Resource Exports Deliver Trade Surplus: RSPT Will Ensure Australians Get Their Fair Share
Media release
3 June 2010
Minister for Trade Simon Crean has welcomed the first trade surplus in 13 months. According to figures released by the ABS this morning, Australia recorded a trade surplus of $134 million in the month of April 2010, up from a revised deficit of $2.0 billion in March 2010. The result was driven by a $2.2 billion expansion of exports including $2.1 billion in resources export growth.
This growth in the value of resources exports can be attributed to the strong prices currently being paid for iron ore and coal because of strong global demand for these key resources.
Coal and iron ore producers have previously negotiated the prices for their exports through annual contracts. They have now moved to quarterly price negotiations.
“The monthly trade surplus and the strong export figures which underpin it are driven by strong growth in the value of resources exports. This is because iron ore and coal producers have received windfall growth in the price which importers are willing to pay for their product,” Mr Crean said.
“The value of iron ore exports increased by $768 million (in original terms) or 32 per cent, even though the volume of ore exported increased by only 2 per cent. This is a direct result of the higher prices negotiated by iron ore producers following the shift towards quarterly indexed pricing.”
“This is further evidence that the fortunes of these companies and the prices that are paid for their products are set on global markets, not on the back of an envelope.”
“Strong growth in resources exports is further evidence that we are on the cusp of a second-wave mining boom and the Australian Government is determined to get the tax regime right so that Australians receive their fair share from the sale of Australia's non-renewable resources,” Mr Crean said.
“It is vital that as prices for Australia's non-renewable resources grow, the Government takes the opportunity to invest the proceeds in the cause of nation-building. The Resource Super Profits Tax will allow the Government to do this.”
"These figures show the importance of the Rudd Government's strategic commitment to Asia and economic growth in that region. We have worked hard to strengthen the economic relationship between Australia and key Asian economies," Mr Crean said.
The growth of resources exports shows the dividends of this work through large increases in the value of Australia's trade with North Asia. Goods exports to China, our largest trading partner, increased 23 per cent in April, while exports to our second largest trading partner, Japan increased 17 per cent. Goods exports to Korea also increased 9 per cent.
Media inquiries
- Trade Minister's Office: (02) 6277 7420
- Departmental Media Liaison: (02) 6261 1555