Australian Government Department of Foreign Affairs and Trade, 2009

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Trade at a Glance 2009 [PDF 436 KB]

Minister for Trade's Foreword

Welcome to 'Trade at a Glance 2009', a concise summary of Australia's
trade performance that underlines the vital contribution that trade makes
to Australia's prosperity.

Trade is a stimulus to growth. It expands the
global economy, creates wealth and lifts living standards around the world.
While international trade has been affected by the global economic crisis,
it has on average been steadily expanding for the past 30 years.

Trade
creates jobs, lifts incomes and encourages business to become more innovative.
It gives consumers a greater choice of products at competitive prices and
offers firms more options when sourcing production inputs.

Australia is
part of a global trading system that is governed by the rules of the World
Trade Organization (WTO). These rules aim to create an open, fair and transparent
trading regime for all countries, including developing countries.

Australia
is committed not only to supporting the WTO, but also working with APEC
and our regional partners through free trade agreements and other mechanisms
to open markets and further boost the flow of trade.

I hope you find 'Trade
at a Glance 2009' to be a valuable trade resource.

Simon Crean

Trade Performance at a Glance

Profile of Australian Trade

Australia has a diverse export base and is a major exporter of food, resources, fuels and education. In 2008, Australia's two-way trade totalled $561 billion, up from $456 billion in 2007.

Japan, China, the United States and Singapore were the nation's top four trading partners in 2008. About 70 per cent of Australia's trade was with the member economies of the Asia-Pacific Economic Cooperation (APEC) forum.
Australia is an active and successful global trader of goods and services.

Australia's leading exports (goods and services) 2008^(a)

	($ billion)
Coal	46.4
Iron ore & concentrates	30.2
Education services (b)	15.5
Gold (c)	14.7
Personal travel (excl education) services	11.7
Crude petroleum	10.4
Natural gas	9.1
Professional, technical & other business services	6.5
Aluminium ores & conc (incl alumina)	6.5
Aluminium	5.8
Beef, fresh, chilled or frozen (f.c.f)	5.0
Other transportation services (d)	4.6
Other ores & concentrates	4.2
Copper ores & concentrates	4.2
Passenger transportation services (e)	4.0
Wheat	3.8
Passenger motor vehicles	3.7
Medicaments (incl veterinary)	3.6
Copper	3.5
Refined petroleum	3.5
Total exports (f)	227.9

1. Goods trade are on a recorded trade basis.
   Services trade are on a BOP (BOP) basis.
2. Includes Education-related travel and Other education services.
3. BOP basis.
4. Other transportation services exports covers a range of services
   provided in Australian airports and ports, including cargo and baggage handling services, agents fees associated with passenger and freight transportation and airport and port charges.
5. Includes related agency fees and commissions.
6. Total exports on a BOP basis.

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

Australia's Trade Performance

Australian exports of goods and services grew 27.6 per cent in 2008, to
$278 billion. The strong growth was led by resources exports which were
in very high demand, reaching $121.2 billion. Education services exports
rose 23 per cent to $15.5 billion and around two-thirds of Australia's farm
production was exported.

Imports increased 18.9 per cent to $283 billion.
Strong consumer demand, high oil prices and imports of capital goods by
business contributed to this growth in the first nine months of the year.
The fall in the value of the Australian dollar from a peak of 97 US cents
in July 2008 to below 70 US cents at the end of the year also increased
the value (in Australian dollar terms) of imports priced in foreign currencies.

The Australian Economy

Australia's economic fundamentals are strong and the Government is committed
to responsible economic management. The global financial crisis, which intensified
in mid-September 2008 and has resulted in the worst global recession since
WWII, is posing unique challenges for the Australian economy.

• Despite the global economy being in deep recession, Australia is
  performing better than most other advanced economies.
• Strong financial
  institutions and sound regulatory frameworks
  have enhanced Australia's ability to weather the global financial crisis.
• Despite
  the worsening of the global financial crisis, in the last
  quarter of 2008 Australia had recorded 17 successive years of growth.
• Australia
  has an independent central bank.
• Australia has one of the most multilingual
  workforces in the
  Asia-Pacific region.

