Composition of Trade Australia 2016

COMPOSITION OF TRADE AUSTRALIA 2016

Statistics Section Office of Economic Analysis

Investment and Economic Division

June 2017

ISSN 1320-7547 (Print) ISSN 2200-6095 (Online)

ISBN 978-1-74322-401-4 (Book softcover) ISBN 978-1-74322-400-7 (PDF format)

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A WORLD OF TRADE DATA AT YOUR

FINGERTIPS UP-TO-DATE TRADE STATISTICS SERVICES TAILORED TO

YOUR NEEDS FROM AUSTRALIAS PREMIER SOURCE

In so many industries, knowledge is the key to success. And its the quality of that information thats paramount.

Now you can access Australian trade statistics gathered and held by Australias leading expert in the field, the Department of Foreign Affairs and Trade (DFAT). Better still, this information can be customised and prepared to suit your specific needs.

The Statistics Section (STA) provides statistics used in research, including measures such as detailed classifications of exports and imports. STAs data holdings include a substantial amount of economic and social information about Australia and the rest of the world.

Trade data is available in any of the following combinations:

Trade time series

DFAT has created a range of time series products to complement its statistical trade publications. These products include:

i) Trade statistical pivot tables:

Australia's exports and imports by all countries, all State and Territories and selected country groups by the Standard International Trade Classification (SITC) at the 3-digit level; and

Australia's exports and imports by all countries, all State and Territories and selected country groups by DFAT's Trade Import and Export Classification (TRIEC) at the 1-, 2-, 3- and 4-digit levels.

These two pivot tables are published on a calendar and financial year basis. ii) Australias direction of goods and services trade:

Time series spreadsheets covering Australias trade in goods and services (exports, imports & two-way trade). Data on goods, services and goods and services is published for 34 of Australias major trading partners, as well as data by broad geographic groups and selected country groups.

The spreadsheets are published on a calendar year basis (back to 1987) and a financial year basis (back to 1986-87).

iii) Historical trade and economic data:

As part of a forthcoming product, Australias Trade Through Time (ATTT), two spreadsheets are now available on the DFAT website. The first spreadsheet, Australias trade and economic indicators, contains time series data for a range of trade and economic indicators back to 1901 (and for total merchandise trade back to 1826). The second time series spreadsheet, Australias direction of trade, contains time series data for around 60 of Australias major merchandise trading partners back to 1901 (and in some cases to 1885).

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Market information service STA provides accurate and timely, high-level statistical support for research and analysis. The consultancy service also draws on international sources to compile the most comprehensive coverage available, so you can have a world of trade information individually prepared to your requirements and delivered quickly, accurately and at a very competitive price. Reports can be tailor-made according to requirements

by country and by commodity monthly, quarterly and for calendar or financial years.

STA prepares general profiles of economic and social indicators for Australias trading partners country economic factsheets (190 countries currently available).

For more information about our services email statssection@dfat.gov.au or visit the website http://dfat.gov.au/trade/resources/trade-statistics/Pages/trade-statistics.aspx; or visit http://dfat.gov.au/trade/resources/Pages/trade-and-economic-fact-sheets-for-countries-and-regions.aspx for the fact sheets.

Trade statistical publications Each year STA produces a range of publications containing detailed information on all aspects of Australias trade in goods and services and investment with the rest of the world. These are available as accessible PDFs at http://dfat.gov.au/trade/resources/Pages/trade-statistical-publications.aspx.

Releases in the series include:

Composition of Trade Australia biannual on a calendar and financial year basis;

Trade in Services Australia biannual on a calendar and financial year basis;

Australias trade by State and Territory annual on a financial year basis;

International Investment Australia annual on a calendar year basis.

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CONTENTS

INTRODUCTION 4

AUSTRALIAS TRADE: KEY POINTS, 2016 5 Australias trade in goods and services............................................................................................................ 5 Australias direction of trade............................................................................................................................ 5 Australias composition of trade ...................................................................................................................... 5

AUSTRALIAS MERCHANDISE TRADE BY LEVEL OF PROCESSING 6 Exports............................................................................................................................................................... 6 Imports .............................................................................................................................................................. 6

COMMODITY FORECASTS 7

AUSTRALIAS IMPORTS OF AIRCRAFT & PARTS UPDATE FOR 2016 8 Introduction....................................................................................................................................................... 8 Estimates of imports of Aircraft and related parts in 2016 ............................................................................ 8 Methodology for estimating Aircraft & parts imports .................................................................................. 10

IMPACT OF ABS CONFIDENTIAL RESTRICTIONS ON EXPORTS OF NICKEL UPDATE FOR 2016 12

Introduction..................................................................................................................................................... 12 Trends in Australian Nickel exports in 2016 .................................................................................................. 12 Impact of confidential Nickel exports on Australian STM exports in 2016.................................................. 13 Next update..................................................................................................................................................... 14 Methodology for estimating Nickel exports.................................................................................................. 15

LOW VALUE THRESHOLD GOODS 20 Introduction..................................................................................................................................................... 20 What are LVT goods?...................................................................................................................................... 20 Estimating LVT goods imports........................................................................................................................ 20 Updates to LVT adjustments for official goods debits estimates................................................................. 20 Impact on macroeconomic aggregates ......................................................................................................... 20 More information............................................................................................................................................ 21

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10

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23 AUSTRALIAS TRADE ON A BALANCE OF PAYMENTS BASIS

Section 1 - Australia's trade in goods and services Table 1: Australias trade in goods and services, balance of payments basis............................................. 24 Table 2: Australias trade in goods and services, current price................................................................... 25 Table 3: Australias trade in goods and services, chain volume measures ................................................. 26 Table 4: Australias top 25 goods and services exports ............................................................................... 27 Table : Australias top 25 goods and services imports............................................................................... 28 Table 6: Australias exports of goods and services by State and Territory, balance of payments basis ... 29 Table 7: Australias imports of goods and services by State and Territory, balance of payments basis ... 30

Section 2 - Direction of Australias trade in goods and services Table 8: Australias rank in world goods and services exports and imports................................................ 32 Table 9: Australias trade in goods and services by top 15 partners............................................................ 33 Table : Australias total trade in goods and services by selected countries and regions........................ 35 Table 11: Australias exports of goods and services by selected countries and regions............................. 36 Table 12: Australias imports of goods and services by selected countries and regions ............................ 37

Section 3 - Australias trade in services Table 13: Australias exports of services, by type of activity ........................................................................ 40

Graphs: Australias exports and imports of services..................................................................... 41 Table 14: Australias imports of services, by type of activity........................................................................ 42 Table : Australias trade in services by top 15 partners............................................................................ 43 Table 16: Australias total trade in services by selected countries and regions.......................................... 45 Table 17: Australias exports of services by selected countries and regions............................................... 46 Table 18: Australias imports of services by selected countries and regions .............................................. 47

AUSTRALIAS MERCHANDISE TRADE ON A RECORDED TRADE BASIS 49

Section 4 - Australias merchandise trade by level of processing Table 19: Australia's merchandise trade by broad category, total exports and imports............................ 51 Table : Australia's merchandise exports by broad category, Australian produced exports ................... 52 Table 21: Australia's total merchandise exports by broad level of processing............................................ 53 Table 22: Australia's total merchandise imports by broad level of processing ........................................... 54 Table 23: Australian produced exports by broad level of processing .......................................................... 55 Table 24: Australia's total merchandise exports by level of processing ...................................................... 56 Table : Australia's total merchandise imports by level of processing...................................................... 58 Table 26: Australian produced exports by level of processing..................................................................... 60

Section 5 - Australias merchandise commodity ranking Table 27: Australia's major merchandise exports rank, value and growth............................................... 64 Table 28: Australia's major merchandise imports rank, value and growth .............................................. 66

Section 6 - Direction of Australias merchandise trade ranking tables Table 29: Australia's merchandise trade by country, 2016 .......................................................................... 70 Table : Australia's merchandise export markets ....................................................................................... 75 Table 31: Australia's merchandise import sources ....................................................................................... 80 Table 32: Australia's merchandise trade by country and regional groups................................................... 85 Table 33: Australia's merchandise exports by country and regional groups............................................... 86 Table 34: Australia's merchandise imports by country and regional groups............................................... 87

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Section 7 - Australias major merchandise trading partners, top 20 exports and imports Country tables Table 35: Australia's merchandise trade with Canada.................................................................................. 90 Table 36: Australia's merchandise trade with China..................................................................................... 91 Table 37: Australia's merchandise trade with France................................................................................... 92 Table 38: Australia's merchandise trade with Germany............................................................................... 93 Table 39: Australia's merchandise trade with Hong Kong (SAR of China).................................................... 94 Table 40: Australia's merchandise trade with India ...................................................................................... 95 Table 41: Australia's merchandise trade with Indonesia .............................................................................. 96 Table 42: Australia's merchandise trade with Ireland................................................................................... 97 Table 43: Australia's merchandise trade with Italy ....................................................................................... 98 Table 44: Australia's merchandise trade with Japan..................................................................................... 99 Table 45: Australia's merchandise trade with Malaysia..............................................................................100 Table 46: Australia's merchandise trade with Mexico ................................................................................101 Table 47: Australia's merchandise trade with Netherlands........................................................................102 Table 48: Australia's merchandise trade with New Zealand.......................................................................103 Table 49: Australia's merchandise trade with Papua New Guinea.............................................................104 Table 50: Australia's merchandise trade with the Republic of Korea ........................................................105 Table 51: Australia's merchandise trade with Singapore............................................................................106 Table 52: Australia's merchandise trade with Spain ...................................................................................107 Table 53: Australia's merchandise trade with Switzerland.........................................................................108 Table 54: Australia's merchandise trade with Taiwan ................................................................................109 Table 55: Australia's merchandise trade with Thailand..............................................................................110 Table 56: Australia's merchandise trade with the United Arab Emirates..................................................111 Table 57: Australia's merchandise trade with the United Kingdom...........................................................112 Table 58: Australia's merchandise trade with the United States ...............................................................113 Table 59: Australia's merchandise trade with Vietnam ..............................................................................114

Country group tables Table 60: Australia's merchandise trade with Africa...................................................................................115 Table 61: Australia's merchandise trade with Americas.............................................................................116 Table 62: Australia's merchandise trade with APEC....................................................................................117 Table 63: Australia's merchandise trade with ASEAN.................................................................................118 Table 64: Australia's merchandise trade with Asia .....................................................................................119 Table 65: Australia's merchandise trade with Europe ................................................................................120 Table 66: Australia's merchandise trade with the European Union...........................................................121 Table 67: Australia's merchandise trade with Oceania & Antarctica.........................................................122 Table 68: Australia's merchandise trade with the OECD ............................................................................123 Table 69: Australia's merchandise trade with All countries........................................................................124

TECHNICAL APPENDICES Appendix A Explanatory notes ..................................................................................................................126 Appendix B Composition of regions & country groups............................................................................136 Appendix C Abbreviations and symbols used in all DFAT trade statistical publications ........................140 Appendix D Confidential exports in the SITC 988.....................................................................................143 Appendix E ABS trade commodities classified to TRIEC 3041 confidential trade................................145 Appendix F Goods and services rankings..................................................................................................147 Appendix G DFAT adjustments to ABS official trade data .......................................................................149 Appendix H TRIEC classification.................................................................................................................166

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125

INTRODUCTION

Composition of Trade, Australia concentrates on the major trends in Australias trade statistics, looking at trends in goods and services (on a balance of payments basis) and merchandise trade (on a recorded trade basis), including trade data by DFATs own trade classification - Trade Import Export Classification (TRIEC) and the United Nations Standard International Trade Classification (SITC).

