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The U.S.-Australia Free Trade Agreement

General Information

As a result of the U.S.-Australia Free Trade Agreement, tariffs that averaged 4.3 percent were eliminated on more than 99% of the tariff lines for U.S. manufactured goods exports to Australia. Exports of these goods account for 93%of total U.S. goods sales in Australia's market. The eventual elimination of all tariffs will create new export opportunities for America's manufacturers.

The FTA also affords substantial benefits in a broad range of other sectors as well. Markets for services such as life insurance and express delivery will be opened; intellectual property will be better protected; American investments will be facilitated through predictable access and a stable business environment. For the first time in many sectors, American firms will be allowed to compete for Australia's government purchases on a nondiscriminatory basis. All U.S. farm exports will go duty-free to Australia, benefiting many sectors such as processed foods, fruits and vegetables, corn, and soybeans. The FTA also makes advances in e-commerce and pharmaceutical market access. A summary describing all of these benefits is available at the USTR website.

By Sector

With virtually all U.S. manufactured exports becoming duty-free immediately, the National Association of Manufacturers (NAM) estimates that the manufacturing sector could sell $2 billion more per year to Australia and that U.S. national income could grow by nearly that much.

U.S. exports to Australia grew 11% in 2010, with the sectors of mining, organic farming, and motorcycles growing the fastest in Australia. Overall, the principal U.S. exports to Australia in 2010 are in the sectors of machinery, vehicles; not railway, optic/medical instruments, and electrical machinery.

Additional Resources