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Trade at a Glance 2008

Minister for Trade’s Foreword

Welcome to Trade at a Glance 2008, a concise summary of Australia’s trade performance.

Trade benefits all Australians.

Exports create jobs and boost incomes as the economy becomes more efficient and productive. Trade also gives consumers a greater choice of products at competitive prices and offers businesses more options when sourcing production inputs.

Trade expands the global economy, creating wealth and lifting living standards around the world. In fact, world trade has grown three times as fast as world economic output in the past fifty years due to greater liberalisation and deregulation of trade.

Global trade negotiations under the auspices of the World Trade Organization (WTO) have been key drivers in opening new markets and reducing barriers to trade for many years. That is why we are committed to achieving a successful outcome to the current Doha Round talks.

Expanding trade opportunities is an important pathway to sustained economic growth in Australia.

I hope you find Trade at a Glance 2008 to be a valuable resource.

Simon Crean.

Contents

• Trade Performance at a Glance
• Profile of Australian Trade
• Australia’s Trade and Economic Statistics
• Australia’s Trade by Sector
• Agriculture
• Minerals and Fuels
• Manufacturing
• Services
• Trade Policy at a Glance
• Australia’s Trade Policy
• Global Trade Negotiations
• Trade with our Region: APEC
• Free Trade Agreements (FTAs)
• Information and Contacts

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 2007, Australia’s two-way trade totalled $454 billion.

China, Japan, the United States and the United Kingdom were the nation’s top four trading partners. About 70 per cent of Australia’s trade was with the members of the Asia-Pacific Economic Cooperation (APEC) forum.

Australia’s leading exports (goods and services) 2007^(a)

	($ billion)
Coal	20.8
Iron ore	16.1
Education services (b)	12.6
Personal travel (excl education) services	11.8
Gold (c)	11.6
Crude petroleum	8.0
Aluminium ores (incl alumina)	6.1
Aluminium	5.9
Professional, technical & other business services	5.6
Natural gas	5.1
Beef	4.5
Passenger transportation services (d)	4.2
Other transportation services (e)	3.8
Copper ores	3.8
Medicines (f)	3.5
Copper	3.2
Refined petroleum	3.2
Alcoholic beverages (mainly wine)	3.1
Passenger motor vehicles	2.9
Wool	2.7
Total exports (BOP basis)	217.6

^(a) Goods trade are on a recorded trade basis. Services trade are on a balance of payments basis.
^(b) Includes Education-related travel and Other education services.
^(c) Balance of payments basis.
^(d) Includes related agency fees and commissions.
^(e) 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.
^(f) Also including veterinary medicines.
Source: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Australia’s Trade Performance

Australian exports of goods and services grew 3.8 per cent in 2007, to $218 billion. Exports of minerals and fuels were in demand – reaching $73 billion. Around two thirds of Australia’s farm production was exported and education exports rose 17 per cent to $12.6 billion.

Imports increased 7.0 per cent to $237 billion. A high Australian dollar, strong consumer demand, high oil prices and Australian business imports of capital goods were the main drivers.

The Australian Economy

Australia’s economic fundamentals are strong and the Government is committed to responsible economic management.

• Australia is in its 17th year of continuous economic growth.
• Real GDP has grown 4.1 per cent per annum on average over the past decade.
• Australia has the fifth largest economy in East Asia, on a purchasing power parity basis.
• Australia has an independent central bank.
• There is a strong regulatory framework for Australia’s financial market.
• Australia has one of the most multilingual workforces in the Asia Pacific region.
• Australia has the world’s 4th largest superannuation market place with $1.2 trillion under management.

Australia’s major goods exports 2007

Goods(a)	$ million	% share
Coal	20,753	12.2
Iron ore	16,112	9.5
Gold (b)	11,555	6.8
Crude petroleum	7,966	4.7
Aluminium ores (incl alumina)	6,058	3.6
Aluminium	5,888	3.5
Natural gas	5,073	3.0
Other ores	4,513	2.7
Beef	4,488	2.6
Copper ores	3,764	2.2
Medicines (c)	3,540	2.1
Copper	3,202	1.9
Refined petroleum	3,183	1.9
Alcoholic beverages (mainly wine)	3,066	1.8
Passenger motor vehicles	2,902	1.7
Wool	2,746	1.6
Meat (excl beef)	2,028	1.2
Wheat	1,960	1.2
Zinc	1,704	1.0
Nickel ores	1,604	0.9
Total goods exports (BOP basis)	169,602	100.0