The publication is divided into two major segments:

Australias trade on a balance of payments basis

Section 1 provides summary data on Australias goods and services showing current price values, chain

volume measures, movements in export and import prices and the terms of trade.

Section 2 shows the direction of Australias trade in goods and services to selected countries and regions, including Australias rank in world goods and services exports and imports.

Section 3 presents Australias composition of services trade by type of activity and the direction of services trade to selected countries and regions.

Australias merchandise trade on a recorded trade basis

Section 4 details Australia's merchandise trade by broad category and level of processing, including data on

Australian produced exports.

Section 5 provides commodity rankings for Australias major merchandise exports and imports.

Section 6 shows the direction of Australias merchandise trade by country by rank and selected groups.

Section 7 gives a detailed commodity breakdown of Australias top 25 trading partners by the top

20 merchandise exports and imports as well as by selected regions and economies (e.g. APEC, Europe).

This publication is designed to be used in conjunction with DFATs trade data products available on the DFAT

website which includes more detail by all countries and longer time series.

The website contains the following products. Three MS Excel time series spreadsheets covering

o Australias trade in goods and services by all countries and selected country groups;

o Australias trade and economic indicators historical data; and

o Australias direction of merchandise trade historical data.

Two MS Excel Pivot tables

o Australia's merchandise exports and imports with all countries, all State and Territories and selected country groups by SITC at the 3-digit level; and

o Australia's merchandise exports and imports with all countries, all State and Territories and selected country groups by DFAT's TRIEC at the 1-, 2-, 3- and 4-digit levels.

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AUSTRALIAS TRADE: KEY POINTS, 2016

Australias trade in goods and services In 2016, the value of Australias exports of goods and services rose 4.6 per cent to $330.3 billion. Services and Minerals & fuels rose while Rural goods and Manufactures declined.

In contrast, Australias imports of goods and services fell 2.9 per cent to $342.4 billion in 2016. Declines occurred in Intermediate & other goods, Capital goods and Services while Gold and Consumption goods increased.

Australias export volumes rose 7.9 per cent in 2016, with volumes of Minerals & fuels up 10.9 per cent and Services up 8.7 per cent. Import volumes increased 0.2 per cent with Gold up 27.1 per cent and Consumption goods up 2.6 per cent offset by a fall in Capital goods down 3.1 per cent.

In 2016, Australias terms of trade1 rose 0.1 per cent; export prices fell 3.0 per cent while import prices declined 3.1 per cent.

Australias direction of trade China was Australias largest individual two-way goods and services trading partner in 2016, accounting for 23.1 per cent ($155.2 billion) of total trade. The United States was the second largest trading partner accounting for 9.6 per cent ($64.3 billion) followed by Japan, accounting for 9.1 per cent ($61.0 billion).

APEC members accounted for 71.1 per cent of Australias total trade; ASEAN members accounted for 13.8 per cent; members of the European Union accounted for 14.6 per cent; G20 members accounted for 69.6 per cent and OECD countries accounted for 44.7 per cent.

China was Australias largest export destination (valued at $93.0 billion) and import source (valued at $62.1 billion).

Australias composition of trade In 2016 Australias top 5 goods and services exports were: Iron ore & concentrates ($53.7 billion); Coal ($42.3 billion); Education-related travel services which includes foreign student expenditure on tuition fees and living expenses in Australia ($22.0 billion); Gold ($18.9 billion) and Natural gas ($17.9 billion).

Australias top 5 goods and services imports in 2016 were: Personal travel (excl education) services which includes Australian short term visitors expenditure abroad mainly for recreational purposes ($28.6 billion); Passenger motor vehicles ($21.4 billion); Refined petroleum ($14.8 billion); Telecommunication equipment & parts ($12.0 billion) and Freight transport services ($8.8 billion).

1 The terms of trade are calculated as the ratio of the prices we receive for our exports to the prices we pay for our imports.

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AUSTRALIAS MERCHANDISE TRADE BY LEVEL OF PROCESSING

Exports In 2016, exports of Unprocessed primary products increased 4.3 per cent to $139.3 billion and Processed primary products fell 1.0 per cent to $50.1 billion.

Exports of Manufactures fell 1.5 per cent to $43.6 billion, with Simply transformed manufactures (STM) (excl nickel) exports declining 8.7 per cent to $13.2 billion and Elaborately transformed manufactures (ETM) exports rising 2.1 per cent to $30.4 billion.

Other goods (mainly Gold and confidential trade items) exports increased 20.5 per cent to $25.4 billion.

Merchandise exports by level of processing: 2011 and 2016

Merchandise imports by level of processing: 2011 and 2016

Based on ABS trade data on the DFAT STARS database.

0% 20% 40% 60% 80% 100%

2011

2016

Unprocessed primary

Processed primary

STM (excl nickel)

ETM Other goods (incl gold)

0% 20% 40% 60% 80% 100%

2011

2016

Unprocessed primary

Processed primary

STM ETM Other goods (incl gold)

Imports In 2016, imports of Unprocessed primary products fell 10.8 per cent to $11.9 billion and Processed primary products decreased 9.5 per cent to $32.8 billion.

Imports of Manufactures fell 3.2 per cent to $199.0 billion, with STM imports declining 3.3 per cent to $15.5 billion and ETM imports falling 3.2 per cent to $183.5 billion.

Other goods (mainly Gold and Confidential items of trade) decreased 10.4 per cent to $10.5 billion.

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COMMODITY FORECASTS

The Australian Bureau of Agricultural & Resource Economics & Sciences (ABARES) and the Department of Industry, Innovation and Science (DIIS) have forecast the value of Australias commodity exports to rise by 1.8 per cent in 2017-18. See Table A for more details.

Table A: Forecasts for major commodity exports

2015 16 2016 17 2017 18 2015 16 to

2016 17 2016 17 to

2017 18 $m $m $m % change % change

Forecast Agricultural & fisheries (a)

Wheat 5,120 5,928 5,729 15.8 -3.4 Wine 2,184 2,380 2,508 9.0 5.4 Beef & veal 8,495 7,087 7,355 -16.6 3.8 Wool (b) 3,283 3,732 3,939 13.7 5.5

Total agricultural & fisheries exports 46,344 49,494 49,402 6.8 -0.2

Resources & energy (c) Metalliferous minerals & metals Aluminium 10,228 10,325 10,453 0.9 1.2

Bauxite (d) 992 1059 1,099 6.8 3.8 Alumina 5,995 5,920 5,915 -1.3 -0.1 Aluminium (ingot metal) 3,241 3,347 3,439 3.3 2.7

Copper 8,110 8,064 8,822 -0.6 9.4 Gold 15,687 17,329 16,778 10.5 -3.2 Iron ores 47,799 71,699 63,843 50.0 -11.0 Nickel (d) 2,922 2,237 2,686 -23.4 20.1 Zinc 2,628 2,691 2,552 2.4 -5.2 Energy Crude petroleum 5,444 6,130 8,363 12.6 36.4 LNG 16,546 23,654 36,118 43.0 52.7 Coal 34,541 55,495 52,751 60.7 -4.9

Metallurgical 19,790 36,574 32,814 84.8 -10.3 Thermal 14,751 18,921 19,937 28.3 5.4

Total resources & energy exports 160,754 215,104 219,964 33.8 2.3

Total commodity exports (b) (d) 207,098 264,598 269,366 27.8 1.8

(a) Based on ABARES commodity groups for farm, forest & fisheries products. (b) Balance of payments basis. (c) Based on DIIS commodity groups for

resources and energy. (d) DIIS estimates.

Sources: ABARES Agricultural commodities, June quarter 2017 and DIIS Resources & Energy, March quarter 2017.

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AUSTRALIAS IMPORTS OF AIRCRAFT & PARTS UPDATE FOR 2016

Introduction This article updates analysis on the impact of confidentiality in Australia Bureau of Statistics (ABS) international merchandise trade statistics on imports of aircraft and parts. To avoid divulging commercially-sensitive details of individual firms, the ABS restricts release of statistics on certain commodities. These restrictions have led to the partial restriction of data released for imports of SITC code 792 - Aircraft, spacecraft & related parts in ABS reported data.

The following data are estimates of those imports, drawing on publicly available information including data from the countries where these imports are sourced. The methodology behind these estimates is laid out on page 10.

Estimates of imports of aircraft and related parts in 2016 Table 1 shows estimates of Australia's imports of Aircraft, spacecraft & related parts. Australia's imports of Aircraft, spacecraft & related parts fell 29.0 per cent (or $1.6 billion) to $3.9 billion in 2016, making it Australia's 16th largest import (in terms of goods and services). In 2016, Australian imported aircraft valued at $1.2 billion, helicopters valued at $1.5 billion and parts for aircraft & helicopters valued at $1.1 billion.

