5 June 2008

April Trade Deficit Narrows

Minister for Trade, Simon Crean today welcomed the narrowing of Australia’s trade deficit to its lowest level since February 2007.

Australia’s trade deficit fell by $1.6 billion to $957 million in April 2008, according to figures released by the ABS. Australia’s exports grew 6 per cent to $20.4 billion, the first time export values have reached $20 billion in a month.

The result was driven by strong increases in exports of meat, coal and manufactured goods, as well as significant falls in the value of consumption and capital goods imports.

Resources and manufactured exports both hit record monthly levels in April. Imports of goods and services fell 2 per cent to $21.4 billion. However, Australia’s April trade gap was still the 73rd consecutive deficit.

“Exports of Australian services, industrial products and farm products continue to face trade hurdles in many world markets.”

“Reducing trade barriers in these markets has the potential to significantly boost Australia’s trade performance,” said Mr Crean.

“We cannot afford to pass up the opportunity we have now to finalise the Doha Round of world trade talks, which would cut trade barriers substantially.

“This week Australia helped secure an important message of political commitment by APEC Trade Ministers in Peru to concluding the Doha Round this year. And today I will be hosting an informal gathering of Trade Ministers in the margins of the Paris OECD meeting to discuss how to narrow the gaps in the Doha agenda.”

“A conclusion to the Doha Round would provide a welcome confidence boost at a time of continued uncertainty the world economy. It would be a positive step to help address concerns about surging world food prices,” Mr Crean said.

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