7 April 2008

Crean Says New Record Deficit Underlines Need for Doha Outcome

Australia’s latest record trade deficit shows the vital need for advances in world trade talks, says the Minister for Trade, Simon Crean.

Australia’s monthly trade deficit reached a new record of $3.3 billion in February on the back of a disappointing export performance. Exports for February 2008 fell four per cent to $18.3 billion, more than outweighing falling imports.

“Liberalising world trade has the potential to sharply increase Australian exports,” says Mr Crean.

“Australian services, industrial products and farm products all continue to face substantial trade barriers in many parts of the world.

“The Doha Round of world trade talks is our biggest opportunity for an export breakthrough. These talks are reaching a critical point this month in Geneva. The Government is using all our resources – including the Prime Minister’s meetings with key international leaders – to move these talks forward.

“We are also negotiating on a series of free trade agreements with countries such as China which hold out the potential for further gains.”

Mr Crean added that the February trade figures underlined the importance of the wide-ranging review of Australia’s export policies and programs now being conducted by David Mortimer.

“The Mortimer Review has been charged with developing new ideas and recommending approaches that will maximise Australia’s export performance,” Mr Crean said.

“Australia has been left a shocking legacy of export underperformance by the previous government.

“We are now moving quickly to develop a trade framework for the future. Under our “twin pillars” approach to trade, trade liberalisation at the border will be complemented by economic and trade reform behind the border – including reforms that boost Australia’s export capacity and productivity.”

Media Inquiries: Mr Crean's office 02 6277 7420 - Departmental Media Liaison 02 6261 1555