Lexi Webster
Australia and the United States have a close economic relationship, with bilateral investment totalling $1.6 trillion and two-way trade of $77 billion. This relationship is underpinned by the Australia-United States Free Trade Agreement (AUSFTA), which came into effect in 2005. The agreement has eliminated tariffs and opened up government procurement markets in both countries, creating an attractive environment for companies looking to expand. The US Commercial Service helps Australian companies find US suppliers, while the US Foreign Commercial Service assists US companies in entering the Australian market.
| Characteristics | Values |
|---|---|
| Economic relationship | Two-way trade valued at $77 billion; investment relationship valued at $1.6 trillion |
| US jobs supported by Australian companies | 150,000; 19,000 in California and Texas |
| Number of Australian companies exporting to the US | Over 12,000 |
| Notable Australian investors in the US | Woodside, Westfield, Brambles, Atlassian, Worley, Visy, Bluestone Lane, Rio Tinto, and Tritium |
| US companies' appeal to Australia | Friendly corporate tax system, close geographic location, common culture of democratic principles |
| US assistance for companies doing business in Australia | Finding agents, distributors, representatives, and end users for products and services; due diligence, market research, matchmaking, promotion of products and services at trade events |
Explore related products
What You'll Learn
Trade and investment
Australia and the United States have a close economic relationship, with bilateral investment totalling $1.6 trillion and two-way trade of $77 billion. This makes the US Australia's largest economic partner, with approximately a quarter of Australia's inward foreign investment coming from the US. The two countries also work together in global and regional trade and economic fora, including the World Trade Organization (WTO) and the Asia-Pacific Economic Cooperation (APEC) forum.
The Australia-United States Free Trade Agreement (AUSFTA) came into force on 1 January 2005, and since then, two-way trade has grown by 138%. 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. Under AUSFTA, Australian companies have access to the US federal government procurement market, valued at $637 billion, as well as the government procurement markets of 31 US states.
The US Commercial Service helps Australian companies find the best US suppliers, locate US products and services, and find business partners. It also helps US companies do business in Australia by finding agents, distributors, representatives, and end-users for US products and services.
Notable Australian investors in the US include Woodside, Westfield, Brambles, Atlassian, Worley, Visy, Bluestone Lane, Rio Tinto, and Tritium. Australian companies employ approximately 150,000 people in the US, with around 19,000 in California and Texas. Australia's highly skilled workforce, robust economy, trusted legal system, and stable society make it an attractive place for US companies to invest.
Australia's Underground Water: A Natural Wonder Down Under
You may want to see also
Explore related products
AUSFTA
The Australia-United States Free Trade Agreement (AUSFTA) came into force on 1 January 2005. The agreement aims to foster economic and trade relations between the two countries by eliminating tariffs and other trade barriers.
Over 97% of Australia's non-agricultural exports to the United States (excluding textiles and clothing) are now duty-free, and three-quarters of agricultural tariff lines have been eliminated. Under AUSFTA, Australian companies also have access to the federal government procurement market in the United States (valued at US$637 billion) and the government procurement markets of 31 US states.
The trade and investment relationship has flourished under AUSFTA, with two-way trade growing from US$32 billion to US$77 billion since it came into force. This makes the United States Australia's largest economic partner. Approximately a quarter of Australia's inward foreign investment is from the United States (US$740 billion or AUD$1.09 trillion).
The United States is also Australia's largest source of foreign investment, with investment in Australia standing at $929 billion in 2020. Two-way investment has almost tripled since the Agreement came into force.
Australia's Hibiscus Leaf-Eating Pests: Who Are They?
You may want to see also
Explore related products
Bilateral investment
Australia and the United States have a strong bilateral investment relationship. The US is Australia's largest economic partner, with two-way trade valued at US$77 billion and a two-way investment relationship valued at US$1.6 trillion. The US is also Australia's largest foreign investor, with outward investment to Australia standing at $163 billion in 2018 and $929 billion in 2020, rising to $1.17 trillion in 2023.
