Australia is one of the United States’ most important trade partners, and the bilateral commercial relationship is critical for economic development and job creation in both countries. According to 2026 IMF estimates, Australia’s economy (GDP) is 12th largest in the world, which ranks above Mexico or South Korea, and just behind Canada.
Overall, Australia stood as the 19th largest goods and services trading partner of the U.S. in 2025. U.S. exports of goods reached $33.8 billion, a decrease of 2.6 percent ($886.2 million) from the record set in 2024, while goods imports from Australia reached $29.4 billion, up 74.7 percent ($12.4 billion). U.S. services exports grew by three percent ($800 million) to $27.4 billion, and services imports increased by 13.6 percent ($1.6 billion) to $13.4 billion compared to the previous year. In 2025, the U.S. had a trade surplus with Australia in both goods ($4.5 billion) and services ($14 billion).
With few barriers to entry, a familiar legal and corporate framework, sophisticated consumer and industrial sectors, and a straightforward, English-speaking business culture, Australia remains an important and receptive market for American goods and services. The trilateral AUKUS security partnership between Australia, the United Kingdom, and the United States, which enhances defense capabilities through acquiring nuclear-powered submarines for Australia (Pillar 1) and sharing advanced cyber, AI, and quantum technologies (Pillar 2), presents opportunities for U.S. solutions and suppliers. As does the United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths, a strategic agreement signed in October 2025 to accelerate investment, strengthen supply chains, and support priority critical minerals projects in both countries.
Australia welcomes foreign investment as an essential contributor to economic growth and productivity. The United States is Australia’s largest foreign investor and accounts for about a quarter of total of total foreign investment. American companies operate in Australia in a wide variety of sectors, employing more than 330,000 Australians. U.S. direct investment in Australia includes companies in AI, defense, finance, information technology, insurance, mining, oil and gas, software, and more.
The United States–Australia Free Trade Agreement (FTA) entered into force on January 1, 2005. Under this agreement, as of January 1, 2015, Australia provides duty-free access to all U.S. exports.
Australia represents the 10th largest source of foreign direct investment (FDI) in the U.S., supporting more than 100,000 American jobs. Key sectors of Australian FDI are in software & IT services, healthcare, business services, communications, industrial equipment, and financial services.
Australia has a well-established legal system for litigation and arbitration. The country is a world leader in the development and provision of dispute resolution mechanisms and is a signatory to all the major international dispute resolution conventions. Australia has an AAA international credit rating with a well-developed, sophisticated financial market, regulated in accordance with international norms. Australia’s four leading banks are highly ranked internationally in terms of financial security and liquidity.
Australia has a large services sector and is a world leader in mineral and LNG extraction as well as food production. Australia’s abundant and diverse resources attract high levels of foreign investment, and include extensive reserves of coal, critical minerals, iron ore, copper, gold, natural gas, uranium, and renewable energy resources.
Political Environment
For more information on the political and economic environment of Australia, please click on the link to the U.S. Department of State Background Notes