Australia Yearbook - 2001

1036 Year Book Australia 2001
The largest percentage surplus (31%) occurred
in 1931–32, shortly after the Wall Street crash in
1929 and the onset of the Great Depression.
Trade surpluses continued in every year of the
1930s. Australia’s largest trade surplus (in
percentage terms) occurred in 1942–43, during
the Second World War, at 33% of total trade.
Two further years of large surpluses, 25% and
16%, occurred in 1943–44 and 1944–45.
International trade in these years was, of course,
at a low level because of dangers to shipping.
Australia’s greatest period of trade volatility
occurred in 1951–52 and 1952–53, when the
balance of trade changed from a deficit of 21%
to a surplus of 26% of total trade, the latter in
the year in which wool achieved the all-time
record price of ‘a pound a pound’. The longest
period of trade stability has occurred since
1982–83. Over this period the balance of trade
(surplus or deficit) has not exceeded 7% of
total trade, and has tended to be a deficit in
most years.
Australia’s trading partners
In 1900 the United Kingdom was Australia’s
primary trading partner. Total trade with the
UK was over five times greater than the total
trade with Australia’s second largest trading
partner, the United States of America. With the
exception of the USA, the other major trading
partners were either European countries or
members of the British Empire, reflecting
Australia’s close historical association with the
UK in its developing trading relationships.
By 1999–2000, the balance of Australia’s trading
relationships had changed significantly. Our
trade focus is now firmly on the members of the
Asia Pacific Economic Cooperation forum
(APEC). Nine of Australia’s ten major trading
partners are members of APEC; the UK now
ranks sixth.
The USA is currently Australia’s major source of
imports. As graph 30.30 shows, through the
century the share of Australia’s total imports
coming from the USA trended upwards until
1930s, and then fell back in the last years of
World War II. There was strong growth in the
US share of Australian imports during the
1950s and 1960s; since then the US share has
remained roughly stable.
The share of Australia’s total imports coming
from the UK declined steadily to the end of the
1940s, and then recovered some lost ground
until the mid 1950s. The UK share fell away
sharply during the 1960s and 1970s (graph
30.30). The share of Australia’s total imports
coming from New Zealand has remained steady
through most of the century, but has been
rising slowly since the 1970s. The Australia–New
Zealand Closer Economic Relations Trade
Agreement (CER) came into effect on 1 January
1983, providing each country with easier access
to the other’s markets. The share of Australia’s
total imports coming from Japan rose rapidly
from the early 1960s until the mid 1980s, but
has declined slowly since.
30.29 TRADE BALANCE, Percentage of Total Trade—1900 to 2000
% change
40
20
0
–20
–40
1900 1925 1950 1975 2000
Source: Australian Exports; Country by Commodity (5411.0);
Australian Imports, Country by Commodity (5414.0);
International Merchandise Trade (5422.0); Lougheed 1987; Wilson 1931.