Report finds services vital to Australia's export future

Media release

10 December 2010

Australian services companies are increasingly important to the national economy and are underpinning the broader export sector, according to a new report launched today.

Trade Minister Craig Emerson launched 'Services International Linkages', which examines the importance of services to Australia's overall export performance.

“The value of Australia's services trade is critical to our economy, and is growing fast,” Dr Emerson said.

The report found these businesses were generating over $100 billion annually from their overseas operations alone.

And they are also playing an increasingly important role in making Australia's export goods and moving them to market, in products as diverse as coal and computers.

“The report is part of the Gillard Government's efforts to step up our engagement with our services industries and support the growing internationalisation of the sector,” Dr Emerson said.

“The findings support the priority the Government attaches to the service economy as a major component of Australia's overall economic activity and prosperity.”

The report also highlights the importance of 'embodied services' — the value created by the services used to help produce Australian goods and services for export.

“Part of the value of all exports is created by the services used to produce them. For instance, services such as transport, communications and insurance are essential for the mining and manufacturing industries,” Dr Emerson said.

“Next time you see a shipment of coal exports, remember that a quarter of the value of that shipment is the embodied services that went into getting that product out of the ground and to market.”

The report is available at www.dfat.gov.au/trade

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