International Trade in Goods and Services, Australia

• Due to the impact of COVID-19 trend estimates have been suspended in this publication from March 2019.
   

• In seasonally adjusted terms, the balance on goods and services was a surplus of $8,800m in April 2020, a decrease of $1,646m on the surplus in March 2020.
   

• In seasonally adjusted terms, goods and services credits fell $4,756m (11%) to $37,505m. Non-rural goods fell $2,192m (8%) and non-monetary gold fell $1,694m (47%). Rural goods rose $39m (1%) and net exports of goods under merchanting rose $15m (79%). Services credits fell $924m (13%).
   

• In seasonally adjusted terms, goods and services debits fell $3,111m (10%) to $28,705m. Intermediate and other merchandise goods fell $507m (5%) and non-monetary gold fell $402m (40%). Consumption goods rose $329m (4%) and capital goods rose $243m (4%). Services debits fell $2,773m (42%).
   

The trend series attempts to measure underlying behaviour in international trade activity. In the short term, this measurement will be significantly affected by the current COVID-19 pandemic and subsequent changes to regular patterns in international trade that will occur during this time. If the trend estimates in this publication were to be calculated without fully accounting for this unusual event, they would provide a misleading view of underlying international trade activity.

It may be some time before the underlying trend in international trade activity can be accurately estimated. The trend series has therefore been suspended from March 2019 and will be reinstated when more certainty emerges in the underlying trend in international trade.

International Accounts uses the concurrent seasonal adjustment method, meaning that seasonal factors are re-estimated each time a new data point becomes available. If not appropriately accounted for, unusual real-world events, such as COVID-19, can distort estimates calculated using this method. From March 2020, seasonal factors that have been notably impacted by these events have been calculated using data up to and including February 2020, then projected from March 2020 onwards. This approach, known as the forward factor method, ensures that the seasonal factors are not distorted by COVID-19 impacts.

Quality assurance undertaken by the ABS confirmed that COVID-19 did not result in quality impacts to International Trade in Goods and Services statistics for April 2020. For information on the expected economic impacts of COVID-19, please see the ABS Chief Economist Series paper Measuring natural disasters in the Australian economy.

In seasonally adjusted terms, the balance on goods and services was a surplus of $8,800m in April 2020, a decrease of $1,646m on the surplus in March 2020.

In seasonally adjusted terms, goods and services credits fell $4,756m (11%) to $37,505m. Non-rural goods fell $2,192m (8%) and non-monetary gold fell $1,694m (47%). Rural goods rose $39m (1%) and net exports of goods under merchanting rose $15m (79%). Services credits fell $924m (13%).

In seasonally adjusted terms, exports of rural goods rose $39m (1%) to $4,179m.

The main component contributing to the rise in seasonally adjusted estimates was cereal grains and cereal preparations, up $71m (13%).

Partly offsetting this rise was meat and meat preparations down $47m (3%).

In seasonally adjusted terms, exports of non-rural goods fell $2,192m (8%) to $25,346m.

The main components contributing to the fall in seasonally adjusted estimates were:

• metal ores and minerals, down $1,003m (9%)
• other manufactures, down $338m (16%)
• other mineral fuels, down $216m (4%)
• coal, coke and briquettes, down $198m (4%)
• machinery, down $183m (17%)
• metals (excl. non-monetary gold), down $172m (16%)
• transport equipment, down $100m (24%).
   

For price and volume details, see the Selected commodities subsection.

In seasonally adjusted terms, net exports of goods under merchanting rose $15m (79%) to $34m.

In original and seasonally adjusted terms, exports of non-monetary gold fell $1,694m (47%) to $1,880m.

In seasonally adjusted terms, services credits fell $924m (13%) to $6,066m.

The main components contributing to the fall in seasonally adjusted estimates were:

• travel, down $624m (16%)
• transport, down $159m (31%)
• other services, down $140m (5%).
   

In seasonally adjusted terms, tourism related services credits fell $730m (18%) to $3,299m.

In seasonally adjusted terms, total services credits contributed 16% of total goods and services exported.

