ABSTRACT
The trade among the Pacific region countries amounted in 1965 to about 22 per cent of the world’s trade compared with about 20 per cent in 1958. Japan’s own trade with that region has amounted in recent years to nearly two-thirds of her total trade. The relative weakness of South-East Asian countries as suppliers of the Japanese market is to be explained, as already shown, largely by the successful competition of the advanced countries in primary products. Australia, the most important trading partner in the region, has directly benefited from Japan's industrial expansion, and her exports have responded to the changes in the industrial structure of her customer. In 1964, Japan became Australia's best customer and took 18 per cent of the total exports. The prospects for a very great increase in mutual trade are favourable, for Japan's demand for the materials that Australia can supply is likely to grow very fast.