Table 1: Imports of Aircraft & parts by type (A$ million)

% growth

% share 2015 to 2014 2015 2016 2016 2016

Aircraft 2,100 2,867 1,205 30.8 -58.0 Helicopters 362 883 1,460 37.3 65.3 Parts of aircraft & helicopters 1,183 1,691 1,122 28.7 -33.7 Other 110 74 128 3.3 72.6

Total Aircraft, spacecraft & parts 3,756 5,516 3,916 100.0 29.0

Based on ABS & UN merchandise trade data on DFAT STARS database and Global Trade Atlas.

Table 2 shows imports of Aircraft, spacecraft & related parts by Australia's major sources. In 2016, Australia's top source for these imports was the United States valued at $2.5 billion, down 31.3 per cent (or $1.2 billion). Following the United States, Italy was the second largest source with imports up $102 million to $342 million, Germany, with imports up $161 million to $309 million, was the third largest source and France with imports down $129 million to $182 million the fourth largest source.

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Table 2: Imports of Aircraft, spacecraft & parts for selected countries (A$ million)

% growth

% share 2015 to 2014 2015 2016 2016 2016

Canada 84 145 84 2.1 -42.2 France 608 311 182 4.7 -41.4 Germany 44 148 309 7.9 108.7 Italy 19 241 342 8.7 42.2 Netherlands 135 79 22 0.6 -72.8 Poland 23 119 0 0.0 -99.7 Singapore (a) 75 83 18 0.5 -78.5 Spain 17 412 12 0.3 -97.1 Switzerland 88 88 27 0.7 -69.2 United Kingdom 68 172 157 4.0 -8.9 United States (b) 2,448 3,674 2,523 64.4 -31.3

Total 3,756 5,516 3,916 100.0 29.0 of which: European Union 933 1,523 1,083 42.9 28.9

(a) Singapore produced goods only. (b) Excludes imports of some military aircraft from Sep-2008 onwards which cannot be separately identified in US merchandise trade.

Based on ABS & UN merchandise trade data on DFAT STARS database and Global Trade Atlas.

Author: Frank Bingham Office of Economic Analysis statssection@dfat.gov.au

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METHODOLOGY FOR ESTIMATING AIRCRAFT & PARTS IMPORTS Background The ABS has a legal obligation to confidentialise data from an individual or organisation that is identifiable if that individual or organisation has requested that the data be suppressed. These restrictions affect the level of detailed merchandise trade data that is potentially available for release.

The ABS publishes monthly a list of merchandise trade commodities with confidential restrictions in its publication International Merchandise Trade: Confidential Commodities List (ABS catalogue 5372.0.55.0.01). More detail on how the ABS applies confidentiality in merchandise trade statistics is available in the ABS information paper International Trade - Request to Confidentialise data (ABS catalogue 5497.0.55.001). These products are available on the ABS website at www.abs.gov.au.

Impact of confidentiality on imports of aircraft & parts

From September 2008, the ABS made select Harmonised Tariff Item Stat-key Classification (HTISC) codes confidential that make up most of the SITC code Aircraft, spacecraft & parts. These codes have the restriction applied of no commodity details. No data relating to these HTISC are released by the ABS.

Table A lists the ABS confidentiality restrictions applied to these aircraft codes and the dates when they were in effect.

Confidential codes

HTISC 8802.11 8802.12

From Dec-08 Dec-08

8802.30 Dec-08

8802.40 Sep-08

8803.30 Dec-08

Table A: SITC 792 - Aircraft, spacecraft & parts

To Description Jun-15 Helicopters of an unladen weight not exceeding 2,000 kg Aug-15 Helicopters of an unladen weight exceeding 2,000 kg

Jun-15 Aeroplanes and other aircraft (excl helicopters) of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg Aeroplanes and other aircraft (excl helicopters) of an unladen weight exceeding 15,000 kg

Aug-15 Parts of aeroplanes or helicopters (excl propellers, rotors and under-carriages and parts thereof)

Non-confidential codes

HTISC Description Aeroplanes and other aircraft (excl helicopters) of an unladen weight not exceeding

8802.20 2,000 kg 8802.60 Spacecraft 8801.00 Balloons and dirigibles, gliders and other non-powered aircraft 8803.10 Propellers and rotor parts 8803.20 Undercarriages and parts 8803.90 Other

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Alternative sources of information By using partner country export data or mirror statistics (e.g. United States exports of aircraft & parts to Australia) it is possible to get an idea of the size of Australia's imports of the confidential aircraft & parts codes. This partner country data was then summed with the non-confidential codes in the ABS trade data to produce an estimate of imports of aircraft & parts for Australia.

Quality of these estimates The reader should note the above analysis provides only an estimate of the actual value of Australian aircraft & parts imports. These estimates have a number of data quality issues:

Firstly not all of Australia's export partners publish their own export trade data (for example only limited data is available for Middle East countries) and therefore some Australian confidential aircraft & parts imports may not have been included. As Australia's major trading partners were covered in the calculation this should only have a small impact on the above estimates.

Timing differences will also impact on the quality of the estimates, given the long distances to some of Australia's major trading partners. For example a good that is imported and recorded in ABS trade statistics in January 2016 could be

exported and recorded in partner country trade data in December 2015 due to the time it takes to ship the good to that country. As a result this good is recorded in ABS trade statistics in calendar year 2016, while in the partner country data it will be recorded in 2015. This will impact more on aircraft parts than aircraft themselves as the time to fly the aircraft to Australia is within 24 hours. However part of the partner country data may be allocated to the incorrect time period.

It is a possible that in partner country export statistics the final country of destination for these goods are incorrect (it may be shipped though a third party country). This is unlikely for shipments of bulk goods, such as aircraft. However for aircraft parts this may be more of an issue, especially for trading hubs such as Singapore. To minimise this issue only Singapore-produced goods were included in these estimates

A particular problem in using this type of analysis to estimate the imports of aircraft into Australia is to exclude imports of aircraft on an operational lease (which the ABS excludes from Australian import statistics). To try to overcome this issue the Civil Aviation Safety Authority's civil aircraft register has been used to try and identify imports of leased aircraft so as to exclude these aircraft in partner country export data.

In 2009 both the United Kingdom and the United States confidentialised aircraft exports to a degree. For the United States the lower level of confidentiality still enabled the analysis of United States export data and ABS import data to produce an estimate of the value of imports of civil aircraft from the United States (it excludes some US military aircraft, which could not be separately identified in US merchandise trade statistics). However the higher degree of confidentiality in the United Kingdom export statistics prevented the estimation of aircraft imports from the United Kingdom. As a result the estimation of Australian aircraft imports from 2008 to 2012 excludes imports from the United Kingdom.

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IMPACT OF ABS CONFIDENTIAL RESTRICTIONS ON EXPORTS OF NICKEL UPDATE FOR 2016

Introduction This article updates analysis of the impact of confidentiality restrictions in Australian Bureau of Statistics (ABS) international merchandise trade statistics on exports of Australian nickel products. These restrictions have led to some significant distortions in the time series for exports of nickel products and by extension, Simply transformed manufactures (STM).

The methodology used to calculate Australian Nickel and STM exports using both ABS reported and partner country data for 2016 is laid out on page 15.

Trends in Australian Nickel exports in 2016 Based on ABS reported and partner country data, DFAT estimates that Australian exports of Nickel fell by 31.9 per cent (or $1.1 billion) to $2.4 billion in 2016. This followed a fall of 31.5 per cent (or $1.6 billion) to $3.5 billion in 2015.

The world Nickel price reached a peak of US$51,783 per metric tonne in May 2007, and fell sharply in the second half of 2007 and again in the second half of 2008 as the world financial crisis developed. Nickel prices recovered in 2009 and 2010 as the world economy started to recover, but have been trending down since that period see Chart 1.

Chart 1: World Nickel prices

Source: London Metal Exchange Nickel spot price.

0

10,000

20,000

30,000

40,000

50,000

60,000

Dec-06 Dec-07 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16

US$ per MT

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Nickel consumption growth in 2016 was supported by a recovery in stainless steel production (63 per cent of world nickel use is in the manufacture of stainless steel). Nearly all of the growth in stainless steel production in 2016 occurred in China. The average price per metric ton for Nickel was US$9,595 in 2016 down 19.1 per cent from US$11,863 in 2015. However Nickel prices have been slowly recovering from their trough of US$8,229 a tonne in the February 20162.

In the 2016-17 financial year (Department of Industry forecast), Australian nickel mine production remained steady while Australian refined and intermediate-use nickel production, fell 16.7 per cent.1

The fall in Australian production and recorded low prices contributed to the decrease in Australian Nickel exports in 2016. Within Nickel the major export components recording falls included:

Nickel & nickel alloys unworked, which fell 20.1 per cent (or $470 million) to $1.9 billion Nickel ores & concentrates, which fell 55.8 per cent (or $366 million) to $290 million

Nickel bars, rods and profiles, which fell 73.4 per cent (or $102 million) to $37 million.

Impact of confidential Nickel exports on Australian STM exports in 2016 The large value of confidential Nickel exports in ABS trade statistics has meant that the total value of Australian STM exports has been understated since February 2003 in ABS reported data. The total value of Primary products exports is also affected, but to a lesser extent.

DFAT estimated the level of Australian STM exports (including confidential Nickel) was valued at $15.1 billion in 2015 (compared to $13.2 billion using STM exports compiled from ABS reported data alone). STM exports were therefore under-reported by around 14 per cent in 2016 see Chart 2.

Chart 2: STM exports as compiled from ABS data vs DFAT estimated level of STM exports

A$b

0

5

10

15

20

2009 2010 2011 2012 2013 2014 2015 2016

STM exports as published Estimated level of STM exports

Sources: ABS trade data on DFAT STARS database, Global Trade Atlas and UN Comtrade data.

When comparing the growth rates of STM exports in 2016, ABS data shows a fall of 8.7 per cent, while, based on DFAT estimates STM exports fell by 10.3 per cent.

As a result of these differences in the value and growth rates of STM exports, STM exports compiled from ABS reported data alone are identified as STM (excl Nickel) in all DFAT trade statistical publications.

2 Department of Industry & Science - Resources and Energy Quarterly March quarter 2017.

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Next update This analysis will be updated on an annual basis. The next update will be published in mid-2018.

