Media release

31 August 2004 - MVT71/2004

July Trade Data Shows Exports 16% Higher than a Year Ago

Australia's export performance is continuing its recovery and now is not the time to increase the tax burden on our exporters by introducing a new national payroll tax, Trade Minister Mark Vaile said today.

For the 12 th consecutive month the trend estimate of goods and services exports increased.

Why the Labor Party wants to introduce a new tax on our exporters at a time when they are enjoying the rewards of an improved international economic environment beggars belief.

"In July, exports were 16 per cent higher than they were in July 2003. This increase has occurred across the board", said Mr Vaile. "It reflects the strong recovery that has occurred in our major trading partners - Korea and Japan as well as the continuing strong demand from China."

The July 2004 International Trade in Goods and Services data show a deficit in the balance on goods and services of 2,748 million. The 3 per cent fall in seasonally adjusted exports in July reflected the intrinsically volatile nature of the monthly statistics. This is supported by yesterday's Balance of Payments figures which showed an improvement in the trade balance and in the current account in the June Quarter.

Nonetheless, in July, there was strong growth in cereal exports, on the back of a record winter grain harvest, and in exports of gas and petroleum, while our services exports also increased".

"Exports are set to continue their growth in coming months, as demand from our key trading partners rises. The Budget forecast was for an 8 per cent increase in export volumes in 2004-05".

That Australian imports continue to grow reflects the strength of the Australian economy. Australian businesses are investing on the back of the positive outlook for the Australian and world economies. In addition, historically high oil prices have added to Australia's import bill.

This election is about choosing who will keep our economy strong - and Australia's export performance is a key component of this.

Under the Hawke-Keating Government, Australia had a record 56 months of consecutive trade deficits.

Since the Coalition came to Government our exports have increased from around $100 billion to around $143 billion - that's a 40 per cent increase over eight and a half years at a time when world merchandise export growth has fallen.

Media contact: Matthew Doman (Canberra) +612 6277 7420.