The purpose of this report is to analyse the structure and pattern of Australia's trade. The report uses trade statistics from 1999-2000 to 2003-04 and theoretical perspectives to help explain the pattern of trade. The focus will begin with the balance of payments in relation to exports and imports, then move on to the determinants of the terms of trade, and finally, an analysis of why Australia's trade pattern is as it is.

Note: All figures as shown in Australian dollars (AUD).

Balance of Payments

The Australian balance of payments is a systematic record of economic transactions between the residents of Australia and residents of other countries. (ABS 5363.0, 2005)

Exports

Australia's total exports, according to the Australian Bureau of Statistics, equalled 97,286 million dollars (m$) in 1999-2000. Steady increases flowed to 121,108m$ in 2001-02, however by 2003-04, exports had decreased to 108,906m$ (ABS 1301.0, 2004). These figures are shown in Table...