Austria's Gifts To The Us: Surprising Offerings

Austria and the United States have enjoyed diplomatic relations for over 200 years. The two countries share common values and perspectives, including support for human rights and the rule of law, and a vision of peace and freedom for all. The United States played a crucial role in Austria's reconstruction after World War II, providing significant aid through the Marshall Plan. Today, Austria and the United States maintain strong economic ties, with Austria being one of the top ten fastest-growing trade partners and foreign direct investors for the United States as of 2019. Additionally, American companies have invested over $20 billion in Austria, and Austrian companies have invested $6.9 billion in the United States, creating thousands of jobs in both countries. Beyond economic relations, Austria and the United States collaborate in various fields, including science, technology, education, and cultural exchanges, further solidifying their partnership.

Diplomatic relations

In 1797, the United States established consular relations by posting a Consul in Trieste, then part of the Austrian Empire. Diplomatic relations were established with the naming of Henry A. Muhlenberg as the first American Minister to Vienna on February 8, 1838. Relations were generally good until World War I (1914-18) and the United States' declaration of war on the Austro-Hungarian Empire in 1917. Diplomatic relations were severed on April 8, 1917, and the war caused a dramatic decrease in Austrian immigration to the United States.

Friendly diplomatic relations with the new Republic of Austria were established in 1921 and lasted until Nazi Germany annexed Austria in 1938. The United States closed its legation to Austria on April 30, 1938.

After World War II (1939-45), the four Allied powers (the United States, Great Britain, France, and the Soviet Union) divided Austria and Vienna into four occupation zones, with an Allied Council for Austria assuming authority over matters affecting the whole country. In 1955, these four powers and the Republic of Austria signed the Austrian State Treaty, which ended the occupation and declared Austria to be a free, independent, and neutral state. The U.S. played an essential role in the country's reconstruction and in the Austrian State Treaty. Since the post-World War II period, the United States and Austria have enjoyed strong relations.

The United States was heavily involved in post-war reconstruction and development in Austria, spending £300 million in food aid by June 1947. In April 1948, the United States created the European Recovery Program (ERP), also known as the “Marshall Plan”, which the Austrian government joined in July 1948. The United States provided $962 million in total ERP funds to Austria over the next five years. The balance of the ERP Fund was transferred to the Austrian government in 1961, and the Marshall Plan Foundation was founded in 2007 to support educational exchanges between Americans and Austrians.

Austria is one of 51 countries worldwide with a Fulbright educational exchange program managed by an autonomous binational commission. The State Department has selected more than 4,000 Austrians to participate in U.S. government-funded exchange programs since 1951.

A Memorandum of Understanding was signed in September 2020, creating an exchange program between the U.S. Naval Academy and the Theresian Military Academy, which already has a similar program with the United States Military Academy at West Point.

In February 2024, a Memorandum of Understanding was signed, expanding professional development exchanges between the two countries to include opportunities for technical and vocational students.

In 2019, the United States and Austria reaffirmed their commitment to advancing their joint interests through the U.S.-Austria Strategic Dialogue, which includes five key pillars: Western Balkans; science, technology, and innovation; trade and investment; justice and home affairs; and public and cultural diplomacy.

Trade and commerce

The United States and Austria have a long history of trade and commerce. While official diplomatic relations between the two countries began in 1838, the Austrian Empire's interest in exploring trade and commerce opportunities in the New World dates back to the late 18th century.

Austria is a member of the European Union and the World Trade Organization, offering US companies of all sizes export opportunities without significant trade barriers. The country is an attractive, affluent market for US-made products in Europe. It was one of the top ten fastest-growing US trade partners and foreign direct investors as of 2019, and the US remains Austria's second-largest export destination after Germany. The trade and investment relationship between the two countries is robust and supports thousands of new jobs in both countries.

In 2023, the US exported $7.98 billion worth of goods to Austria, with the main products being vaccines, blood, antisera, toxins, and cultures ($2.33 billion), cars ($691 million), and hormones ($560 million). Over the past five years, US exports to Austria have increased at an annualized rate of 3.97%, from $6.57 billion in 2018 to $7.98 billion in 2023. In the same year, Austria exported $18.1 billion worth of goods to the US, with the top products being vaccines, blood, antisera, toxins, and cultures ($2.47 billion), cars ($1.94 billion), and packaged medicaments ($903 million). Austrian exports to the US have increased at an annualized rate of 6.62% over the past five years.

The US and Austria share a robust and long-standing bilateral economic relationship, with foreign direct investment being a driving force that contributes significantly to trade flows in both directions. Austria is one of the fastest-growing sources of US foreign direct investment, and the US ranks as Austria's fourth-largest investor source country. According to the US Bureau for Economic Analysis, US exports of goods and services to Austria were $6.4 billion in 2022, while imports from Austria were $19.4 billion. Most US exports to Austria fall into five categories: pharmaceutical products, organic chemicals, medical and optical products, machines and parts (including data processing equipment), and electric machinery. Services account for around 20% of the export total, led by financial services. Austria's major exports to the US include vehicles and engines, machines and parts, pharmaceuticals, and beverages.

