Australia

The United States-Australia FTA entered into force on January 1, 2005.  Since then, the U.S. and Australian governments have met annually to address issues that have arisen under the FTA.

During the latest annual review, held in June 2008, the two sides noted that trade in goods and services as well as foreign direct investment have continued to expand.

In September 2008, the United States announced its intention to begin negotiations to join the Trans-Pacific Strategic Economic Partnership (TPP) agreement, a high-standard FTA between Singapore, Chile, New Zealand, and Brunei Darussalam, intended to serve as a vehicle for Trans-Pacific economic integration.  Shortly after the U.S. decision to join the negotiations, Australia, Peru, and Vietnam indicated their interest in participating as well.  A public hearing on TPP was held on March 4, 2009.  The Administration is currently reviewing its overall trade strategy, including the TPP.

U.S.-Australia Trade Facts

U.S. goods and services trade with Australia totaled $44 billion in 2007 (latest data available). Exports totaled $30 billion; Imports totaled $14 billion. The U.S. goods and services trade surplus with Australia was $15 billion in 2007.

Australia is currently our 24th largest goods trading partner with $32.8 billion in total (two ways) goods trade during 2008. Goods exports totaled $22.2 billion; Goods imports totaled $10.6 billion. The U.S. goods trade surplus with Australia was $11.6 billion in 2008.

Trade in services with Australia (exports and imports) totaled $16.3 billion in 2007 (latest data available). Services exports were $10.4 billion; Services imports were $5.9 billion. The U.S. services trade surplus with Australia was $4.5 billion in 2007.

Exports

Australia was the United States' 14th largest goods export market in 2008.

U.S. goods exports to Australia in 2008 were $22.2 billion, up 15.6% ($3.0 billion) from 2007, up 127% from 1994 (the year prior to Uruguay Round). U.S. exports to Australia are up 56.2% from 2004 (Pre-FTA). U.S. exports to Australia accounted for 1.7% of overall U.S. exports in 2008, down from 1.9% in 1994.

The top export categories (2-digit HS) in 2008 were: Machinery ($5.0 billion), Vehicles (cars) ($2.6 billion), Optic and Medical Instruments ($1.8 billion), Electrical Machinery ($1.8 billion), and Aircraft ($1.7 billion).

U.S. exports of agricultural products to Australia totaled $826 million in 2008. Leading categories include: processed fruit and vegetables ($111 million), fresh fruit ($91 million), red meats, fresh/chilled/frozen ($91 million), tree nuts ($40 million), and dairy products ($39 million).

U.S. exports of private commercial services* (i.e., excluding military and government) to Australia were $10.4 billion in 2007 (latest data available), 21.6% ($1.9 billion) greater than 2006 and 176% ($67 billion) greater than 1994 levels. Other private services (business, professional, and technical services), travel, and royalties and license fees categories accounted for most of the U.S. exports in 2007.

Imports

Australia was the United States' 33rd largest supplier of goods imports in 2008.

U.S. goods imports from Australia totaled $10.6 billion in 2008, a 22.9% increase ($2.0 billion) from 2007, and up 231% over the last 14 years. U.S. imports from Australia are up 40.3% from 2004 (Pre-FTA).

The five largest import categories in 2008 were: Meat (beef, frozen) ($1.2 billion), Mineral Fuel (oil) ($1.2 billion), Vehicles (cars) ($1.0 billion), Optic and Medical Instruments ($719 million), and Beverages (wine) ($707 million).

U.S. imports of agricultural products from Australia totaled $2.4 billion in 2008, the 7th largest supplier of Ag imports. Leading categories include: red meats, fresh/chilled/ frozen ($1.2 billion), and wine and beer ($697 million).

U.S. imports of private commercial services* (i.e., excluding military and government) were $5.9 billion in 2007 (latest data available), 21.8% ($1.1 billion) up from 2006, and up 211% ($4.0 billion) from 1994 level. The other private services (business, professional and technical services, and financial services) and travel categories accounted for most of U.S. services imports from Australia.

Trade Balance

The U.S. goods trade surplus with Australia was $11.6 billion in 2008, a 9.8% increase ($1.0 billion) over 2007.

The United States has a services trade surplus of $4.5 billion with Australia in 2007 (latest data available).

Investment

U.S. foreign direct investment (FDI) in Australia (stock) was $79.0 billion in 2007 (latest data available), up 15.4 percent from 2006.

U.S. direct investment in Australia is primarily concentrated in the nonbank holding companies, manufacturing, mining, and finance sectors.

Australia FDI in the United States (stock) was $49.1 billion in 2007 (latest data available), up 23.6% from 2006.

Australia direct investment in the U.S. was led by the real estate and rental and leasing, manufacturing, and finance sectors.

Sales of services in Australia by majority U.S.-owned affiliates were $26.6 billion in
2006 (latest data available), while sales of services in the United States by majority Australia-owned firms were $7.2 billion

*NOTE: Refers to private services trade not including U.S. military sales, direct defense expenditures, and other miscellaneous U.S. government services.