Australia-United States Free Trade Agreement (AUSFTA) 

About AUSFTA

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

News

The Department's latest statistical analysis and information on Australia's trade with the Americas.

Government Procurement

New Government Procurement thresholds became effective from 1 January 2012:

Section 1: Central Government Entities

• (a) for procurement of goods and services: Adjusted Thresholds as of 1 January 2012: A$80,000 or US$77,494.
• (b) for procurement of construction services: Adjusted Thresholds as of 1 January 2012: A$9,514,000¹ or US$7,777,000.

Section 2 : Regional Government Entities

• (a) for procurement of goods and services: Adjusted Thresholds as of 1 January 2012: A$573,000 or US$552,000.
• (b) for procurement of construction services: Adjusted Thresholds as of 1 January 2012: A$9,514,000¹ or US$7,777,000.

Section 3: Government Enterprises

• (a) for procurement of goods and services:
• (i) of List A entities, Adjusted Thresholds as of 1 January 2012: A$402,000 or US$387,471.
• (ii) of List B entities, Adjusted Threshold as of 1 January 2012: US$622,000 (Australia has not listed any List B entities)
• (b) for procurement of construction services for List A and List B entities: Adjusted Thresholds as of 1 January 2012: A$9,514,000¹ or US$7,777,000

1. Note: the Australian dollar value of procurement of construction services will remain at the 2010 threshold level until advised otherwise.

Proposed amendments to AUSFTA - 11 May 2011

On 11 May 2011, the Australian Parliament's Joint Standing Committee on Treaties (JSCOT) recommended binding treaty be taken with regard to a proposed amendment to the Australia-United States Free Trade Agreement (AUSFTA) Annex 4-A (Textile or Apparel Specific Rules of Origin) [PDF]. For further information, see the JSCOT website.

Official documents

Here you can locate the full text of the Australia-United States Free Trade Agreement.

Full text of the Agreement

Australia-United States Free Trade Agreement

Guide to the Agreement

Australia-United States Free Trade Agreement - Guide to the Agreement

For business

For business queries regarding applicable tariff arrangements and the import and export process, including applicable forms, please contact the Australian Customs and Border Protection Service website or the US International Trade Commission Tariff Database.

The 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 see the Australian Customs Service 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).

Resources

The Department of Foreign Affairs and Trade’s latest statistical analysis and information on Australia’s trade with the United States.

Fact sheets

1. Overview
2. Key Outcomes
3. Agriculture
4. Manufactured Goods
5. Services
6. Financial Services
7. Government Procurement
   • AUSFTA Government Procurement Chapter - Exceptions
   • AUSFTA Government Procurement Chapter - Covered Entities
8. Intellectual Property
9. Investment
10. Health
11. Audio Visual
12. Automotive
13. Competition Issues
14. Telecommunications
15. E-Commerce
16. Rules of Origin
17. Sanitary and Phytosanitary Measures
18. Technical Regulations and Standards
19. Environment and labour
20. Dispute Settlement
    • Model Rules of Procedure
    • Appendices
    • Code of Conduct

Contact us

For business queries regarding applicable tariff arrangements and the import and export process, including applicable forms, please contact the Australian Customs and Border Protection Service or the US International Trade Commission Tariff Database.

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).

For all other questions relating to policy or strategic implementation under the AUSFTA, please contact the United States Trade Section of the Department of Foreign Affairs and Trade:

• Mail:
  US Trade Section
  Department of Foreign Affairs and Trade
  R.G. Casey Building
  John McEwen Crescent
  Barton ACT 0221
• Phone: +61 2 6261 1111
• Email: us_fta@dfat.gov.au

For media enquiries please call DFAT Media Liaison Section on +61 2 6261 1555.