Australian Government Department of Foreign Affairs and Trade, 2010

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Trade at a Glance 2010 [PDF 2.97 MB]

Minister for Trade's Foreword

Welcome to Trade at a Glance 2010, a concise summary of Australia's trade performance.

Australia is a trading nation – and our trading relationships have been a major contributor to the prosperity Australians enjoy.

Exports generate more than 20 per cent of the nation's income and trade is directly responsible for more than two million – or one in five – Australian jobs.

Without trade and Australia's ongoing commitment to trade liberalisation, the living standards of Australians would be substantially lower.

Exports of goods and services add to the wealth of our nation. Every day, Australian-made products are shipped to more than 200 countries around the world. They include our minerals, fuels and farm products, manufactured goods like cars and medicines, and our expanding array of services and knowledge-based industries.

Imports, too, are vital to a healthy and open economy. They give consumers the choice of a wide range of affordable, quality products. They also give Australian companies a wider choice of inputs into their products, making them more efficient and productive. And, like exports, they help create jobs.

I hope you find Trade at a Glance 2010 a valuable resource.

The Hon Dr Craig Emerson MP

Minister for Trade

Trade Performance at a Glance

Profile of Australian Trade

Resource commodities including coal and iron ore, made up around 40 per cent of Australia's exports in 2009. Other key exports included services such as education and tourism, manufactured goods, and agricultural produce. Australia's two-way trade totalled $506.8 billion, down 10 per cent from the record $563.2 billion in 2008.

China, Japan, United States and the Republic of Korea were the nation's top four trading partners in 2009. About 70 per cent of Australia's trade was with the member economies of the Asia-Pacific Economic Cooperation (APEC) forum.

More than 2 million Australian jobs are generated by trade.

Exports of goods and services, 2009^(a),
Share of exports by sector

• (a) Balance of payments basis.
• (b) Minerals and fuels.

Source: ABS catalogue 5368.0.

Australia's leading exports (goods & services) 2009^(a)

	$ billions
Coal	39.4
Iron ore & concentrates	30.0
Education-related travel services	18.0
Gold (b)	15.6
Personal travel (excl education) services	12.1
Natural gas	7.6
Crude petroleum	7.2
Aluminium ores & conc (incl alumina)	4.8
Wheat	4.7
Beef	4.3
Aluminium	4.1
Copper ores & concentrates	3.7
Medicaments (incl veterinary)	3.7
Professional services	3.3
Technical & other business services	3.2
Passenger transport services (c)	2.9
Business travel services	2.7
Copper	2.5
Alcoholic beverages	2.4
Refined petroleum	2.4
Total exports (d)	249.9

• (a) Goods trade is on a recorded trade basis. Services trade is on a balance of payments basis.
• (b) Balance of payments basis.
• (c) Includes related agency fees and commissions.
• (d) Total exports on a BOP basis.

Sources: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Australia's 2009 Trade Performance

The worst global recession in the past 75 years saw global trade flows (in volume terms) fall by 12 per cent in 2009. Australia's two-way trade in goods and services fell 10.0 per cent to $506.8 billion (with volumes falling 3.9 per cent).

The value of Australia's export fell by 9.8 per cent in 2009 to $249.9 billion, with falls across the board. However, export volumes rose 0.6 per cent in 2009, making Australia one of only three OECD economies to record export volume growth in 2009 (the others being Iceland and New Zealand).

Australia's import values in 2009 fell 10.2 per cent to $257.0 billion (with volumes falling 7.8 per cent). The fall in imports during the year reflected a slower Australian economy (with reduced domestic consumption and investment). As a result of imports falling faster than exports, the trade deficit improved $2.3 billion to $7.1 billion.

Exports of goods and services (a)

(a) Balance of payments basis.

Source: ABS catalogue 5368.0.

The Australian Economy

The Australian economy has been resilient throughout the Global Financial Crisis. Australia was one of just three OECD economies to avoid recession in 2009, with economic growth of 1.4 per cent. Australia's average unemployment rate during the crisis was one of the lowest in the OECD at 5.6 per cent in 2009.

The strong performance of the Australian economy was the result of a number of factors, including:

• The strength of the Australian financial sector. No Australian banks collapsed or needed government bail-outs during the crisis. Of the 10 largest banks in the world with a credit rating of AA or better, four are Australian.
• Economic measures which added 2.1 percentage points to GDP growth in 2009 – supporting around 200,000 jobs.
• Australia's close trade and economic links with the emerging economies of Asia also helped support growth and employment. Although world trade values fell 23 per cent in 2009, Australia's exports to China increased by 29 per cent and India by 10 per cent.
• Australia was one of only three advanced economies to record an increase in export volumes in 2009.
• Australia's budget position is among the strongest in the developed world.

