The United States-Australia Free Trade Agreement (AUSFTA) entered into force on January 1, 2005.
Since then, the U.S. and Australian governments have continued to closely monitor FTA implementation and discuss a range of FTA issues. Under the AUSFTA, trade in goods and services and foreign direct investment have continued to expand, and more than 99 percent of U.S. exports of consumer and industrial goods are now duty free.
Australia and the United States are partners in the ongoing Trans-Pacific Partnership (TPP) negotiations. In this negotiation, the United States is seeking to develop a high-standard, 21st-century regional trade agreement that will support the creation and retention of jobs in the United States and promote economic growth. In addition to the United States and Australia, the TPP negotiating partners include Brunei Darussalam, Canada, Chile, Malaysia, Mexico, New Zealand, Peru, and Singapore, and Vietnam. Starting with a group of like-minded countries, the goal is to expand the agreement to include countries across the Asia Pacific, which together represent more than half of global output and over 40 percent of world trade.
U.S.-Australia Trade Facts
U.S. goods and services trade with Australia totaled $60 billion in 2011 (latest data available for goods and service trade). Exports totaled $44 billion; Imports totaled $16 billion. The U.S. goods and services trade surplus with Australia was $27 billion in 2011.
Australia is currently our 21st largest goods trading partner with $40.7 billion in total (two ways) goods trade during 2012. Goods exports totaled $31.2 billion; Goods imports totaled $9.5 billion. The U.S. goods trade surplus with Australia was $21.7 billion in 2012.
Trade in services with Australia (exports and imports) totaled $22.4 billion in 2011 (latest data available). Services exports were $16.1 billion; Services imports were $6.3 billion. The U.S. services trade surplus with Australia was $9.8 billion in 2011.
Australia was the United States’ 11th largest goods export market in 2012.
U.S. goods exports to Australia in 2012 were $31.2 billion, up 13.3% ($3.7 billion) from 2012, and up 139% from 2002. U.S. exports to Australia are up 124% from 2004 (Pre-FTA). U.S. exports to Australia accounted for 2.0% of overall U.S. exports in 2012.
The top export categories (2-digit HS) in 2012 were: Machinery ($6.9 billion), Vehicles ($5.9 billion), Electrical Machinery ($2.5 billion), Optic and Medical Instruments ($2.4 billion), and Aircraft ($2.2 billion).
U.S. exports of agricultural products to Australia totaled $1.3 billion in 2012, the 20th largest U.S. Ag export market. Leading categories include: red meats, fresh/chilled/frozen ($191 million), processed fruit and vegetables ($127 million), fresh fruit ($113 million), and dairy products ($105 million).
U.S. exports of private commercial services* (i.e., excluding military and government) to Australia were $16.1 billion in 2011 (latest data available), 20.4% ($2.7 billion) greater than 2010 and 190% greater than 2000 levels. It was 132% higher than 2004 (Pre-FTA). Other private services (business, professional and technical services and financial services), travel, and royalties and license fees categories accounted for most of the U.S. services exports to Australia.
Australia was the United States’ 36th largest supplier of goods imports in 2012.
U.S. goods imports from Australia totaled $9.5 billion in 2012, a 6.9% decrease ($705 million) from 2011, but up 47% from 2002. U.S. imports from Australia are up 26% from 2004 (Pre-FTA).
The five largest import categories in 2012 were: Meat (beef, sheep) ($1.5 billion), Precious Stones/metals ($799 million), Optic and Medical Instruments ($704 million), and Ores, Slag, Ash (titanium, uranium) ($677 million), and Special Other (returns) ($665 million).
U.S. imports of agricultural products from Australia totaled $2.7 billion in 2012, the 8th largest supplier of Ag imports. Leading categories include: red meats, fresh/chilled/ frozen ($1.5 billion), and wine and beer ($532 million).
U.S. imports of private commercial services* (i.e., excluding military and government) were $6.3 billion in 2011 (latest data available), up 10.5% ($601 million) from 2010, and up 85% from 2000 level. It was 62% higher than 2004 (Pre-FTA). The other private services (business, professional and technical services) and travel categories accounted for most of U.S. services imports from Australia.
The U.S. goods trade surplus with Australia was $21.7 billion in 2012, up 25.3% ($4.4 billion) from 2011.
The United States has a services trade surplus of $9.8 billion with Australia in 2011, up 27.8% from 2010.
U.S. foreign direct investment (FDI) in Australia (stock) was $136.2 billion in 2011 (latest data available), up 10.3% from 2010.
U.S. direct investment in Australia is led by the finance and insurance, nonbank holding companies and mining sectors.
Australia FDI in the United States (stock) was $55.9 billion in 2011 (latest data available), up 44.1% from 2010.
Australia direct investment in the U.S. was led by manufacturing, and the finance/insurance sectors.
Sales of services in Australia by majority U.S.-owned affiliates were $45.2 billion in
2010 (latest data available), while sales of services in the United States by majority Australia-owned firms were $12.4 billion.
*NOTE: Refers to private services trade not including U.S. Military sales, direct defense expenditures, and other miscellaneous U.S. Government services.