Author: Frank Bingham Office of Economic Analysis statssection@dfat.gov.au

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mailto:statssection@dfat.gov.au

METHODOLOGY FOR ESTIMATING NICKEL EXPORTS Background The ABS has a legal obligation to confidentialise data from an individual or organisation that is identifiable if that individual or organisation has requested that the data be suppressed. These restrictions affect the level of detailed merchandise trade data that is potentially available for release.

The ABS publishes monthly a list of merchandise trade commodities with confidential restrictions in its publication International Merchandise Trade: Confidential Commodities List (ABS catalogue 5372.0.55.0.01). More detail on how the ABS applies confidentiality in merchandise trade statistics is available in the ABS information paper International Trade Request to Confidentialise data (ABS catalogue 5497.0.55.001). These products are available on the ABS website at www.abs.gov.au.

Impact of confidentiality on exports of Nickel products In ABS statistics Nickel mattes, Unwrought nickel & nickel alloys and Nickel powders & flakes have the restriction applied of no commodity details. No data relating to these Australian Harmonized Export Commodity Classification (AHECC) commodities are released by the ABS.

Table A lists the ABS confidentiality restrictions applied to these nickel products and the dates from when they came into effect. The table also shows the DFAT Trade Import and Export Classification (TRIEC) codes3

and the Standard International Trade Classification (SITC) codes which are affected by these restrictions. In this publication confidential nickel trade is classified to Confidential items (TRIEC code 3041 and SITC code 988).

Table A. Nickel products items subject to ABS confidentiality restrictions

TRIEC group

TRIEC code

SITC code ABS AHECC codes Restriction applied From

Included in confidential

TRIEC or SITC code (a)

PPP 1222 284.21 75011000 Nickel mattes No commodity details Jan-88 3041 & 988 STM 2313 683.11 75021000 Unwrought nickel, No commodity details Feb-03 3041 & 988

not alloyed STM 2313 683.12 75022000 Unwrought nickel No commodity details Feb-03 3041 & 988

alloys ETM 2414 683.23 75040000 Nickel powders and No commodity details Feb-03 3041 & 988

flakes

(a) At the Australia level only from June 2013 onwards. Source: ABS catalogue 5372.0.55.001 - International Merchandise Trade: Confidential Commodities List.

3 ABS AHECC data is used to compile the DFAT TRIEC classification.

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http://www.abs.gov.au/http:5372.0.55.0.01

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Table B shows exports of Nickel products as published under the TRIEC classification from 2013 to 2016. It shows where the ABS confidential nickel restrictions impact on the TRIEC export data in this publication.

Table B: Australias exports of Nickel products as published in ABS merchandise trade statistics

Total exports % growth

2014 2015 2016 2015 to 5 year TRIEC A$m A$m A$m 2016 trend

Total Nickel products 1,750 911 345 62.1 26.9

Unprocessed primary products Other metalliferous ores & concentrates

Nickel ores & concentrates 797 656 290 -55.8 -21.4

Processed primary products Metallic minerals, processed

Nickel mattes np np np .. .. Nickel sinters 143 112 16 -85.6 -34.8

STM Non-ferrous metals, simply transformed

Nickel & nickel alloys unworked np np np .. ..

ETM Non-ferrous metals, elaborately transformed

Nickel bars, rods and profiles 807 139 37 -73.4 -40.9 Nickel powder & flakes np np np .. .. Other nickel alloys & articles 4 4 2 -52.7 1.5

Source: Derived from ABS trade data on DFAT STARS database.

Alternative sources of information on Australias Nickel exports By using partner country import data (e.g. Japans imports from Australia) it is possible to get an idea of the size of Australias exports of confidential nickel commodities.

It should be noted that data on Nickel products as published by our major trading partners are not fully compatible with data as published by the ABS. This is due to certain timing, coverage and valuation differences that will exist between the two data sets. (For more information on the quality of the data sourced from our trading partners please refer to the section on quality of these estimates at the end of this article.)

Based on partner country import data, Table C shows that our major trading partners imported around $1.9 billion of Australian Nickel & nickel alloys unworked in 2016. Our major trading partners also imported $160 million of Australian Nickel mattes and $40 million of Nickel powder & flakes.

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Table C: Imports of Australian Nickel products for those items classified as confidential in ABS statistics

2014 2015 2016 TRIEC A$m A$m A$m

Processed primary products Nickel mattes 351 251 160

STM Nickel & nickel alloys unworked 3,023 2,335 1,864

ETM Nickel powder & flakes 45 42 40

Sources: Global Trade Atlas and UN Comtrade data.

Estimate of exports of Nickel products using both ABS and partner country data DFAT has combined both ABS and partner country trade data to calculate an estimate of the level of exports of Australian nickel products and STM exports over time. The results of this analysis are shown in Table D below.

Table D: Australias exports of Nickel products using both ABS and partner country data

% growth

2014 2015 2016 2015 to 5 year TRIEC A$m A$m A$m 2016 trend

Total Nickel products 5,169 3,539 2,410 31.9 11.3

Unprocessed primary products Other metalliferous ores & concentrates

Nickel ores & concentrates 797 656 290 -55.8 -21.4

Processed primary products Metallic minerals, processed

Nickel mattes 351 251 160 -36.0 -28.0 Nickel sinters 143 112 16 -85.6 -34.8

STM Non-ferrous metals, simply transformed

Nickel & nickel alloys unworked 3,023 2,335 1,864 -20.1 1.8

ETM Non-ferrous metals, elaborately transformed

Nickel bars, rods and profiles 807 139 37 -73.4 -40.9 Nickel powder & flakes 45 42 40 -4.9 -11.2 Other nickel alloys & articles 4 4 2 -52.7 1.5

Impact on STM exports STM exports (ABS data only) 14,109 14,496 13,231 -8.7 0.3 STM exports including Nickel unworked 17,132 16,830 15,095 -10.3 0.5

Compiled using partner country import data. Sources: ABS trade data on DFAT STARS database, Global Trade Atlas and UN Comtrade data.

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Major markets for Nickel mattes and Nickel alloys unworked Tables E and F show Nickel mattes and Nickel alloys unworked by major Australian market sourced from import data from our trading partners. In 2016, Australias major markets for Nickel mattes were China, valued at $91 million (down 43.7 per cent), followed by Japan at $55 million (up 156.3 per cent) and the European Union at $26 million (down 59.7 per cent).

Australias major markets for Nickel & nickel alloys unworked in 2016 were Malaysia, valued at $588 million (down 44.0 per cent), followed by Singapore at $324 million (down 34.3 per cent), China valued at $298 million (up 212.8 per cent) and the United States at $295 million (up 607.9 per cent).

Table E: Imports of Australian nickel mattes by major trading partner (a) % growth

2013 2014 2015 2016 2015 to A$m A$m A$m A$m 2016

Total imports (c) 434 351 251 160 36.0 Canada (b) 15 0 0 0 .. China (a) 285 266 162 91 -43.7 European Union (a) 44 12 65 26 -59.7 Japan (a) 127 111 21 55 156.3 Norway (a) 7 0 31 6 -79.9 (a) c.i.f. basis. (b) f.o.b. basis. (c) Adjusted to an f.o.b. basis.

Sources: Global Trade Atlas and UN Comtrade data.

Table F: Imports of Australian nickel & nickel alloys unworked by major trading partner % growth

2013 2014 2015 2016 2015 to A$m A$m A$m A$m 2016

Total imports (c) 2,542 3,023 2,335 1,864 20.1 China (a) 154 57 95 298 212.8 European Union (a) 302 341 264 161 -39.1 India (a) 236 67 150 68 -54.9 Japan (a) 100 141 79 60 -24.6 Republic of Korea (a) 64 48 30 71 133.7 Malaysia (a) 955 1,334 1,049 588 -44.0 Singapore (a) 552 663 494 324 -34.3 South Africa (b) 7 8 0 21 .. Taiwan (a) 13 83 42 295 607.9 United States (b) 232 353 233 64 -72.7 (a) c.i.f. basis. (b) f.o.b. basis. (c) Adjusted to an f.o.b. basis. Sources: Global Trade Atlas and UN Comtrade data.

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Quality of these estimates The reader should note the above analysis provides only an estimate of the actual value of Australian nickel products and STM exports. These estimates have a number of data quality issues:

First, most partner country import data as published by our major trading partners are on a c.i.f. (cost, insurance and freight) basis, whereas the ABS export data are published on a f.o.b. (free on board) basis. As a result, a valuation on a c.i.f. basis will be higher than a valuation on an f.o.b. basis as it includes the additional cost of insurance and freight. In an effort to overcome the issue of combining trade data on an f.o.b. and c.i.f. basis, DFAT has

calculated a proxy f.o.b. value for commodities reported on a c.i.f. basis by deflating the reported value by 10 per cent for Nickel mattes and 5 per cent for nickel alloys4. This adjusted partner country data has been used in Table D Australias exports of nickel products using both ABS and partner country data to calculate Australias total exports of Nickel on a consistent f.o.b. basis.

Second, not all of Australias export partners publish their own import trade data (for example only limited data is available for Middle East countries) and therefore some Australian confidential Nickel exports may not have been included. As Australias major trading partners were covered in the calculation this should only have a small impact on the above estimates.

Timing differences will also impact on the quality of the estimates, given the long distances to some of Australias major trading partners. For example a good that is exported and recorded in ABS trade statistics in December 2015 could be

imported and recorded in partner country trade data in January 2016 due to the time it takes to ship the good to that country. As a result this good is recorded in ABS trade statistics in calendar year 2015, while in the partner country data it will be recorded in 2016. This will impact on the quality of these estimates as data sourced from partner country data may be allocated to the incorrect time period.

It is possible that some Nickel products are not given the same classification code in ABS export statistics as in partner country import statistics. It is therefore possible that some of the confidential Nickel data sourced from partner country data is actually published in ABS export statistics under a non-confidential nickel code. This could lead to some double counting in these estimates

It is a possible that in ABS export statistics the final country of destination for these shipments is incorrect (it may be going onto a third party country). This is unlikely for shipments of bulk goods, such as resources. However given the proximity of Singapore to Malaysia there may be some double counting of Australias exports to these destinations.

