United States of America market snapshot
- GDP: US$16.98 trillion (2013)
- GDP per capita: US$53,097 (2013)
- GDP growth: 1.8 per cent (2013)
- Population: 316.4 million (2013)
- Trade with Australia: AU$54.8 billion (2013)
- Australia's investment in the United States 2013 (AU$m):
- Total: 471,672
- FDI: 121,691
- United States' investment in Australia 2013 (AU$m):
- Total: 657,888
- FDI: 149,479
The Australia-United States Free Trade Agreement (AUSFTA) is a long-term commitment and framework to strengthen trade relations and economic integration with the United States across all sectors of the economic relationship.
This Agreement significantly improves Australia's attractiveness as a destination for US investment, important for our efforts to maintain Australia at the leading edge of growth and competitiveness.
At the same time, the Agreement secures important Australian interests in areas such as health, in particular the Pharmaceutical Benefits Scheme, foreign investment screening, the audio-visual sector and our quarantine and food safety regimes.
Key interests and benefits
- Two thirds of all agricultural tariffs — including in important commodities such as lamb, sheep meat and horticultural products — were eliminated immediately, with a further 9 per cent of tariffs cut to zero in 2008, and almost all agricultural tariffs removed on full implementation in 2022 (all but sugar and out-of-quota dairy).
- Duties on more than 97 per cent of US non-agricultural tariff lines became duty free from day one of the Agreement, with all trade in goods free of duty by 2015.
- Access to US markets has been locked in for Australian service suppliers such as providers of professional, business, education, environmental, financial and transport services and a framework to promote mutual recognition of professional services has been developed.
- The US federal government procurement market, worth at least US$535 billion annually (2011), and that of 31 state governments are now open to Australia.
- The Agreement provides a strong framework to promote high levels of two-way investment between Australia and the US.
Overview of the Australia-US Free Trade Agreement
The Department's latest statistical analysis and information on Australia's trade with the Americas.
Tenth anniversary of AUSFTA brings further benefits
In accordance with the schedules under AUSFTA, a number of changes have taken effect on 1 January 2015 (the 10th anniversary of the entry into force):
- the remaining US tariffs on wine have been removed;
- the remaining US tariffs on textiles and apparel have been removed;
- there has been an increase in the duty free tariff rate quotas for Australian exports of beef, dairy, tobacco, cotton, peanuts and avocados;
- there has been a reduction in the over-quota tariffs for Australian exports of beef, goya cheese, tobacco, cotton, peanuts and avocados;
- the remaining Australian tariffs on textiles and apparel have been removed;
- the remaining Australian tariffs on articles of bedding and similar furnishing have been removed;
- the remaining Australian tariffs on surgical materials have been removed.
For business queries regarding applicable tariff arrangements, please review:
AUSFTA sets out the rules for determining which goods are ‘originating’ and therefore eligible for preferential tariff treatment. Under AUSFTA, it is the importer who makes the claim for preferential treatment. Importers should be prepared to submit (on request) a statement setting out the reasons that the good qualifies as an originating good. For further information including relevant documentation see the Australian Customs Service website or the United States Customs and Border Protection website.
The Australian and United States schedules specify the applicable rate of duty and the staging category for each tariff line. The staging category establishes the rate at which the relevant tariffs will be eliminated under the Agreement. The US and Australian schedules (guide only) can be found under Chapter 2 National Treatment and Market Access for Goods.
For business queries regarding the commencement of commercial activities and trade with the United States, including business advice and support, please contact The Australian Trade Commission (Austrade).
The American Chamber of Commerce in Australia (AmCham) offers a range of services and information on trade and business with the United States.