Lyla Lindsey
Australia and the United States have a strong economic relationship, with two-way trade growing from $32 billion to $77 billion since the Australia-United States Free Trade Agreement (AUSFTA) came into force in 2005. Australia's largest exports to the US are financial services, gold, sheep/goat meat, transportation services and vaccines. US exports to Australia include financial services, travel services, telecoms/computer/information services, royalties and trucks.
| Characteristics | Values |
|---|---|
| Australia's exports to the US | Financial services, gold, sheep/goat meat, transportation services, vaccines, beef |
| US exports to Australia | Financial services, travel services, telecoms/computer/information services, royalties, trucks |
| Number of Australian companies exporting to the US | Over 12,000 |
| US goods trade with Australia in 2024 | $51.3 billion |
| US goods exports to Australia in 2024 | $34.6 billion |
| US imports from Australia in 2024 | $16.7 billion (implied) |
| Australia's largest export destination | China |
| Australia's second-largest two-way trading partner | The US |
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What You'll Learn
Australia's non-agricultural exports to the US
Australia's non-agricultural exports to the United States have been duty-free since the Australia-United States Free Trade Agreement (AUSFTA) came into force on 1 January 2005. Over 97% of Australia's non-agricultural exports to the US (excluding textiles and clothing) are duty-free.
The US is Australia's most valuable beef export market, with the value of total beef exports hitting a record high of $14.68 billion in 2023-24. However, beef exports are not considered non-agricultural, so they are outside the scope of this answer.
Australia's most valuable exports to the US are services, which cannot be tariffed in the same way as goods. IP charges, which include franchising and licensing fees, royalties, and other charges for the use of intellectual property, are the second-largest Australian export to the US.
The US is Australia's largest and most significant investor, with investments in Australia standing at $1.17 trillion in 2023. Notable Australian investors in the US include Woodside, Westfield, Brambles, Atlassian, Worley, Visy, Bluestone Lane, Rio Tinto, and Tritium.
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The Australia United States Free Trade Agreement (AUSFTA)
Under the AUSFTA, Australian companies have access to the federal government procurement market in the United States, valued at US$637 billion, as well as the government procurement markets of 31 US states. Over 97% of Australia's non-agricultural exports to the US are now duty-free, and three-quarters of agricultural tariff lines have been eliminated.
Australia's largest exports to the US include financial services, gold, sheep/goat meat, transportation services and vaccines. US direct investment in Australia is higher than in any other country in the Indo-Pacific. The largest American exports to Australia include financial services, travel services, telecoms/computer/information services, royalties and trucks.
The US and Australia have a history of working together to further economic prosperity through free and open trade. They have collaborated in the G20, the World Trade Organization (WTO), and the Asia-Pacific Economic Cooperation (APEC) forum. Australia's strong economic growth, world-class innovation, and highly skilled workforce make it an attractive trade partner for the US.
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Australia's exports of non-monetary gold to the US
Australia's exports play a significant role in the country's strong and diverse economy. One notable aspect of these exports is the rising trend in non-monetary gold exports to the United States. In early 2025, Australia witnessed a significant surge in its non-monetary gold exports to the US, reaching record levels.
According to data from the Australian Bureau of Statistics' monthly trade report, the total value of Australia's non-monetary gold exports to the US soared to $5.272 billion in January 2025, with December 2024 exports at $1.17 billion. This dramatic increase highlights the growing demand for Australian gold in the US market.
The demand for non-monetary gold in the US is driven by various factors, including investment, jewellery, and industrial purposes. The increase in central bank purchases of monetary gold has also contributed to higher market prices, making non-monetary gold a more attractive option. This surge in exports has had a positive impact on Western Australia's employment rates, recording an increase of 5,000 people.
Australia's non-monetary gold exports to the US account for a significant portion of the country's overall exports to the US. Gold is one of Australia's largest exports to the US, alongside financial services, sheep/goat meat, transportation services, and vaccines. The strong economic relationship between the two countries is further strengthened by the Australia-United States Free Trade Agreement (AUSFTA), which entered into force in 2005.
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Australia's trade in merchandise goods
Australia's trade relationship with the United States is strong and diverse, with Australian companies operating in 83 different industries in California alone. The Australia-United States Free Trade Agreement (AUSFTA) came into force on 1 January 2005, promoting low trade barriers and increasing two-way merchandise trade. Since the agreement, two-way trade has grown from $32 billion to $77 billion, with the value of goods exports to the US increasing by 157% between 2005 and 2024. The annual value of two-way merchandise trade with the US was $74.4 billion in 2024, although this has fallen as a percentage of Australia's total merchandise trade from 15% in 2000 to 8% in 2024.
Australia's largest exports to the US are financial services, gold, sheep and goat meat, transportation services, and vaccines. The value of Australia's exports of non-monetary gold to the US has risen during periods of economic uncertainty, such as the global financial crisis in 2008 and the COVID-19 pandemic in 2020. Other significant exports include iron ore and coal, and lithium-ion batteries.
The US also has a significant trade surplus with Australia, with exports including financial services, travel services, telecoms, computer and information services, royalties, and trucks. US direct investment in Australia is greater than in any other Indo-Pacific country. The US goods trade with Australia was estimated at $51.3 billion in 2024, with US goods exports to Australia valued at $34.6 billion, an increase of 3.1% from 2023.
Australia's strong economic relationship with the US is underpinned by its ability to respond to global change, its world-class innovation and research and development opportunities, and its strategic location and favourable time zone. The country's highly educated and multilingual workforce further enhances its attractiveness for international trade and investment.
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Australia's strong, diverse and growing economy
Australia has a strong, diverse, and growing economy, which is reflected in its economic relationship with the United States. Australia's economy is underpinned by robust institutions, a world-class services sector, and an ability to adapt to global changes. The country has a long streak of uninterrupted annual economic growth, currently at 27 years.
The Australia-United States Free Trade Agreement (AUSFTA), which came into force in 2005, has significantly enhanced two-way trade. Since the agreement, trade between the two nations has increased from $32 billion to $77 billion. In 2024, U.S. goods trade with Australia totaled an estimated $51.3 billion, with exports to Australia reaching $34.6 billion, a 3.1% increase from 2023.
Australia's exports to the United States are diverse. The largest exports include financial services, non-monetary gold, sheep/goat meat, transportation services, and vaccines. Australian companies also export goods such as iron ore and coal, and lithium-ion batteries. The AUSFTA agreement has also granted Australian companies access to the U.S. federal government procurement market, further enhancing trade opportunities.
The United States and Australia have a history of working together closely to promote economic prosperity through free and open trade. Both countries played a role in establishing the G20 and collaborate in global and regional trade forums, including the World Trade Organization (WTO) and the Asia-Pacific Economic Cooperation (APEC) forum. This strong economic relationship is further reflected in the high level of U.S. direct investment in Australia, surpassing that of any other Indo-Pacific country.
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Frequently asked questions
Australia's largest exports to the US are financial services, gold, sheep/goat meat, transportation services and vaccines.
U.S. goods trade with Australia totalled an estimated $51.3 billion in 2024. U.S. goods exports to Australia in 2024 were $34.6 billion, and the annual value of two-way merchandise trade with the USA was $74.4 billion in 2024.
The US runs a large trade surplus with Australia. Over 12,000 Australian companies export to the United States, and over 97% of Australia's non-agricultural exports to the US are duty-free.
Australia has a strong, diverse and growing economy, underpinned by strong institutions, a world-class services sector, and a highly skilled, multilingual workforce. Australia also has a favourable time zone and location, and is ranked in the global top five on the Index of Economic Freedom.