4 This methodology is based on an analysis of various countries import data reported on both f.o.b. and c.i.f. basis.

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Introduction

LOW VALUE THRESHOLD GOODS

In August 2013 the Australian Bureau of Statistics (ABS) commenced including estimates for the value of low value threshold (LVT) goods imports into Australias official balance of payments statistics, with revisions back to September quarter 1998. In August 2014 methodological changes were announced, arising from three additional data sources, resulting in further revisions to the series.

What are LVT goods? Broadly, goods imported to Australia with a value below $1,000 (the LVT) do not require full import declaration (FID) to the Department of Immigration & Border Protection (DIBP). As such these imports are excluded from Australias merchandise trade statistics, and before August 2013, were also excluded from Australias Balance of Payments statistics5. LVT goods can be characterised in particular by the large range of small purchases made via on-line retail.

Estimating LVT goods imports Investigations undertaken by the ABS together with DIBP revealed there had been a significant increase in the number of parcels being imported under the LVT driven by the growth in on-line trade. A decision was taken to include estimates for these goods in Australias macroeconomic statistics. The estimates commenced with the August 2013 edition of International Trade in Goods in Services (ABS catalogue 5368.0) with revisions back to September 1998. The estimates have also been included in the Balance of Payments and International Investment Position (ABS catalogue 5302.0) from September 2013 release (including revisions) as well as other ABS outputs that include an international trade dimension.

Updates to LVT adjustments for official goods debits estimates LVT adjustments are applied only to balance of payments goods debits estimates, hence pushing the balance of payments debits series higher by the value of the LVT estimate relative to the corresponding merchandise imports series6. They were well below $1 billion in 1998-99 and around $7.6 billion in 2015-16, which represents 2.8 per cent of the goods debits series in that year.

Impact on macroeconomic aggregates By default, the balance (on goods and services) is also affected. And because the balance is a net series the differences between balance of payments and merchandise trade estimates will vary more widely and, at times, will be at odds as to whether Australias trade is in surplus or deficit. The table below displays

5 To date exports have been excluded from the process, even though conceptually they are in scope. When the ABS identifies reliable data sources, they will be considered for inclusion. 6 Note there are other adjustments applied to the balance of payments goods debits series which cause it to differ from merchandise imports.

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Australias goods trade balances for 1998-99 (when the LVT adjustment commences) as well as the period 2011 to 2016.

Goods Trade Balances Balance of payments versus Merchandise trade (A$ million)

1998 99 2011 2012 2013 2014 2015 2016 Balance of payments -12.5 22.1 -7.9 7.5 2.4 -25.4 -7.8 Merchandise trade -11.6 34.8 5.9 20.9 13.1 -17.5 4.0

Difference -0.9 -12.7 -13.8 -13.4 -10.7 -8.0 -11.9 Source: ABS catalogues 5302.0 and 5368.0.

In 1998-99 the difference between the goods trade balance was just $0.9 billion. However over time, helped by the inclusion of LVT7 goods imports, the difference lifted to $13.8 billion by 2012. In 2016, the difference had eased to $11.9 billion.

From the user perspective balance of payments is the preferred series as the adjustments incorporated by the ABS fill in gaps that exist in the merchandise trade statistics as well as providing a more realistic account of change of ownership. However, balance of payments data is only available for broad aggregates, so users must still use the merchandise trade series where finer levels of detail are required.

More information For a more detailed description of inclusion of LVT estimates into Australias macroeconomic estimates see the explanatory notes of International Trade in Goods and Services, August 2013 (ABS catalogue 5368.0) as well as the information paper: Measurement of online Retail Trade in Macroeconomic Statistics, 2013 (ABS catalogue 8501.0.5.007). The August 2014 edition of International Trade in Goods and Services, (ABS catalogue 5368.0) provides details of the refinements in the technical note starting on page 45.

Author: Julie-Anne Andrew Office of Economic Analysis statssection@dfat.gov.au

7 Balance of payments goods debits are also adjusted for transactions other than LVT goods imports. See the Explanatory notes in ABS catalogue 5368.0.

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mailto:statssection@dfat.gov.au

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AUSTRALIA'S TRADE ON A BALANCE OF

PAYMENTS BASIS

Section 1

Australia's trade in goods and services

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TABLE 1: AUSTRALIA'S TRADE IN GOODS AND SERVICES BALANCE OF PAYMENTS BASIS (a)

(A$ million)

Current prices % growth

2015 to 5 year 2011 2012 2013 2014 2015 2016 2016 trend

Exports Goods 263,231 249,662 263,489 266,768 250,410 259,065 3.5 -0.2 Services 51,041 51,742 54,899 59,932 65,248 71,248 9.2 7.3 Total goods & services 314,272 301,404 318,388 326,700 315,658 330,313 4.6 1.2

Imports Goods 241,145 257,534 255,945 264,382 275,840 266,905 -3.2 2.2 Services 60,698 64,461 70,266 71,171 76,824 75,511 -1.7 4.8 Total goods & services 301,843 321,995 326,211 335,553 352,664 342,416 -2.9 2.7

Total two-way trade Goods 504,376 507,196 519,434 531,150 526,250 525,970 -0.1 1.0 Services 111,739 116,203 125,165 131,103 142,072 146,759 3.3 5.9 Total goods & services 616,115 623,399 644,599 662,253 668,322 672,729 0.7 1.9

Balance on tradeGoods 22,086 -7,872 7,544 2,386 -25,430 -7,840 .. .. Services -9,657 -12,719 -15,367 -11,239 -11,576 -4,263 .. .. Total goods & services 12,429 -20,591 -7,823 -8,853 -37,006 -12,103 .. ..

Chain volume measures and indices (b)

2011 2012 2013 2014 2015 2016 2015 to 5 year

2016 trend

% growth

Export volumes Goods 203,760 219,023 232,865 248,994 262,711 282,916 7.7 6.7 Services 54,929 54,600 56,582 60,416 64,784 70,415 8.7 5.3 Total goods & services 257,603 273,453 289,460 309,409 327,475 353,330 7.9 6.4

Import volumes Goods 258,062 272,667 263,602 263,692 270,680 272,001 0.5 0.7 Services 71,614 75,779 77,685 73,567 72,476 71,869 -0.8 -0.5 Total goods & services 329,764 348,477 340,974 337,194 343,172 343,869 0.2 0.4

Total two-way trade volumes Goods 461,822 491,690 496,467 512,686 533,391 554,917 4.0 3.5 Services 126,543 130,379 134,267 133,983 137,260 142,284 3.7 2.1 Total goods & services 587,367 621,930 630,434 646,603 670,647 697,199 4.0 3.2

Implicit price deflators Goods & services Total exports IPD 122.0 110.2 110.0 105.6 96.4 93.5 -3.0 -4.9 Total imports IPD 91.5 92.4 95.7 99.5 102.8 99.6 -3.1 2.3

Terms of trade Goods & services 133.3 119.3 115.0 106.1 93.8 93.9 0.1 -7.0 (a) For the differences in measuring trade under balance of payments basis vs recorded trade basis refer to this section in the Explanatory notes . (b) Reference year for chain volume measures is 2014-15. Based on ABS catalogue 5302.0.

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TABLE 2: AUSTRALIA'S TRADE IN GOODS AND SERVICES (a) CURRENT PRICE

(A$ million)

Exports

2014 2015 2016 2015 to 5 year

2016 trend

% growth

Total goods & services exports 326,700 315,658 330,313 4.6 1.2 Goods exports 266,768 250,410 259,065 3.5 -0.2

General merchandise 252,289 234,626 238,588 1.7 -0.4 Rural goods 40,555 45,123 42,524 -5.8 5.9

Meat & meat preparations 11,575 13,139 11,091 -15.6 13.1 Cereal grains & cereal preparations 8,974 9,339 7,581 -18.8 -1.4 Wool & sheepskins 2,795 3,304 3,408 3.1 1.3 Other rural 17,211 19,341 20,444 5.7 6.6

Non-rural goods 211,734 189,503 196,064 3.5 -1.6 Minerals and fuels 157,263 133,275 140,391 5.3 -2.5

Metal ores & minerals 88,458 72,458 74,075 2.2 -2.8 Coal, coke & briquettes 38,193 37,110 42,329 14.1 -2.6 Other mineral fuels 30,612 23,707 23,987 1.2 -1.2

Manufactures 42,791 44,507 43,692 -1.8 1.6 Metals (excl non-monetary gold) 11,586 10,683 9,428 -11.7 -3.8 Machinery 9,504 10,382 10,181 -1.9 4.2 Transport equipment 5,163 5,737 5,159 -10.1 6.3 Other manufactures 16,538 17,705 18,924 6.9 2.6

Other non-rural (incl sugar & beverages) 9,897 10,202 10,425 2.2 -2.0 Goods procured in ports by carriers 1,783 1,519 1,556 2.4 -1.4

Net exports of goods under merchanting 310 391 371 -5.1 17.2 Non-monetary gold 14,169 15,393 20,106 30.6 2.7

Services exports 59,932 65,248 71,248 9.2 7.3 Manufacturing services on physical inputs owned by others 18 14 22 57.1 2.4 Maintenance & repair services nie 59 82 64 -22.0 9.9 Transport 6,596 6,756 7,239 7.1 3.0 Travel 34,880 38,431 43,616 13.5 7.5 Other 18,379 19,965 20,307 1.7 8.5

Imports

2014 2015 2016 2015 to 5 year

2016 trend

% growth

Total goods & services imports 335,553 352,664 342,416 -2.9 2.7 Goods imports 264,382 275,840 266,905 -3.2 2.2

General merchandise 260,750 271,536 260,931 -3.9 2.3 Consumption goods 82,826 93,717 95,637 2.0 7.1 Capital goods 61,471 65,579 63,026 -3.9 0.3 Intermediate & other goods 116,453 112,240 102,268 -8.9 -0.2 Non-monetary gold 3,632 4,304 5,974 38.8 -3.2

Services imports 71,171 76,824 75,511 -1.7 4.8 Manufacturing services on physical inputs owned by others 0 0 0 .. .. Maintenance & repair services nie 542 478 695 45.4 6.6 Transport 16,542 17,785 16,444 -7.5 1.7 Travel 29,818 31,627 33,516 6.0 4.8 Other 24,269 26,934 24,856 -7.7 7.0

(a) Balance of payments basis. Based on ABS catalogue 5302.0.

