Australia-United States Free Trade Agreement: Fact sheets
- The US federal government market, which procures at least US$535 billion of goods or services annually (2011), is now open to Australia.
- Australia has a waiver from the "Buy American Act" (1933, 41 USC 10).
- • US federal government contracts over US$77,494 (and in construction over US$7,777,000). These thresholds were last updated in January 2012 and are indexed every two years.
- Thirty-one states of the United States have signed up to the Agreement, including the largest procuring governments of California, Florida, New York, Pennsylvania and Texas.
- Australian preferences for small businesses and indigenous people remain.
Australia became a "designated" country in US law, allowing Australian companies to bid on federal government contracts as a result of the AUSFTA. The six per cent penalty imposed under the "Buy American Act" (1933, 41 USC 10) for Australian products, above agreed thresholds, has been waived.
Much procurement in the US is conducted off Federal Supply Schedules, and Australian companies now have the opportunity to be listed on these Schedules.
All Australian States and Territories and 31 states of the United States have agreed to participate in the arrangements
Strategic defence procurement is not covered by the Chapter and Australia has retained the Australian Industry Involvement program in respect of defence procurement.
It is important for Australian companies to find out whether the product they offer and their potential buyer are covered by the Government Procurement Chapter of AUSFTA.
For more information on the types of procurement covered by the Government Procurement Chapter, see AUSFTA Government Procurement - Exceptions.
For more information on whether potential buyers (or procuring entities) are covered by the Government Procurement Chapter, and a list of US states which have signed on to the Chapter, see AUSFTA Government Procurement - Covered Entities
Gains to Australia
Australian companies are now able to compete in the US$ 535 billion US Federal procurement market (2011). They also have access to the largest government procuring states in the US.