^(a) Recorded trade basis.
^(b) BOP basis.
^(c) Also including veterinary medicines.
Source: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Australia’s services exports 2007^(a)

	$ million	% share
Transportation
Passenger (b)	4,172	8.7
Freight	607	1.3
Other (b)(c)	3,844	8.0
Crude petroleum	7,966	4.7
Total transportation	8,623	17.9
Travel
Business	2,572	5.4
Personal	24,011	50.0
Education-related	12,196	25.4
Other personal (d)	11,815	24.6
Total travel	26,583	55.3
Other
Communication (e)	713	1.5
Construction	139	0.3
Insurance	714	1.5
Financial	1,020	2.1
Computer and information	1,497	3.1
Royalties and licence fees	833	1.7
Other business services	6,472	13.5
Personal, cultural and recreational	600	1.2
Government services, nie	848	1.8
Total other services	12,836	26.7
Total services exports	48,042	100.0

^(a) Balance of payments 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 2007

Goods(a)	$ million	% share
Crude petroleum	14,648	7.7
Passenger motor vehicles	13,849	7.3
Refined petroleum	8,235	4.3
Computers	6,904	3.6
Medicines (b)	6,437	3.4
Gold	6,128	3.2
Telecommunications equipment	6,125	3.2
Motor vehicles for transporting goods	5,722	3.0
Civil engineering equipment	3,451	1.8
Aircraft & parts	2,990	1.6
Motor vehicle parts	2,573	1.4
Measuring and controlling instruments	2,521	1.3
Furniture	2,435	1.3
Other electrical machinery	2,350	1.2
Toys, games & sporting goods	2,182	1.1
Computer parts	2,167	1.1
Televisions	2,156	1.1
Pumps for gas	2,109	1.1
Paper & paperboard	2,094	1.1
Heating & cooling equipment	2,048	1.1
Total goods imports (BOP basis)	190,534	100.0

^(a) Recorded trade basis.
^(b) Also including veterinary medicines.
Source: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Australia’s services imports 2007^(a)

	$ million	% share
Transportation
Passenger	6,615	14.4
Freight	8,161	17.7
Other	809	1.8
Total transportation	15,585	33.8
Travel
Business	2,669	5.8
Personal	14,285	31.0
Education-related	785	1.7
Other personal (b)	13,500	29.3
Total travel	16,954	36.8
Other
Communication (c)	769	1.7
Construction	0	0.0
Insurance	916	2.0
Financial	610	1.3
Computer and information	1,480	3.2
Royalties and licence fees	3,371	7.3
Other business services	4,412	9.6
Personal, cultural and recreational	1,109	2.4
Government services, nie	848	1.8
Total other services	13,515	29.3
Total services imports	46,054	100.0

^(a) Balance of payments basis.
^(b) Inbound tourism for mainly recreational purposes.
^(c) Communications services include other services nie (not included elsewhere).
Source: ABS catalogue 5368.0.

Australia’s top 10 two-way trading partners 2007 ($ billion)

		Goods(a)	Services(b)	Total(c)	% share
1	China	52.8	5.2	58.0	12.8
2	Japan	50.0	4.6	54.6	12.0
3	United States	33.7	14.0	47.7	10.5
4	United Kingdom	15.1	8.7	23.8	5.2
5	Singapore	14.5	7.9	22.4	4.9
6	Republic of Korea	19.4	2.4	21.8	4.8
7	New Zealand	15.7	5.8	21.5	4.7
8	Thailand	12.3	2.4	14.7	3.2
9	Germany	11.2	2.4	13.5	3.0
10	India	10.7	2.5	13.3	2.9
Total two-way trade
(BOP basis)		360.1	94.1	454.2	100.0
of which:	APEC	253.0	53.9	306.9	67.6
	ASEAN	55.2	15.5	70.7	15.6
	EU27	60.3	18.8	79.1	17.4
	OECD	189.4	48.5	237.9	52.4

^(a) Recorded trade basis.
^(b) Balance of payments basis.
^(c) Total may not sum due to rounding.
Source: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Australia’s global export position
How we compare to the rest of the world 2007 (US$b)