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TABLE 3: AUSTRALIA'S TRADE IN GOODS AND SERVICES (a) CHAIN VOLUME MEASURES (b)

(A$ million)

Exports

2014 2015 2016 2015 to 5 year

2016 trend

% growth

Total goods & services exports 309,409 327,475 353,330 7.9 6.4 Goods exports 248,994 262,711 282,916 7.7 6.7

General merchandise 234,665 247,005 263,971 6.9 6.8 Rural goods 41,778 43,899 42,906 -2.3 3.4

Meat & meat preparations 12,537 12,629 10,922 -13.5 4.8 Cereal grains & cereal preparations 9,227 9,086 8,652 -4.8 -0.6 Wool & sheepskins 2,875 2,975 2,889 -2.9 0.8 Other rural 17,046 19,117 20,445 6.9 5.6

Non-rural goods 193,029 203,387 221,065 8.7 7.4 Minerals and fuels 138,498 146,685 162,738 10.9 9.1

Metal ores & minerals 73,480 81,063 84,766 4.6 11.6 Coal, coke & briquettes 37,273 37,341 41,626 11.5 9.4 Other mineral fuels 27,745 28,281 36,346 28.5 3.6

Manufactures 44,303 44,038 45,286 2.8 0.1 Metals (excl non-monetary gold) 12,073 11,618 11,212 -3.5 -1.8 Machinery 10,009 9,725 9,505 -2.3 -1.1 Transport equipment 5,325 5,595 5,608 0.2 5.7 Other manufactures 16,896 17,100 18,961 10.9 0.5

Other non-rural (incl sugar & beverages) 9,780 10,676 11,075 3.7 0.1 Goods procured in ports by carriers 1,581 1,700 1,968 15.8 5.0

Net exports of goods under merchanting 289 415 415 0.0 30.7 Non-monetary gold 14,057 15,284 18,528 21.2 4.6

Services exports 60,416 64,784 70,415 8.7 5.3 Manufacturing services on physical inputs owned by others 18 14 22 57.1 1.2 Maintenance & repair services nie 59 82 64 -22.0 8.3 Transport 6,637 6,700 7,173 7.1 1.0 Travel 35,245 38,086 42,855 12.5 5.5 Other 18,455 19,905 20,300 2.0 6.7

Imports

2014 2015 2016 2015 to 5 year

2016 trend

% growth

Total goods & services imports 337,194 343,172 343,869 0.2 0.4 Goods imports 263,692 270,680 272,001 0.5 0.7

General merchandise 260,272 266,285 266,439 0.1 0.7 Consumption goods 85,076 89,271 91,562 2.6 3.7 Capital goods 63,729 61,816 59,915 -3.1 -3.7 Intermediate & other goods 111,579 114,992 114,961 -0.0 1.1 Non-monetary gold 3,454 4,377 5,562 27.1 0.1

Services imports 73,567 72,476 71,869 -0.8 -0.5 Manufacturing services on physical inputs owned by others 0 0 0 .. .. Maintenance & repair services nie 572 445 645 44.9 -0.3 Transport 16,639 17,441 16,408 -5.9 -0.1 Travel 30,949 29,701 31,763 6.9 -1.1 Other 25,435 24,879 23,051 -7.3 0.1

(a) Balance of payments basis. (b) Reference year for chain volume measures is 2014-15. Based on ABS catalogue 5302.0.

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TABLE 4: AUSTRALIA'S TOP 25 EXPORTS, GOODS & SERVICES (a) (A$ million)

% growth % share 2015 to 5 year

Rank Commodity 2014 2015 2016 2016 2016 trend Total (b) 326,700 315,658 330,313 4.6 1.2

1 Iron ores & concentrates 66,008 49,100 53,703 16.3 9.4 -3.5

2 Coal (i) 37,999 37,034 42,326 12.8 14.3 -2.4

3 Education-related travel services (c) 17,046 18,659 21,966 6.7 17.7 8.0

4 Gold 13,460 14,504 18,857 5.7 30.0 2.6

5 Natural gas 17,743 16,446 17,911 5.4 8.9 9.6

6 Personal travel (excl education) services 13,611 15,304 17,412 5.3 13.8 8.6

7 Beef, f.c.f. 7,751 9,296 7,401 2.2 -20.4 14.1

8 Aluminium ores & conc (incl alumina) 6,336 7,493 6,460 2.0 -13.8 5.8

9 Wheat 5,920 5,812 4,853 1.5 -16.5 -4.2

10 Professional services 4,807 5,078 4,782 1.4 -5.8 6.5

11 Crude petroleum 10,564 6,005 4,750 1.4 -20.9 -15.9

12 Copper ores & concentrates 5,359 4,813 4,685 1.4 -2.7 -2.8

13 Business travel services 4,223 4,468 4,238 1.3 -5.1 1.8

14 Technical & other business services 3,463 3,493 4,108 1.2 17.6 1.6

15 Meat (excl beef), f.c.f. 3,733 3,738 3,573 1.1 -4.4 11.0

16 Financial services 3,159 3,733 3,534 1.1 -5.3 20.5

17 Aluminium 3,968 3,934 3,337 1.0 -15.2 -4.1

18 Telecom, computer & information services 2,572 3,053 3,300 1.0 8.1 15.9

19 Copper 3,849 3,397 3,115 0.9 -8.3 -2.5

20 Wool & other animal hair (incl tops) 2,417 2,912 3,023 0.9 3.8 1.9

21 Other ores & concentrates (d) 4,594 4,437 2,792 0.8 -37.1 -6.2

22 Other transport services (f) 2,596 2,674 2,788 0.8 4.3 4.9

23 Passenger transport services (e) 2,407 2,635 2,743 0.8 4.1 1.0

24 Alcoholic beverages 2,034 2,388 2,521 0.8 5.6 4.7

25 Edible products & preparations, nes 1,016 1,688 2,369 0.7 40.3 24.7

Memorandum items

Education (g) 17,629

2013-14

19,198

2014-15

22,404

2015-16

6.8 % share 2015-16

16.7 2014-15 to

2015-16

7.8 5 year trend

Tourism Satellite Account (h) 28,193 30,810 34,222 11.0 11.1 5.5

(a) Goods trade is on a recorded trade basis, Services trade is on a balance of payments basis. (b) Balance of payments basis. (c) Includes student

expenditure on tuition fees and living expenses. (d) Other ores & concentrates - mainly of Lead, Zinc and Manganese ores & concentrates.

(e) Other transport services exports covers a range of services provided in Australian airports and ports, including Cargo & baggage handling services,

Agents fees associated with freight transportation and Airport & port charges. (f) Includes Related agency fees & commissions. (g) Education

includes Education-related travel services, Royalties on education services and Other education services. (h) The ABS Tourism Satellite Account (TSA)

provides the official measure of the tourism sector and is only available on a financial year basis. (i) Includes BOP adjustment for 2016.

Based on ABS trade data on DFAT STARS database and ABS catalogue 5302.0 & 5429.0

Page 27

TABLE 5: AUSTRALIA'S TOP 25 IMPORTS, GOODS & SERVICES (a) (A$ million)

% growth % share 2015 to 5 year

Rank Commodity 2014 2015 2016 2016 2016 trend Total (c) 335,553 352,664 342,416 -2.9 2.7

1 Personal travel (excl education) services 25,231 27,046 28,594 8.4 5.7 5.1

2 Passenger motor vehicles 17,566 20,365 21,403 6.3 5.1 7.7

3 Refined petroleum 18,579 18,437 14,829 4.3 -19.6 1.9

4 Telecommunication equipment & parts 9,845 11,675 11,970 3.5 2.5 8.2

5 Freight transport services 9,702 10,248 8,792 2.6 -14.2 1.7

6 Crude petroleum 20,050 9,381 7,953 2.3 -15.2 -18.9

7 Medicaments (incl veterinary) 7,497 7,287 7,617 2.2 4.5 -2.7

8 Goods vehicles 6,008 6,734 7,535 2.2 11.9 0.6

9 Gold 4,005 4,456 7,468 2.2 67.6 -0.6

10 Computers 7,316 8,471 7,349 2.1 -13.2 3.6

11 Passenger transport services (d) 6,146 6,497 6,551 1.9 0.8 -0.5

12 Professional services 4,950 5,866 5,458 1.6 -7.0 12.1

13 Technical & other business services 5,759 6,058 4,926 1.4 -18.7 1.0

14 Charges for intellectual property 4,403 4,696 4,506 1.3 -4.0 3.4

15 Furniture, mattresses & cushions 3,624 4,337 4,274 1.2 -1.5 10.5

16 Heating & cooling equipment & parts 4,354 5,159 4,018 1.2 -22.1 17.9

17 Pharm products (excl medicaments) 2,426 3,049 3,609 1.1 18.4 11.4

18 Business travel services 3,419 3,425 3,552 1.0 3.7 2.0

19 Telecom, computer & information services 3,011 3,382 3,551 1.0 5.0 14.8

20 Electrical machinery & parts, nes 2,959 3,344 3,315 1.0 -0.9 6.5

21 Plastic articles, nes 2,721 3,210 3,226 0.9 0.5 10.9

22 Household-type equipment, nes 2,669 3,139 3,222 0.9 2.6 10.0

23 Measuring & analysing instruments 3,208 3,296 3,186 0.9 -3.3 4.2

24 Prams, toys, games & sporting goods 2,844 3,145 3,134 0.9 -0.3 7.4

25 Medical instruments (incl veterinary) 2,407 2,799 3,066 0.9 9.5 11.3

Memorandum items

Education (e) 1,270

2013-14

1,276

2014-15

1,462

2015-16

0.4 % share 2015-16

14.6 2014-15 to

2015-16

5.1 5 year trend

Tourism Satellite Account (f) 35,769 35,960 38,555 11.0 7.2 4.0

(a) Goods trade is on a recorded trade basis, Services trade is on a balance of payments basis. (b) Please note imports of aircraft were made

confidential by the ABS from Sep-08 onwards. Imports of aircraft would rank in Australia's top 25 imports. DFAT estimates that aircraft imports

were valued at around $3.9 billion in 2016. (c) Balance of payments basis. (d) Includes Related agency fees & commissions. (e) Education

includes Education-related travel services, Royalties on education services and Other education services. (f) The ABS Tourism Satellite Account (TSA)

provides the official measure of the tourism sector and is only available on a financial year basis.