Australia's major goods exports 2008

Goods(a)	$ million	% share
Coal	46,403	20.6
Iron ore & concentrates	30,221	13.4
Gold (b)	14,702	6.5
Crude petroleum	10,360	4.6
Natural gas	9,053	4.0
Aluminium ores & conc (incl alumina)	6,467	2.9
Aluminium	5,794	2.6
Beef, fresh, chilled or frozen (f.c.f)	4,969	2.2
Other ores & concentrates	4,221	1.9
Copper ores & concentrates	4,194	1.9
Wheat	3,792	1.7
Passenger motor vehicles	3,716	1.7
Medicaments (incl veterinary)	3,578	1.6
Copper	3,506	1.6
Refined petroleum	3,479	1.5
Alcoholic beverages (mainly wine)	2,615	1.2
Wool & other animal hair (incl tops)	2,284	1.0
Meat (excl beef)	2,135	1.0
Nickel ores & concentrates	1,679	0.7
Milk & cream	1,541	0.7
Total goods exports (b)	224,718	100.0

^(a) Recorded trade basis.
^(b) BOP basis.
^(c) Also including veterinary medicines.

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

Australia's services exports 2008^(a)

	$ million	% share
Transportation
Passenger (b)	3,991	7.5
Freight	666	1.3
Other (b)(c)	4,583	8.6
Total transportation	9,240	17.4
Travel
Business	2,736	5.1
Personal	26,663	50.1
Education-related	15,002	28.2
Other personal (d)	11,661	21.9
Total travel	29,399	55.3
Other
Communication (e)	924	1.7
Construction	82	0.2
Insurance	738	1.4
Financial	1,055	2.0
Computer and information	1,673	3.1
Royalties and licence fees	817	1.5
Other business services	7,655	14.4
Personal, cultural and recreational	780	1.5
Government services, nie	848	1.6
Total other services	14,572	27.4
Total services exports	53,202	100.0

^(a) BOP basis.
^(b) Passenger services include air transport-related agency fees and commissions.
^(c) Transportation operation lease fees are included.
^(d) Inbound tourism for mainly recreational purposes.
^(e) Communications services include other services nie (not included elsewhere).

Source: ABS catalogue 5368.0.

Australia's major goods imports 2008

Goods(a)	$ million	% share
Crude petroleum	17,905	7.8
Refined petroleum	15,061	6.6
Passenger motor vehicles	14,751	6.4
Gold	9,732	4.2
Telecom equipment & parts	6,902	3.0
Medicaments (incl veterinary)	6,800	3.0
Goods vehicles	6,587	2.9
Computers	5,818	2.5
Civil engineering equipment & parts	4,165	1.8
Aircraft, spacecraft & parts	4,159	1.8
Monitors, projectors & TVs	3,019	1.3
Measuring & analysing instruments	2,891	1.3
Furniture, mattresses & cushions	2,802	1.2
Prams, toys, games & sporting goods	2,753	1.2
Vehicle parts & accessories	2,745	1.2
Electrical machinery & parts, nie	2,468	1.1
Fertilisers (excl crude)	2,251	1.0
Mechanical handling equip & parts	2,160	0.9
Specialised machinery & parts	2,146	0.9
Heating & cooling equipment & parts	2,122	0.9
Total goods imports (b)	229,407	100.0

^(a) Recorded trade basis.
^(b) BOP basis

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

Australia's services imports 2008^(a)

	$ million	% share
Transportation
Passenger	7,214	13.4
Freight	9,753	18.1
Other	572	1.1
Total transportation	17,539	32.6
Travel
Business	3,111	5.8
Personal	15,629	29.1
Education-related	894	1.7
Other personal (b)	14,735	27.4
Total travel	18,740	34.8
Other
Communication (c)	1,162	2.2
Construction	0	0.0
Insurance	952	1.8
Financial	632	1.2
Computer and information	1,544	2.9
Royalties and licence fees	3,554	6.6
Other business services	7,372	13.7
Personal, cultural and recreational	1,439	2.7
Government services, nie	848	1.6
Total other services	17,503	32.5
Total services imports	53,783	100.0

^(a) BOP basis.
^(b) Inbound tourism for mainly recreational purposes.
^(c) Communications services include other services (nie)

Source: ABS catalogue 5368.0.

