Exports to Asia Highlight Continued Strengthening of Export Performance

The March 2004 International Trade in Goods and Services data shows a continued strengthening in Australia’s exports, Trade Minister Mark Vaile said today.

“Total exports have increased one per cent despite the appreciation of the Australian dollar and the lingering effects of the drought,” Mr Vaile said.

“Demand for Australian exports from Asia drove export growth, with growth in exports to China, in original terms, increasing by 33 per cent.

“Following my successful visit to China last week where I agreed with my Chinese counterpart to fast-track completion of the Free Trade Agreement study, this is further confirmation of the strength and complementary nature of our two economies.”

In trend terms, exports increased for the eighth successive month.

Mr Vaile said there was also strong growth in exports of key agricultural commodities, including wool and sheepskins and meat and meat preparations, up 26 per cent and 10 per cent respectively.

“Because of the ongoing strength in the Australian economy, imports rose three per cent in March, with imports of capital goods increasing by seven per cent,” Mr Vaile said.

In seasonally adjusted terms the deficit of goods and services trade was $1.986 million.

Also reflecting Australia’s strong trade links with the rest of Asia and a growing demand for Australian commodities, exports to Japan increased by seven per cent, Hong Kong by 28 per cent, and Taiwan by 18 per cent. Exports to Malaysia and Singapore also grew solidly, with exports up by 43 per cent and 41 per cent respectively.

“Exports are expected to continue to grow in coming months with strong growth expected in the global economy and Australia’s trading partners, through 2004,” Mr Vaile said.

Contact: Daniel Tehan (Canberra office) 02 6277 7420