Based on ABS trade data on DFAT STARS database and ABS catalogue 5302.0 & 5429.0

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TABLE 6: AUSTRALIA'S EXPORTS OF GOODS AND SERVICES STATE AND TERRITORY (a)

BALANCE OF PAYMENTS BASIS (A$ million)

Current prices % growth

% share 2015 to 2014 2015 2016 2016 2016

New South Wales 66,018 70,345 74,814 22.6 6.4 Victoria 40,980 42,822 43,833 13.3 2.4 Queensland 57,642 62,995 70,317 21.3 11.6 South Australia 14,354 14,495 13,609 4.1 -6.1 Western Australia 134,037 112,813 116,912 35.4 3.6 Tasmania np np np .. .. Northern Territory np np np .. .. Australian Capital Territory 1,440 1,624 1,744 0.5 7.4 Unallocated and confidential 12,229 10,564 9,084 2.8 -14.0

Total exports 326,700 315,658 330,313 4.6

Chain volume measures (b)

2014 2015 2016 % share

2016

% growth 2015 to

2016

New South Wales 65,912 69,645 74,528 21.1 7.0 Victoria 41,441 42,179 43,838 12.4 3.9 Queensland 56,994 64,330 74,063 21.0 15.1 South Australia 14,142 14,734 15,000 4.2 1.8 Western Australia 118,081 123,461 133,240 37.7 7.9 Tasmania np np np .. .. Northern Territory np np np .. .. Australian Capital Territory 1,455 1,612 1,714 0.5 6.3 Unallocated and confidential 11,384 11,514 10,947 3.1 -4.9

Total exports 309,409 327,475 353,330 7.9

Implicit price deflators (IPDs)

2014 2015 2016

% growth 2015 to

2016 New South Wales 100.2 101.0 100.4 -0.6 Victoria 98.9 101.5 100.0 -1.5 Queensland 101.1 97.9 94.9 -3.0 South Australia 101.5 98.4 90.7 -7.8 Western Australia 113.5 91.4 87.7 -4.0 Tasmania np np np .. Northern Territory np np np .. Australian Capital Territory 99.0 100.7 101.8 1.0

Total exports 105.6 96.4 93.5 -3.0

(a) Total exports (includes Australian produced goods and re-exports) for each State/Territory. (b) Reference year for chain volume measures is 2014-15. np - Not published. .. Not meaningful. Based on ABS catalogue 5302.0.

Page 29

TABLE 7: AUSTRALIA'S IMPORTS OF GOODS AND SERVICES STATE AND TERRITORY

BALANCE OF PAYMENTS BASIS (A$ million)

Current prices % growth

% share 2015 to 2014 2015 2016 2016 2016

New South Wales 124,263 138,446 138,538 40.5 0.1 Victoria 86,279 92,897 91,637 26.8 -1.4 Queensland 51,998 50,785 49,248 14.4 -3.0 South Australia 11,439 11,904 12,207 3.6 2.5 Western Australia 52,760 np np .. .. Tasmania 1,480 1,342 1,498 0.4 11.6 Northern Territory 6,940 np np .. .. Australian Capital Territory 1,998 2,118 2,262 0.7 6.8 Unallocated and confidential .. 55,172 47,026 13.7 -14.8

Total imports 335,553 352,664 342,416 -2.9

Chain volume measures (b)

2014 2015 2016 % share

2016

% growth 2015 to

2016

New South Wales 126,164 133,613 137,313 39.9 2.8 Victoria 87,336 89,693 90,580 26.3 1.0 Queensland 51,270 50,000 50,892 14.8 1.8 South Australia 11,489 11,629 12,305 3.6 5.8 Western Australia 53,045 np np .. .. Tasmania 1,492 1,326 1,556 0.5 17.3 Northern Territory 7,004 np np .. .. Australian Capital Territory 2,064 2,003 2,163 0.6 8.0 Unallocated and confidential .. 54,908 49,060 14.3 -10.7

Total imports 337,194 343,172 343,869 0.2

Implicit price deflators (IPDs)

2014 2015 2016

% growth 2015 to

2016 New South Wales 98.5 103.6 100.9 -2.6 Victoria 98.8 103.6 101.2 -2.3 Queensland 101.4 101.6 96.8 -4.7 South Australia 99.6 102.4 99.2 -3.1 Western Australia 99.5 np np .. Tasmania 99.2 101.2 96.3 -4.9 Northern Territory 99.1 np np .. Australian Capital Territory 96.8 105.7 104.6 -1.1

Total imports 99.5 102.8 99.6 -3.1

(a) Reference year for chain volume measures is 2014-15. np - Not published. .. Not meaningful. Based on ABS catalogue 5302.0.

Page 30

Section 2

Direction of Australia's trade in goods and services

Page 31

TABLE 8: AUSTRALIA'S RANK IN WORLD GOODS AND SERVICES EXPORTS AND IMPORTS

(US$ million)

Country 1996 Rank % share 2006 Rank % share 2016 Rank % share Exports

World 6,723,310 15,125,780 20,834,300 China 171,649 11 2.6 1,063,049 3 7.0 2,306,649 1 11.1 United States 864,564 1 12.9 1,442,705 1 9.5 2,207,018 2 10.6 Germany 610,225 2 9.1 1,289,636 2 8.5 1,612,384 3 7.7 Japan 478,614 3 7.1 756,112 4 5.0 818,755 4 3.9 Netherlands 259,006 7 3.9 463,629 8 3.1 749,481 5 3.6 France 389,047 4 5.8 661,288 6 4.4 738,023 6 3.5 United Kingdom 347,102 5 5.2 719,766 5 4.8 736,573 7 3.5 Hong Kong (SAR of China) 217,813 9 3.2 377,114 12 2.5 615,166 8 3.0 Republic of Korea 153,932 13 2.3 382,678 11 2.5 588,254 9 2.8 Italy 322,333 6 4.8 519,305 7 3.4 562,926 10 2.7 Belgium - - - 429,115 10 2.8 506,898 11 2.4 Singapore 153,998 12 2.3 331,022 14 2.2 479,415 12 2.3 Canada 230,876 8 3.4 454,486 9 3.0 471,044 13 2.3 India 40,343 31 0.6 191,248 20 1.3 425,865 14 2.0 Switzerland 106,491 17 1.6 219,187 19 1.4 417,577 15 2.0 Spain 151,666 14 2.3 317,167 15 2.1 414,548 16 2.0 Mexico 106,723 16 1.6 265,869 16 1.8 398,027 17 1.9 Russian Federation 103,235 18 1.5 339,270 13 2.2 332,329 18 1.6 United Arab Emirates 38,652 32 0.6 152,435 29 1.0 329,317 19 1.6 Taiwan 133,591 15 2.0 242,797 17 1.6 321,764 20 1.5 Thailand 72,728 23 1.1 154,333 27 1.0 281,746 21 1.4 Ireland 54,086 28 0.8 175,074 24 1.2 274,762 22 1.3 Poland 34,184 35 0.5 133,352 31 0.9 251,532 23 1.2 Australia 79,600 22 1.2 156,464 25 1.0 244,359 24 1.2 Malaysia 93,462 20 1.4 181,830 23 1.2 223,339 25 1.1

United States 974,578 1 14.2 2,259,242 1 14.7 2,754,404 1 13.1 China 161,418 12 2.4 892,299 3 5.8 2,040,445 2 9.7 Germany 588,919 2 8.6 1,131,659 2 7.4 1,366,965 3 6.5 United Kingdom 359,881 5 5.2 802,655 4 5.2 834,416 4 4.0 France 361,825 4 5.3 688,203 6 4.5 808,701 5 3.8 Japan 476,905 3 6.9 720,472 5 4.7 791,637 6 3.8 Nepal 237,055 7 3.5 416,832 9 2.7 672,872 7 3.2 Hong Kong (SAR of China) 225,818 8 3.3 399,466 11 2.6 621,797 8 3.0 Qatar 180,120 10 2.6 379,809 13 2.5 516,628 9 2.5 Canada 211,064 9 3.1 431,925 8 2.8 513,980 10 2.4 Italy 276,272 6 4.0 548,915 7 3.6 508,436 11 2.4 India 49,113 29 0.7 253,581 16 1.6 492,774 12 2.3 Belgium - - - 408,371 10 2.7 474,795 13 2.3 Singapore 153,810 13 2.2 305,103 14 2.0 438,505 14 2.1 Mauritius 102,797 16 1.5 287,117 15 1.9 429,441 15 2.0 Spain 145,212 14 2.1 398,024 12 2.6 380,270 16 1.8 Switzerland 90,942 19 1.3 190,244 19 1.2 363,865 17 1.7 United Arab Emirates 37,693 36 0.5 124,938 29 0.8 308,213 18 1.5 Taiwan 127,460 15 1.9 235,417 17 1.5 282,975 19 1.3 Ireland 47,745 31 0.7 154,962 24 1.0 267,324 20 1.3 Russian Federation 87,466 21 1.3 210,554 18 1.4 265,785 21 1.3

Imports World 6,862,630 15,381,300 21,022,410

Australia 80,753 23 1.2 165,910 22 1.1 245,330 22 1.2 Thailand 91,917 18 1.3 161,387 23 1.0 236,867 23 1.1 Philippines 43,476 32 0.6 146,996 27 1.0 231,159 24 1.1 Turkey 50,054 28 0.7 151,766 26 1.0 220,825 25 1.1 Sources: World Trade Organization online statistics database and ABS data on dX database.

