• Australia has secured an agreement that provides a strong framework to promote high levels of two-way investment between Australia and the US.
• There is no investor-state dispute settlement provision in the Agreement.
• The Agreement preserves Australia's foreign investment policy, but includes changes that maintain our ability to screen all investment of major significance.

Summary

The Agreement successfully preserves the main features of Australia's foreign investment policy.

The Government has retained the right to examine significant foreign investment proposals in all sectors to ensure they do not raise issues contrary to the national interest.

• Foreign investments in urban land (including residential properties) and the media, and investments by foreign governments, will continue to be screened regardless of value.
• Foreign investments in the telecommunications, transport and defence related industries are subject to screening above a threshold of $100 million (indexed annually).
• The threshold for screening in all other, non-sensitive sectors was set at $800 million (indexed annually).
• Existing foreign investment limits relating to the media, Telstra, CSL, Qantas and other Australian international airlines, federal leased airports and shipping have all been preserved.
• The indexed thresholds are available from the Foreign Investment Review Board website at: http://www.firb.gov.au/content/US_thresholds.asp

The Agreement includes strong investor protection provisions, which will benefit Australian investors in the US, as well as affirming Australia's attractiveness to US investors.   The liberal provisions of the Agreement on trade in goods and services should also strengthen Australia's ability to attract foreign investment in many areas of the economy.  

Reflecting the fact that both countries have robust, developed legal systems for resolving disputes between foreign investors and government, the Agreement does not include any provisions for investor-state dispute settlement.