Australia's top 10 two-way trading partners 2008 ($ billion)

		Goods(a)	Services(b)	Total(c)	% share
1	Japan	71.0	5.0	76.0	13.6
2	China	67.6	6.2	73.8	13.2
3	United States	38.8	15.9	54.7	9.8
4	Singapore	22.3	8.7	31.0	5.5
5	United Kingdom	19.3	9.2	28.4	5.1
6	Republic of Korea	24.8	2.4	27.2	4.9
7	New Zealand	16.9	6.0	22.9	4.1
8	India	15.3	3.6	18.9	3.4
9	Thailand	15.5	2.8	18.3	3.3
10	Germany	13.4	2.2	15.7	2.8
Total two-way trade (b)		453.8	107.0	560.8	100.0
of which:	APEC	320.9	60.9	381.9	68.1
	ASEAN	70.7	18.2	88.9	15.8
	EU27	71.0	20.3	91.3	16.3
	OECD	233.1	53.7	286.8	51.1

^(a) Recorded trade basis.
^(b) BOP basis.
^(c) Total may not sum due to rounding.

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

How we compare to the rest of the world 2008 (US$b)">
Australia's global export position -
How we compare to the rest of the world 2008 (US$b)
Rank Country Goods^(a) Services^(b) Total exports % share 1 United States 1,301 522 1,823 9.2 2 Germany 1,465 235 1,700 8.6 3 China 1,428 129 1,558 7.8 4 Japan 782 144 926 4.7 5 France 609 153 762 3.8 6 United Kingdom 458 283 741 3.7 7 Netherlands 634 102 736 3.7 8 Italy 540 123 663 3.3 9 Belgium 477 89 566 2.8 10 Russian Federation 472 50 522 2.6 11 Canada 456 62 519 2.6 12 Republic of Korea 422 74 496 2.5 13 Hong Kong (SAR of China) 370 91 461 2.3 14 Spain 268 143 411 2.1 15 Singapore 338 72 410 2.1 16 Saudi Arabia 329 8 337 1.7 17 Mexico 292 18 310 1.6 18 Taiwan 256 34 289 1.5 19 India 179 101 280 1.4 20 Switzerland 200 74 275 1.4 21 Sweden 184 71 255 1.3 22 Austria 182 62 244 1.2 23 United Arab Emirates 232 8 240 1.2 24 Australia 187 46 233 1.2 25 Malaysia 200 30 229 1.2 26 Brazil 198 29 227 1.1 27 Ireland 124 96 220 1.1 28 Norway 168 46 214 1.1 29 Thailand 178 33 211 1.1 30 Poland 168 35 202 1.0 Total exports 16,127 3,731 19,858

^(a) Recorded trade basis.
^(b) Commercial services on BOP basis.

Sources: WTO online database and EIU Viewswire.

Australia's top 10 export markets 2008 ($ billion)

		Goods(a)	Services(b)	Total(c)	% share
1	Japan	50.8	2.4	53.2	19.1
2	China	32.3	4.7	37.1	13.3
3	Republic of Korea	18.4	1.8	20.2	7.3
4	United States	12.1	6.1	18.3	6.6
5	India	13.5	3.0	16.5	5.9
6	United Kingdom	9.3	4.8	14.1	5.1
7	New Zealand	9.3	3.4	12.8	4.6
8	Singapore	6.1	3.9	10.1	3.6
9	Taiwan	8.3	0.5	8.7	3.1
10	Thailand	5.3	1.0	6.3	2.3
Total exports (b)
		224.7	53.2	277.9	100.0
of which:	APEC	162.4	30.7	193.1	69.5
	ASEAN	22.9	8.5	31.4	11.3
	EU27	23.5	9.0	32.5	11.7
	OECD	117.7	24.5	142.2	51.2

^(a) Recorded trade basis.
^(b) BOP basis.
^(c) Total may not sum due to rounding.

