Importance of Asian markets for Australia’s merchandise export performance

Australia’s merchandise exports continue to enjoy significant growth, Trade Minister, Warren Truss, said today. Merchandise exports grew by 10 per cent in 2006-07 to $168 billion.

Mr Truss said that resources and manufactures exports contributed strongly to this growth, helped by high commodity prices.

“Exports to Japan, China, Korea and India accounted for 47 per cent of all merchandise exports, compared to 34 per cent in 1999-2000. These figures demonstrate the increasing importance of Asia to Australian exporters,” Mr Truss said.

Exports to North Asia increased 12 per cent to $77.9 billion, supported by strong growth in exports to China (up 26 per cent to $22.8 billion) and Korea (up 11 per cent to $13.1 billion).

“The strong growth in exports to China reflected strong increases in iron ore, nickel and wool exports. Japan remains our largest export market with 19 per cent of Australian merchandise exports (up 5 per cent to $32.6 billion),” he said.

Exports to ASEAN (11 per cent of merchandise exports) rose 13 per cent to $19 billion in 2006-07. Growth was led by a 22 per cent increase in exports to Malaysia (with significant rises in copper, crude petroleum and aluminium).

Exports to Singapore rose 10 per cent, with exports of crude petroleum up by 30 per cent. Exports to Indonesia rose 6 per cent, supported by rises in crude petroleum, live animals and zinc.

India became Australia’s fourth-largest merchandise export market in 2006-07, with exports rising 37 per cent to $10.1 billion. Growth to India was driven by increases in gold exports which comprise nearly half of all merchandise exports to India.

The United States accounted for 6 per cent of Australia’s merchandise exports. In 2006-07, merchandise exports increased 1 per cent with increases in nickel and medical instruments offsetting falls of 43 per cent in minerals and fuels (from $303 million down to $174 million) and 97 per cent in passenger motor vehicles. The latter reflected GM Holden ceasing exports of the Monaro. Holden’s exports to the United States are set to resume in 2007-08 - with sales of the new Pontiac G8 vehicles.

Elsewhere, exports to New Zealand rose 8 per cent to $9.5 billion with large increases in fuels and agriculture exports. Exports to the Middle East increased 4 per cent $6.6 billion with substantial increases in gold, passenger motor vehicles and zinc. Exports to the European Union (11 per cent of merchandise exports) increased 2 per cent to $19.2 billion, with a 17 per cent rise in manufactures exports offsetting falls in gold and coal exports.

For further information, log on to www.dfat.gov.au/publications/stats-pubs/dme/direction_exports_0607.

Media Inquiries: Minister Truss' office 02 6277 7420 - Departmental Media Liaison 02 6261 1555