Lyla Lindsey
Australia and the United States have a strong relationship, with cultural similarities and robust bilateral arrangements. The two countries have a history of cooperation in defence and security, extensive trade and investment links, cultural exchanges, and tourism. In addition, Australia and the United States have fought together in every significant conflict since World War I, and the ANZUS Treaty, signed in 1951, further solidified their security alliance. While Australia and the US generally view each other positively, there have been some differences in opinion and policy, such as the ratification of the Kyoto Protocol, and the impact of the Trump administration on Australians' views of the US.
| Characteristics | Values |
|---|---|
| Defence and security cooperation | Robust bilateral arrangements |
| Extensive trade and investment links | Bilateral direct investment (FDI) cumulatively totals nearly US $230 billion |
| Cultural exchanges | 100 Years of Mateship (as of 2018) |
| Sporting rivalry | Cricket and baseball exchanges |
| Education participation | 75% of Australians approved of US leadership in 2016 |
| Research and development | Joint Statement from 32nd Australia-United States Ministerial Consultations (AUSMIN 2022) |
| Tourism | 1.4 million Australians visited the US in 2018 |
| Membership in international organisations | United Nations, ASEAN Regional Forum, Asia-Pacific Economic Cooperation (APEC), G-20, International Monetary Fund (IMF), Organization for Economic Cooperation and Development (OECD), World Bank, and the World Trade Organization (WTO) |
| Alliance | ANZUS Treaty, signed in 1951 |
| Friendship | US and Australian forces first fought side-by-side in 1918 |
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What You'll Learn
Defence and security cooperation
Australia and the United States have a long history of security cooperation, with Australians and Americans fighting side by side in every major U.S. military conflict of the past century, including World Wars I and II, Korea, Vietnam, Afghanistan, and Iraq. This close partnership was formalised with the Australia, New Zealand, United States (ANZUS) Security Treaty of 1951, which remains the foundation of the security relationship between the two countries.
In recent years, the two countries have continued to deepen their defence and security cooperation. Australia is one of America's largest defence customers, and the United States is Australia's defence goods and services partner of choice. In FY 2020, the Directorate of Defense Trade Controls (DDTC) approved $3.57 billion in Direct Commercial Sales (DCS) licenses for the permanent export of defence articles and services to Australia. The United States and Australia also have a Defence Trade Cooperation Treaty that permits the license-free export of certain defence articles between the countries in support of combined military operations and cooperative defence research.
In addition to bilateral cooperation, the two countries also work together through regional forums like the Quadrilateral Security Dialogue (Quad) with Japan and India and ASEAN to advance stability, security, and prosperity in the Indo-Pacific region. This includes efforts to maintain pressure on the DPRK, strengthen regional information sharing and maritime security, counter terrorism and transnational crime, and provide humanitarian assistance and disaster response.
The two countries have also launched the AUKUS partnership, a trilateral security agreement with the United Kingdom, to further strengthen their security and defence interests in the Indo-Pacific region. AUKUS will promote deeper information and technology sharing and foster deeper integration of security and defence-related science, technology, industrial bases, and supply chains. The first initiative under AUKUS is a collaboration on future nuclear-powered submarines for the Royal Australian Navy, which will promote stability in the region.
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Trade and investment
The Australian Trade and Investment Commission (Austrade) offers support, programs, and services to help businesses trade with Australia. The Australian government also provides economic fact sheets, trade agreements, aid programs, and information on sanctions. Australia is a member of international organisations such as the World Trade Organization (WTO), the G20, Asia-Pacific Economic Cooperation (APEC), and the Organisation for Economic Cooperation and Development (OECD). These memberships help to build Australia's economic growth and prosperity.
The Australia-United States Free Trade Agreement (AUSFTA) has been in force since 2005, and it has significantly impacted bilateral goods and services trade between the two countries. In 2023, the United States was Australia's third-largest two-way trading partner in goods and services, worth $98.7 billion. Australia's goods and services exports to the United States were $33.6 billion, while its total imports from the United States were $65.1 billion. The United States is the largest and most significant investor in Australia, with investments totalling $1.17 trillion in 2023.
However, the tariff policies of the Trump administration caused uncertainty and volatility in the markets, leading to a "sell America trade" strategy gaining popularity among some investors. The Australian dollar has surged against a weak US dollar, and other currencies like the euro and the pound have outperformed the US dollar. Despite this, the US still attracts significant investment, and it remains to be seen if the "sell America trade" will gain momentum.
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Cultural exchanges
The Fulbright program, managed by the Australian-American Fulbright Commission in coordination with the U.S. Embassy and Consulates, is the leading educational and cultural exchange program between the two countries. The U.S. Department of State also offers programs for non-U.S. citizens who wish to visit the U.S. for cultural, educational, or professional exchange. These programs are designed to strengthen the U.S.-Australia alliance, foster economic partnership, and promote a free and open Indo-Pacific.
The U.S. Embassy in Australia also funds individuals and organizations to carry out programs that enhance efforts to fight climate change. The Office of American Spaces oversees a network of 600 open-access cultural centers, providing resources pertaining to arts, culture, government, history, science, nature, travel, and geography.
Additionally, Youth Advisory Councils in Australia meet regularly with senior officials to discuss critical issues facing both countries, plan engagements, and undertake projects on topics of mutual interest.
