Commercial Services Exports Double Since 1999
26 October 2005
Census of International Trade in Services and Royalties: Year ended June 2005 — Commercial Services Exports Double Since 1999
Exports of commercial services have become a more important earner for New Zealand, Statistics New Zealand said today. They have risen 100.6 percent in value since 1999, reflecting growth in the economy's service industries.
Data from the 2005 Census of International Trade in Services and Royalties show that since the 1999 Census commercial services exports (for example, information technology and communication, business, financial and technical services) have risen by $1,318 million to $2,628 million. Imports of these types of services and royalties rose 38.6 percent (up by $987 million, from $2,554 million to $3,541 million) over the same period.
These transactions are an important contributor to New Zealand's total international trade in services, measured in the current account of the balance of payments.
Total services comprise, in addition to commercial services, transport, travel, insurance and government services. Since the 1999 Census, commercial services have become a more important contributor to New Zealand's total international services trade.
In the June 2005 year, exports of commercial services comprised 21.3 percent of total exports of services, compared with 18.6 percent in the 1999 June year; and imports of commercial services comprised 30.8 percent of total services imports in 2005, compared with 31.1 percent in 1999. The main service types contributing to the strength in commercial service exports are computer and information technology services; merchanting and trade services; and personal cultural and recreational services. Merchanting and trade services include transactions where, for example, a
New Zealand business buys and sells goods without those goods entering New Zealand, and the net sale of goods arising from the outsourcing of the manufacture of goods to overseas factories. Personal cultural and recreational services includes fees for film, television and radio production . The most significant growth in imports of commercial services and royalties were computer and information services, and royalties and licence fees. Royalties imports include payments to overseas for the right to use patents and software, distribution rights for film and television productions, and to operate franchises. @
Australia is New Zealand's most important commercial services and royalties trading partner. In the 2005 June year, New Zealand's exports of commercial services and royalties to Australia were valued at $831 million; imports were $1,253 million.
The USA was the next most important trading partner, with exports of $529 million and imports from the USA of $943 million. Other important trading partners were the UK, Japan and the Netherlands. Our main commercial services trading partners are also our main international investment partner countries.
Australia and the USA are the most important sources of foreign investment into New Zealand, and the most important destinations for New Zealand investment abroad. An investment relationship between two economies (and in particular a direct investment relationship) is often accompanied by trade in services.