Archive Article: Facts On Australian Foreign And Trade Policy. 1 Aug 03.
December 23, 2008

Reading government reports is not always an interesting activity. But I have been reading one document that I am happy to recommend: “Advancing the National Interest” has been published by the Department of Foreign Affairs and Trade. The Ministers for Foreign Affairs (Alexander Downer) and Trade (Mark Vaile) see it as a way of keeping Australians informed of the government’s approach to foreign and trade policy. Going through the report, I came across the following interesting points. First, Australia sends a greater proportion of its exports to Asia than almost any other major world economy. Only Malaysia and Indonesia send a greater proportion of their exports to Asia than does Australia. Thus, while some politicians in Australia and Asia have debated whether or not Australia is an “Asian country”, the traders have already made up their minds.

Second, on immigration, Australia since World War II has welcomed more than six million migrants. On a per capita basis, Australia has taken more migrants than Canada, New Zealand or the United States. Nearly one in four of Australia’s current population of 19.6 million people was born overseas. The overseas-born population originates from over 170 countries.

Of the 23 per cent of Australians born overseas, almost five per cent were born in Asia. The second most frequently spoken language in Australian homes is the various dialects of Chinese.

Australia now welcomes about 100,000 migrants per year, mostly as skilled migrants (rather than the “family reunion” category).

Third, Australia does very well for the “export of education” – the recruitment of students to study at Australian educational institutions. After the United States, more students from Asia study in Australia than anywhere else. In the past decade, more than 800,000 foreign students, mostly from Asian countries, have studied in Australia. This means that a whole new Australian “export industry” has been opened up in recent decades.

Fourth, meanwhile, about four per cent of Australians (720,000) live overseas. Among the major centres of Australians are: Britain (145,000), Greece (100,000), United States (64,000), Hong Kong (53,000), New Zealand (46,000), Lebanon (25,000), Canada (23,000), Singapore (12,000) and Indonesia (12,000).

Fifth, with the further integration into the global economy, the importance of trade and investment to Australia’s prosperity continues to rise. The jobs of about 20 per cent of Australians depend on exports, rising to 25 per cent in regional Australia. Regional Australia generates over half of Australia’s exports, including agriculture, services and manufacturing.

Exporting firms pay better wages and offer conditions of service than non-exporting ones. Workers in exporting firms earn an average of $46,000 a year, compared with an average of $28,600 for those in non-export businesses. Exporters tend to invest more in technology, management techniques and the skills of their workers. Exposure to world markets provides companies with access to new technology throughout the economy, helping to raise productivity rates in Australia and boost income levels.

In short, Australia is interacting more and more with the world, at the level of government business, non-governmental organizations and individuals. This report explains how this is being done.

Broadcast Friday 1st August 2003 on Radio 2GB’s “Brian Wilshire Programme” at 9pm