Rank	Country	Goods(a)	Services(b)	Total exports	% share
1	United States	1,163	454	1,618	9.4
2	Germany	1,327	197	1,524	8.9
3	China	1,218	127	1,345	7.8
4	Japan	713	136	848	4.9
5	United Kingdom	436	263	699	4.1
6	France	552	130	683	4.0
7	Netherlands	551	91	642	3.7
8	Italy	492	109	600	3.5
9	Belgium	432	73	505	2.9
10	Canada	418	61	480	2.8
11	Republic of Korea	372	64	436	2.5
12	Hong Kong (c)	350	82	431	2.5
13	Russian Federation	355	38	393	2.3
14	Spain	242	127	369	2.2
15	Singapore	299	66	366	2.1
16	Mexico	272	17	289	1.7
17	Taiwan	246	30	277	1.6
18	Saudi Arabia	229	8	236	1.4
19	Switzerland	172	61	233	1.4
20	India	145	86	232	1.3
21	Sweden	168	63	231	1.3
22	Austria	162	54	216	1.3
23	Ireland	121	87	208	1.2
24	Malaysia	176	28	204	1.2
25	Brazil	161	23	183	1.1
26	Australia	141	40	181	1.1
27	Thailand	152	28	180	1.1
28	Norway	139	39	178	1.0
29	Poland	138	28	166	1.0
30	Denmark	103	61	165	1.0
	Total exports	13,898	3,257	17,155

^(a) Goods on recorded trade basis.
^(b) Commercial services on balance of payments basis.
^(c) Special Administrative Region of China.
Source: WTO online database and EIU Viewswire.

Australia’s top 10 export markets 2007 ($ billion)

		Goods(a)	Services(b)	Total(c)	% share
1	Japan	31.9	2.7	34.6	15.9
2	China	23.8	3.9	27.8	12.8
3	United States	10.0	5.8	15.8	7.3
4	Republic of Korea	13.5	1.9	15.3	7.0
5	New Zealand	9.5	3.4	12.9	5.9
6	United Kingdom	7.0	4.7	11.7	5.4
7	India	9.3	2.1	11.3	5.2
8	Singapore	4.1	3.2	7.2	3.3
9	Taiwan	5.9	0.5	6.5	3.0
10	Thailand	4.4	0.8	5.2	2.4
Total exports
(BOP basis)		169.6	48.0	217.6	100.0
of which:	APEC	120.6	28.1	148.7	68.3
	ASEAN	18.2	7.0	25.2	11.6
	EU27	19.2	8.7	27.9	12.8
	OECD	88.6	23.9	112.5	51.7

^(a) Recorded trade basis.
^(b) Balance of payments basis.
^(c) Total may not sum due to rounding.
Source: 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 2007 (US$b)

Rank	Country	Goods(a)	Services(b)	Total exports	% share
1	United States	2,017	336	2,353	13.6
2	Germany	1,059	245	1,305	7.6
3	China	956	129	1,085	6.3
4	United Kingdom	617	193	811	4.7
5	Japan	621	157	778	4.5
6	France	613	120	733	4.2
7	Italy	505	117	621	3.6
8	Netherlands	491	89	580	3.4
9	Belgium	416	66	482	2.8
10	Spain	374	97	470	2.7
11	Canada	390	80	470	2.7
12	Republic of Korea	357	85	441	2.6
13	Hong Kong (c)	371	40	411	2.4
14	Singapore	263	70	333	1.9
15	Mexico	297	24	321	1.9
16	India	217	78	295	1.7
17	Russian Federation	223	57	280	1.6
18	Taiwan	220	35	255	1.5
19	Australia	165	38	203	1.2
20	Austria	162	37	199	1.2
21	Sweden	150	48	198	1.1
22	Switzerland	161	33	193	1.1
23	Turkey	170	14	183	1.1
24	Poland	161	23	183	1.1
25	Thailand	141	38	179	1.0
26	Ireland	82	93	174	1.0
27	Malaysia	147	27	174	1.0
28	Brazil	127	34	160	0.9
29	Denmark	99	56	155	0.9
30	United Arab Emirates	121	28	149	0.9
	Total imports	14,211	3,059	17,270

^(a) Goods on recorded trade basis.
^(b) Commercial services on balance of payments basis.
^(c) Special Administrative Region of China.
Source: WTO online database and EIU Viewswire.