Australia's major goods exports 2009

Goods(a)	$ millions	% share
Coal	39,397	20.0
Iron ore & concentrates	29,960	15.2
Gold (b)	15,603	7.9
Natural gas	7,640	3.9
Crude petroleum	7,180	3.6
Aluminium ores & conc (incl alumina)	4,798	2.4
Wheat	4,747	2.4
Beef	4,307	2.2
Aluminium	4,068	2.1
Copper ores & concentrates	3,722	1.9
Medicaments (incl veterinary)	3,661	1.9
Copper	2,494	1.3
Alcoholic beverages (mainly wine)	2,418	1.2
Refined petroleum	2,400	1.2
Meat (excl beef )	2,240	1.1
Wool & other animal hair (incl tops)	1,840	0.9
Passenger motor vehicles	1,583	0.8
Animal feed	1,216	0.6
Milk & cream	1,208	0.6
Live animals (excl seafood)	1,144	0.6
Total goods exports (c)	196,890	100.0

• (a) Recorded trade basis.
• (b) Balance of payments basis.
• (c) Total goods exports on a BOP basis.

Sources: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Australia's services exports 2009^(a)

	$ millions	% share
Manufactured services on physical inputs owned by others	329	0.6
Maintenance & repair	69	0.1
Transport
Passenger (b)	2,911	5.5
Freight	625	1.2
Other (b)	2,073	3.9
Postal & courier services	946	1.8
Total Transport	6,555	12.4
Travel
Business	2,708	5.1
Personal	30,108	56.8
- Education-related	17,986	33.9
- Other personal (c)	12,122	22.9
Total Travel	32,816	61.9
Other
Construction	107	0.2
Insurance & pension	287	0.5
Financial	1,271	2.4
Intellectual property charges	938	1.8
Telecommunications, computer & information	1,911	3.6
Other business services	7,086	13.4
Personal, cultural and recreational	776	1.5
Government services	853	1.6
Total other services	13,229	25.0
Total services exports	53,202	100.0

• (a) Balance of payments basis.
• (b) Passenger services include air transport-related agency fees and commissions.
• (c) Inbound tourism for mainly recreational purposes.

Based on ABS catalogue 5368.0.

Australia's major goods imports 2009

Goods(a)	$ millions	% share
Crude petroleum	12,281	6.0
Passenger motor vehicles	11,678	5.7
Refined petroleum	10,281	5.1
Gold (b)	8,994	4.4
Medicaments (incl veterinary)	7,648	3.8
Telecom equipment & parts	7,239	3.6
Computers	5,589	2.8
Goods vehicles	4,367	2,1
Pumps (excl liquid pumps) & parts	3,651	1.8
Monitors, projectors & TVs	3,251	1.6
Prams, toys, games & sporting goods	2,823	1.4
Measuring & analysing instruments	2,649	1.3
Furniture, mattresses & cushions	2,632	1.3
Civil engineering equipment & parts	2,572	1.3
Electrical machinery & parts	2,274	1.1
Vehicle parts and accessories	2,205	1.1
Heating & cooling equipment & parts	2,152	1.1
Household-type equipment	2,079	1.0
Manufactures of base metal	1,996	1.0
Plastic articles	1,930	0.9
Total goods imports (c)	203,172	100.0

• (a) Recorded trade basis.
• (b) Balance of payments basis.
• (c) Total goods imports on a BOP basis.

Sources: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Australia's services imports 2009^(a)

	$ millions	% share
Manufactured services on physical inputs owned by others	4	0.0
Maintenance & repair	228	0.4
Transport
Passenger (b)	5,112	9.5
Freight	7,829	14.6
Other (b)	377	0.7
Postal & courier services	176	0.3
Total Transport	13,494	25.1
Travel
Business	3,005	5.6
Personal	19,858	36.9
- Education-related	823	1.5
- Other personal (c)	19,035	35.4
Total Travel	22,863	42.5
Other
Construction	0	0.0
Insurance & pension	539	1.0
Financial	690	1.3
Intellectual property charges	3,611	6.7
Telecommunications, computer & information	2,165	4.0
Other business services	7,949	14.8
Personal, cultural and recreational	1,347	2.5
Government services	887	1.6
Total other services	17,188	32.0
Total services exports	53,777	100.0

• (a) Balance of payments basis.
• (b) Passenger services include air transport-related agency fees and commissions.
• (c) Outbound tourism for mainly recreational purposes.

Based on ABS catalogue 5368.0.

