FED: Trade deficit proves Aust not fireproofed: Labor

AAP General News (Australia)
08-31-1999
FED: Trade deficit proves Aust not fireproofed: Labor

CANBERRA, Aug 31 AAP - Australia's trade deficit remained above $1 billion in trend terms,
proving the economy was not fireproofed from the Asian crisis, the federal opposition said
today.

The Australian Bureau of Statistics (ABS) today said that in seasonally adjusted terms the
goods and services trade deficit fell below $1 billion for the first time in seven months, to
$948 million, in July.

But in smoother trend terms the deficit fell to $1.4 billion in July from $1.5 billion the
previous month.

Opposition trade spokesman Peter Cook said this was the ninth consecutive month where the
deficit was above $1 billion in trend terms.

"Trend figures on exports show that the trade situation remains parlous," he said.

He pointed out that exports to Australia's largest trade partner, Japan, remained flat and
those to Korea fell by 23 per cent.

Senator Cook said the composition of the deficit was also cause for concern, and that
exports of value-added goods had fallen dramatically.

"Australia's trade deficit gives the lie to the government's claim to have fireproofed the
Australian economy," he said.

"Our trade deficit is worse than that of seven of our top 10 trading partners.

"Without a bold strategy for the upcoming APEC and WTO negotiations, big trade deficits
will be with us for some time yet."

AAP ear/mfh/trm

KEYWORD: BOGS LABOR

1999 AAP Information Services Pty Limited (AAP) or its Licensors.