Australia’s top 10 import sources 2007 ($ billion)

		Goods(a)	Services(b)	Total(c)	% share
1	United States	23.7	8.3	31.9	13.5
2	China	29.0	1.3	30.3	12.8
3	Japan	18.0	1.9	20.0	8.4
4	Singapore	10.5	4.7	15.2	6.4
5	United Kingdom	8.1	4.0	12.1	5.1
6	Germany	9.7	1.4	11.1	4.7
7	Thailand	7.9	1.6	9.5	4.0
8	New Zealand	6.2	2.4	8.6	3.7
9	Malaysia	7.3	1.0	8.3	3.5
10	Republic of Korea	5.9	0.5	6.4	2.7
Total imports
(BOP basis)		190.5	46.1	236.6	100.0
of which:	APEC	132.4	25.9	158.2	66.9
	ASEAN	37.0	8.5	45.5	19.2
	EU27	41.1	10.1	51.2	21.7
	OECD	100.8	24.6	125.4	53.0

^(a) Recorded trade basis.
^(b) Balance of payments basis.
^(c) Total may not sum due to rounding.
Source: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Foreign investment in Australia 2006^(a) ($ million)

Country		Level of direct investment in Australia	Level of total investment in Australia
United States		73,555	362,808
United Kingdom		54,007	352,685
Japan		23,527	51,046
Hong Kong (b)		4,501	38,459
Switzerland		18,707	35,257
New Zealand		7,896	32,407
Singapore		5,068	26,892
Netherlands		20,748	26,817
Belgium		2,565	24,504
Germany		10,572	24,485
Total all countries		315,397	1,439,974
of which:	APEC	129,874	548,328
	ASEAN	11,069	47,234
	EU27	107,102	480,495
	OECD	241,623	968,285

^(a) Foreign investment in Australia: level of investment (stocks) as at 31 December 2006, by selected country and country groups.
^(b) Special Administrative Region of China.
Source: ABS catalogue 5352.0.

Australian investment abroad 2006^(a) ($ million)

Country		Level of direct investment abroad	Total Australian investment abroad
United States		116,260	320,797
United Kingdom		53,493	133,344
New Zealand		41,115	65,255
Japan		142	39,841
Netherlands		8,335	31,220
Canada		np	26,056
Germany		5,131	23,836
France		np	21,711
Hong Kong (b)		6,751	15,987
Singapore		4,395	14,348
Total all countries		287,510	835,569
of which:	APEC	194,118	507,832
	ASEAN	9,914	23,558
	EU27	73,722	254,785
	OECD	250,064	706,305

^(a) Australian investment abroad: level of investment (stocks) as at 31 December 2006, by selected country and country groups.
^(b) Special Administrative Region of China.
np – Not published.
Source: ABS catalogue 5352.0.

Australia’s industry structure 2007

	($m)	Gross value added(a) %share(c)	('000)	Employed persons(b) % share
Agriculture, forestry and fishing	21,598	2.3	359.4	3.4
Mining	69,335	7.4	138.4	1.3
Manufacturing	102,539	10.9	1,084.4	10.2
Services
Electricity, gas and water	21,688	2.3	88.5	0.8
Construction	69,291	7.4	951.9	9.0
Wholesale trade	46,568	5.0	441.1	4.2
Retail trade	58,548	6.2	1,577.6	14.9
Accommodation, cafes and restaurants	20,637	2.2	491.9	4.6
Transport and storage	47,875	5.1	501.4	4.7
Communication services	27,039	2.9	190.7	1.8
Finance and insurance	78,490	8.4	399.0	3.8
Property and business services	119,856	12.8	1,244.2	11.7
Government administration and defence	39,918	4.3	486.7	4.6
Education	42,091	4.5	755.8	7.1
Health and community services	59,384	6.3	1,114.0	10.5
Cultural and recreational services	15,441	1.6	293.6	2.8
Personal and other services	18,936	2.0	418.4	3.9
Total services	665,762	70.9	8,954.8	84.4
Ownership of dwellings	79,179	8.4
Gross value added at basic prices (d)	938,413	100.0
Taxes less subsidies on products	82,509
Statistical discrepancy (e)	-830
Total (d)	1,020,094		10,608	100.0

^(a) The term is used to describe gross product by industry and by sector (Chain Volume Measures reference year 2005-06).
^(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.
Source: ABS catalogues 5206.0, 6202.0 and 6203.0.

Key economic indicators Australia

		1997	2005	2006	2007
Demand and production – chain volume measures, reference year 2005-06
Gross domestic product (a)	% change	3.8	3.0	2.6	4.1
Exports of goods & services (a)	% change	12.0	2.4	3.3	3.3
Imports of goods & services (a)	% change	10.4	8.5	7.3	11.2
Labour force
Population (b)	‘000	18,609	20,548	20,852	21,097(e)
Labour force (c)		9,251	10,575	10,840	11,078
Employed persons (c)	‘000	8,516	10,042	10,347	10,609
- Annual growth	%	1.4	2.4	3.0	2.5
Unemployment rate (c)	%	7.9	5.0	4.5	4.2
Prices and interest rates
Consumer prices	% change	-0.2	2.8	3.3	3.0
Interest rates - 90 day bills (d)	% pa	5.4	5.6	6.0	6.7

^(a) Derived from annual movements in original data.
^(b) At end of period.
^(c) Derived from seasonally adjusted data.
^(d) Annual average.
^(e) September 2007 data.
Source: Australian Bureau of Statistics and Reserve Bank, various catalogues.

