Australian Exports Industry
This article examines the evolution of Australian exports and free trade from the perspective of international markets. Australia is committed to free trade and its economy is heavily dependent on exports. Australian trade discussions are founded on a free trade policy. Australia’s export patterns have shifted significantly as a consequence of increased economic activity, globalization of trade, shifting global competitiveness, and the fast rise of Asian economies. The country’s exports have migrated from its traditional Western partners to the more dynamic Asian markets. At the moment, Asia represents Australia‘s largest export market. With China being the biggest and fastest-growing market in the world, Australia is aggressively working to expand its part of that market. Australian goods have strong demand in the Chinese, Japanese, and South Korean markets. As well as the European Union, Australia’s exports might find a home in the emerging economies of India, Malaysia, and Indonesia.
Many different research strategies were used to compile the data for this analysis. The Australian Government, Ministry of Foreign Affairs and Trade, Australian Bureau of Statistics, and Reserve Bank of Australia all contributed to the data set used in this analysis of export patterns in Australia. Preliminary facts and data were acquired from a field study in Victoria, Australia, between August and September 2014. AUSTRADE, Australia Customs, trade groups, and export-oriented business associations were among the sources tapped for information during the field study. Australia’s free trade policy, with particular reference to the country’s most recent free trade agreements with South Korea and China, will be analyzed in the second half of this paper after the topic of recent export patterns in Australia has been explored.
The strategy and destinations for Australian exports are evolving quickly. Australia’s trading ties to the United States and the United Kingdom were particularly robust in the 1980s. This pattern has shifted significantly since 1990. Australia’s new export strategy focuses on fast-growing economies in South Asia, Africa, and East Asia.
Australia has long had prosperous trading ties with its nearest economic competitor, New Zealand, and is now actively seeking to broaden these ties with the rest of the globe. Free trade is something Australia values. Australia’s
Australia’s exports and imports are significantly affected by the country’s free trade policy and the country’s free trade agreements with other nations. Australia, like many other nations, has been more open and integrated into the global economy as a result of lowered trade barriers and decreased transportation and communication costs.
Australia’s exports are strongly impacted by global demand patterns and the country’s international competitiveness. The fast expansion in developing Asia over the last decade has been a significant driver of changes due to the region’s position as a key supplier of resource commodities. In the same time period, the appreciation of the currency rate has depressed export earnings compared to domestic production costs, reducing the competitiveness of Australia’s non-resource exporters.
A shift is occurring in Australia’s approach to exports. The percentage of Australian exports destined for Asia is rising rapidly. Australia’s commerce has continued to migrate towards Asia and away from more traditional markets like the United States and Europe in response to the strong expansion in developing Asia. Australia’s main export market has been China since 2009, and in 2012, the country accounted for around a quarter of the country’s total exports.
Australia has commercial ties with over 220 countries, yet around two-thirds of its exports go to only 10 of them, ranked by value. Longtime top destinations for Australian exports have been the People’s Republic of China, Japan, the Republic of Korea, and India (Table 1). As can be shown in Table 1, in 2012–13 Australia sold commodities worth A$ 77973 million to China, A$46481 million to Japan, and A$19116 million to the Republic of Korea. The same can be said about Australia’s export of services, which is growing quickly to the same markets. Table 1 displays the value of Australia’s service exports to China ($6.662 billion), Japan ($2.101 billion), and South Korea ($1.698 billion) during the same time period. Australia also exports services to the United States, New Zealand, Singapore, the United Kingdom, and India.
Australia needs free trade to increase the size of the export market for goods and services. Because of the global economic downturn that began in late 2000, exports have been falling steadily to most major markets. Exports to both Japan and the United States fell sharply for major economies. Japan’s product exports dropped by about 5 percent from 2000 to 2001. This reflected the fact that demand for Australian-sourced commodities used in Japanese exports fell as a result of the recession in Japan as well as poorer circumstances across the region. Exports to the Middle East, China, and India, however, have grown by double-digit percentages despite the overall decline.