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TABLE 9: AUSTRALIA'S TRADE IN GOODS AND SERVICES (a) (b)

BY TOP 15 PARTNERS

(A$ million)

Australia's top two-way trading partners

Rank 2014 2015 2016 % share of total

% growth 2015 to 5 year

2016 trend 1 China 145,426 149,670 155,160 23.1 3.7 5.6 2 United States (c) 60,794 70,215 64,283 9.6 -8.4 4.5 3 Japan 70,151 64,992 61,039 9.1 -6.1 -3.2 4 Republic of Korea 35,219 36,097 32,084 4.8 -11.1 1.0 5 United Kingdom 21,223 23,193 29,092 4.3 25.4 2.9 6 New Zealand 23,484 23,980 24,828 3.7 3.5 3.4 7 Singapore 29,580 25,677 22,701 3.4 -11.6 -3.4 8 Thailand 18,986 20,781 21,249 3.2 2.3 3.1 9 India 15,763 19,808 20,741 3.1 4.7 0.9

10 Germany 17,504 18,589 20,223 3.0 8.8 4.5 11 Malaysia 20,678 19,054 17,640 2.6 -7.4 2.5 12 Hong Kong (SAR of China) 15,680 15,564 16,300 2.4 4.7 13.0 13 Indonesia 15,722 15,083 15,402 2.3 2.1 1.1 14 Taiwan 12,659 12,463 13,418 2.0 7.7 -0.2 15 Vietnam 10,058 10,067 10,501 1.6 4.3 11.7

Total all countries 662,253 668,322 672,729 0.7 1.9 of which: APEC (c) 483,196 486,592 478,282 71.1 1.7 2.5

ASEAN 101,034 95,852 93,171 13.8 2.8 1.5 European Union (d)(e) 85,718 89,323 98,097 14.6 9.8 2.4 G20 450,350 467,418 468,237 69.6 0.2 2.4 OECD (c)(e) 293,444 304,135 300,612 44.7 1.2 1.4

Australia's top export markets

Rank 2014 2015 2016 % share of total

% growth 2015 to 5 year

2016 trend 1 China 91,117 85,436 93,040 28.2 8.9 3.8 2 Japan 50,248 42,196 38,505 11.7 -8.7 -5.7 3 United States 18,610 22,085 20,657 6.3 -6.5 8.6 4 Republic of Korea 21,973 19,943 20,189 6.1 1.2 -3.6 5 United Kingdom 8,382 8,720 14,966 4.5 71.6 2.2 6 India 11,240 13,395 14,627 4.4 9.2 -3.3 7 New Zealand 12,094 12,498 13,004 3.9 4.1 4.0 8 Hong Kong (SAR of China) 11,900 11,292 12,525 3.8 10.9 16.9 9 Singapore 12,081 11,012 10,338 3.1 -6.1 2.3

10 Taiwan 7,912 7,430 8,756 2.7 17.8 -2.7 11 Indonesia 6,925 6,791 7,420 2.2 9.3 3.2 12 Malaysia 7,992 7,842 7,395 2.2 -5.7 4.6 13 Vietnam 4,225 4,680 5,073 1.5 8.4 14.4 14 Thailand 6,084 5,307 4,685 1.4 -11.7 -7.1 15 Germany 2,855 3,127 3,862 1.2 23.5 1.7

Total all countries 326,700 315,658 330,313 4.6 1.2 of which: APEC 260,276 245,505 251,113 76.0 2.3 1.3

ASEAN 40,088 38,364 38,069 11.5 0.8 2.7 European Union (d) 22,231 23,322 30,539 9.2 30.9 0.2 G20 232,412 223,740 234,778 71.1 4.9 0.3 OECD 130,966 126,235 129,945 39.3 2.9 1.1

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TABLE 9: AUSTRALIA'S TRADE IN GOODS AND SERVICES (a) (b) BY TOP 15 PARTNERS (cont'd)

(A$ million)

Australia's top import sources

Rank 2014 2015 2016 % share of total

% growth 2015 to 5 year

2016 trend 1 China 54,309 64,233 62,120 18.1 -3.3 8.4 2 United States (c) 42,184 48,129 43,626 12.7 -9.4 2.8 3 Japan 19,903 22,796 22,534 6.6 -1.2 2.1 4 Thailand 12,902 15,474 16,564 4.8 7.0 8.0 5 Germany 14,649 15,462 16,361 4.8 5.8 5.2 6 United Kingdom 12,841 14,473 14,127 4.1 -2.4 3.1 7 Singapore 17,499 14,665 12,362 3.6 -15.7 -7.0 8 Republic of Korea 13,246 16,154 11,895 3.5 -26.4 11.1 9 New Zealand 11,391 11,482 11,824 3.5 3.0 2.8

10 Malaysia 12,686 11,212 10,245 3.0 -8.6 1.1 11 Indonesia 8,797 8,292 7,981 2.3 -3.7 -0.6 12 Italy 7,435 7,321 7,452 2.2 1.8 3.7 13 France (c) 6,407 6,320 6,372 1.9 0.8 -0.9 14 India 4,523 6,413 6,113 1.8 -4.7 16.7 15 Vietnam 5,833 5,387 5,427 1.6 0.7 9.7

Total all countries 335,553 352,664 342,416 -2.9 2.7 of which: APEC (c) 222,919 241,087 227,169 66.3 5.8 3.9

ASEAN 60,946 57,488 55,102 16.1 4.2 0.8 European Union (d)(e) 63,487 66,002 67,557 19.7 2.4 3.3 G20 217,938 243,678 233,460 68.2 4.2 4.8 OECD (c)(e) 162,478 177,900 170,666 49.8 4.1 3.4

(a) All data is on a balance of payments basis, except for goods by country which are on a recorded trade basis. (b) May exclude selected confidential export or import commodities from partner country totals as well as for the country groups. Refer to the DFAT website (http://dfat.gov.au/about-us/publications/trade-investment/Pages/dfat-adjustments-to-abs-official-trade-data.aspx) for more information and a list of the commodities excluded. (c) Includes DFAT estimate for the United States for 2016. (d) Services data is EU27 to August 2013, EU28 from September 2013. (e) Includes DFAT estimate for France from 2010 to 2016. Based on DFAT STARS database, ABS catalogues 5302.0 & 536830.55.003/4 and unpublished ABS data.

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http://dfat.gov.au/about-us/publications/trade-investment/Pages/dfat-adjustments-to-abs-official-trade-data.aspx

TABLE 10: AUSTRALIA'S TOTAL TRADE IN GOODS AND SERVICES (a) (b) BY SELECTED COUNTRIES AND REGIONS

(A$ million)

% share 2015 to 5 year Selected countries 2014 2015 2016 of total 2016 trend

% growth

Argentina 1,055 1,279 989 0.1 0.3 -0.4 Belgium & Luxembourg 3,173 3,185 3,032 0.5 0.1 -2.8 Brazil 2,491 2,549 2,802 0.4 0.2 2.8 Brunei 1,091 580 472 0.1 0.7 -19.8 Canada 5,515 6,197 6,367 0.9 0.1 2.9 Chile 1,651 1,614 1,435 0.2 0.2 -5.6 China 145,426 149,670 155,160 23.1 0.0 5.6 Fiji 1,699 1,849 1,862 0.3 0.2 4.6 France 8,347 8,332 8,390 1.2 0.0 -0.1 Germany 17,504 18,589 20,223 3.0 0.0 4.5 Greece 1,159 1,252 1,021 0.2 0.3 3.3 Hong Kong (SAR of China) 15,680 15,564 16,300 2.4 0.0 13.0 India 15,763 19,808 20,741 3.1 0.0 0.9 Indonesia 15,722 15,083 15,402 2.3 0.0 1.1 Ireland 3,227 3,767 4,403 0.7 0.1 2.9 Italy 8,639 8,635 8,762 1.3 0.0 2.6 Japan 70,151 64,992 61,039 9.1 0.0 -3.2 Malaysia 20,678 19,054 17,640 2.6 0.0 2.5 Mexico 2,703 3,210 3,200 0.5 0.0 1.4 Netherlands 5,967 6,266 6,474 1.0 0.1 -1.6 New Zealand 23,484 23,980 24,828 3.7 0.1 3.4 Norway 1,370 1,167 1,106 0.2 0.0 -1.2 Papua New Guinea 6,782 5,697 6,138 0.9 0.3 -3.9 Peru 388 390 590 0.1 0.1 7.3 Philippines 4,144 3,758 4,259 0.6 1.0 7.4 Republic of Korea 35,219 36,097 32,084 4.8 0.1 1.0 Russian Federation 2,101 1,080 880 0.1 0.4 -16.3 Saudi Arabia 3,090 3,002 2,409 0.4 0.1 2.2 Singapore 29,580 25,677 22,701 3.4 0.0 -3.4 South Africa 3,034 3,289 3,030 0.5 0.1 -2.0 Sweden 2,783 2,771 2,981 0.4 0.1 -2.7 Switzerland 5,288 5,548 6,068 0.9 0.1 3.1 Taiwan 12,659 12,463 13,418 2.0 0.0 -0.2 Thailand 18,986 20,781 21,249 3.2 0.0 3.1 Turkey 1,569 1,624 1,754 0.3 0.2 4.5 United Arab Emirates 8,512 8,865 7,882 1.2 0.0 -0.5 United Kingdom 21,223 23,193 29,092 4.3 0.0 2.9 United States 60,794 70,215 64,283 9.6 0.0 4.5 Vietnam 10,058 10,067 10,501 1.6 0.0 11.7 Country Groups (c) APEC 483,196 486,592 478,282 71.1 0.0 2.5 ASEAN 101,034 95,852 93,171 13.8 0.0 1.5 European Union (d) 85,718 89,323 98,097 14.6 0.0 2.4 G20 450,350 467,418 468,237 69.6 0.0 2.4 OECD 293,444 304,135 300,612 44.7 0.0 1.4 Geographic Regions (c) Africa 10,328 7,602 7,569 1.1 0.0 -9.6 Americas 76,886 88,094 82,198 12.2 0.0 3.9 Asia 419,826 419,852 415,999 61.8 0.0 2.3 Europe 96,744 99,625 108,776 16.2 0.0 2.1 Oceania & Antarctica 34,162 33,670 34,775 5.2 0.0 1.7 Other (e) 24,307 19,478 23,411 3.5 -0.0 -5.6 World 662,253 668,322 672,729 0.0 1.9 (a) All data is on a balance of payments basis, except for goods by country which are on a recorded trade basis. (b) May exclude selected confidential export/import commodities from partner country totals as well as for the country groups. Therefore movements in the confidentialised country totals may not reflect the true pattern of trade. Refer to Appendix G for details on all DFAT adjustments to ABS official trade data. (c) Refer to the Explanatory notes for country group definitions. (d) Services data is EU27 to August 2013, EU28 from September 2013. (e) Includes unallocated and confidential trade. Based on ABS catalogues 5368.0 & 5368.0