Australia's top 10 two-way trading partners 2009 ($ billions)

		Goods(a)	Services(b)	Total(c)	% share
1	China	78.2	6.9	85.1	16.8
2	Japan	54.9	4.3	59.2	11.7
3	United States (d)	31.9	15.7	47.6	9.4
4	Republic of Korea	22.3	2.1	24.4	4.8
5	United Kingdom	15.2	9.1	24.3	4.8
6	Singapore	16.5	6.4	23.0	4.5
7	India	16.5	4.4	20.9	4.1
8	New Zealand	14.5	6.1	20.6	4.1
9	Thailand	15.9	3.4	19.2	3.8
10	Germany	12.2	2.1	14.4	2.8
Total two-way trade (b)		400.1	106.8	506.8	100.0
of which:	APEC	287.0	60.9	347.5	68.6
	ASEAN	58.8	17.7	76.6	15.1
	EU27(d)	56.9	20.3	77.2	15.2
	OECD	189.7	52.8	242.6	47.9

• (a) Recorded trade basis.
• (b) Balance of payments basis.
• (c) Total may not sum due to rounding.
• (d) Excludes imports of aircraft from regional import totals from Sep-08 onwards

Based on ABS trade data on DFAT STARS database and ABS catalogues 5368.0. and 5368.0.05.44.

Australia's global export position - How we compare to the rest of the world 2009 (US$b)

Rank	Country	Goods(a)	Services(b)	Total exports	% share
1	United States	1,057	470	1,527	9.7
2	Germany	1,121	215	1,336	8.5
3	China	1,202	129	1,330	8.4
4	Japan	581	124	705	4.5
5	France	475	140	615	3.9
6	Netherlands	499	92	590	3.7
7	United Kingdom	351	240	590	3.7
8	Italy	405	101	506	3.2
9	Belgium	370	75	444	2.8
10	Republic of Korea	364	56	419	2.7
11	Hong Kong (c)	330	86	416	2.6
12	Canada	316	57	373	2.4
13	Russian Federation	304	42	346	2.2
14	Singapore	270	74	343	2.2
15	Spain	218	122	340	2.2
16	Mexico	230	15	245	1.6
17	India	155	86	242	1.5
18	Switzerland	173	68	241	1.5
19	Taiwan	204	31	235	1.5
20	Ireland	115	95	209	1.3
21	Saudi Arabia	189	10	198	1.3
22	Australia	154	41	195	1.2
23	Sweden	131	60	191	1.2
24	Austria	137	53	190	1.2
25	Malaysia	157	28	185	1.2
26	United Arab Emirates	175	8	183	1.2
27	Thailand	152	30	183	1.2
28	Brazil	153	26	179	1.1
29	Poland	134	29	163	1.0
30	Norway	121	38	158	1.0
Total exports		12,461	3,312	15,773

• (a) Goods on recorded trade basis.
• (b) Commercial services on balance of payments basis.
• (c) Special Administrative Region of China.

Sources: WTO online database and EIU Viewswire.

Australia's top 10 export markets 2009 ($ billion)

		Goods(a)	Services(b)	Total(c)	% share
1	China	42.4	5.5	47.9	19.2
2	Japan	38.3	2.1	40.4	16.2
3	India	14.5	3.7	18.2	7.3
4	Republic of Korea	15.6	1.8	17.5	7.0
5	United States	9.6	5.6	15.2	6.1
6	United Kingdom	9.0	4.2	13.3	5.3
7	New Zealand	7.9	3.2	11.1	4.5
8	Singapore	5.4	2.9	8.3	3.3
9	Taiwan	6.5	0.6	7.1	2.8
10	Indonesia	4.1	1.2	5.3	2.1
Total exports (b)		196.9	53.0	249.9	100.0
of which:	APEC	147.7	30.6	178.3	71.3
	ASEAN	19.6	8.3	27.9	11.1
	EU27	17.4	8.6	26.0	10.4
	OECD	91.9	23.2	115.1	46.1

• (a) Recorded trade basis.
• (b) Balance of payments basis.
• (c) Total may not sum due to rounding.

Based on ABS trade data on DFAT STARS database and ABS catalogues 5368.0. and 5368.0.55.004.

Australia's global import position - How we compare to the rest of the world 2009 (US$b)

Rank	Country	Goods(a)	Services(b)	Total	% share
1	United States	1,604	331	1,935	12.3
2	Germany	931	255	1,187	7.5
3	China	1,006	157	1,163	7.4
4	Japan	551	146	696	4.4
5	France	551	124	675	4.3
6	United Kingdom	480	160	640	4.1
7	Netherlands	446	87	533	3.4
8	Italy	410	114	524	3.3
9	Belgium	351	72	423	2.7
10	Canada	330	77	407	2.6
11	Republic of Korea	323	74	397	2.5
12	Hong Kong (c)	353	44	397	2.5
13	Spain	290	87	377	2.4
14	Singapore	246	74	320	2.0
15	India	244	74	318	2.0
16	Mexico	242	22	264	1.7
17	Russian Federation	192	60	252	1.6
18	Australia	165	41	207	1.3
19	Taiwan	175	29	204	1.3
20	Switzerland	156	34	190	1.2
21	Austria	144	38	181	1.2
22	Brazil	134	44	178	1.1
23	United Arab Emirates	140	35	175	1.1
24	Thailand	134	38	172	1.1
25	Poland	147	24	170	1.1
26	Sweden	119	47	165	1.0
27	Ireland	62	104	165	1.0
28	Saudi Arabia	92	72	164	1.0
29	Turkey	141	15	156	1.0
30	Malaysia	124	26	150	1.0
Total imports		12,647	3,115	15,762

