Australian defence exports reached an estimated value of AUD1.77 billion (USD1.24 billion) for the first quarter of fiscal year (FY) 2021–22.
The statistic, sourced from Australia's Defence Export Controls (DEC) unit, suggests international sales are struggling against the impact of the global Covid-19 pandemic.
Quarter-one statistics for FY 2020–21 are not available, but for the same period in 2019–20 and 2018–19 exports were estimated by the DEC at AUD2.13 billion and AUD3.19 billion, respectively.
Full-year defence exports are estimated by the DEC at AUD2.72 billion for 2020–21, AUD5.35 billion for 2019–20, and AUD4.90 billion for 2018–19.
Australian defence exports dipped in 2020–21, in part, because of challenges related to the Covid-19 pandemic (image : Jane's)
In terms of markets, the DEC statistics show that North America remains Australia's strongest region, with 23% of permits supporting sales to this region in the first quarter of 2021–22. Asia accounted for 21% of all export permits and Europe 19%.
A spokesperson from the Australian Department of Defence (DoD) told Janes that a range of measures to support defence exports have been implemented during the Covid-19 pandemic and “remain in place today”.
According to the spokesperson, these include co-operating with local firms to support participation in ‘virtual' trade shows and presentations to customers, co-ordinating with overseas Australian government officials to provide export opportunities, and providing training for local firms seeking to engage with foreign governments and militaries.
While the value of estimated exports reached around AUD5 billion before the start of the Covid-19 pandemic, earlier in this decade the value was much lower. The rise in exports can be largely attributed to the implementation of Australia's Defence Export Strategy, which was initiated in January 2018.
(Jane's)