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 US is currently imposing a 10 per cent ‘reciprocal’ tariff on Australian exports to the US, with some products subject to other sectoral tariffs (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 2024, the United States was our second largest two-way trading partner ($133.2 billion). Australia exported over $40 billion of goods and services to the US in 2024 and imported over $93 billion worth of US goods.
The United States is the largest and most significant investor in Australia, with investment in Australia standing at $1.36 trillion in 2024. The United States is also by far Australia's largest foreign investment destination, with investment in the US standing at $1.55 trillion in 2024.
AUSFTA provides for a Joint Committee to meet annually (or as otherwise agreed) to supervise the implementation of AUSFTA and review the trade relationship between the parties.
Useful links
- AUSFTA official documents
- Visit DFAT’s FTA portal for information on tariffs, and importing and exporting to the United States.