There is no denying the importance of the fact that Australia’s merchandise trade is differentiated by regional parameters. It should be noted that among the leading trade partners are the majority of developed and developing countries of East Asia and the Asia Pacific, such as China, Japan, Korea and New Zealand. However, one should point to the presence of the United States in the Top 3.
This differentiation by geographical principle may be explained by the dominant financial and economic role of the United States in the global economy and its historical ties with Australia and other countries in the region. The same may be said about other Western countries such as Germany and especially the UK, which is the former colonial metropolis of Australia and the leader of the Commonwealth in which Australia is the member. Other European countries such as France and Netherlands are also present in the list but do not rank high places due to problems in their modern economic development and the loss of significant political status. Among Arab countries, only the United Arab Emirates are present in the list, and this exclusion only certifies the trend of geographical division within global trade and finance.
What concerns Australia’s trade in services such Western countries as the United States and the UK rank the first and the second place correspondingly. The same geographical trend of division is present with East Asia and Asia Pacific countries the most represented in the list: Japan, New Zealand, Singapore, China etc. This may be attributed not only to geographical proximity but to the booming financial and investment development in this particular region. Unlike merchandise trade lists, such new countries as Canada, Switzerland, Fiji and Italy are represented. Fiji is a notable example since it is predominantly an offshore territory that is used as tax heaven for big Western corporations, banks and other businesses.