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

Australia's global import position - How we compare to the rest of the world 2008 (US$b)

Rank	Country	Goods(a)	Services(b)	Total	% share
1	United States	2,166	364	2,530	12.7
2	Germany	1,206	285	1,491	7.5
3	China	1,133	154	1,287	6.5
4	Japan	762	166	928	4.7
5	France	708	137	845	4.2
6	United Kingdom	632	199	831	4.2
7	Italy	556	132	689	3.5
8	Netherlands	574	92	666	3.3
9	Belgium	470	84	554	2.8
10	Republic of Korea	435	93	528	2.7
11	Spain	402	108	510	2.6
12	Canada	418	84	503	2.5
13	Hong Kong (SAR of China)	393	44	437	2.2
14	Singapore	320	76	396	2.0
15	Russian Federation	292	75	367	1.8
16	Mexico	323	25	348	1.7
17	India	292	53	344	1.7
18	Taiwan	240	34	274	1.4
19	Australia	200	45	246	1.2
20	Poland	204	30	234	1.2
21	Brazil	183	44	227	1.1
22	Austria	184	42	226	1.1
23	Thailand	179	46	225	1.1
24	Sweden	167	54	221	1.1
25	Switzerland	183	37	220	1.1
26	Turkey	202	16	218	1.1
27	United Arab Emirates	159	36	195	1.0
28	Malaysia	157	29	186	0.9
29	Ireland	83	103	186	0.9
30	Denmark	112	62	175	0.9
Total imports		16,415	3,469	19,884

^(a) Recorded trade basis.
^(b) Commercial services on BOP basis.

Sources: WTO online database and EIU Viewswire.

Australia's top 10 import sources 2008 ($ billion)

		Goods(a)	Services(b)	Total(c)	% share
1	China	35.3	1.4	36.7	13.0
2	United States	26.7	9.8	36.5	12.9
3	Japan	20.2	2.6	22.8	8.1
4	Singapore	16.2	4.8	21.0	7.4
5	United Kingdom	10.0	4.4	14.4	5.1
6	Germany	11.4	1.2	12.6	4.4
7	Thailand	10.2	1.8	12.0	4.2
8	New Zealand	7.6	2.6	10.2	3.6
9	Malaysia	9.0	1.0	10.0	3.5
10	Republic of Korea	6.4	0.6	7.0	2.5
Total imports(b)
		229.4	53.8	283.2	100.0
of which:	APEC	158.5	30.2	188.7	66.6
	ASEAN	47.7	9.7	57.4	20.3
	EU27	47.5	11.3	58.7	20.7
	OECD	115.4	29.2	144.6	51.0

^(a) Recorded trade basis.
^(b) BOP basis.
^(c) Total may not sum due to rounding.

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

Foreign investment in Australia 2008^(a) ($ million)

Country		Level of direct investment in Australia	Level of total investment in Australia
United Kingdom		60,373	427,070
United States		95,417	418,445
Japan		35,959	89,511
Hong Kong (SAR of China)		9,465	56,317
Singapore		10,103	43,050
Switzerland		19,509	38,133
Germany		13,738	36,272
Netherlands		25,085	32,901
France		13,406	28,936
New Zealand		5,362	27,061
Total all countries		392,862	1,724,444
of which:	APEC	176,328	685,644
	ASEAN	15,435	58,271
	EU27	133,243	567,457
	OECD	302,238	1,161,237

^(a) Foreign investment in Australia: level
of investment (stocks) as at 31 December 2008, by selected country and
country group.

Source: ABS catalogue 5352.0.