The Australia-United States Free Trade Agreement (AUSFTA) came into force in 2005, and has been central to the flourishing of trade and investment between the two countries. Since AUSFTA, two-way trade has grown by 138%, from US$32 billion to US$77 billion. 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. Australian companies also have access to the US federal government procurement market (valued at US$637 billion) and the government procurement markets of 31 US states.
The US is also a significant destination for Australian investment. In 2018, Australia's total stock of FDI into the US was $71.5 billion, with leading sectors including software & IT services, business services, and healthcare. Notable Australian investors in the US include Woodside, Westfield, Brambles, Atlassian, Worley, Visy, Bluestone Lane, Rio Tinto, and Tritium. Australian companies employ approximately 150,000 people in the US, including around 19,000 in California and Texas.
The two countries have a history of close cooperation in global and regional trade and economic fora, including the World Trade Organization (WTO) and the Asia-Pacific Economic Cooperation (APEC) forum. They also have a strong record of working together to further economic prosperity through free and open trade, and have established a mutual legal assistance treaty to enhance bilateral cooperation on legal and counter-narcotics issues.
Tort Law and Animal Liability in Australia
You may want to see also
Explore related products
![Mergers & Acquisitions Bible: [3 in 1] The Most Updated and Practical Guide to the M&A Process](https://m.media-amazon.com/images/I/61v2VprGNHL._AC_UY218_.jpg)
$38 $38
US companies in Australia
Australia and the United States have a close economic relationship, with bilateral investment totalling $1.6 trillion and two-way trade of $77 billion. The US is Australia's largest economic partner, with approximately a quarter of Australia's inward foreign investment coming from the US.
The two countries have worked together to establish the G20 and collaborate in global and regional trade and economic fora, including the World Trade Organization (WTO) and the Asia-Pacific Economic Cooperation (APEC) forum. Australia's skilled workforce, robust economy, trusted legal system, and stable society make it an attractive place for US companies to invest.
The Australia-United States Free Trade Agreement (AUSFTA), which came into effect in 2005, has further strengthened the trade and investment relationship between the two countries. Under AUSFTA, over 97% of Australia's non-agricultural exports to the US are duty-free, and three-quarters of agricultural tariff lines have been eliminated. Australian companies also have access to the US federal government procurement market and the government procurement markets of 31 US states.
The US Commercial Service in Australia helps US companies looking to export their goods or services to Australia by finding agents, distributors, representatives, and end users for their products and services. They also assist with due diligence, market research, matchmaking, and promotion of US products and services at trade events.
US companies looking to do business in Australia can also take advantage of the resources provided by SelectUSA, a government initiative that facilitates investment and job creation in the United States.
Bras in Australia: Understanding Your 32DD Size
You may want to see also
Explore related products
Australian companies in the US
Australia and the United States are trusted trade and investment partners, with two-way trade valued at US$77 billion and an investment relationship worth US$1.6 trillion. The US is Australia's largest economic partner, and Australian companies employ around 150,000 people in the US. Over 12,000 Australian companies export to the US, including Woodside, Westfield, Brambles, Atlassian, Worley, Visy, Bluestone Lane, Rio Tinto, and Tritium.
Australian individuals seeking employment in the US can take advantage of the E-3 visa, which is inexpensive and always available option exclusive to Australian citizens. Notable companies that have sponsored Australians to work in the US on E-3 visas include Amazon, Google, EY, Facebook, Microsoft, Apple, Spirit Airlines, Tesla, Macquarie Group, and Uber.
Expanding into the US market requires careful planning and consideration of cultural differences. Global business experts, such as Paul Adler, can provide valuable insights and advice to Australian companies on how to navigate the US market and accelerate global revenue growth.
Melbourne's Cruise Ship Docking: Where Do They Berth?
You may want to see also
