 months to July, reaching a record $28.8 billion over this period.  Meat and wool exports have been especially strong, rising by 29 per cent and 28 per cent respectively over this period.  This is a tremendous result for our rural communities," Mr Vaile said.