Australia's top trading partners and tips to monetise them

The year 2020 was a difficult year for the Australian economy. But as we enter a post-pandemic world, businesses can start adopting a more positive outlook. Here’s a guide on how to make the most of Australia’s top trading partners for your business. 

As a business exporter, there are many opportunities for you to expand your business and generate revenue as the Australian government pursues an active and ambitious open trade and investment plan. This offers greater avenues for monetisation, irrespective of what goods or services your business deals in.

In this blog we will be discussing some tips on how to monetise your business while providing information about Australia's top 10 trading partners so you, as a business owner, can generate ideas to expand your business and penetrate the market. 

1. Importance of import and export for Australia

International trade plays a pivotal role in securing the Australian economy, representing 45% of its GDP. According to the Australian Bureau of Statistics, Australian GDP rose by 4.2% from December 2020 to December 2021, while the GDP chain price increase (CPI) rose by 6.3%.

New trade agreements are entering into force, the latest being the Indonesia-Australia Comprehensive Economic Partnership, new trade agreements with Hong Kong and Peru, and the Regional Comprehensive Economic Partnership of 2020 among 14 economies. These new trade agreements can mean paying lower import taxes or being exempt from them entirely. Attractive terms like these translates to lucrative monetisation opportunities for your business.

According to the  Australian Government Department of Foreign Affairs and Trade, Australia is a major exporter when it comes to shipping metal ores, coal and cotton. 

2. Who are Australia's largest trade partners?

The top 10 trading partners of Australia are listed below:

1. China is Australia's largest trade partner, with a 26.4% share of the total international trade that amounts to AU$235 billion. Iron ore, gas, and coal make up the bulk of Australian exports to China.

2. With a share of 9.9%, amounting to AU$88.5 billion, Japan comes in second 2nd place. Exports bBetween Japan and Australia are mainly natural resources and beef.

3. Then comes the United States, with a total trade of AU$76.4 billion. Australia exports meat, pearls, precious stones, optical and medical apparatus to the US.

4. In fourth 4th place is the Republic of Korea, with a total share of AU$41.4 billion. The main products exported from Australia to Korea were iron ore, coal briquettes, and petroleum gas.

5. Next is Singapore, with a share of AU$32.7 billion. Iron ore, gold, and petroleum gas are the primary export commodities. There are some import taxes that you should know about if you are planning to export to Singapore.

6. New Zealand comes next with AU$30.6 billion, with broadcasting equipment, packaged medicaments, and computers making up the bulk of exports. 

7. With a share of AU$30.4 billion, the United Kingdom follows closely. The main exported items are wine, beef, and almonds.

8. India is the eigth largest trade partner with a share of AU$30.3 billion. The main products exported from Australia to India were coal briquettes, aluminum oxide, and gold.

9. Malaysia is at number nine with a total trade value of AU$25.1 billion, the primary commodities being coal briquettes, petroleum gas, and refined copper.

10. Then comes Thailand, with a total trade value of AU$24.7 billion. The items include natural gas, crude petroleum, and coal.

All these countries provide excellent opportunities to expand your business and for monetisation.