Australian investment abroad 2008^(a) ($ million)

Country		Level of direct investment abroad	Total Australian investment abroad
United States		121,435	394,614
United Kingdom		23,002	158,079
New Zealand		34,407	66,121
Canada		27,910	38,848
France		333	35,395
Netherlands		5,647	30,020
Japan		1,112	29,108
Germany		7,942	24,390
Singapore		6,726	21,994
Hong Kong (b)		5,847	20,141
Total all countries		281,064	1,010,642
of which:	APEC	213,591	606,356
	ASEAN	13,750	34,437
	EU27	42,615	304,046
	OECD	231,638	829,088

^(a)Australian investment abroad: level of
investment (stocks) as at 31 December 2008,
by selected country and country group.

Source: ABS catalogue 5352.0.

Australia's industry structure 2008

	Gross value added(a)		Employed persons(b)
	($m)	%share(c)	('000)	% share
Agriculture, forestry and fishing	25,386	2.5	371.6	3.5
Mining	84,585	8.4	180.3	1.7
Manufacturing	106,634	10.6	1,066.9	10.1
Services
Electricity, gas and water	22,225	2.2	108.6	1.0
Construction	79,300	7.9	984.5	9.3
Wholesale trade	49,296	4.9	442.8	4.2
Retail trade	59,198	5.9	1,532.2	14.4
Accommodation, cafes and restaurants	20,228	2.0	515.9	4.9
Transport and storage	51,719	5.1	528.5	5.0
Communication services	26,726	2.7	198.7	1.9
Finance and insurance	80,463	8.0	383.8	3.6
Property and business services	131,616	13.1	1,291.4	12.2
Government administration and defence	40,863	4.1	486.4	4.6
Education	44,000	4.4	763.5	7.2
Health and community services	63,749	6.3	1,136.6	10.7
Cultural and recreational services	16,352	1.6	282.6	2.7
Personal and other services	20,067	2.0	413.5	3.9
Total services	705,802	70.1	9,069.2	85.5
Ownership of dwellings	84,565	8.4
Gross value added at basic prices (d)	1,006,972	100.0
Taxes less subsidies on products	84,111
Statistical discrepancy (e)	-1,354
Total (d)	1,089,728		10,608	100.0

^(a) The term is used to describe gross product
by industry and by sector (Chain Volume Measures reference year 2006-07).
^(b) Derived from seasonally adjusted data.
^(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.

Sources: ABS catalogues 5206.0, 6202.0 and 6203.0.

Key economic indicators Australia

		1998	2006	2007	2008
Demand and production – chain volume measures, reference year 2006-07
Gross domestic product (a)	% change	5.1	2.6	4.2	2.0
Exports of goods & services (a)	% change	0.1	3.3	3.2	4.7
Imports of goods & services (a)	% change	6.5	7.3	11.8	10.5
Labour force
Population (b)	'000	18,814	20,874	21,238	21,543(e)
Labour force (c)	'000	9,375	10,910	11,144	11,319
Employed persons (c)	'000	8,688	10,413	10,671	10,808
- Annual growth	%	2.0	3.3	2.5	1.3
Unemployment rate (c)	%	7.3	4.6	4.2	4.5
Prices and interest rates
Consumer prices	% change	1.6	3.3	3.0	3.7
Interest rates - 90 day bills (d)	% pa	5.0	6.0	6.7	7.0

^(a) Derived from annual movements in original data.
^(b) At end of period.
^(c) Derived from seasonally adjusted data.
^(d) Annual average.
^(e) September 2008 data.

