Australia's Record Year for Exports

Deputy Prime Minister and Minister for Trade, Mark Vaile has welcomed an 8 per cent increase in Australia's exports in June to reach $17.8 billion - the highest monthly level on record.

Australia's exports grew by a total of 17 per cent for the 2005-06 financial year to reach $192 billion making it the strongest year of exports on record.

"All goods export categories increased in June. Resources exports grew a very strong 15 per cent, in part reflecting increased volumes of iron ore and copper ore exports. Manufactured exports rose 8 per cent", Mr Vaile said.

Resources exports continue to display a very strong upward trend as new capacity comes on stream, notwithstanding volatility in monthly figures reflecting seasonal production and shipping factors.

"Exports are benefiting from strong demand from North Asia, the EU, ASEAN, India and the United States", said Mr Vaile.

Merchandise exports in the financial year were up 25 per cent to North Asian trading partners, with a 38 per cent increase in exports to China and a 24 per cent increase in exports to Japan. Exports to the EU rose 34 per cent in the financial year, exports to ASEAN grew 13 per cent, exports to India grew 21 per cent, and exports to the US rose 3 per cent.

Reflecting the strong growth in exports and the moderation in imports, the trade deficit fell $1.5 billion to $722 million in June. For the financial year, the trade deficit fell $8 billion from $24.5 billion to $16.5 billion.

"The strength in export figures reflects the continued efforts of the Government to reduce impediments to Australian business and assist our exporters overseas," Mr Vaile said.

"The Government continues to implement reforms to improve the international competitiveness of Australian businesses. We are investing heavily to expand export infrastructure, and we remain committed to pursuing bilateral, regional and multilateral trade initiatives to open up further growth opportunities for our exporters".

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