6 May 2008
Trade Figures Confirm China and Japan as Top Trade Partners
Today’s trade figures are a milestone in the evolution of Australia’s trading relationship with China, said the Minister for Trade, Simon Crean.
Australian Bureau of Statistics data released today shows that China became Australia's largest two-way trading partner (imports and exports of both goods and services) in 2007.
“These figures show there is much potential for our trade to grow even further, which is why we are working hard to negotiate a free trade agreement with China,” Mr Crean said.
“We have made good progress in negotiating that agreement over the past month, and I look forward to further progress at our next talks in June.”
Total trade with China in 2007 grew 15 per cent to $58.0 billion. Australia’s exports of goods to China rose 17 per cent to $23.8 billion, while services exports grew 18 per cent to $3.9 billion on the back of strong growth in Chinese student enrolments.
Despite China becoming our overall largest trading partner, Japan will continue to be Australia’s largest export destination for the foreseeable future. Total two-way trade with Japan was worth $54.5 billion in 2007.
“Japan continues to have a special significance as an Australian trading partner, reflecting the importance of the political, strategic, trade and economic links our two countries have developed over 50 years,” Mr Crean said.
The US is our number three trading partner, with total 2007 trade growing 0.1 per cent to $47.7 billion.
The March trade deficit of $2.7 billion (seasonally adjusted) was the third-largest on record and the 72nd consecutive deficit [see graph below].
“We have seen a clear deterioration in the trade balance over the past 18 months,” said Mr Crean.
“To record these woeful figures in the middle of a resources boom shows how badly the previous Government neglected Australia’s export sector.
“We need to look beyond the resources boom and end the neglect so we can start to turn our trade performance around.
“The Mortimer Review of export policies and programs and the Rudd Government’s broader economic reforms to infrastructure, education and regulation will improve the economy’s export capacity.
“Our single biggest opportunity for an export breakthrough is through the Doha Round of world trade talks. By liberalising world trade, we can sharply improve Australia’s export performance. At the same time we can boost the world economy and help to alleviate the world food crisis.
“As outlined in my speech at the National Press Club last night on Australia’s trade relationship with Europe, the Australian Government is actively pushing for a successful conclusion to the Doha Round which would improve Australia’s export prospects for agriculture, industrial products and services.”
Negotiations at the border (including in the Doha Round) and reforms behind the border in the domestic economy are the “twin pillars” of the Government’s trade policy.
- Also see Mr Crean’s 5 May speech at the launch of European Australian Business
Media Inquiries: Mr Crean's office 02 6277 7420 - Departmental Media Liaison 02 6261 1555