Australian Exports

Coal is Australia's Largest Export Earner

Australia has recently begun emphasizing the export of minerals and farm commodities over manufactured goods. This has created a significant growth in Australian exports earnings, due to increasing commodity prices. Australia was one of only a few nations to avoid economic recession during the recent worldwide financial downturn. The Australian dollar has recently strengthened against the US dollar, further supporting improvements in the country’s export market trade.

A report from the Australian Bureau of Agriculture and Resource Economics and Sciences predicts that Australian exports earnings from commodities will reach over $211 billion in 2011. Minerals and energy exports will account for over $177 billion, an increase of 27.5% due to higher prices for coal and iron ore, and farm commodity earnings will make up some $30 billion, up from $28.5 billion the previous year.

The coal industry

Coal is Australia's largest export earner and plays a vital role in the country's economy. Coal exports were valued at $55 billion in 2009-2010 and employed around 137,000 Australians, 37,000 drectly and 100,00 indirectly, mainly in regional areas.

Australia's electricity is generated mainly from black coal and it is responsible for the security, reliability and comparative low cost of the country's electricity supply.

Together with the Australian government, the coal industry is currently working to reduce emissions from the utilisation of coal. There is a voluntary levy on coal production which will raise $1 billion over 10 years to develop low emission technologies for coal fired power generation.

Coal Is evident in it's growing share of GDP which more than doubled from 1.7% in 2006/07 to 3.7% in 2008/09, which makes it the largest contributor to Australia's mining sector.  Coal was one of the main reasons that Australia's economy was able to grow during the recent 2009 global financial downturn.

The Commonwealth and State government raise billions of dollars from the coal industry in the form of corporate taxes, natural resource royalties and payment of freight charges. This industry also contributes tens of millions of dollars every year to fund community social infrastructure.

Australia's service sector

Australia’s service sector accounts for about 70% of its GDP, including tourism, financial services and education. Natural resources and agriculture make up only 8% of GDP combined, however these areas contribute extensively to Australian exports. China is Australia’s largest export market, followed by Japan, India, South Korea, the U.S., Canada, the U.K., and New Zealand. Australia maintains free trade agreements with the U.S., Thailand, Japan, China, Malaysia, Singapore, and Mexico.

Australia has always maintained a straightforward approach when it comes to the country’s export business. This has led to businesses and companies worldwide expanding their operations into the country. Countries with predominantly English-speaking populations find Australian exports an easy market for expansion, as no language barriers exist. Export trade in Australia is governed by the country’s free market economy. The government plays a minimal role in the regulation of trade.

Australia's low populations

The population of Australia is considered low as far as density, however, the country ranks 15^th among world economies and the majority of its population has considerable buying power. Businesses are further encouraged to expand to the Australian exports market due to flexible tariff policies and minimal entry requirements. The government is renowned for supporting an array of global enterprises to expand and invest in Australian markets. This position is confirmed by the government’s affiliation to numerous International Trade Groups, including the CER agreement with New Zealand and the CANTRA agreement with Canada.

Australia does maintain certain controls over the export of certain goods, specifically firearms, drugs, certain types of plants and food items, automobiles, and cultural and historic artifacts. Australia is highly interested in protecting its local interests and industries.

Major Australia exports

Major Australian exports include meat, wool, wheat, grain, natural gas, coal, iron, copper, bauxite, gold, silver, uranium, tin, tungsten, mineral sands, diamonds, and opals. Another popular Australian export is wine. The country is the fourth largest wine exporter in the world, and this industry contributes over $5.5 billion to the Australian exports economy every year.

Agricultural products and mining make up over 65% of all Australian exports. This country produces 95% of the world’s opals, including 99% of the world’s black opals. Coober Pedy, Australia’s famous underground mining town, is known as the “Opal Capital of the World.” The world’s largest opal was found here in 1990 and weighs over 5 kilograms. Western Australia’s Kalgoorlie is the country’s largest gold producer.

Australia is home to the largest deposits of uranium in the world, and currently operates three uranium mines. The country exports roughly 10,000 tons of uranium oxide annually. The future of this Australian export market is uncertain as demand exceeds current production, and environmental and safety concerns are still being addressed.

The majority of the world’s wool and wool products comes from Australia’s nearly 100 million sheep, and the country is also the largest beef exporter on the planet with over 25 million head of cattle. Australia’s major export and trading ports play an important role in Australian exports trade and growth. These ports include Port of Yamba, Cairns Harbor, Port of Eden, and Port of Makay.

Conclusion

Australia is home to abundant natural and human resources, which play a major role in the export trade performance. Many companies producing advanced manufactured items are quickly integrating into global supply chains which is one of the major manufacturing trends of the new millennium.

Contact

Bia Trading has it's head office in Australia and acts as a conduit between Australian companies and businesses from all parts of the globe wanting to export Australian goods. We can make it easy to trade in Australia. Contact us by email : This e-mail address is being protected from spambots. You need JavaScript enabled to view it or go to our Live help where we are waiting to answer your inquiries. Contact form here