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

Australia's Trade and Economic Statistics

Agriculture

• Australia exports around two-thirds of its total farm production.
• Agricultural products(a), including food and beverages, accounted
  for 11.1 per cent of Australia's exports in 2008.
• Most Australian agriculture tariffs are applied at rates between
  zero and five per cent

Australia's top agricultural^(a) exports 2008^(b)

Rank	Commodity	$ million	% share
1	Beef	4,969	16.0
2	Wheat	3,792	12.2
3	Wine	2,510	8.1
4	Wool & other animal hair (incl tops)	2,284	7.4
5	Meat (excl beef)	2,135	6.9
6	Milk & cream	1,541	5.0
7	Barley	1,245	4.0
8	Wood in chips or particles	1,146	3.7
9	Live animals (excl seafood)	1,119	3.6
10	Animal feed	1,106	3.6
11	Cheese & curd	904	2.9
12	Cereal preparations	741	2.4
13	Crustaceans	732	2.4
14	Hides & skins, raw (excl furskins)	718	2.3
15	Vegetables	600	1.9
16	Fruit & nuts	574	1.9
17	Edible products & preparations	505	1.6
18	Cotton	449	1.4
19	Oil-seeds & oleaginous fruits, soft	401	1.3
20	Animal oils & fats	393	1.3
Total agricultural exports		30,984	100.0

^(a) Based on the WTO definition of agriculture, which includes alcoholic
beverages but excludes confidential raw sugar in bulk. Data for
confidential raw sugar in bulk are released with a six-month lag. In
2006-07, raw sugar in bulk exports totalled $958 million.
^(b) Recorded trade basis.

Sources: ABS trade data on DFAT STARS database.

Minerals and fuels

• this was Australia's largest export sector in 2008 – at $120.5 billion
  it accounted for 43.4 per cent of total exports. Coal and Iron ore were
  the top two resources exports.
• Japan and China were Australia's leading export markets for minerals
  and fuels.
• Almost all applied tariffs on mining and energy products in Australia
  are between zero and five per cent.

Australia's top minerals and fuels exports 2008

Rank	Commodity(a)	$ million	% share
1	Coal	46,403	38.5
2	Iron ore & concentrates	30,221	25.1
3	Crude petroleum	10,360	8.6
4	Natural gas	9,053	7.5
5	Aluminium ores & conc (incl alumina)	6,467	5.4
6	Other ores & concentrates	4,221	3.5
7	Copper ores & concentrates	4,194	3.5
8	Refined petroleum	3,479	2.9
9	Nickel ores & concentrates	1,679	1.4
10	Liquefied propane & butane	1,220	1.0
11	Confidential mineral ores	1,206	1.0
12	Ferrous waste & scrap	822	0.7
13	Uranium or thorium ores & conc	736	0.6
14	Non-ferrous waste & scrap	722	0.6
15	Coke & semi-coke	245	0.2
16	Crude minerals, nes	229	0.2
17	Precious metal ores & conc (excl gold)	132	0.1
18	Stone, sand & gravel	116	0.1
19	Natural abrasives	48	0.0
20	Residual petroleum products, nie	19	0.0
Total minerals and fuels exports(b)		120,526	100.0

^(a) Recorded trade basis.

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

Manufacturing

• About 65 per cent
  of Australia's manufactured exports are Elaborately transformed manufactures
  - worth $31 billion.
• Australian exports
  of Simply transformed manufactures (mainly processed metals) were in demand
  in North Asia and were valued at $16 billion.
• the manufacturing
  sector accounted for 17 per cent of Australia's total exports in 2008.
• Australia's applied tariffs on manufactures are almost all either
  five per cent or zero, with the main exceptions being:
  • Passenger motor vehicles and automotive parts and components, for
    which tariffs are currently 10 per cent, but are scheduled to fall to
    five per cent in 2010.
  • Textiles, clothing and footwear, which currently range from five
    percent to 17.5 per cent and are scheduled to fall to five per cent
    (by either 2010 or 2015 depending on the product).