• (a) Goods on recorded trade basis.
• (b) Commercial services on balance of payments basis.
• (c) Special Administrative Region of China.

Sources: WTO online database and EIU Viewswire.

Australia's top 10 import sources 2009 ($ billion)

		Goods(a)	Services(b)	Total(c)	% share
1	China	35.8	1.5	37.3	14.5
2	United States	24.8	10.1	34.9	13.6
3	Japan	16.7	2.1	18.8	7.3
4	Singapore	11.2	3.5	14.7	5.7
5	Thailand	11.6	2.3	13.9	5.4
6	Germany	10.6	1.1	11.7	4.6
7	United Kingdom	6.2	4.9	11.1	4.3
8	New Zealand	6.6	2.9	9.5	3.7
9	Malaysia	7.6	1.0	8.5	3.3
10	Republic of Korea	6.6	0.3	6.9	2.7
Total imports(b)		203.2	53.8	256.9	100.0
of which:	APEC	141.8	30.0	171.8	66.9
	ASEAN	39.3	9.4	48.7	19.0
	EU27	39.5	11.7	51.2	19.9
	OECD	101.1	29.6	130.7	50.9

• (a) Recorded trade basis.
• (b) Balance of payments basis.
• (c) Total may not sum due to rounding.
• (d) Excludes imports of aircraft from regional import totals from Sep-09 onwards.

Based on ABS trade data on DFAT STARS database and ABS catalogues 5368.0. and 5368.0.55.004.

Foreign investment in Australia 2009 ($ millions)^(a)

Country		Level of direct investment in Australia	Level of total investment in Australia
United States		99,161	514,305
United Kingdom		63,177	498,559
Japan		44,963	102,024
Netherlands		33,640	43,362
Hong Kong (SAR of China)		5,464	43,187
Singapore		15,826	40,224
Germany		16,389	38,106
Switzerland		17,543	32,133
New Zealand		6,063	31,231
France		12,608	22,976
Total all countries		436,059	1,897,67
of which:	APEC	198,567	791,145
	ASEAN	21,132	51,718
	EU27	146,597	658,689
	OECD	327,844	1,361,523

(a) Foreign investment in Australia: level of investment (stocks) as at 31 December 2009, by selected country and country group.

Source: ABS catalogue 5352.0.

Australian investment abroad 2009 ($ millions)^(a)

Country		Level of direct investment abroad	Total Australian investment abroad
United States		99,621	403,673
United Kingdom		64,447	178,746
New Zealand		41,885	79,759
Germany		9,711	37,653
Canada		np	36,760
Japan		682	31,607
France		310	27,829
Hong Kong (SAR of China)		11,496	27,713
Netherlands		4,181	26,361
Singapore		9,213	21,658
Total all countries		344,572	1,130,363
of which:	APEC	201,872	641,417
	ASEAN	15,548	35,643
	EU27	93,856	346,657
	OECD	266,644	897,697

(a) Australian investment abroad: level of investment (stocks) as at 31 December 2009, by selected country and country group.

Source: ABS catalogue 5352.0.

Australia's industry structure 2009

	Gross value added(a)		Employed persons(b)
	($m)	%share(c)	('000)	% share
Agriculture, forestry and fishing	31,708	2.9	358.6	3.3
Mining	81,397	7.3	161.0	1.5
Manufacturing	100,902	9.1	1,002.1	9.3
Services
Electricity, gas and water	29,310	2.6	133.3	1.2
Construction	83,139	7.5	980.7	9.1
Wholesale trade	54,686	4.9	407.0	3.8
Retail trade	55,110	5.0	1,193.0	11.0
Accommodation & food services	26,560	2.4	726.0	6.7
Transport postal and warehousing	59,492	5.4	583.9	5.4
Information, media & telecommunications	34,003	3.1	217.4	2.0
Finance and insurance	118,640	10.7	393.6	3.6
Rental, hiring & real estate	36,533	3.3	182.6	1.7
Professional, scientific & technical	71,597	6.4	784.0	7.3
Administrative & support	28,297	2.5	354.1	3.3
Public administration & safety	61,414	5.5	667.4	6.2
Education & training	49,223	4.4	807.0	7.5
Health care & social assistance	69,997	6.3	1,185.4	11.0
Arts & recreation	10,305	0.9	200.8	1.9
Other services	21,911	2.0	439.2	4.1
Total services	810,217	72.9	9,255.3	85.6
Ownership of dwellings	86,567	7.8
Gross value added at basic prices (d)	1,110,792	100.0
Taxes less subsidies on products	88,330
Statistical discrepancy (e)	8,450
Total (d)	1,207,570		10,808	100.0

