Damon Mcknight
Australia's relationship with its neighbouring countries has been shaped by its unique geographical position, diverse culture, and historical ties. As the only country occupying the Australian continent, Australia has devoted significant efforts to fostering regional cooperation and strengthening ties with its neighbours, particularly in the Asia-Pacific region. With a highly urbanized population of nearly 28 million, a highly developed economy, and abundant natural resources, Australia plays a crucial role in its region. Australia maintains strong alliances with neighbouring New Zealand, with free mobility of citizens under the Trans-Tasman Travel Arrangement, and long-standing ties with the United States, formalized by the ANZUS Treaty. In recent decades, Australia has increasingly focused on building relationships with Asian countries, including China, Japan, and Indonesia, and is an active participant in ASEAN initiatives.
| Characteristics | Values |
|---|---|
| Australia's closest neighbouring countries | Papua New Guinea and New Zealand |
| Other neighbouring countries | East Timor, Indonesia, New Caledonia, Vanuatu, Malaysia, the Philippines, and the Solomon Islands |
| Australia's most significant ally | The United States of America |
| Australia's highly-ranked neighbours in 2021 | New Zealand, the United Kingdom, Japan, Germany, Taiwan, Thailand, South Korea, and the United States |
| Australia's main trading partner in the 20th and 21st centuries | The People's Republic of China |
| Australia's focus for diplomatic missions | Asian countries |
| Australia's security partnerships | New Zealand, the United States (ANZUS Treaty), and Japan (2022 Joint Declaration) |
| Australia's comprehensive strategic partnerships | China (since 2014, dormant since 2020, reviving since 2023) |
| Australia's regional architecture focus | Association of Southeast Asian Nations (ASEAN) |
| Australia's participation in regional forums | ASEAN Regional Forum (ARF) and the ASEAN-sponsored East Asia Summit |
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What You'll Learn
Australia's relationship with New Zealand
Australia and New Zealand have a close and cooperative relationship, rooted in their shared history, language, and geographical proximity across the Tasman Sea. Both countries have a long history of collaboration in the political, economic, and defence sectors. Citizens of both countries can move freely between the two nations through the Trans-Tasman Travel Arrangements (TTTA) of 1973.
The bond between the two countries was solidified during World War I through the formation of the Australian and New Zealand Army Corps (ANZAC), which is now a symbol of their shared identity. During the Boer War and both World Wars, New Zealand soldiers fought alongside Australian soldiers. The ANZAC spirit has been described as a unique alliance, with Australians and New Zealanders sharing a friendly rivalry, particularly in sports.
In recent years, there have been efforts to further strengthen the relationship between the two countries. In 2005 and 2006, the Australian House of Representatives Standing Committee on Legal and Constitutional Affairs enquired into the harmonisation of legal systems within Australia and New Zealand, with a focus on differences affecting trade and commerce. The Australia New Zealand Leadership Forum is another initiative aimed at developing bilateral relations and joint regional engagement.
Despite their strong ties, differences in foreign policy and immigration have occasionally strained relations. For example, Australia's immigration policies have raised concerns in New Zealand regarding the treatment of its citizens residing in Australia. In February 2020, New Zealand Prime Minister Ardern criticised Australia's policy of deporting New Zealanders as "corrosive", testing the relationship between the two countries.
Overall, Australia and New Zealand share a close and cooperative partnership, with significant collaboration across various sectors. Their relationship is underpinned by shared historical, cultural, and geographical ties, as well as mutual interests and commitments in the political, economic, and defence arenas.
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Australia's relationship with the United States
Australia and the United States have been close allies since World War I, with both countries fighting together in every significant conflict since. The Australia, New Zealand, and United States (ANZUS) Security Treaty, concluded in 1951, is Australia's most important security alliance and enjoys broad bipartisan support. The two countries have also been formally allied in the Korean War, the Vietnam War, the Gulf War, and the War on Terror.
The United States is Australia's largest foreign investor, with US firms operating in Australia for over 100 years and currently employing more than 300,000 Australians. Bilateral direct investment (FDI) totals nearly US $230 billion, with leading sectors for Australian investment into the United States being software & IT services, business services, and healthcare.
The US-Australia alliance is considered an anchor for peace and stability in the Indo-Pacific region, with both countries sharing a strong interest in maintaining freedom of navigation and addressing challenges such as countering foreign terrorist fighters and violent extremism. They are also members of several of the same international organizations, including the United Nations, ASEAN Regional Forum, Asia-Pacific Economic Cooperation (APEC), G-20, and the World Trade Organization (WTO).
In recent years, there has been some tension in the Australia-US relationship. A 2025 survey by the Pew Research Center found that 71% of Australians viewed the US unfavorably, and only 22% had confidence in then-US President Donald Trump. However, the same survey also showed that 80% of Australians believed an alliance with the US was important for security.
In conclusion, Australia and the United States have a strong and robust relationship based on shared democratic values, common interests, cultural affinities, and formal security and trade agreements. While there may be occasional disagreements or tensions, the two countries remain close allies and partners on the world stage.
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Australia's relationship with China
However, since 2017, relations between the two countries have deteriorated significantly due to Australian criticism of policies and actions under General Secretary Xi Jinping of the Chinese Communist Party. This has influenced Australia's bilateral and multilateral engagements, such as the Pacific Step-Up with Pacific Island states and the pursuit of alliances directed at countering China's influence in the region.
Despite the tensions, Australia and China remain closely linked economically. China accounts for nearly a third of Australia's total trade, and Australia supplies more than half of China's iron ore imports. Additionally, Chinese tourists spend billions of dollars annually in Australia, and Australian agricultural products like cherries, beef, and wine are popular during Lunar New Year celebrations in China. Recognizing the importance of this economic relationship, Australian Prime Minister Anthony Albanese has made stabilizing ties with China a key aspect of his foreign policy. He has visited China twice since 2023, seeking to deepen engagement and find common ground while acknowledging differences.
