Fed: Aust exports grow by 25 per cent in 2000

AAP General News (Australia)
04-03-2001
Fed: Aust exports grow by 25 per cent in 2000

By Karen Polglaze

CANBERRA, April 3 AAP - Australia's exports grew by 25 per cent in 2000, enabling the
national trade deficit to be cut by more than half, Trade Minister Mark Vaile announced
today.

Boosted by a recovery in East Asia and by the low exchange rate, total exports reached
$143 billion in calendar year 2000, the largest increase in more than two years.

Exports of both goods and services rose, with the non-rural sector marking the largest
increase - up by 34 per cent for the year.

"Last year Australian exports grew by a massive 25 per cent," Mr Vaile said in a statement.

"That represents the highest growth in more than two decades and more than four times
the trend growth rate over the last five years of six per cent."

The growth of 28 per cent in merchandise exports and 18 per cent in services is compared
against the one per cent drop recorded in 1999, a figure influenced by the East Asian
economic crisis.

The growth was beyond the level predicted by the trend and included an across-the-board
increase in volumes, some of which could be attributed to the resurgence in East Asia.

The outlook for the next year, however, is less rosy, despite the current boost which
is one good side of having a currency valued low against the US dollar.

The statement, Australia's Trade Outcomes and Objectives Statement, issued today by
Mr Vaile, pointed out the challenges to continuing export growth.

"Global economic growth is likely to weaken," Mr Vaile said.

"A slowdown in the US might not only affect our exports to that country but also to
regional economies like strong US trade ties like Japan, the Republic of Korea, Taiwan
and China.

"As domestic economic conditions in some of our trading partners weaken, our task in
securing market access may also become more difficult.

"Higher world oil prices and movement in the value of the Australian dollar are also
factors that could have an impact."

Trade growth was particularly strong in markets which have strong US trade ties - China,
where exports were up 47 per cent and the Republic of Korea, where exports rose 43 per
cent.

The statement also outlines Australia's trade priorities for 2001.

The major focus of the national trade effort will be on rallying support for the next
multilateral round of World Trade Organisation talks.

Australia would also continue to push for free trade agreements with the US and Singapore.

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KEYWORD: TRADE

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