Key outcomes

Overview

Australia now has the opportunity to more closely integrate
its economy with the United States through increased trade and
investment links.

Agriculture

• Two thirds of all agricultural tariffs - including in
  important commodities such as lamb, sheep meat and
  horticultural products, were eliminated immediately
  • a further 9 per cent of tariffs were cut to zero in 2008.
• AUSFTA provides greater access to the US market for two of Australia's key agricultural export industries, beef and dairy.
• Australia's quarantine and food safety regimes, which
  ensure our health and our environment are protected, are not
  affected by the Agreement.

Manufacturing

• Duties on more than 97 per cent of US non-agricultural
  tariff lines (excluding textiles and clothing) became duty
  free from day one of the Agreement.
• Tariffs on textiles, some footwear and a handful of other
  items will be phased out, with all trade in goods free of
  duty by 2015.
• A mechanism to address non-tariff barriers was
  established.

Services

• Access to US markets has been locked in for Australian
  service suppliers such as providers of professional,
  business, education, environmental, financial and transport
  services
• A framework to promote mutual recognition of professional
  services has been developed - which has led to Australian
  lawyers being allowed to provide services in Australian law
  in Delaware and Australian engineers gaining a temporary
  practise right in Texas.

Financial services

• Australia's financial sector will reap the benefits
  associated with financing the increased trade in goods and
  services flowing from the Agreement.
• Future access for Australian financial services providers
  to the world's largest financial market is assured through
  the Agreement guaranteeing that any future US liberalisation
  in this sector cannot be reversed.
• Australia and the US agreed to jointly consider a number
  of issues regarding the closer integration of our financial
  sectors.

Government procurement

• 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.
• Australia has a waiver from many US programs favouring US
  firms and products.
• Australian preferences for small businesses and
  indigenous people remain in place.

Intellectual property

• Australia's IP laws will be substantially harmonised with
  the world's largest intellectual property market, and a
  global leader in innovation and creative products.
• Australia's international reputation as one of the
  world's leading countries in protecting and enforcing
  intellectual property rights has been reinforced.
• Standards of intellectual property protection are beyond
  those provided by multilateral agreements such as the WTO
  TRIPS agreement and WIPO Treaties.

Investment

• The Agreement 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 with a includes changes that maintain our ability
  to screen all investment of major significance.

Health

• Access by Australians to affordable medicines under the
  PBS has been maintained under the AUSFTA.
• The Agreement reinforces Australia's existing framework
  for intellectual property protection of pharmaceuticals.

Audio-visual

• The Agreement protects our right to ensure local content
  on Australian media, and retains the capacity to regulate new
  and emerging media, including digital and interactive
  TV.
• AUSFTA ensures that there can be Australian voices and
  stories on audiovisual and broadcasting services, now and in
  the future.

Automotive

• Australia and the United States agreed to eliminate
  customs duties on almost all automotive products from the day
  the agreement enters into force.
• The 2.5 per cent duty on passenger motor vehicles, the 25
  per cent tariff on light commercial vehicles and tariffs on
  auto parts and accessories exports were immediately
  eliminated.
• Australian duties on passenger motor vehicles will be
  phased out, to zero in 2010.

Competition

• The Agreement ensures that Australia and the United
  States continue to cooperate on competition law and
  policy.
• Businesses and individuals are to be treated fairly in
  enforcing competition law.
• Consumer protection agencies will work together in
  combating illegal activity.
• Consumers and investors defrauded or deceived now have
  greater redress.

Telecommunications

• The Agreement ensures the maintenance of pro-competitive
  regulatory frameworks for Australian and US companies, high
  standards of transparency and WTO-plus rules on major
  suppliers.
• AUSFTA provides a new avenue for consultations with the
  United States on market access and embraces a market-based
  regulatory approach .

E-commerce

• AUSFTA recognises the importance of there being no
  barriers to trade conducted electronically.
• Australia is still be able to regulate for public policy
  purposes.
• Trade and investment is encouraged by facilitating
  electronic commerce.

Rules of origin

• Simple and objective tests apply to rules of origin for
  manufactured products, which must be substantially
  transformed in either Australia or the United States before
  they can benefit from the Agreement.
• The Agreement applies the change of tariff classification
  approach, with a straightforward method of claiming origin
  that does not require obtaining a certificate of origin.

Sanitary and Phyto-sanitary measures

• The integrity of Australia's quarantine regime and our
  right to protect animal, plant, and human health and life are
  preserved.
• Decisions about market access on quarantine or food
  safety grounds will continue to be made on the basis of
  science.
• A framework for discussions on specific products has been
  established.

Technical Regulations and Standards

• Australian exporters now have greater opportunities to
  understand and meet US requirements dealing with technical
  regulations and standards.
• A framework for exporters to work with government in
  tackling barriers has been established.

Environment and labour

• The Parties agreed not to fail to enforce their own
  environmental and labour laws in a manner affecting trade
  between the Parties.
• Both Parties retain the right to establish their own
  domestic environmental and labour standards, and to adapt or
  modify their own laws.