Australia’s trade by Sector

Agriculture

• Australia exports around two thirds of its total farm production.
• Agricultural products^(a), including food and beverages, accounted for 15.9 per cent of Australia’s exports in 2007.
• Most Australian agriculture tariffs are applied at rates between zero and five per cent.

^(a) Based on the WTO definition of agriculture, which includes alcoholic beverages but excludes confidential raw sugar in bulk.

Australia’s top agricultural^(a) exports 2007^(b)

Rank	Commodity	$ million	% share
1	Beef	4,488	16.6
2	Wine	3,066	11.4
3	Wool	2,746	10.2
4	Meat (excl beef)	2,028	7.5
5	Wheat	1,960	7.3
6	Milk & cream	1,358	5.0
7	Wood chips	998	3.7
8	Live animals	926	3.4
9	Cheese & curd	889	3.3
10	Animal feed	753	2.8
11	Raw hides & skins (excl furskins)	733	2.7
12	Crustaceans	707	2.6
13	Cereal preparations	592	2.2
14	Fruit & nuts, fresh or dried	578	2.1
15	Cotton	557	2.1
16	Barley	535	2.0
17	Vegetables	463	1.7
18	Other food products	357	1.3
19	Fish (fresh, chilled or frozen)	294	1.1
20	Animal oils & fats	283	1.0
Total agricultural exports		27,000	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 $1,955 million.
^(b) Recorded trade basis.
Source: ABS trade data on DFAT STARS database.

Minerals and fuels

• This was Australia’s largest export sector in 2007 – at $73 billion it accounted for 43.1 per cent of total 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 either five per cent or zero.

Australia’s top minerals and fuels exports 2007

Rank	Commodity(a)	$ million	% share
1	Coal	20,753	28.4
2	Iron ore	16,112	22.0
3	Crude petroleum	7,966	10.9
4	Aluminium ores (incl alumina)	6,058	8.3
5	Natural gas	5,073	6.9
6	Other ores	4,513	6.2
7	Copper ores	3,764	5.2
8	Refined petroleum	3,183	4.4
9	Nickel ores	1,604	2.2
10	Liquefied propane & butane	1,056	1.4
11	Uranium or thorium ores	884	1.2
12	Confidential minerals	874	1.2
13	Non-ferrous base metal waste	810	1.1
14	Ferrous waste & scrap	673	0.9
15	Crude minerals, nes	394	0.5
16	Coke	114	0.2
17	Stone, sand & gravel	108	0.1
18	Precious metal ores (excl gold)	83	0.1
19	Natural abrasives	36	0.0
20	Residual petroleum products	20	0.0
Total minerals and fuels exports
(BOP basis)		73,072	100.0

^(a) Recorded trade basis.
Source: 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 (ETMs) – worth $30 billion in 2007.
• 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 26.7 per cent of Australia’s total exports in 2007.
• 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 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 2007

Rank	Commodity(a)	$ million	% share
1	Aluminium	5,888	13.0
2	Medicaments (incl veterinary)	3,540	7.8
3	Copper	3,202	7.1
4	Passenger motor vehicles	2,902	6.4
5	Zinc	1,704	3.8
6	Nickel	1,239	2.7
7	Lead	1,101	2.4
8	Medical instruments	986	2.2
9	Measuring & controlling instruments	774	1.7
10	Internal combustion piston engines	770	1.7
11	Motor vehicle parts	710	1.6
12	Civil engineering equipment	685	1.5
13	Computers	672	1.5
14	Specialised machinery	640	1.4
15	Aircraft & parts	635	1.4
16	Pigments, paints, varnishes	594	1.3
17	Telecommunications equipment	594	1.3
18	Uncoated flat-rolled steel	574	1.3
19	Computer parts	557	1.2
20	Paper & paperboard	554	1.2
Total manufactures exports
(BOP basis)		45,343	100.0

^(a) Recorded trade basis.
Source: ABS trade data on DFAT STARS database and ABS catalogue 5368.0.

