The United States-Australia Free Trade Agreement (FTA) has served as the basis of our bilateral trade relationship since the agreement entered in force on January 1, 2005. Under the FTA, all tariffs have been eliminated for products exported from the United States to Australia. The FTA has led to trade and investment growing in both directions.
In 2018, Australia GDP was an estimated $1.4 trillion (current market exchange rates); real GDP was up by an estimated 2.8%; and the population was 25 million. (Source: IMF)
U.S. goods and services trade with Australia totaled an estimated $65.5 billion in 2018. Exports were $47.3 billion; imports were $18.2 billion. The U.S. goods and services trade surplus with Australia was $29.1 billion in 2018.
Australia is currently our 24th largest goods trading partner with $35.4 billion in total (two way) goods trade during 2018. Goods exports totaled $25.3 billion; goods imports totaled $10.1 billion. The U.S. goods trade surplus with Australia was $15.2 billion in 2018.
Trade in services with Australia (exports and imports) totaled an estimated $30.1 billion in 2018. Services exports were $22.0 billion; services imports were $8.1 billion. The U.S. services trade surplus with Australia was $13.9 billion in 2018.
According to the Department of Commerce, U.S. exports of goods and services to Australia supported an estimated 266 thousand jobs in 2015 (latest data available) (124 thousand supported by goods exports and 142 thousand supported by services exports).
- Australia was the United States' 16th largest goods export market in 2018.
- U.S. goods exports to Australia in 2018 were $25.3 billion, up 3.2% ($780 million) from 2017 and up 13.9% from 2008. U.S. exports to Australia are up 81.3% from 2004 (pre-FTA). U.S. exports to Australia account for 1.5% of overall U.S. exports in 2018.
- The top export categories (2-digit HS) in 2018 were: machinery ($4.5 billion), vehicles ($3.5 billion), optical and medical instruments ($2.3 billion), electrical machinery ($2.2 billion), and aircraft ($2.2 billion).
- U.S. total exports of agricultural products to Australia totaled $1.4 billion in 2018, our 20th largest agricultural export market. Leading domestic export categories include: pork & pork products ($227 million), dairy products ($156 million), prepared food ($151 million), fresh fruit ($105 million), and tree nuts ($91 million).
- U.S. exports of services to Australia were an estimated $22.0 billion in 2018, 0.4% ($86 million) less than 2017, but 68.3% greater than 2008 levels. It was up roughly 221% from 2004 (pre-FTA). Leading services exports from the U.S. to Australia were in the travel, financial services, and intellectual property (audio visual and related products) sectors.
- Australia was the United States' 34th largest supplier of goods imports in 2018.
- U.S. goods imports from Australia totaled $10.1 billion in 2018, up 0.8% ($81 million) from 2017, but down 4.4% from 2008. U.S. imports from Australia are up 34.2% from 2004 (pre-FTA).
- The top import categories (2-digit HS) in 2018 were: meat (beef) ($2.1 billion), pharmaceuticals ($893 million), special other (returns) ($751 million), optical and medical instruments ($725 million), and machinery ($464 million).
- U.S. total imports of agricultural products from Australia totaled $3.2 billion in 2018, our 12th largest supplier of agricultural imports. Leading categories include: red meats, fresh/chilled/frozen ($2.1 billion), wine and beer ($359 million), tree nuts ($44 million), essential oils ($33 million), and raw beet & cane sugar ($27 million).
- U.S. imports of services from Australia were an estimated $8.1 billion in 2018, 4.8% ($368 million) more than 2017, and 46.7% greater than 2008 levels. It was up roughly 127% from 2004 (pre-FTA). Leading services imports from Australia to the U.S. were in the travel, transport, and financial services sectors
- The U.S. goods trade surplus with Australia was $15.2 billion in 2018, a 4.8% increase ($699 million) over 2017.
- The United States has a services trade surplus of an estimated $14 billion with Australia in 2018, down 3.2% from 2017.
- U.S. foreign direct investment (FDI) in Australia (stock) was $168.9 billion in 2017 (latest data available), a 1.5% increase from 2016. U.S. direct investment in Australia is led by nonbank holding companies, manufacturing, and mining.
- Australia's FDI in the United States (stock) was $66.7 billion in 2017 (latest data available), down 3.7% from 2016.
- Sales of services in Australia by majority U.S.-owned affiliates were $43.3 billion in 2016 (latest data available), while sales of services in the United States by majority Australia-owned firms were $14.8 billion.