U.S. Relations With Australia

Bureau of East Asian and Pacific Affairs
Fact Sheet
February 24, 2017


More information about Australia is available on the Australia Page and from other Department of State publications and other sources listed at the end of this fact sheet.

U.S.-AUSTRALIA RELATIONS

Australia is a vital ally, partner, and friend of the United States. The United States and Australia maintain a robust relationship underpinned by shared democratic values, common interests, and cultural affinities. Economic, academic, and people-to-people ties are vibrant and strong. The two countries marked the 75th anniversary of diplomatic relations in 2015. In 2017, the United States and Australia will mark the 75th anniversary of a number of key World War II battles, including the Battles of the Coral Sea, Midway, and Guadalcanal.

Defense ties and cooperation are exceptionally close. Australian forces have fought together with the United States military in every significant conflict since World War I. The ANZUS security treaty, concluded in 1951, serves as the foundation of defense and security cooperation between the countries. The Treaty, which enjoys broad bipartisan support in Australia as its pre-eminent formal security treaty alliance, was invoked for the first time – by Australia – in response to the September 11, 2001 terrorist attacks. The two countries signed the U.S.-Australia Force Posture Agreement at the annual Australia-United States Ministerial consultations (AUSMIN) in August 2014, paving the way for even closer defense and security cooperation, including the annual rotation of Marines to Darwin and enhanced rotations of U.S. Air Force aircraft to Australia. In October 2015, the U.S. and Australian defense agencies signed a Joint Statement on Defense Cooperation to serve as a guide for future cooperation. In 2017, the United States and Australia will participate in the biennial military exercise Talisman Saber, which ensures and demonstrates the ability of the two defense forces to work together with the highest levels of interoperability.

The U.S.-Australia alliance is an anchor for peace and stability in the Asia-Pacific region and around the world. U.S. and Australian bilateral security cooperation activities enhance the stability and resiliency of the Asia-Pacific region. Both countries share an interest in maintaining freedom of navigation and overflight and other lawful uses of the sea, including in the South China Sea. They work closely in Afghanistan and Iraq, and cooperate on efforts to degrade and defeat the Islamic State in Iraq and the Levant and address the challenges of foreign terrorist fighters and violent extremism. Arms control and counter-proliferation is another area of close U.S.-Australia cooperation. In addition to AUSMIN consultations, Australia and the United States engage in a trilateral security dialogue with Japan.

The first treaty signed between the United States and Australia was the 1949 agreement that established the Fulbright program. Since then, more than 5,000 Australians and Americans have received scholarships. The United States and Australia have concluded a mutual legal assistance treaty to enhance bilateral cooperation on legal and counter-narcotics issues. The two countries have also signed tax and defense trade cooperation treaties, as well as agreements on health cooperation, space, science and technology, emergency management cooperation, and social security. A number of U.S. institutions conduct cooperative scientific activities in Australia. The United States and Australia responded to the Ebola and Zika epidemics and support the Global Health Security Agenda to accelerate measureable progress toward a world safe and secure from infectious disease threats.

U.S. Assistance to Australia

The United States provides no development assistance to Australia.

Bilateral Economic Relations

The U.S.-Australia Free Trade Agreement has boosted U.S. exports to Australia over 100 percent since coming into force in 2005. Total U.S. goods and services trade with Australia totaled nearly $65 billion in 2015; the United States ran a trade surplus of nearly $29 billion. U.S. exports to Australia support over 250,000 U.S. jobs, in sectors including machinery, travel services, industrial supplies and materials, consumer goods, and financial services. In return, Australia exports foods, feeds, and beverages; industrial supplies and materials; and business and travel services.

Bilateral investment totals more than $1 trillion. About 30 percent, or $440 billion, of Australian overseas investment is in the United States. The United States is Australia’s largest foreign investor, with $650 billion in accumulated investment – almost 30 percent of Australia’s total stock – including more than $167 billion in foreign direct investment. Leading sectors for U.S. investment are mining, finance, and insurance.

Australia has the world’s 12th-largest economy and the sixth-highest per capita income. It has marked 25 years of sustained annual economic growth, driven largely by China’s demand for minerals and other resources. An energy powerhouse, Australia is the world’s fourth-largest coal producer and second-largest exporter of LNG. It is projected to become the world’s largest LNG supplier by 2018. U.S. firms have operated in Australia for over 100 years and currently employ over 335,000 Australians. Almost 500,000 U.S. residents visited Australia in 2015, and almost 1.5 million Australians visited the United States.

Australia's Membership in International Organizations

In addition to the United Nations, Australia and the United States belong to a number of the same international organizations, including the ASEAN Regional Forum, Asia-Pacific Economic Cooperation (APEC), G-20, International Monetary Fund (IMF), Organization for Economic Cooperation and Development (OECD), World Bank, and the World Trade Organization (WTO). Australia is a Partner for Cooperation with the Organization for Security and Cooperation in Europe (OSCE), an Enhanced Partner of the North Atlantic Treaty Organization (NATO), and a member of the Pacific Islands Forum.

Bilateral Representation

The position of U.S. Ambassador to Australia is currently vacant; other principal embassy officials are listed in the Department's Key Officers List.

Australia maintains an embassy in the United States at 1601 Massachusetts Avenue NW, Washington, DC 20036 (tel. 202-797-3000).

More information about Australia is available from the Department of State and other sources, some of which are listed here:

 

Department of State Australia Country Page
Department of State Key Officers List
CIA World Factbook Australia Page
U.S. Embassy
History of U.S. Relations With Australia
Human Rights Reports
International Religious Freedom Reports
Trafficking in Persons Reports
Narcotics Control Reports
Investment Climate Statements
Office of the U.S. Trade Representative Countries Page
U.S. Census Bureau Foreign Trade Statistics
Export.gov International Offices Page
Travel Information