The U.S.-Australia Free Trade Agreement (FTA) is a bilateral trade agreement between the United States and Australia, signed on May 18, 2004, and implemented on January 1, 2005. The agreement aimed to create new economic opportunities by eliminating tariffs and other trade barriers between the two countries. The agreement has brought benefits to both the countries and the bilateral trade between the two has grown significantly since its implementation.
The agreement covers a wide range of sectors including agriculture, manufacturing, services, and intellectual property rights. Under the agreement, Australia agreed to eliminate tariffs on a range of U.S. products, including agricultural commodities such as beef, dairy, and wheat. In return, the United States agreed to reduce tariffs on Australian products like wine, meat, and dairy.
The agreement also includes provisions for protecting intellectual property, including patents, trademarks, and copyrights. Both countries agreed to enforce strong laws to protect intellectual property rights, which are essential for innovation and economic growth.
The U.S.-Australia FTA has been instrumental in boosting bilateral trade between the two countries. In 2020, the United States was Australia`s third-largest two-way trading partner, with two-way trade valued at $57.9 billion. U.S. exports to Australia in 2020 totaled $17.8 billion, while U.S. imports from Australia amounted to $40.1 billion.
The agreement has also been successful in facilitating investment between the two countries. In 2020, the United States was the largest foreign investor in Australia, with a total stock of investment valued at $191.1 billion. Australian companies have also invested heavily in the United States, with a total stock of investment valued at $58.2 billion.
The U.S.-Australia FTA has been beneficial for both countries, creating new economic opportunities, and boosting trade. The agreement has also helped to strengthen the economic relationship between the two countries and promote greater economic integration in the Asia-Pacific region. As such, it is a shining example of how trade agreements can bring mutual benefits to countries and enhance economic growth.