Cultural diplomacy is another important aspect of the relationship between Australia and the United States. By deepening cultural connections through the exchange of cultural artifacts, Australia can strengthen its relationship with its Pacific neighbors and promote greater cultural understanding. This form of diplomacy allows Australia to influence normative behaviors in the region and secure like-minded partners that share its national values.
While Australia's diplomatic agenda has shifted towards economic diplomacy, cultural exchanges remain a crucial aspect of the relationship between the two countries, fostering mutual understanding and cooperation.
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Political relations
Australia and the United States have a strong political relationship, with extensive cooperation in foreign policy, defence and security, intelligence, development, energy, environment, education, law, trade and investment. The Australia-United States Alliance and the Australia-US Free Trade Agreement (AUSFTA) are central to the bilateral relationship.
The two countries established diplomatic relations on 8 January 1940, and in 1951, they signed the ANZUS Treaty, which underpins the Australia-United States Alliance. This treaty binds the two countries to consult on mutual threats and act in accordance with their respective constitutional processes. The United States is Australia's largest foreign investor, with bilateral direct investment (FDI) totalling nearly US $230 billion. Australia's investment in the United States is focused on software and IT services, business services, and healthcare. U.S. firms have a significant presence in Australia, employing more than 300,000 Australians and contributing significantly to the country's GDP.
The Australia-United States Ministerial Consultations (AUSMIN) are held regularly between foreign and defence ministers, providing a platform to discuss a broad range of issues, including political-military and military-military talks. Senior officials from both countries also meet frequently to address various matters. The two countries have a history of cooperation in defence and security, with access to world-leading defence hardware and technologies, training, exercises, and intelligence sharing. They have fought together in every significant conflict since World War I, including World War II, where US General Douglas MacArthur commanded Allied Forces in the South West Pacific, which included many Australian troops.
The relationship between the two countries has been influenced by their respective leaders. For example, during Donald Trump's presidency, Australia's view of the United States became less favourable, with a 2017 survey showing only 29% of Australians had confidence in him. In contrast, his predecessor, Barack Obama, enjoyed the confidence of 87% of Australians. Australia's former Prime Minister, Kevin Rudd, who served as the country's Ambassador to the United States, ratified the Kyoto Protocol in 2007, setting Australia apart from the United States, which did not ratify the agreement.
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Public opinion
The United States and Australia have a strong relationship characterised by cultural similarities and robust bilateral arrangements. The two countries have a long history of cooperation in defence and security, trade and investment, cultural exchanges, education, research and development, and tourism.
However, Australians' perception of the United States is often simplified and distorted by the lens of American pop culture, politics, and history. While many Australians feel a sense of "mateship" with the United States, particularly due to their shared history in World War I and other significant conflicts, there are also concerns and misunderstandings about certain aspects of American society and politics.
For example, Australians are often critical of American gun culture and the high rate of mass shootings. The racial nature of gun crime and the high incarceration rate of minorities are also concerning to Australians, although it is acknowledged that both countries have a history of genocidal treatment of their indigenous populations.
The Australian healthcare system, which provides universal free access to medical treatment, is often contrasted with the American system, where individuals can be turned away from hospitals or face financial ruin due to medical bills. This difference is a source of confusion and concern for Australians, who struggle to understand why the American government would deny its citizens such a basic right.
Additionally, Australians tend to view the United States as too economically dependent on China and are more likely to be concerned about potential Chinese political interference. This concern is heightened by the perception of a rising great power rivalry in the Indo-Pacific region.
It is worth noting that Australians generally find less partisan and ideological differentiation in their own country compared to the United States. Conservative viewpoints in Australia tend to align more closely with progressive or moderate stances than those in the United States. As a result, Australians may struggle to understand the depth of partisan disagreement in American politics, which has been particularly prominent during the Trump presidency.
Despite these differences and misunderstandings, the relationship between the two countries remains strong, and Australians continue to seek a better understanding of the United States and its people.
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Frequently asked questions
The two countries have a strong relationship, characterised by cultural similarities and robust bilateral arrangements. They have a history of cooperation in defence and security, extensive trade and investment links, cultural exchanges, sporting rivalry, education participation, research and development, and tourism.
Australia and the United States established diplomatic relations on 8 January 1940. The countries have fought together in every significant conflict since World War I, including World War II and the Battles of the Coral Sea, Midway, and Guadalcanal. In 1951, they signed the ANZUS Treaty, which underpins the Australia-United States Alliance and binds the two countries to consult on mutual threats.
Bilateral direct investment (FDI) cumulatively totals nearly US $230 billion. In 2018, Australia's total stock of FDI into the United States was $71.5 billion, while the U.S. direct investment position in Australia was $163 billion. Leading sectors for Australian investment into the United States include software & IT services, business services, and healthcare. According to Australian government statistics, the United States is Australia's largest foreign investor, and U.S. firms employ more than 300,000 Australians.
According to a 2020 poll by YouGov, Australia is the most positively viewed foreign country by Americans, with 75% having a favourable opinion. In a 2022 poll by the Lowy Institute, the United States received a 65% positivity rating from Australians. However, a 2017 survey by the Pew Research Center showed that only 29% of Australians had confidence in then-U.S. President Donald Trump, and 60% of Australians had developed an unfavourable view of the U.S. as a result of his presidency.