In seasonally adjusted terms, goods and services debits fell $3,111m (10%) to $28,705m. Intermediate and other merchandise goods fell $507m (5%) and non-monetary gold fell $402m (40%). Consumption goods rose $329m (4%) and capital goods rose $243m (4%). Services debits fell $2,773m (42%).

In seasonally adjusted terms, imports of consumption goods rose $329m (4%) to $8,609m.

The main components contributing to the rise in seasonally adjusted estimates were:

• consumption goods n.e.s., up $244m (10%)
• textiles, clothing and footwear, up $226m (16%).
   

Partly offsetting these rises was non-industrial transport equipment, down $182m (10%).

In seasonally adjusted terms, imports of capital goods rose $243m (4%) to $5,847m.

The main component contributing to the rise in seasonally adjusted estimates was ADP equipment, up $476m (52%).

Partly offsetting this rise was capital goods n.e.s., down $251m (33%).

In seasonally adjusted terms, imports of intermediate and other merchandise goods fell $507m (5%) to $9,881m.

The main component contributing to the fall in seasonally adjusted estimates was fuels and lubricants, down $882m (31%).

Partly offsetting this fall was processed industrial supplies n.e.s., up $381m (13%).

In original and seasonally adjusted terms, imports of non-monetary gold fell $402m (40%) to $615m.

In seasonally adjusted terms, services debits fell $2,773m (42%) to $3,753m.

The main components contributing to the fall in seasonally adjusted estimates were:

• travel, down $2,382m (98%)
• transport, down $307m (24%).
   

In seasonally adjusted terms, tourism related services debits fell $2,751m (98%) to $49m.

In seasonally adjusted terms, total services debits contributed 13% of total goods and services imported.

International merchandise trade exports data presented in the above table are based on information reported by exporters to the Department of Home Affairs (Home Affairs). For commodities such as iron ore and coal, newly negotiated contract prices are not fully reflected in data first reported to Home Affairs. Final quantity and/or unit price information is updated progressively in international merchandise trade data as exporters revise the information provided to Home Affairs. When additional information for these commodities is available, the ABS may adjust the data to reflect actual transaction values.

Unit values in this publication are presented in Australian dollar terms. Movements in the unit values for some commodities incorporate movements in the United States dollar prices reported to Home Affairs and movements in the Australian dollar to United States dollar exchange rate.

On an international merchandise trade basis, in original terms (noting the footnote in the above table), between March 2020 to April 2020 the largest movements recorded for the following selected commodities were:

Iron ore lump, down $144m (6%), with quantities down 1% and unit values down 5%. Exports to:

• Japan fell $82m (30%), with quantities down 28% and unit values down 2%
• the Republic of Korea, fell $42m (27%), with quantities down 29% and unit values up 2%
• Taiwan fell $29m (20%), with quantities down 14% and unit values down 6%.
   

Iron ore fines, down $315m (5%), with quantities down 1% and unit values down 4%. Exports to:

• China (excludes SARs and Taiwan) fell $202m (4%), with quantities up 1% and unit values down 4%
• Japan fell $135m (29%), with quantities down 30% and unit values up 1%
• the Republic of Korea, rose $51m (18%), with quantities up 22% and unit values down 4%.
   

Hard coking coal, up $6m, with quantities up 1% and unit values down 1%. Exports to:

• the Netherlands rose $182m, with quantites up 213% and unit values up 24%
• Poland rose $97m, following no exports in March 2020
• China (excludes SARs and Taiwan) fell $148m (24%), with quantities down 20% and unit values down 5%
• India fell $72m (13%), with quantity down 12% and unit values down 2%
• Malaysia fell $49m (100%), with no exports in April 2020
   

Semi-soft coal, down $150m (17%), with quantities down 16% and unit values down 2%. Exports to:

• Japan fell $111m (30%), with quantities down 27% and unit values down 4%
• India fell $110m (60%), with quantities down 58% and unit values down 4%
• China (excludes SARs and Taiwan) rose $57m, with unit values down 5%.
   

Thermal coal, down $263m (14%), with quantities down 11% and unit values down 3%. Exports to:

• Japan fell $268m (32%), with quantities down 29% and unit values down 4%
• Malaysia fell 20m (35%), with quantities down 34% and unit values down 2%
• India fell 11m (35%), with quantities down 24% and unit value down 15%
• Vietnam rose 22m (18%), with quantities up 18%.
   

