The Australia-United States Free Trade Agreement (AUSFTA) entered into force on 1 January 2005. Upon AUSFTA's entry into force, more than 97 per cent of Australia's non-agricultural exports to the United States (excluding textiles and clothing) became duty free and two-thirds of agricultural tariff lines went to zero. Under AUSFTA, Australian companies also have access to the federal government procurement market in the United States and the government procurement markets of 31 US states.
The United States has imposed a range of tariffs which may apply to goods imported to the United States (refer to Latest on US tariffs). US goods continue to enjoy tariff-free access to Australia.
Since AUSFTA came into force in 2005, bilateral goods and services trade between Australia and the United States has more than tripled, and two-way investment has more than quadrupled.
In 2025, the United States was our second largest two-way trading partner (AUD158 billion). Australia exported AUD60 billion of goods and services to the US in 2025 and imported over AUD98 billion worth of US goods and services.
The United States is the largest and most significant investor in Australia, with investment in Australia standing at AUD1.36 trillion in 2025. The United States is also by far Australia's largest foreign investment destination, with investment in the United States standing at AUD1.64 trillion in 2025.
AUSFTA provides for a Joint Committee to meet annually (or as otherwise agreed) to supervise the implementation of AUSFTA.
Useful links
- AUSFTA official documents
- Visit DFAT’s FTA portal for information on tariffs, and importing and exporting to the United States.