International Trade in Goods and Services, Australia

• Due to the impacts of COVID-19 on international trade in goods and services, the trend series have been suspended as at February 2020.
• In seasonally adjusted terms, the balance on goods and services was a surplus of $4,361m in February 2020, a decrease of $384m on the surplus in January 2020.
   

• In seasonally adjusted terms, goods and services credits fell $1,882m (5%) to $37,760m. Non-rural goods fell $394m (2%), non-monetary gold fell $332m (23%) and rural goods fell $310m (7%). Net exports of goods under merchanting remained steady at $18m. Services credits fell $846m (10%).
   

• In seasonally adjusted terms, goods and services debits fell $1,498m (4%) to $33,399m. Consumption goods fell $701m (8%), capital goods fell $415m (7%), intermediate and other merchandise goods fell $262m (2%) and non-monetary gold fell $52m (9%). Services debits fell $68m (1%).
   

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 February 2020 and will be reinstated when more certainty emerges in the underlying trend in international trade.

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

The United Kingdom (UK) exited the European Union (EU) on 31 January, 2020. The UK and EU are now in a transition period until 31 December 2020. During this transition period the UK remains in the EU single market, and the UK remains subject to EU rules and regulations. More information is available via the Department of Foreign Affairs and Trade.

In this publication, at this time, the UK contribution to the EU will be unchanged. That is, the EU aggregates in tables and sub-tables 14, 36, and 37, will include 28 member countries. Users wishing to calculate an aggregate for European Union - 27 countries (from 2020) [EU27-2020] can simply deduct the United Kingdom from the published European Union - 28 countries (2013-2020) [EU28] value.

The ABS will continue to communicate any updates or changes to the treatment of the European Union country group across relevant international statistics releases (including international trade in goods and services and international investment).

In seasonally adjusted terms, the balance on goods and services was a surplus of $4,361m in February 2020, a decrease of $384m on the surplus in January 2020.

Due to the impacts of COVID-19 on international trade in goods and services, the trend series have been suspended as at February 2020.

In seasonally adjusted terms, goods and services credits fell $1,882m (5%) to $37,760m. Non-rural goods fell $394m (2%), non-monetary gold fell $332m (23%) and rural goods fell $310m (7%). Net exports of goods under merchanting remained steady at $18m. Services credits fell $846m (10%).

In seasonally adjusted terms, exports of rural goods fell $310m (7%) to $3,902m.
The main components contributing to the fall in seasonally adjusted estimates were:

• meat and meat preparations, down $134m (8%)
• cereal grains and cereal preparations, down $102m (18%).
   

In seasonally adjusted terms, exports of non-rural goods fell $394m (2%) to $24,822m.

The main component contributing to the fall in seasonally adjusted estimates were metal ores and minerals, down $820m (8%).

Partially offsetting these falls were:

• coal, coke and briquettes, up $183m (4%)
• metals (excl. non-monetary gold), up $151m (15%).
   

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

In seasonally adjusted terms, net exports of goods under merchanting remained steady at $18m.

In original and seasonally adjusted terms, exports of non-monetary gold fell $332m (23%) to $1,100m.

In seasonally adjusted terms, services credits fell $846m (10%) to $7,918m.

The main component contributing to the fall in seasonally adjusted estimates was travel, down $780m (14%).

In seasonally adjusted terms, tourism related services credits fell $862m (15%) to $4,962m.

In seasonally adjusted terms, total services credits contributed 21% of total goods and services exported.

In seasonally adjusted terms, goods and services debits fell $1,498m (4%) to $33,399m. Consumption goods fell $701m (8%), capital goods fell $415m (7%), intermediate and other merchandise goods fell $262m (2%) and non-monetary gold fell $52m (9%). Services debits fell $68m (1%).

In seasonally adjusted terms, imports of consumption goods fell $701m (8%) to $8,265m.
The main components contributing to the fall in seasonally adjusted estimates were:

• textiles, clothing and footwear, down $325m (20%)
• consumption goods n.e.s., down $318m (11%).
   

In seasonally adjusted terms, imports of capital goods fell $415m (7%) to $5,492m.
The main components contributing to the fall in seasonally adjusted estimates were:

• ADP equipment, down $334m (34%)
• capital goods n.e.s., down $205m (28%).
   