• (a) The term is used to describe gross product by industry and by sector (Chain Volume Measures reference year 2007-08). Industry breakdown based on ANZSIC 2006.
• (b) Derived from seasonally adjusted data on an annual average.
• (c) As a share of GDP at basic prices.
• (d) Basic prices are amounts received by producers, including the value of any subsidies on products, but before any taxes on products. GDP at purchasers' (market) prices is derived by adding Taxes less subisidies on products to gross value added at basic prices.
• (e) Production approach.

Based on ABS catalogues 5206.0, 6202.0 and 6203.0.

Key economic indicators Australia

		1999	2007	2008	2009
Demand and production – chain volume measures, reference year 2007-08
Gross domestic product (a)	% change	4.3	5.0	2.1	1.3
Exports of goods & services (a)	% change	4.7	3.3	3.0	1.5
Imports of goods & services (a)	% change	8.4	12.2	11.1	-7.9
Labour force
Population (b)	'000	19,038	21,263	21,723	22,066(e)
Labour force (c)	'000	9,507	11,144	11,319	11,550
Employed persons (c)	'000	8,870	10,665	10,801	10,915
- Annual growth	%	2.1	2.5	1.3	1.1
Unemployment rate (c)	%	6.7	4.3	4.6	5.5
Prices and interest rates
Consumer prices	% change	1.8	3.0	3.7	2.1
Interest rates - 90 day bills (d)	% pa	5.0	6.7	7.0	3.4

• (a) Derived from annual movements in original data.
• (b) At end of period.
• (c) Derived from seasonally adjusted data.
• (d) Annual average.
• (e) September 2009 data.

Sources: Australian Bureau of Statistics and Reserve Bank, various catalogues.

Australia's Trade and Economic Statistics

India's Rise Fuels Trade Growth

India is one of Australia's fastest growing major trading partners.

In 2009 the Prime Ministers of Australia and India agreed to a Strategic Partnership, reflecting shared interests and values.

India's economy is expanding thanks to economic reforms. The International Monetary Fund (IMF) estimates it will grow by 9.5 per cent in 2010.

This strong growth rate is reflected in Australia's trade with India.

Two-way trade has grown in value from $3.3 billion in 2000 to $20.9 billion in 2009 – an average rise of 24.6 per cent per annum. Australian exports of goods have grown from A$1.8 billion in 2000 to A$14.5 billion in 2009.

Australia and India are working closely together to stimulate trade and investment growth.

2009 Major Exports to India	$billion	2009 Major Imports from India	$billion
Gold	6.7	Travel services	0.4
Coal	5.0	Electric plant and parts	0.3
Education services	3.2	ICT services	0.1
Copper	0.8	Pearls and gems	0.1
Travel service	0.2	Medicaments	0.1

Australia's Goods and Services Trade with India

Based on ABS trade data on DFAT STARS database & ABS catalogue 5368.0.55.004.

Agriculture

• Wheat overtook beef as Australia's largest agricultural export in 2009.
• Agricultural products accounted for around 11 per cent of Australia's exports in 2009.
• Australia exports around two-thirds of its total farm production.

Agricultural Exports

Based on ABS trade data on DFAT STARS database.

Australia's top agricultural^(a) exports 2009^(b)

Rank	Commodity	$ million	% share
1	Wheat	4,747	15.9
2	Beef	4,307	14.4
3	Wine	2,298	7.7
4	Meat (excl beef )	2,240	7.5
5	Wool & other animal hair (incl tops)	1,840	6.2
6	Animal feed	1,216	4.1
7	Milk & cream	1,208	4.1
8	Live animals (excl seafood)	1,144	3.8
9	Wood in chips or particles	857	2.9
10	Cereal preparations	778	2.6
11	Barley	766	2.6
12	Fruit & nuts	758	2.5
13	Oil-seeds & oleaginous fruits, soft	749	2.5
14	Vegetables	710	2.4
15	Cheese & curd	701	2.3
16	Crustaceans	673	2.3
17	Edible products & preparations	565	1.9
18	Cotton	538	1.8
19	Hides & skins, raw (excl furskins)	522	1.8
20	Fish	273	0.9
Total agricultural(a) exports(b)		29,831	100.0

• (a) Based on the WTO definition of agriculture, which includes alcoholic beverages. Also excludes confidential raw sugar in bulk. Data for confidential raw sugar in bulk are released with a six-month lag. In 2008-09, raw sugar in bulk exports totalled $1.2 billion.
• (b) Recorded trade basis.

