TRADE MATTERS 2012 Victoria – state trade with the world

Victoria's export strengths are diverse, with recreational travel, education-related travel and agricultural produce topping the list. The state has a strategic focus on fostering the drivers of export growth - innovation, collaboration and access to market intelligence - to ensure success in emerging export industries. This includes professional and information technology services and high-end manufacturing, including in the automotive industry.

About Victoria

Victoria's goods and services exports were valued at $33 billion in 2011, growing on average 2 per cent every year for the last five years. Key exports for Victoria in 2011 were education services, recreational travel, wool, dairy products and aluminium. The state accounted for 11 per cent of Australia's total exports in 2011.

2010-11 economic indicators

Estimated resident population (September 2011): 5,640,884

Real Gross State Product growth (%): 2.5

Proportion of Australian GDP (%): 22.6

Why Victoria trades

• Trade gives Victorians the chance to choose from a wide range of competitively priced goods and services from around the world.
• Both exports and imports create jobs. One in five Australian jobs is directly related to trade.
• Victoria's exports are equal to 10.6 per cent of Gross State Product, building wealth and prosperity.
• Foreign investment plays an important role in the Victoria's economic development and provides capital to fund business expansion.

How the Australian Government encourages Victoria's trade

The Australian Government is helping Victorian exporters to become even more competitive by further reforming the domestic economy. The Government is investing in skills, education, the National Broadband Network and other infrastructure, as well as engaging in tax reform and cutting regulatory red tape.

The Government is also working to increase market access and improve conditions for exporters overseas by advancing multilateral trade liberalisation through the World Trade Organization, facilitating greater regional trade, and removing bilateral trade barriers.

Victoria and Australia's FTAs

• Victoria's auto industry provides one of the state's major exports. Four out of the top fi ve markets for Australian-made automobiles are members of the Gulf Cooperation Council. Australia is negotiating an FTA with the Council to secure longterm access to these markets for Victoria's car manufacturers.
• When the Thailand-Australia FTA entered force in 2005, Thailand agreed to incrementally reduce tariff and quota restrictions on agricultural imports from Australia, with complete elimination in 2025. This process has created export opportunities for Victoria's producers of meats, fruits and vegetables, wine, dairy and grains.
• Of Victoria's top 10 merchandise trading partners, six (the United States, New Zealand, Thailand, Indonesia, Malaysia and Singapore) are covered by existing FTA arrangements, while three (Japan, China and South Korea) are currently in FTA negotiations with Australia.

Information and contacts

Department of Foreign Affairs and Trade
Advancing Australia's interests overseas
www.dfat.gov.au/trade

DFAT state office contact details
www.dfat.gov.au/melbourne
03 9221 5555

State government contact
www.dbi.vic.gov.au

Austrade
Information for new and existing exporters
www.austrade.gov.au
13 28 78

Australia's Free Trade Agreements
www.fta.gov.au