Services

• Education was Australia’s largest services export – more than 455,000 international students were enrolled in Australia in 2007.
• Overall, the United States, United Kingdom and China are Australia’s top export markets for services.
• Services accounted for 22 per cent of Australia’s total exports in 2007 at $48 billion.

The details of Australia's services exports are set out on page 7.

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.

More information on Australia’s trade policy.

Global Trade Negotiations in the WTO

As a founding member of 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 governing trade between them, providing important legal certainty for their exporters.

WTO Members, including Australia, are currently negotiating to further reduce barriers to trade. These negotiations began in Doha, Qatar, in November 2001 and are referred to as the Doha Round. (It is also known as the Doha Development Agenda).

The Australian Government’s key trade policy priority is a successful conclusion to the Doha Round involving real improvements in market access for Australian exports across all negotiating sectors – agriculture, industrials and services.

More information on Australia’s participation in the WTO.

Agricultural Trade

The Australian Government’s pre-eminent goal in the WTO 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 in full the far-reaching mandate set in Doha.

Members of the Cairns Group
Argentina	Malaysia
Australia	New Zealand
Bolivia	Pakistan
Brazil	Paraguay
Canada	Peru
Chile	Philippines
Columbia	South Africa
Costa Rica	Thailand
Guatemala	Uruguay
Indonesia

Non-Agricultural Trade

In the Doha Round, Australia 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 Australian Government is working hard to achieve better access for the nation’s services exports which account for 22 per cent of Australia’s total exports. 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, investment rules and regulations relating to the temporary entry of business people.

Trade with our region: APEC

Asia-Pacific Economic Cooperation (APEC) is the major forum for pursuing common trade, investment, growth and economic goals in the region. APEC operates on the basis of non-binding commitments and open dialogue.

• APEC has 21 member economies which account for about 45 per cent of world trade and 70 per cent of Australia’s trade.
• Eight of Australia’s 10 largest export markets are within APEC, including our top three export markets – China, Japan and the United States.
• APEC is driving an extensive trade and investment liberalisation agenda, including exploration of a possible Free Trade Area for the Asia Pacific.
• APEC is increasingly focused on structural economic reform as a means of strengthening economies competitiveness and trade and investment flows, and in August 2008 Australia will host an APEC Ministerial Meeting on Structural Economic Reform to advance APEC’s work in this area.

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

Sydney was the host of the APEC Economic Leaders’ Forum in September 2007.

More information on Australia’s role in APEC:

• The Department's APEC pages
• APEC's official site

Free Trade Agreements (FTAs)

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

Australia has implemented four FTAs:

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:

• Chile¹
• China
• Japan
• Malaysia
• The Gulf Cooperation Council (Saudi Arabia, Qatar, Bahrain, Oman, Kuwait, United Arab Emirates)
• Together with New Zealand, Australia is also undertaking FTA negotiations with the 10 members of the Association of South East Asian Nations (ASEAN).

¹ The Australia-Chile FTA is expected to be signed in July 2008 and enter into force on 1 January 2009.

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, due for completion this year.
• Australia – Republic of Korea joint non-government FTA study, released on 22 April 2008.

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

• Adelaide, South Australia
• Brisbane, Queensland
• Canberra, (Head Office), Australian Capital Territory
• Darwin, Northern Territory
• Hobart, Tasmania
• Melbourne, Victoria
• Perth, Western Australia
• Sydney, New South Wales

APEC Business Travel Card

The APEC Business Travel Card is an Australian initiative that gives frequent business travellers from participating APEC members* streamlined entry into most other parts of APEC.

It began in 1997 as a pilot program to promote business mobility and has grown to encompass 19 of APEC’s 21 members, including the United States, Japan and China.

Key features of the APEC Business Travel Card are:

• Enables business people, through a single application form, to obtain multiple short-term entry permits;
• Saves time and provides a more efficient way of applying for visas and entry permits for business people;
• Fast-tracks the entry and exit of cardholders through special APEC lanes at major international airports in APEC;
• 41,000 APEC Business Travel Cards are in circulation with more than 15,500 held by Australian passport holders.

More information about the APEC Business Travel Card.

* Participating APEC members are: Australia, Brunei Darussalam, Chile, China, Hong Kong, Indonesia, Japan, Korea, Malaysia, Mexico, New Zealand, Papua New Guinea, Peru, Philippines, Singapore, Chinese Taipei, Thailand, United States and Vietnam.

Unless otherwise specified, all amounts are in Australian dollars.

To order a hard copy of Trade at a Glance please email tradeinfo@dfat.gov.au

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