Austria has a well-developed market economy that welcomes foreign direct investment, particularly in technology and R&D. The country benefits from a skilled labour force and a high standard of living, with its capital, Vienna, consistently ranking highly in global quality-of-life rankings. With more than 50% of its GDP derived from exports, Austria's economy is closely tied to other EU economies, especially Germany, its largest trading partner. The US is one of Austria's top two-way trading partners, ranking fifth in overall trade according to provisional data from 2021. The Austrian economy features a large service sector and an advanced industrial sector specialized in high-quality component parts, especially for vehicles. The agricultural sector is small but highly developed.

Historical Context

The Austro-Hungarian Empire recognized the United States in 1797 when the US established consular relations by posting a Consul in Trieste, then part of the Austrian Empire. However, the Empire did not receive the first US representative to Vienna, William Lee, appointed by Congress in 1777, declining to recognize a country that had rebelled against a monarchy. Despite this initial tension, the Empire conducted trade in arms with the colonies during the American Revolution and pursued commercial interests in the cotton and tobacco markets. Official diplomatic relations were established in 1838 with the appointment of Henry A. Muhlenberg as the first American Minister to Vienna.

Immigration

Austrian citizens can enter the United States without a visa for up to 90 days within a 180-day period. However, they must register with the Electronic System for Travel Authorization (ESTA) and pay a fee of $21. This registration is valid for two years, provided there are no changes to the travel document.

For stays exceeding 90 days, Austrian citizens must obtain a visa. They can apply for a visa at an Austrian Embassy or Consulate General before travelling to the United States, or in the country before their 90-day stay has expired.

The United States also has specific requirements for students, researchers, and journalists, among others. Austrian students can find current information on student visa requirements on the Study in Austria webpage.

Austrian citizens who intend to reside in the United States must obtain a US visa. They can refer to the US Embassy in Austria for more information on visa applications.

US citizens seeking to enter Austria for a period exceeding 90 days or who wish to work in the country must obtain a visa. They can apply for a visa at an Austrian Embassy or Consulate.

Austria has different types of residence permits, including the Red-White-Red Card, which is for qualified third-country citizens seeking to live and work in the country. This card is issued for 24 months and allows fixed-term settlement and employment by the specified employer.

To obtain a residence permit, applicants must meet general requirements, including having adequate means of subsistence, health insurance coverage, and adequate accommodation. They must also not pose a threat to public order, security, or Austria's relations with other countries.

Austria collects the fingerprints of all visa applicants.

Global security

Austria and the United States have a long history of diplomatic relations, which began in 1838. The two countries have had their ups and downs, but today they are committed to advancing their shared interests and values, including global security.

Austria and the United States are partners in promoting global security. They work together to address issues such as terrorism, the illegal drug trade, organised crime, and human trafficking. Both countries have also collaborated in the War in Afghanistan and the NATO intervention in Bosnia and Herzegovina and Kosovo.

Austria has a history of playing a "special role" as a neutral state and mediator between East and West during the Cold War. It was an important player among the Neutral and Non-Aligned states in the Conference of Security and Cooperation in Europe, which led to the Helsinki meeting in 1975 that cemented European détente. Vienna was also the site of important summit meetings, including Kennedy-Khrushchev in 1961 and Carter-Brezhnev in 1979.

Austria continues to emphasise its role as an East-West hub and a moderator between industrialised and developing countries. It hosts several international organisations, including the International Atomic Energy Agency, the Organization for Security and Cooperation in Europe (OSCE), and the Organization of Petroleum Exporting Countries.

Austria is not a member of NATO but participates in its Partnership for Peace program and has military personnel embedded in NATO, EU, and UN peacekeeping operations worldwide.

In recent years, Austria and the United States have collaborated to support Ukraine in the face of Russia's aggression, with Austria welcoming over 85,000 refugees and providing more than $200 million in humanitarian aid.

Economic cooperation

The United States and Austria have a strong economic partnership, with Austria being one of America's top two-way trading partners. The US is Austria's second-largest export destination, and the trade and investment relationship between the two countries is robust, supporting thousands of jobs in both nations.

Austria has a well-developed market economy that welcomes foreign direct investment, particularly in technology and R&D. The country has a highly skilled labour force and a high standard of living, with its capital, Vienna, consistently ranking highly in terms of quality of life. The US has around 300 subsidiaries in Austria, and many American companies have expanded their investments over time.

Austria's economy is closely tied to other EU economies, especially Germany, its largest trading partner. However, Austria's membership in the EU has reduced its economic dependence on Germany and drawn an influx of foreign investors, attracted by its access to the European Single Market. Austria's economy is characterised by a large service sector and an advanced industrial sector, with over 50% of its GDP derived from exports.

The US has played a significant role in Austria's economic development, especially in the post-World War II era. The US provided substantial economic assistance to Austria, including $300 million in food aid by June 1947 and $962 million in total funds through the European Recovery Program (ERP), also known as the "Marshall Plan". The balance of the ERP Fund was transferred to the Austrian government in 1961, and the Marshall Plan Foundation was established in 2007 to support educational exchanges between the two countries.

Austria offers a stable and attractive climate for foreign investors, with relatively high political stability, harmonious labour-management relations, a highly skilled workforce, high levels of productivity and international competitiveness, and an excellent quality of life. However, it also faces challenges such as a high overall tax burden, a large public sector, and low levels of innovation and digitalization.

Both countries are members of several of the same international organisations, including the UN, OSCE, Organisation for Economic Cooperation and Development, World Trade Organization, and World Bank. This shared membership further strengthens their economic cooperation and collaboration on global issues.

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