Double exporter numbers by 2006: Vaile - Trade Focus - Statistical Data Included

Business Asia, May, 2002 by Randolph Ramsay

The Federal Government has set itself an ambitious trade target, aiming to double the number of Australian exporters by 2006. Trade Minister Mark Vaile, in releasing the Government's 2002 Trade Outcomes and Objectives Statement (TOOS), said that Australia had an enormous amount of untapped export growth potential, with only four per cent of companies in the country exporting at this stage.

Vaile said Australia's trade performance in 2001 was an excellent base from which to grow this number significantly.

"Our trade performance over the past year has been nothing short of outstanding -- in spite of tough economic conditions in our major markets. We have built on the great export successes of previous years," he said.

"The value of Australia's exports of goods and services increased by eight per cent to $154 billion in 2001. This figure represents a whopping 54 per cent increase on the value of our exports since 1996. Australian exports certainly made their contribution to our 4.1 per cent economic growth in 2001.

"Exports to all major trading partners grew strongly; by 26 per cent to China, by 18 per cent to Europe, and by eight per cent to the US.

"In fact, so strong was our export performance that we achieved a trade surplus of $2.7 billion last year -- our nine consecutive monthly trade surpluses represented the longest run of trade surpluses since 1973, and the first calendar year surplus since 1996. Trade has more than paid its way.

"This success shows that the Australian economy and our exporters are efficient and very competitive. They have responded magnificently to changes in the international economy."

Diversify

Finding new markets for Australia's exports was vital to continuing the positive trade news, Vaile said.

"A classic example is what has been achieved in the Middle East, which has been an extraordinary success story. Our exports to that region grew 39 per cent in 2001, and an important part of that growth for the past five years has been Australian auto exports. In fact, auto exports to the Middle East have grown on average 73 per cent each year since 1996," he said.

"In China, our exports have doubled in just less than three years, from $3.7 billion in 1998, to a little over $7 billion in 2001. Wool and iron ore have been stand out performers. In 1998 wool exports to China stood at $55 million, and in 2001 had more than doubled to $1.2 billion. In three years we have seen iron ore increase from $850 million to $1.3 billion."

Vaile said the Government was also using its international contacts to source and create new trade opportunities.

"We are taking every opportunity to advance our exporters' interests. We are working at the multilateral, regional and bilateral levels to secure Australia's future trading interests," he said.

"We have established within the Department of Foreign Affairs and Trade an Office of Trade Negotiations in support of our ambitious and aggressive trade agenda. The office's sole aim is to open markets and win trade disputes on behalf of Australian exporters.

"The office comprises 72 dedicated trade negotiators, some 60 per cent more staff than were devoted to trade issues at the end of the last round of trade negotiations in 1993."

Export culture

Vaile says he wants Australia to build a stronger export culture, particularly amongst small businesses, as they will represent most of the trade growth in the future.

"Our exporting future lies in building an export culture, and diversifying Australia's exports is just one of a range of tools for maintaining our export success story," he said.

"Notwithstanding the enormous growth in our exports, less than four per cent of Australian firms are exporters. This is low by international standards.

"The Knowing and Growing the Exporter Community report predicts that many new exporters will be smaller companies. They will be concentrated in knowledge-based service industries, often in regional Australia. Small business is Australia's export future. They will be the next exporting companies that will produce more and better jobs, particularly in rural and regional Australia.

"Indeed today more than 20 per cent of Australia's current gross domestic product comes directly from exports. That means one in five jobs across Australia is reliant on exports. In regional Australia that figure increases to one in four jobs. And let me share a little secret with you -- I'm certainly looking forward to watching these figures grow as we getter closer to 2006."

Helping hand

To help exporters both old and new, Vaile says the Government is pumping more funds into trade support programs.

"Last month my State and Territory counterparts agreed to work with the Commonwealth on a national New Exporter Development program -- central to achieving our goal," he said.

"The Government is committing new funds to create new exporters. We will spend almost $22 million on TradeStart and Export Access initiatives over the next four years, and we are doubling the minimum Export Market Development Grant from $2500 to $5000, directly targeting assistance to small businesses to help them get into exporting.