Based on ABS trade data on DFAT STARS database.

Minerals and fuels

• Australia's largest export sector in 2009.
• Coal and iron ore were Australia's largest minerals exports, while natural gas was the biggest fuels export.
• China and Japan were Australia's two largest markets for minerals and fuels.

Mineral and Fuels Exports

Based on ABS trade data on DFAT STARS database.

Australia's top minerals and fuels exports 2009

Rank	Commodity(a)	$ million	% share
1	Coal	39,397	38.4
2	Iron ore	29,960	29.2
3	Natural gas	7,640	7.4
4	Crude petroleum	7,180	7.0
5	Aluminium ores (incl alumina)	4,798	4.7
6	Copper ores	3,722	3.6
7	Other ores	2,942	2.9
8	Refined petroleum	2,400	2.3
9	Confidential mineral ores	1,187	1.2
10	Liquefied propane & butane	1,006	1.0
11	Nickel ores	804	0.8
12	Ferrous waste & scrap	689	0.7
13	Uranium or thorium ores	679	0.7
14	Non-ferrous waste & scrap	622	0.6
15	Precious metal ores (excl gold)	193	0.2
16	Coke & semi-coke	161	0.2
17	Crude minerals	155	0.2
18	Stone, sand & gravel	89	0.1
19	Natural abrasives	42	0.0
20	Residual petroleum products	14	0.0
Total minerals and fuels exports(b)		102,556	100.0

• (a) Recorded trade basis.
• (b) Total minerals and fuels exports on a BOP basis.

Based on ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Manufacturing

• Aluminium medicines and copper were Australia's largest exports of manufactured goods.
• Foreign sales of passenger motor vehicles slumped worldwide as a result of the Global Financial Crisis, resulting in lower exports from Australian car manufacturers.
• The manufacturing sector accounted for approximately 16 per cent of Australian exports in 2009.

Manufacturing Exports

Based on ABS trade data on DFAT STARS database.

Australia's top manufactures exports 2009

Rank	Commodity(a)	$ million	% share
1	Aluminium	4,068	10.5
2	Medicaments (incl veterinary)	3,661	9.4
3	Copper	2,494	6.4
4	Passenger motor vehicles	1,583	4.1
5	Medical instruments (incl veterinary)	1,133	2.9
6	Measuring & analysing instruments	911	2.3
7	Telecom equipment & parts	891	2.3
8	Zinc	890	2.3
9	Aircraft, spacecraft & parts	863	2.2
10	Lead	848	2.2
11	Civil engineering equipment & parts	807	2.1
12	Specialised machinery & parts	751	1.9
13	Pigments, paints & varnishes	649	1.7
14	Nickel	640	1.6
15	Pearls & gems	540	1.4
16	Vehicle parts & accessories	535	1.4
17	Starches, inulin & wheat gluten	530	1.4
18	Paper & paperboard	503	1.3
19	Electrical circuits equipment	500	1.3
20	Computer parts & accessories	499	1.3
Total manufactures exports(b)		38,815	100.0

• (a) Recorded trade basis.
• (b) Total manufactures exports on a BOP basis.

Source: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Trade Policy at a Glance

Australia's Trade Policy

A Strong, Prosperous and Outward Looking Nation

Trade is vital to Australia's economy and the prosperity of its people.

Australia s trade policy aims to open new markets, reduce barriers to trade and improve market access for Australian goods and services. The Government is also working to improve competition, innovation and productivity in Australia. Australia is committed to full participation in the global economy and supports an open, transparent and rules based global trading system.

The Government is pursuing improved market access for Australian exporters in global markets through multilateral trade negotiations in the World Trade Organization (WTO).

At a regional level, the Government actively engages with the Asia-Pacific Economic Cooperation (APEC) forum and the Association of South East Asian Nations (ASEAN).

The Australian Government also undertakes bilateral negotiations with key trading partners through comprehensive Free Trade Agreements.

The international trading regime of the WTO is open, equitable and enforceable. the WTO's dispute settlement system is central to that regime. It gives member countries and exporters confidence that the commitments and obligations contained in the WTO agreements will be respected. Regional fora (APEC and ASEAN) and comprehensive bilateral agreements provide exporters with further rules-based systems and a more open, fair and predictable trading environment in which to operate.

For more information on Australia's trade policy visit: www.dfat.gov.au/trade

For more information on Australia and WTO dispute settlement visit: /trade/negotiations/wto_disputes.html

Australia and the WTO

As a founding member of both the World Trade Organization (WTO) in 1995 and its predecessor, the General Agreement of Tariffs and Trade (GATT) in 1947, Australia has a longstanding commitment to the multilateral trading system operated by the WTO. This system provides the legal framework governing world trade. WTO Members agree on legally binding rules that provide important legal certainty for their exporters.

