Media Release

Thursday, 30 October 2003 - MVT86/2003

Farm Exports Rebound But Tough Trading Environment Persists

The September 2003 International Trade in Goods and Services data show a welcome rebound in rural and services exports, Trade Minister Mark Vaile said today.

The figures are another illustration of the underlying strength and resilience of the Australian economy. With further signs of recovery in the global economy, there are positive indications for growth in export volumes in 2003-04, particularly in manufacturing and resources exports, Mr Vaile said.

The September 2003 balance on goods and services was a deficit of $2,278 million in seasonally adjusted terms, a $310 million increase on the deficit recorded in August 2003.

In the month of September 2003, total goods and services exports increased by $74 million, to $11,648 million, in seasonally adjusted terms.

While we are still feeling the lasting affects of the drought, it is pleasing to see a welcome rebound in rural exports in the month of September compared to August, Mr Vaile said.

Rural exports increased by $188 million in seasonally adjusted terms in September 2003. In original terms wool and sheepskin exports rose $76 million, meat exports increased $51 million and exports of cereal grains rose $18 million.

With improved weather conditions we are likely to see rural export volumes substantially improve in 2003-04 as grain exports, in particular, return to average levels, Mr Vaile said.

Services exports increased by 5 per cent in September from August, which mainly reflects a sharp rebound in tourist arrivals, which have been steadily increasing since May 2003.

Following the conclusion of a Free Trade Agreement with Thailand and the announcement of a feasibility study into a possible Free Trade Agreement with China, it is pleasing to see that our exports to East Asia have increased, Mr Vaile said.

Merchandise exports to East Asia increased 4 per cent in the month of September, with sharp increases in growth recorded to Korea (up 22 per cent), Taiwan (up 17 per cent), Hong Kong (up 27 per cent), China (up 32 per cent), and Thailand (up 29 per cent).

Contact:  Matthew Doman  02 6277 7420