Australia’s trade position has deteriorated by almost $47 billion since 2022, with new Australian Bureau of Statistics (ABS) figures showing a second consecutive quarterly trade deficit and exposing the cost of Australia’s dependence on imported fuel.
The ABS reported Australia’s goods and services deficit widened to $5.1 billion in the June quarter, while the current account deficit reached $27.2 billion.
Leader of The Nationals Matt Canavan said the figures showed how dramatically Australia’s position had changed over the past four years.
“Labor inherited a $42 billion quarterly trade surplus. Four years later, Australia has a $5.1 billion deficit,” Senator Canavan said.
“That’s a deterioration of more than $46 billion in just four years.
“The trade surpluses Australia enjoyed in 2022 were built on the back of our resources sector and strong commodity exports.
“Those favourable conditions have faded, but Australia’s miners and energy producers are still doing the heavy lifting.
“Coal exports increased by more than $4 billion in just three months, while metal ores, lithium and other energy exports continue to provide critical export income.
“Imagine where Australia’s trade position would be without our coal, gas, minerals and other resources industries.”
Senator Canavan said the figures also highlighted Australia’s growing vulnerability from reliance on overseas fuel.
“While our resources are earning billions for Australia, we are sending billions overseas to buy back the fuel our economy cannot operate without.
“At the same time, fuel imports have surged 42.5 per cent because Australia remains dangerously dependent on overseas supply.
“The ABS also confirmed the Government had to secure additional diesel shipments because of global shortages. That should be a massive warning sign. A resource-rich country like Australia should not be so exposed.
“When international conflict disrupts oil markets or shipping routes, Australia pays the price because we have allowed ourselves to become overwhelmingly dependent on fuel refined overseas.
“Australia once had a much greater capacity to refine the fuel we needed here at home. We should be rebuilding our ability to produce and refine more essential fuel in Australia rather than simply accepting greater dependence on foreign supply.
“Our farmers, miners, truck drivers, emergency services and Defence Force all rely on diesel and other liquid fuels.
“We will always participate in international energy markets, but a resource rich nation should have greater capacity to look after itself when global supply chains break down.
“Labor attacks the resources industries that keep our trade account afloat, while doing too little to rebuild the sovereign fuel capability Australia has lost.
“Australia should be producing more, refining more and relying less on foreign countries for the essential fuel that keeps our farms, mines, trucks and Defence Force moving.”
