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Trade surplus due to strong prices

Australia's first trade surplus in 13 months reflects the strong prices being paid for coal and iron ore, Trade Minister Simon Crean says.

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Source: AAP


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The trade balance of goods and services was a $134 million surplus in April compared with a revised $2.04 billion trade deficit in March, Australian Bureau of Statistics data showed on Thursday.

Exports jumped by 11 per cent in April.

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"It reflects the very strong effect from resource exports and in turn that reflects the very high prices that are being paid for those," Mr Crean told reporters in Canberra.

The value of iron ore exports increased by 32 per cent in the month, even though the volume of ore exported increased by only two per cent.

China, Japan exports up

"These figures demonstrate that the price is determined in the world market, that the miners are recording for the country the extraordinary growth in export prices for their resources."

Goods exports to China - Australia's largest trading partner - increased by 23 per cent in April, while goods exports to Japan, Australia's second-largest trading partner - increased by 17 per cent.

Goods exports to Korea rose by nine per cent.

Mr Crean says exports to China will remain strong in an economy that is expected to grow 10 per cent this year.

"Obviously in terms of the other debate that is going on at the moment, the government's tax for resource rent will ensure that Australians get a fair share from this growth."


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