Exports on Track for Record 2005-06

Australian exports have reached their highest level ever for the month of March, topping $16.1 billion, Deputy Prime Minister and Minister for Trade Mark Vaile said today.

"This continues a strong export performance over the past nine months," Mr Vaile said following the release of the ABS March International Trade in Goods and Services figures. Australia's exports grew by more than 16.8 per cent in the nine months to the March quarter and are on track to reach record highs in 2005-06.

Mr Vaile said that it was disappointing that the level of monthly exports achieved in March had moderated from the level achieved in February but noted that this was mainly due to cyclones affecting exports in the Pilbara region of Western Australia.

Resource exports fell by 13.4 per cent to $5.3 billion due to lower volumes of iron-ore, copper ore, LNG and crude oil. Exports of minerals and resources continued to be subject to volatility, in part reflecting disruptions in shipping schedules and temporary mine closures in northern Australia during the cyclone season.

Rural exports rose by 7.3 per cent to $2.3 billion, manufacturing exports fell 2.3 per cent to $3.3 billion in March and services exports fell by less than 1 per cent due to lower travel, transportation and other services.

Imports rose 1 per cent ($244 million) to $17.6 billion in March 2006. Capital goods rose by 13 per cent, with civil aircraft imports up by nearly $200 million.

"This indicates that businesses continue to invest for the future and reflects the strong outlook for the domestic economy," Mr Vaile said.

Reflecting the moderation in exports and rise in imports, the trade deficit widened to $1.5 billion in March.

Merchandise exports (in original terms) in the year to March were up 31 per cent to North Asian trading partners, with a 45 per cent increase in exports to China, a 28 per cent increase in exports to Japan and a 28 per cent increase in exports to Taiwan.

"Exports are on track for very strong growth in the 2005-06 financial year. The Federal Government is removing restrictions on businesses, investing in export infrastructure, and pursuing the most ambitious trade agenda in Australia's history - measures which will continue to open up growth opportunities for our exporters," Mr Vaile said.

Contact: Mr Vaile's Office 02 6277 7420, Departmental 02 6261 1555