Partly offsetting these falls was civil aircraft and confidentialised items, up $169m (61%).

In seasonally adjusted terms, imports of intermediate and other merchandise goods fell $262m (2%) to $10,469m.

The main component contributing to the fall in seasonally adjusted estimates was fuels and lubricants, down $147m (5%).

In original and seasonally adjusted terms, imports of non-monetary gold fell $52m (9%) to $551m.

In seasonally adjusted terms, services debits fell $68m (1%) to $8,623m.

The main components contributing to the fall in seasonally adjusted estimates was travel, down $49m (1%).

In seasonally adjusted terms, tourism related services debits fell $55m (1%) to $4,955m.

In seasonally adjusted terms, total services debits contributed 26% 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 January 2020 to February 2020 the largest movements recorded for the following selected commodities were:

Iron ore lump, down $282m (13%), with quantities down 15% and unit values up 2%. Exports to:

• China (excludes SARs and Taiwan) fell $260m (16%), with quantities down 18% and unit values up 2%
• Japan fell $62m (26%), with quantities down 25% and unit values down 2%
• Hong Kong (SAR of China) rose $39m.

Iron ore fines, down $421m (8%), with quantities down 9% and unit values up 1%. Exports to:

• China (excludes SARs and Taiwan) fell $241m (6%), with quantities down 6%
• Republic of Korea fell $127m (34%), with quantities down 34%
• Japan fell $46m (18%), with quantities down 20% and unit value up 2%.

Hard coking coal, down $180m (8%), with quantities down 9% and unit values up 1%. Exports to:

• China (excludes SARs and Taiwan) fell $210m (23%), with quantities down 23%
• Japan fell $62m (23%), with quantities down 32% and unit values up 13%
• Netherlands fell $46m (44%), with quantities down 28% and unit values down 22%
• India rose $156m (31%), with quantities up 31%.

Semi-soft coal, up $19m (3%), with quantities down 2% and unit values up 5%. Exports to:

• India rose $71m (62%), with quantities up 61%
• Republic of Korea fell $83m (57%), with quantities down 62% and unit values up 14%.

Thermal coal, down $171m (10%), with quantities down 15% and unit values up 6%. Exports to:

• Japan fell $102m (14%), with quantities down 16% and unit values up 2%
• India fell $57m (89%), with quantities down 89% and unit values up 5%
• Taiwan fell $56m (29%), with quantities down 40% and unit values up 18%
• China (excludes SARs and Taiwan) rose $46m (15%), with quantities up 7% and unit values up 8%.

Liquefied natural gas (LNG), down $224m (5%), with quantities down 15% and unit values up 11%.

Revisions have been made to incorporate the latest data relating to international trade in goods and services since the last issue of this publication.

On an international merchandise trade basis, exports and imports of goods have been revised back to July 2019.

On a balance of payments basis, revisions have been applied to:

• goods credits back to June 2019
• goods debits back to June 2019
• services credits and debits back to July 2018.

In original terms the revisions have decreased the surplus on goods and services for the seven months to January 2020 by $241m.

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 February 2020 and will be reinstated when more certainty emerges in the underlying trend in international trade.

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 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 August (-$10m), September (+$30m), October (+$40m), November (+$50m), December (+$75m) 2019 and January (-$20m) 2020 respectively. Adjustments have been applied to iron ore fines in August (-$40m), September (+$50m), October (+$30m), November (+$55m), December (+$110m) 2019 and January (-$90m) 2020 respectively. When actual final transaction prices become available estimates are replaced with these data. For price and volume details, see the Selected commodities section.
   

Coal (in original terms)

• on a balance of payments basis, adjustments have been applied to the coal, coke and briquettes component in January (-$410m) and February (-$370m) 2020 respectively. This adjustment takes into account additional information on the unit value of hard coking, semi-soft and thermal coal exports. All previous adjustments have been removed.
   
  • In the international merchandise trade series, the unit value of coal, coke and briquettes rose 10.7% between December 2019 and January 2020 and rose 5.1% between January 2020 and February 2020.
  • In the balance of payments series, the unit value of coal, coke and briquettes rose 1.1% between December 2019 and January 2020 and rose 5.3% between January 2020 and February 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.