Liquefied natural gas (LNG), down $166m (4%), with quantities up 2% and unit values down 6%.

Since the previous issue of this publication, revisions have been made to align with the data published in the March quarter 2020 issue of Balance of Payments and International Investment Position, Australia (cat. no. 5302.0), released on 2 June 2020 and Australian National Accounts: National Income, Expenditure and Product (cat. no. 5206.0), released on 3 June 2020. On an international merchandise trade basis, goods exports and imports have been revised back to October 2019.

The following component has been revised since the release of the March 2020 issue of International Trade in Goods and Services, Australia (cat. no. 5368.0):

• capital goods n.e.s. component of goods debits, revised back to January 2020
   

In original terms the revisions have decreased the surplus on goods and services for the nine months to March 2020 by $19m.

Users should note there may be greater than usual revisions to some data during the COVID -19 pandemic due to impacts on data collection activities.

In response to the global COVID-19 crisis the ABS has released a new publication, International Merchandise Trade, Preliminary, Australia (cat. no. 5368.0.55.024). This release provides preliminary estimates for Australian international merchandise (goods) trade on a monthly basis to help measure the economic impact of COVID-19. These estimates are compiled from administrative data (customs records) sourced from the Department of Home Affairs and are subject to revision. This publication will run monthly until further notice. The final April monthly estimates will be published in International Trade in Goods and Services, Australia (cat. no. 5368.0). For more information on the range of additional products released by the ABS to help assess the impact of COVID-19 please see the COVID-19: Additional products to measure the impact page.

International merchandise trade exports data presented in this publication are based on information reported by exporters to the Department of Home Affairs (Home Affairs). At the time of initial reporting to Home Affairs, the final prices at which transactions take place are not known for some commodities. Final quantity and/or unit price information is updated progressively in international merchandise trade data as exporters revise the information provided to Home Affairs.

For commodities such as iron ore and coal, newly negotiated contract prices are not fully reflected in data first reported to Home Affairs. When additional information on quantity and/or unit price for these commodities is available, the ABS may adjust the data to reflect actual transaction values.

Iron ore adjustments are applied on an international merchandise trade basis at the Australian Harmonized Export Commodity Classification (AHECC) level. Coal, coke and briquettes are adjusted on a balance of payments basis in current price, original terms. When actual final transaction prices become available estimates are replaced with these data.

In most instances, transfer of ownership occurs when goods cross the customs frontier. In certain circumstances the change of ownership of large value capital expenditure items can occur prior to the items crossing the customs frontier. The ABS may adjust the relevant balance of payments series to record the timing when transfer of ownership was affected.

Iron ore (in original terms)

• on a merchandise trade basis, adjustments have been applied to iron ore lump in November (+$15m), December (+$10m) 2019, January (-$5m) and March (+$15m) respectively. Adjustments have been applied to iron ore fines in October (+$10m), November (+$5m), December (+$10m) 2019, January (-$25m), February (+$10m), March (-$180m) and April (-$255m) 2020 respectively. When actual final transaction prices become available estimates are replaced with these data. For price and volume details, see the Selected commodities subsection.
   

Coal (in original terms)

• a negative adjustment of $395m has been applied to hard coking coal, semi-soft coal and thermal coal in the coal, coke and briquettes component in the balance of payments series for April 2020. This adjustment takes into account additional information on the unit value of hard coking, semi-soft and thermal coal exports. To maintain consistency with the March quarter 2020 issue of Balance of Payments and International Investment Position, Australia (cat. no. 5302.0), released on 2 June 2020, previous adjustments have remained for March (-$350m), February (-$245m) and January (-$5m) 2020 respectively.
  • In the international merchandise trade series, the unit value of coal, coke and briquettes rose 13.7% between February and March 2020 and rose 0.1% between March and April 2020.
  • In the balance of payments series, the unit value of coal, coke and briquettes rose 12.7% between February and March 2020 and fell 0.5% between March and April 2020.
     

Capital expenditure (in original terms)

• capital goods n.e.s. includes an estimate of expenditure on capital goods that have changed ownership but have not yet crossed the customs frontier.