In 17th of March 2010 the trade Minister Simon Crean and the Parliamentary Secretary for Trade Anthony Byrne, released a new publication which shows that the value of Australian service exports grew by more than 5% the last financial year. Despite the fact that the world faces a socio-economical situation that can be fairly characterized as the worst economical downturn that the globe faced during the last 70 years, the value of Australian services exports increased to a record $53.3 billion in 2008-09. The total trade in goods and services of Australia, increased by 14.6% to $563.7 billion. The value of exports rose by 21.9% to $284.7 billion and the value of imports increased by 8.1% to $279.0 billion. Additionally Australia’s terms of trade continued to increase in 2008-09, rising by 7.5% this was a result of export prices increasing faster than import prices, rising 20.0% compared with 11.6%.

The exceptional performance that Australia’s total trade in goods and services showcased during the recent years is highlighted by the fact that it has more than quadrupled over the past 20 years. In 2008-09, total trade was valued at $563.7 billion compared to $118.1 billion in 1988-89. Furthermore trade’s share of GDP rose to 47.1% in 2008-09.

As it is already mentioned the total Australia’s exports rose by 21.9%. Most of the main export categories increased. Exports of Primary products increased by 41.1% to $161.2 billion, reflecting large increases in energy and iron ore prices, Manufactures, were the only category that fell during 2008-2009 as they presented a fall of 3.3% to $43.9 billion. The category of other merchandise exports increased by 19.7% to $25.4 billion and exports of Services also rose by 5.2% to $53.3 billion. The country’s largest individual export items for the period 2008-2009 were Coal ($54.7 billion), Iron ore & concentrates ($34.2 billion), Gold ($17.5 billion) and Education-related travel services ($16.6 billion).

Regarding Australian imports during the period 2008-09 there were as follow; imports of Primary products increased by 2.2% to $43.5 billion—reflecting significant increases in energy products, especially crude and refined petroleum. Additionally, manufactures increased by 5.2% to $159.7 billion. Other merchandise imports raised by 105.4% to $16.2 billion due to a rush to gold imports. Finally, services rose 5.9% to $56.5 billion. The main imports for Australia were personal travel, services ($18.4 billion), crude petroleum ($14.5 billion), refined petroleum ($12.2 billion) and passenger motor vehicles ($11.6 billion).

Another important aspect of Australia’s trade is that over the past 20 years the expanding trade with Asia has taken on an important role in shaping its trade policy and directions. For the period 2008-2009, Japan was Australia’s largest goods & services export market, rising to $55.0 billion. China became Australia’s 2nd largest export market increasing from $1.4 billion in 1988-89, to $44.4 billion in 2008-09. Other countries that followed were the Republic of Korea ($21.1 billion), the United States ($17.4 billion) and the United Kingdom ($15.9 billion). Additionally, India has become an important market for Australia’s exports since 2003-04 and was ranked 4th in 2008-09. The share of Australia’s exports with Asia-Pacific Economic Cooperation (APEC) members has risen to 70.2%, worth $200.0 billion, in 2008-09. The goods that Australia exports to the members of the European Union was reduced, as it accounted for 16.5% in 1988-89, valued at $9.1 billion, and fell to 11.5% in 2008-09, worth $32.8 billion. Finally, the exports of Australia to Association of Southeast Asian Nations (ASEAN) members valued at $29.5 billion during the period 2008-2009.

Regarding the countries from which Australia is importing goods and services, until recently, the United States had been Australia’s largest import source increasing from $13.4 billion in 1988-89 to $35.6 billion in 2008-09. Though, this has been changed as imports from China rose strongly from $1.2 billion in 1988-89, to $38.6 billion in 2008-09 a fact that made China overtake the United States to become Australia’s largest import source. Japan was Australia’s 3rd largest import source ($20.3 billion), followed by Singapore ($17.7 billion) and the United Kingdom ($14.1 billion). Australia’s imports from the APEC members accounted for 65.5%, worth $182.7 billion, in 2008-09. The members of the European Union accounted for 20.6%, valued at $57.5 billion and the ASEAN members accounted for 19.2%, worth $53.5 billion.

Australia is a modern trading country. It is a diversified and reliable supplier of high quality goods and services to over 200 countries and additionally a sophisticated import market for various products from several countries of the world. During the last year Australia has further integrated into the world economy and has become a significant trade power.