The Australian Government's key trade policy priority is a successful conclusion to the WTO Doha Round of trade negotiations, launched in Doha, Qatar, in November 2001. It seeks real improvements in market access for Australian exports across all negotiating sectors – agriculture, industrial goods and services.

For more information on Australia's participation in the WTO visit: www.dfat.gov.au/trade/negotiations

The Doha Round has a strong development focus. It aims to improve developing countries' market access, reduce agricultural subsidies and increase global Aid for Trade. Aid for Trade refers to development assistance that addresses trade-related needs (such as policy, infrastructure and productive capacity) to help increase developing country participation in trade and support economic growth. Australia's Aid for Trade represents about 10 per cent of the overall aid program, which was around $400 million in 2009-2010. Aid for Trade is part of the Government's support for the achievement of the United Nations' Millennium Development Goals.

For more information on Australia's development assistance visit: www.ausaid.gov.au

Agricultural Trade

The Australian Government's goal in the agriculture negotiations of the Doha Round is to reform agricultural trade, which is one of the most distorted and highly protected sectors of international trade.

As Chair of the Cairns Group, the Australian Government is pushing for agricultural trade reform through the WTO. In particular, Australia is pursuing significant reductions in agricultural tariffs, deep cuts to domestic support and tight disciplines on export competition.

• The Cairns Group is a coalition of 19 agricultural exporting countries, bringing together a diverse range of developed and developing countries from Latin America, Africa and the Asia-Pacific region.
• The Cairns Group has been an influential voice in the agricultural reform debate since its formation in 1986 and continues to play a major role in pressing the WTO membership to meet the Doha Round's far-reaching mandate.

Members of the Cairns Group

• Argentina
• Australia
• Bolivia
• Brazil
• Canada
• Chile
• Colombia
• Costa Rica
• Guatemala
• Indonesia
• Malaysia
• New Zealand
• Pakistan
• Paraguay
• Peru
• Philippines
• South Africa
• Thailand
• Uruguay

Non-Agricultural Trade

In the Doha Round, the Government is pushing for reductions in tariffs and other barriers to trade in non-agricultural goods (which include industrial, forestry and seafood products). these reforms would expand potential markets for Australian industry.

Non-agricultural trade accounts for around 90 per cent of global trade in goods. A strong Doha Round outcome would provide a significant boost to the world economy, with flow-on benefits to Australia.

Services Trade

The Government is working hard to achieve better access for Australia's services exports which accounted for approximately one fifth of Australia's total exports in 2009, at $53 billion. In coming years, the services sector is predicted to be the most strongly growing sector in global trade. Education and tourism services are Australia's top services exports.

The Doha Round negotiations aim to reduce barriers that services exporters face in overseas markets by recognising qualifications and standards and investment rules and regulations relating to the temporary entry of business people. Given the importance of this sector to the Australian economy, Australia takes a prominent role in the services negotiations. Australia also promotes improved services exports through APEC and the negotiation of comprehensive Free Trade Agreements.

Trade Liberalisation and Jobs

Trade, both exports and imports, accounts for one in five Australian jobs. This equates to over 2 million jobs in today's workforce.

Trade's share of the economy has grown as barriers to trade have been liberalised. A 2009 study by the Centre for International Economics (CIE) showed that total trade – both exports and imports – supports jobs.

The myth that lower tariffs destroy jobs has been debunked. Trade liberalisation has made the economy more flexible. The number of people employed in Australia in export-related activity in services such as finance, property and business services is increasing.

The jobs created by trade are typically good jobs. According to a study by the Australian Trade Commission and the University of NSW, exporters:

• pay higher wages or salaries than non-exporters, even after allowing for differences in size;
• are more committed than non-exporters to providing a safe working environment;
• employ a higher percentage of staff on a full-time basis; and
• are more likely to offer training to workers than non-exporters.

Another 2010 US study called "Trade and American Jobs" prepared for the Business Roundtable concluded "as US trade, both exports and imports, has grown over the past decade, caused in part by trade liberalising international trade agreements, so has the number of jobs tied to trade. Indeed, trade dependent jobs have grown at a faster pace than US jobs generally."

Trade liberalisation, along with other reforms such as the decentralisation of wage bargaining, deregulation of the financial system, opening the economy to foreign investment and the implementation of competition policy, has helped to reduce unemployment in Australia. As tariffs have fallen and Australia's engagement in international trade has increased, the unemployment rate has fallen from double digit levels in the early 1990s to around 5 per cent currently.

