Australia - Market OverviewAustralia - Market Overview
- Total U.S. - Australia bilateral trade of goods and services in 2016. USD 61.8 billon2
- U.S. exports of goods and services to Australia in 2016: USD44.5 billion2
- U.S. goods exports to Australia in 2016: USD22.4 billion2
- U.S. services exports to Australia in 2015: USD22.1 billion2
- Australia’s rank as a U.S. export market in 2017: 17th largest3
- World Bank Ease of Doing Business 2016 Rank: 15 of 189 (13 in 2015)4
- Australia is the world's 12th largest economy5 with a GDP of USD1.26 trillion.6
- Australia – U.S. Free Trade Agreement (AUSFTA) has significantly stimulated
U.S.-Australian trade and investment since its inception in 2005.
This year Australia is expected to surpass the world record for the longest period of uninterrupted economic growth, 26 years, currently held by the Netherlands. Australia’s GDP grew by 3.3 percent in 2016 and is anticipated to grow by 3 percent in 2017. Australia’s growth continues to exceed the Organization for Economic Co-operation and Development (OECD) average despite the economy transitioning to broader-based growth following the end of the resources boom in 2015. The start of 2017 has seen strong signs of recovery and growth. With few barriers to entry, a familiar legal and corporate framework, sophisticated consumer and industrial sectors, and a straightforward, English-speaking business culture, Australia remains a vibrant and important pro-U.S. market for American goods and services.
1 Source: Reserve Bank of Australia
2 Source: Bureau of Economic Analysis
3 Source: Trade Policy Information System, International Trade Administration
4 Source: World Bank Indicator
5 Source: World Bank GDP Rankings
6 Source: Australian Bureau of Statistics
Australia welcomes foreign investment as an essential contributor to economic growth and productivity. The United States is Australia’s largest foreign investor – with investment as of 2015 valued at $860.3 billion U.S. dollars. Around 1,000 American companies operate in Australia in a wide variety of sectors. U.S. direct investment in Australia is led by mining, finance and insurance, and manufacturing sectors.
Since coming into force on January 1, 2005, the AUSFTA has reduced investment thresholds, provided greater intellectual property protection, and fostered greater two-way investment, a result of the AUSFTA, over 99 percent of U.S. exports now enter Australia duty-free. In accordance with tariff eliminations agreed as part of the AUSFTA, a number of changes occurred on January 1, 2015 in line with the 10th anniversary of the agreement coming into force. There was an increase in the duty-free tariff rate quotas for Australian exports of beef, dairy, tobacco, wine, cotton, peanuts, and avocados, and the remaining Australian tariffs on textiles and apparel were removed.
Source: BEA Informational Fact Sheet
Australia has a well-established legal system for litigation and arbitration. The country is a world leader in the development and provision of dispute resolution mechanisms, and is a signatory to all the major international dispute resolution conventions. Australia has an AAA international credit rating with a well-developed, sophisticated financial market, regulated in accordance with international norms. Australia’s four leading banks are highly ranked in terms of financial security and international rankings.
Australia has a large services sector, and is a world leader in mineral and LNG extraction and food production. Australia’s abundant and diverse resources attract high levels of foreign investment, and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources.
Australia Trade Development and Promotion