Asian export bottom line 'not all bad' - Australian exports

Business Asia, August 17, 1998

Australia's merchandise exports to East Asia have risen by 5.5 per cent to A$47.2 billion in the past year, despite the financial downturn in Asia.

The results were part of a record Australian goods and services export figure of A$114 billion for the last financial year -- up by 8.2 per cent over 1996-97.

Australian Bureau of Statistics figures show all exports to Asia fell by about 3 per cent in the first six months of 1998, and by 23 per cent to Association of South East Asian Nations (ASEAN).

Deputy Prime Minister and Trade Minister Mr Tim Fischer praised the tenacity of Australian exporters in the face of Asia's economic crisis.

He said they were diversifying out of Asia and into stronger markets such as the United States and Europe.

But he stressed that news about Asia "is not all bad".

"Exports to Indonesia have fallen by 17.4 per cent and to Thailand by 17.9 per cent, but exports to Japan rose by 14.3 per cent and to Taiwan they rose by 15.5 per cent," he said.

Trade to China grew by 7.9 per cent.

Mr Fischer said economic reform in Japan, continued strength in US markets, and China's commitment to the yuan would aid a turnaround in Asia.

The Deputy Prime Minister's comments endorse those made by Foreign Affairs Minister Mr Alexander Downer at the recent Top Exporters dinner in Melbourne, which was part of the Australian Export Awards program. The event director of the Australian Export Awards is The Charlton Group.

Mr Downer said the economic strengths that made East Asia attractive over the past two decades had not disappeared.

"We are seeing ... some encouraging signs suggesting that the wild day-to-day currency swings may have passed for the most affected economies -- with the exception of Indonesia," he said. In particular, Thailand and (South Korea) are making good progress on their economic reform programs."

Advocating the advantages of liberalised global trade, Mr Downer said at least 750,000 Australian jobs were tied up with Australian exports to East Asia.

"Spurning our East Asian trading partners either by making them and their families unwelcome in Australia or by putting trade barriers up to prevent them exporting their goods here could potentially jeopardise thousands upon thousands of Australian jobs," he said.