N.Z.’s exports to Aust 30 p.c. up

Press, 20 August 1984, Page 30

N.Z.’s exports to Aust 30 p.c. up

NZPA staff correspondent Sydney Tasman trade has boomed in the last 12 months, New Zealand raking in more than 30 per cent extra revenue from the Australian market, according to the latest figures. But officials said in Sydney that the credit for the surge should not necessarily go to the Closer Economic Relations treaty. In the 12 months to June 30 — the first full Australian financial year under CER — the value of New Zealand’s exports to Australia rose 32.6 per Cent, while Australia sold 21 per cent more to New Zealand. New Zealand earned 1NZ1520.97M from Australia, While paying Australia 1NZ2306.5M for goods. That brought the trade ratio back to just 1.5:1 in Australia’s favour, one of the closest on record. In every state, New Zealand has increased its sales — a 66 per cent increase in South Australia and 62.5 per cent in Western Australia, by about 30 per cent in the populous markets of New South Wales and Victoria, and by 17 per cent in Tasmania. Australia’s total imports from all suppliers were up only 10.3 per cent, and it lifted its total exports only 11.8 per cent “A major reason for the increase in trade is the way the economy has recovered here,” said a senior official in Sydney. “Another has been price

increases for a lot of the commodities involved.

“CER has obviously had an effect, but we won’t really be able to see just how much until we have had another year to look at it” . Another official said New Zealand already had trade preferences with Australia anyway, and that while tariffs in both countries had now been lowered 10 per cent since CER came into force, they still had some way to go. “CER has stimulated interest in each country rather than lifted trade itself,” he said. “Large amounts of New Zealand’s trade with Australia are on a preference basis anyway — for example boats, on which there is no duty on imports from New Zealand, while those from say Taiwan are taxed 25 per cent.” New Zealand and Australia are still each other’s major markets for manufactured goods and tourism, but over all New Zealand's share. of Australia’s sAust24.o6 billion imports in 1983-84 was only 3.8 per cent, up from 3.2 per cent the previous year. New Zealand’s importance as a market for some of the sAust24.BB billion worth of goods Australia exported last year has also risen from 5.2 per cent to 5.6 per cent. The big-volume states are still New South Wales, which took $NZ693.66M worth of goods from New

Zealand, and Victoria, which bought JNZ566.28M worth. The most spectacular gains have been in ; the smallvolume states of Queensland, West and South Australia. ...

New Zealand trade officials in the smaller states say that significant volumes of goods imported by the big two from across the Tasman find their way to their own areas, giving an artificially reduced trade picture. However, South Australia took 1NZ34.6 million worth of New Zealand goods, providing the most dramatic trade increase of 66 per cent, although that was in relation to trade the previous year that had fallen 320 per cent on the previous year. The problem for New Zealand in that market is that trade is still running more than 4:1 in the southern state’s favour, largely because it is the Australian base for the giant Mitsubishi car company. Western Australia took SNZ399M worth of New Zealand goods, up 62.5 per cent on the previous year with much more shipped in from eastern states. Queensland bought 1NZ146.19M worth of goods from New Zealand, up 48.8 per cent on the previous year, and according to trade officials in Brisbane, a growing target for business from across the Tasman. In the year, Queensland’s total imports were up only 4.6 per cent.

Mr Graham Mackie has taken up his position as senior manager of Westpac Banking Corporation’s international services. He is responsible for Westpac’s extensive international bnusiness operations throughout New Zealand. Mr Mackie, who joined the bank in 1962, has seen service in both New Zealand and Australia. He has specialised in international banking since 1966.