However, China's increasing military assertiveness in the region and its economic policies have caused concerns in Australia. There are worries that China's industrial subsidies and strategic goals could negatively impact Australia's critical mineral processing industry and its competitiveness in global markets. Additionally, Australia's involvement in the AUKUS security partnership with the UK and the US has been a point of contention with China, demonstrating the complex dynamics at play in the relationship.
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Australia's relationship with ASEAN
Australia has devoted particular attention in the 21st century to promoting regional architecture centred around the countries of the Association of Southeast Asian Nations (ASEAN). Australia is an active participant in the ASEAN Regional Forum (ARF) and the ASEAN-sponsored East Asia Summit.
ASEAN is a key trading partner for Australia. In FY2023-24, Australia's two-way trade with ASEAN nations amounted to $192.9 billion, greater than its two-way trade with Japan, the US, or the EU. Australia's two-way investment with ASEAN in 2023 was $282 billion. Their strong trade links are supported by regional and bilateral free trade agreements, including the Agreement Establishing the ASEAN-Australia-New Zealand Free Trade Area and the Regional Comprehensive Economic Partnership Agreement (RCEP). In October 2021, ASEAN and Australia agreed to establish a Comprehensive Strategic Partnership (CSP), which has facilitated increased cooperation through development initiatives such as Australia for ASEAN (Aus4ASEAN).
Australia's development cooperation with ASEAN supports a range of areas, including combatting human trafficking, enhancing economic integration, implementing RCEP and AANZFTA, and reducing the risk of future pandemics. Australia also supports ASEAN's work on energy transition and decarbonisation, connectivity, sustainable urbanisation, food security, and safe and fair migration. Additionally, Australia is helping ASEAN advance its Women, Peace and Security agenda and strengthen digital trade standards.
The relationship between Australia and ASEAN has matured over 50 years, focusing on economic, political, and strategic interests. Australia's first formal link with ASEAN was established by the Whitlam government, marking ASEAN's first relationship with a non-member country. In the early years, economic issues and trade played a central role in the relationship. In 1974, Australia pledged A$5 million for ASEAN economic projects to enhance cooperation, and in 1977, Prime Minister Malcolm Fraser announced an additional commitment of AU$10 million to support the expansion of the ASEAN-Australian Economic Cooperation Program (AAECP). The Australian-ASEAN Business Council was formed in 1980, further broadening the economic relationship.
Australia has strong connections with the people of Southeast Asia, with over one million Australian residents claiming an ASEAN country as their birth country and over 1.1 million with ASEAN ancestry. Young Australians are choosing to study in Southeast Asia under initiatives like the New Colombo Plan (NCP), which builds people-to-people links. Many Southeast Asian alumni of Australian universities have careers in politics, business, academia, and the arts, maintaining close ties with Australia.
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Australia's peacekeeping missions in neighbouring countries
Australia has been involved in close to 100 separate peacekeeping missions, involving more than 30,000 personnel. Australian involvement in international peacekeeping began in 1947 when a small contingent of four officers was deployed to the Dutch East Indies (present-day Indonesia) as military observers under the United Nations Good Offices Commission during the Indonesian National Revolution.
In 1989, Australia committed a sizeable engineer force to Namibia, and throughout the 1990s, it made further contributions to peacekeeping operations in various places around the world, including the Middle East, Cambodia, Somalia, and Rwanda. In many cases, these deployments consisted of sizeable numbers of combat troops. Between 1994 and 2003, military observers were sent to Bougainville as part of a peace monitoring mission, and in 1999, Australia's involvement in peacekeeping reached a new level when it took the lead in deploying a force of around 6,000 personnel to East Timor during the country's emergence as an independent nation.
Australia has also been involved in observer missions, which help create stability but do not necessarily help end the conflicts they are observing. Australian observers have participated in UN operations in Kashmir from 1950 to 1985 and in the Middle East since 1956. When the Iran-Iraq War ended in 1988, Australian observers took part in a UN operation monitoring the ceasefire. Since 1964, Australian police have served in Cyprus, an island racked by conflict between its Greek and Turkish communities. More recently, Australian police officers have also served in places like Cambodia, Haiti, Mozambique, Bougainville, and Timor.
Australia has continued to support UN peacekeeping operations with personnel and resources, and it remains the largest contributor of personnel to the peacekeeping mission in East Timor. Major General Cheryl Pearce was Force Commander of the United Nations Peacekeeping Force in Cyprus from 2019 to 2021, and Major General Simon Stuart was Force Commander of the Multinational Force and Observers (MFO) in the Sinai from 2017 to 2019.
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Frequently asked questions
Papua New Guinea and New Zealand are Australia's closest neighbours. Other neighbouring countries include East Timor, Indonesia, New Caledonia, Vanuatu, Malaysia, the Philippines, and the Solomon Islands.
Australia and New Zealand have a longstanding alliance, with free mobility of citizens between the two countries under the Trans-Tasman Travel Arrangement and free trade under the Closer Economic Relations agreement.
The United States has been Australia's most important security ally since the Curtin Government in 1941. The close security relationship was formalised in 1951 by the Australia, New Zealand, United States Security (ANZUS) Treaty. Australia has also hosted or co-hosted vital U.S. military installations, including the Naval Communication Station Harold E. Holt.
After establishing diplomatic relations in 1972, Sino-Australian relations grew rapidly, with China becoming Australia's main trading partner. However, since 2017, relations have deteriorated due to Australian criticism of policies and actions under General Secretary Xi Jinping.
