SYDNEY – Booming iron ore and coal exports boosted commerce between Australia and top trading partner China by 8.8 percent this year and more than trebled it over the past decade, data showed on Wednesday. The trade department said China remained Australia’s largest export market with total shipments growing to $89.7 billion – 17.6 percent of total trade -over the 12 months to June.
“Over the last decade, the share of Australia’s two-way trade in goods and services with China increased rapidly, from just 5.1 percent in 1999-00 to 17.6 percent in 2009-10,” the office said. Emerging powerhouse China accounted for 20.6 percent of total exports and 14.7 percent of Australia’s imports.
It also became Australia’s top export market for services for the first time, growing by 13.4 percent to $5.8 billion in 2009-10. Iron ore, the key ingredient of steel, accounted for nearly half of exports to China in 2009-2010, worth $25 billion out of a total of $52.3 billion. Other important exports included animal products and wheat.
Asian demand for its raw materials helped Australia become the only advanced Western nation to weather the global downturn without going into recession, and is driving a once-in-a-century mining boom. Australia’s export volumes grew 5.3 percent but their value fell 10.6 percent to $254.2 billion due to a “sharp drop in prices in the first half of 2009-10 as demand from our key Asian markets softened,” the office said.
“However commodity prices rebounded strongly in the last quarter of 2009-10,” it added. The value of two-way trade with all countries fell 8.7 percent to $512.2 billion in 2009-10. Japan was Australia’s second-largest trading partner, accounting for 11.5 percent of total trade worth $58.9 billion, followed by the United States, valued at $48.9 billion and 9.6 percent.
Japan was also Australia’s second-largest export market; though its share dropped 29.1 percent to 39.0 billion, dominated by coal, iron ore, aluminium and beef. India ranked third in exports with a 5.3 percent increase to 19.8 billion, led by gold, coal copper and other metals. It was Australia’s fifth-largest trading partner overall.