Australia's top manufactures exports 2008

Rank	Commodity(a)	$ million	% share
1	Aluminium	5,794	12.3
2	Passenger motor vehicles	3,716	7.9
3	Medicaments (incl veterinary)	3,578	7.6
4	Copper	3,506	7.4
5	Lead	1,129	2.4
6	Medical instruments (incl veterinary)	1,109	2.3
7	Zinc	1,045	2.2
8	Aircraft, spacecraft & parts	1,010	2.1
9	Uncoated flat-rolled iron & steel	991	2.1
10	Measuring & analysing instruments	913	1.9
11	Telecom equipment & parts	898	1.9
12	Civil engineering equipment & parts	791	1.7
13	Specialised machinery & parts	752	1.6
14	Vehicle parts & accessories	677	1.4
15	Fertilisers (excl crude)	649	1.4
16	Internal combustion piston engines	618	1.3
17	Nickel	605	1.3
18	Pigments, paints & varnishes	563	1.2
19	Starches, inulin & wheat gluten	558	1.2
20	Paper & paperboard	554	1.2
Total manufactures exports(b)		47,260	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.

Services

• Services
  accounted for 19.1 per cent of Australia's total exports in 2008 at $53
  billion.
• Education
  was Australia's largest services export, more than 543,898 international
  students were enrolled in Australia in 2008.
• the
  United States, the United Kingdom and China are Australia's top export
  markets for services.

The details of Australia's services exports are set out here.

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
behind the border. 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

Trade and the Global Recession

World trade has been adversely affected by the global recession, with trade
volumes experiencing the largest falls since the end of WWII. East Asian
economies have been particularly affected by the fall in trade flows because
exports make up a large proportion of their economies.

the Government considers that keeping trade flows open by resisting protectionism
and continuing to liberalise international trade are important parts of the
solution to the economic downturn.

At the G20 Leaders' meeting in London in April 2009, governments from
the twenty largest economies in the world agreed not to engage in protectionist
measures until the end of 2010. G20 Leaders also agreed to promptly notify
the WTO of protectionist measures taken. they endorsed the WTO's recent initiative
to monitor and report on the impact of the financial crisis on the trade
policies and trade finance of its members. the Australian Government supports
the WTO in this important monitoring role.

the G20 Leaders also re-committed to reaching an ambitious and balanced
conclusion to the WTO Doha Round of trade negotiations (see over). In addition,
a new $250 billion trade finance facility will be established to assist the
restoration of normal trade flows involving developing countries.

Australia and the WTO

As a founding member of both the 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 governing trade providing 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, industrials 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 a large component
of the overall aid program – about 10% – and is expected to reach around $400
million in 2009-10. Aid for Trade is part of the Government's support for
the achievement of the 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 2008, 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 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 – the three pillars of APEC.

• APEC has 21 member economies which account for 48 per cent of world trade
  and 68 per cent of Australia's total trade.
• Together, APEC economies account for 57 per cent of world GDP, and 40
  per
  cent of the world's population.
• Eight of Australia's 10 largest export markets are within APEC, including
  our
  top three export markets – Japan, China and the United States.
• APEC is driving an extensive trade and investment liberalisation and
  facilitation agenda, working towards a future Free Trade Area of the
  Asia-Pacific.
• APEC is increasingly focused on structural economic reform
  as a means of
  strengthening economies' competitiveness and trade and investment flows.

Members of APEC

• Australia
• Canada
• People's 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. Singapore is the 2009 host. The United States
will
be the host in 2010.

For more information on Australia's role in APEC visit:

• www.dfat.gov.au/apec/index.html
• www.apec.org

Free Trade Agreements (FTAs)

Comprehensive bilateral and regional FTAs can enhance the trading
relationship if they are truly liberalising across all sectors and consistent
with WTO rules and complement the multilateral trading system.

Australia has negotiated six FTAs:

• ASEAN-Australia-New Zealand (AANZFTA) 2009
• 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

FTAs

In addition, Australia is considering a number of FTAs:

• Australia – India joint FTA feasibility
  study, due for completion in 2009
• Australia – Indonesia joint FTA feasibility
  study, completed February 2009
• Pacific Agreement on Closer Economic
  Relations – PACER Plus

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
• Significantly enhance Australia's broader economic, foreign policy and strategic interests

More information on Australia's FTAs and negotiations

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