Australia: Trade and Unemployment

Based on ABS catalogues 5206.0 & 6202.0. "(X+M)/GDP" measures the ratio of exports plus imports of goods and services to GDP at current prices. "Unemployment rate" is the average rate of unemployment (not seasonally adjusted) for each year.

Free Trade Agreements (FTAs)

Comprehensive Free Trade Agreements enhance Australia s trading performance if they are truly liberalising across all sectors and consistent with WTO rules and complement the multilateral trading system.

Australia has concluded six FTAs:

• ASEAN-Australia-New Zealand (AANZFTA) - 2010
• Australia-Chile Free Trade Agreement (AClFTA) - 2009
• Australia-United States Free Trade Agreement (AUSFTA) - 2005
• Thailand-Australia Free Trade Agreement (TAFTA) - 2005
• Singapore-Australia Free Trade Agreement (SAFTA) - 2003
• Australia-New Zealand Closer Economic Relations Trade Agreement (ANZCERTA) - 1983

Australia is undertaking FTA negotiations with:

• China
• Japan
• Malaysia
• The Gulf Cooperation Council (Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, United Arab Emirates)
• Republic of Korea
• Trans-Pacific Partnership Agreement
• Pacific Agreement on Closer Economic Relations - PACER Plus
• Indonesia

FTAs

Australia's FTAs aim to:

• Be fully consistent with WTO principles and rules, deliver WTO-plus outcomes and reinforce the multilateral trading system
• Comprehensively and substantially liberalise goods and services trade and investment
• Deliver substantial commercial and wider economic benefits to Australia more quickly than would be possible through multilateral or regional processes
• Promote stronger trade and commercial ties between participating countries, and open up opportunities for Australian exporters and investors to expand their business into key markets
• Secure Australia's competitiveness with key trading partners

For more information on Australia's FTAs and www.dfat.gov.au/trade/

Australia and the G20

Australia is a founding member of the Group of 20 (G20) which emerged in 2008 during the Global Financial Crisis becoming the premier forum for international economic cooperation.

The G20 has played a central role in the global response to the economic crisis and subsequent recovery, including through coordinated fiscal and monetary stimulus packages; support for institutions such as the International Monetary Fund (IMF) and World Trade organization (WTO); and leading the fight against trade protectionism. The first meeting of the G20 at leaders' level was held in Washington in November 2008.

G20 members are:

Argentina, Australia, Brazil, Canada, China, European Union, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom and the United States.

G20 countries make up:

• 87 per cent of global GDP
• 66 per cent of world population
• 78 per cent of world trade

Trade with our region: APEC

Asia-Pacific Economic Cooperation (APEC) is the pre-eminent economic forum in our region and has delivered major gains to Australia and regional trading partners through trade liberalisation, business facilitation, and economic cooperation and technical assistance.

• APEC has 21 member economies which account for 44 per cent of world trade and 69 per cent of Australia's total trade.
• Eight of Australia's 10 largest export markets are within APEC, including our top two export markets – China and Japan.
• APEC is driving an extensive trade and investment liberalisation and facilitation agenda.
• APEC is increasingly focused on structural economic reform as a means of strengthening competitiveness and the efficiency of trade and investment flows.

Members of APEC

Australia, Canada, Peoples Republic of China, Indonesia, Republic of Korea, Mexico, Papua New Guinea, Philippines, Singapore, Thailand, Vietnam, Brunei Darussalam, Chile, Hong Kong China, Japan, Malaysia, New Zealand, Peru, Russia, Chinese Taipei, United States

Australia hosted APEC in 2007, with the APEC Economic Leaders' Meeting held in Sydney in September 2007. Japan is the current host.

For more information on APEC: www.apec.org

Information and contacts

Department of Foreign Affairs and Trade (DFAT)

More information on trade policy and statistics.

Australian Trade Commission (Austrade)

For information on the range of services available to new and existing exporters visit: www.austrade.gov.au or contact 13 28 78

Export Finance and Insurance Corporation (EFIC)

To find out about EFIC's export credit and insurance services visit: www.efic.gov.au or call 1800 887 588

Further contacts

For information about the Australian Government visit www.australia.gov.au

DFAT has a network of offices around the country

State Office	Phone	Fax
Adelaide, South Australia	08 8403 4899	08 8403 4873
Brisbane, Queensland	07 3405 4795	07 3405 4782
Canberra, (Head Office) Australian Capital Territory	02 6261 1111	02 6261 3111
Darwin, Northern Territory	08 8982 4199	08 8982 4155
Hobart, Tasmania	03 6238 4099	03 6238 4024
Melbourne, Victoria	03 9221 5555	03 9221 5455
Perth, Western Australia	08 9231 4499	08 9221 2827
Sydney, New South Wales	02 9356 6222	02 9356 4238