Trading Partner Portal: Australia
Australia has a market economy with a gross domestic product (GDP) of $1.2015 trillion and a population of 24.13 million. World Bank.
Australia’s diverse landscape and abundant natural resources has provided the country high level of foreign investment for exporting commodities such as coal, iron ore, copper, gold, natural gas, uranium and renewable energy sources.
In addition to being a large exporter of natural resources, energy, and food, Australia also has a significant service sector. Main imports to the U.S. from Australia are food manufactures which make up 25% of the total, followed by primary metal manufacturing, chemicals, and miscellaneous manufactured commodities.
As the 16th largest export destination for the U.S., Australia has always enjoyed a strong trade relationship and a diverse portfolio with the U.S. In 2017, total exports were $24.6 billion with top categories being transportation equipment, non-electrical machinery, chemicals, and computers.
Australia’s total FDI stock into the US totaled $54.3 billion in 2016 supporting 93,700 jobs in the US. $179 million was invested in research and development and $4.2 billion went to expanding US exports. The top industry sectors that were recipients of Australian FDI were: software and IT services, business services, textiles, real estate, financial services, and leisure and entertainment. SelectUSA
Australia’s FDI based on balance of payments and direct investment position into the U.S. in 2017 totaled $66.7 billion and U.S. FDI into Australia totaled $168.8 billion (Bureau of Economic Analysis).
Australia – California Trade
In 2017, Australia was the 14th largest importer of California goods and services. California exported approximately $3.56 billion to the country, making it the largest exporter to Australia. The largest export category from California was transportation equipment, totaling $720 million, surpassing computers and electronic products from 2016. Computers and electronic products totaled $605 million and represented 17 percent of all California exports to Australia. Other top export categories include food manufactures and miscellaneous manufactured commodities and food, totaling about 9 percent each of all export commodities.
Top imports to California from Australia were food manufactures at $795 million and 35.% followed by miscellaneous manufactured commodities at $385 million and 17.4%.
In Southern California, the number thirteen country for FDI through foreign-owned enterprises (FOEs) is Australia. Australian FOEs in Southern California provide over 7,500 jobs through over 200 firms. This amounts to $526 million in wages. The top sectors of Australian FOEs are retail trade, wholesale trade, financial activities, professional and business services, and manufacturing. (LA Business Journal, V. 40 No. 21, 2018)
WTO Trade Policy Review: Australia – April 2015
New Opportunities with TPP – Increasing U.S. Exports to Australia
ITA Blog, May 25, 2016
Australia and World Trade
Australia is actively involved with Asia-Pacific Economic Cooperation (APEC) as well as engaged in the Trans-Pacific Partnership talks in an effort to lower barriers to trade.
APEC was formed in 1989. It serves as a multilateral forum in which Asian and Pacific economies can solve economic problems and cooperate in developing key economic sectors.
On February 4, 2016, after more than five years of negotiations, trade ministers representing Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, United States, and Vietnam, signed the Trans-Pacific Partnership Agreement (TPP) in Auckland, New Zealand.
Australian State Of Victoria And California Share Emergency Management Knowledge, Technology
Imperial Valley News, July 6, 2016
Signing of International Wine Trade Memorandum of Understanding Will Ease Burden on U.S. Wine Exporters, Support American Jobs
October 20, 2011 – Santiago, Chile – Members of the World Wine Trade Group (WWTG), including the United States, Chile, Argentina, New Zealand, Australia, and Georgia, joined together to sign a Memorandum of Understanding (MOU) on Certification Requirements, which will help reduce barriers to international wine trade and support exporters of wine in each participating country. This MOU will facilitate trade in wine among these countries by encouraging the elimination of burdensome requirements and certifications of wine products and ingredients.
“The MOU signed today by these six World Wine Trade Group member countries is a key example of the kind of collaboration between trading partners that is essential to increase trade and support international growth in this global economy,” said United States Trade Representative Ron Kirk. “The production and sale of wine is a valued and robust industry in the United States and this MOU will help contribute to its continued growth and viability, while supporting much needed American jobs in these challenging economic times.”
U.S. – Australia Free Trade Agreement
On January 1, 2005, the U.S.-Australia Free Trade Agreement came into effect. The agreement eliminates tariffs on 99 percent of U.S. manufactured goods exported to Australia, accounting for 93 percent of all U.S. exports to the nation.
A comprehensive free trade agreement combined more than 345 million consumers in a market of over $19.3 trillion annually. Australian companies employ more than 84,000 American workers.
NSW Australia, CalChamber Share Sister State Discussion
(August 6, 2018) CalChamber President and CEO Allan Zaremberg and Vice President of International Affairs Susanne T. Stirling met with a delegation from the Parliament of New South Wales (NSW), Australia, led by the Honorable John Ajaka, President of the Legislative Council. Top Story
California and New South Wales share a Sister State relationship, a symbol of mutual goodwill, thereby encouraging bilateral cooperation. California and New South Wales, Australia became sister states through a resolution in 1997 as the two states share many economic and cultural similarities. California and New South Wales both have diverse landscapes, are key exporting states for their respective countries, and have agriculture and mining industries that are vital to both states’ economies. More recently, the two have shared a similarity in the wine industry and growing service sector, as well as the film, sports and leisure industries.
The group discussed the structure of the NSW Parliament, governance issues, infrastructure projects, research and development, and technology exchanges. Recognizing the U.S.-Australia Free Trade Agreement, there was discussion of the new Trump administration proposal of the Indo-Pacific Vision, encompassing a region of 14 countries, including Australia, Bangladesh, Burma, India, Indonesia, Japan, Malaysia, New Zealand, Philippines, Singapore, South Korea, Taiwan, Thailand and Vietnam.
CalChamber Hosts Meeting on California – Australia Trade Relations
(August 13, 2008) California trade relations with the Australian state of Victoria were among the topics discussed during a recent meeting at the California Chamber of Commerce.
Victoria—which is located in southeast Australia—is home to 5 million people with 3.6 million living in the capital city of Melbourne. In 2007, the United States exported $19.2 billion worth of goods to Australia, a 35 percent increase since 2004, the year before the U.S.-Australia Free Trade Agreement (FTA) went into effect.