Country Data

Australia

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POPULATION

Population - 23,232,413

australia.jpg

GDP PER

CAPITA

$49,900

Disposable

Income

$30,656

Flight Time

From NYC

22 Hours

POPULATION

Population - 24,992,370

2016 Australia population by gender & age

GDP per

Capita

$57,305

Disposable

Income

$41,489

Flight Time

From LA

15 Hours

Flight Time

From NYC

22 Hours

Size

 

Australia is the world’s 13th largest economy. Australia’s highly skilled workforce, robust economy, trusted legal system and stable society make it an attractive place to invest. The stock of foreign investment in Australia exceeds $735 billion.

 

Investment

 

The United States is Australia’s largest foreign investor – with investment as of 2015 valued at $860.3 billion U.S. dollars. Around 1,000 American companies operate in Australia in a wide variety of sectors.  U.S. direct investment in Australia is led by mining, finance and insurance, and manufacturing sectors.

FIVE REASONS TO INVEST IN AUSTRALIA

  1. 27 years of uninterrupted annual economic growth: Australia's strong, diverse and growing economy adds up to more opportunities. Australia’s economy is underpinned by strong institutions, an exceptional services sector and an ability to respond to global change.

  2. World-class innovation: Australia supports world-class, globally significant research and development opportunities.

  3. World's fastest growing region:  With strong trade links, strategic location, a favorable time zone and a highly educated, multilingual workforce, Australia is uniquely positioned as a location to do business in the Indo-Pacific.

  4. Easy to run a business: Ranked in the global top five on the Index of Economic Freedom, Australia’s effective governance provides multinationals with a safe, secure business environment.

  5. Highly skilled workforce: Australia's multilingual workforce is among the most educated and diverse in the world.

 

Treaties

 

Since coming into force on January 1, 2005, the AUSFTA has reduced investment thresholds, provided greater intellectual property protection, and fostered greater two-way investment, a result of the AUSFTA, over 99 percent of U.S. exports now enter Australia duty-free. In accordance with tariff eliminations agreed as part of the AUSFTA, a number of changes occurred on January 1, 2015 in line with the 10th anniversary of the agreement coming into force.   There was an increase in the duty-free tariff rate quotas for Australian exports of beef, dairy, tobacco, wine, cotton, peanuts, and avocados, and the remaining Australian tariffs on textiles and apparel were removed.

 

Legal

 

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 in terms of financial security and international rankings.

 

Products/Services

 

Australia has a large services sector, and is a world leader in mineral and LNG extraction and food production. Australia’s abundant and diverse resources attract high levels of foreign investment, and include extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources.

 

  • In 2018, Australia bought US$227.3 billion worth of imported products down by -0.6% since 2014 but up by 2.7% from 2017 to 2018.

  • Top 10 Australian Imports from the US America's exports to Australia amounted to$23.3 billion or 10.2% of its overall imports.
     

1. Machinery: $5 billion

2. Vehicles: $3.1 billion

3. Medical, technical equipment: $2.7 billion

4. Electronic equipment: $2.2 billion

5. Pharmaceuticals: $1.8 billion

6. Aircraft, spacecraft: $753.4 million

  7. Mineral fuels including oil: $704 million

  8. Plastics: $527 million

  9. Perfumes, cosmetics: $503.6 million

10. Rubber: $487.7 million

  • Looking more closely at U.S. exports to Australia:

    • Civilian aircraft, parts rose 52.27 percent compared to last year to $1.66 billion.

    • Motor vehicles for transporting people fell 11.29 percent compared to last year to $1.44 billion.

    • Low value shipments rose 4.78 percent compared to last year to $904.22 million.

    • Medical instruments for surgeons, dentists, vets rose 12.42 percent compared to last year to $873.95 million.

    • Cell phones, related equipment rose 12.91 percent compared to last year to $653.08 million.

 

Additional Resources

United States of America country economic fact sheet [PDF 33 KB] - Department of Foreign Affairs and Trade

Trade and investment opportunities with Australia - The Australian Trade and Investment Commission (Austrade)

Australian Company Success Stories - The Australian Trade and Investment Commission (Austrade)

australia-image1.png

Source:

AGRICULTURE

  • Australia is the largest export market for U.S.-manufactured agricultural equipment outside North America. It ranks second to Canada as a buyer of US-made combine harvesters and tractors.

  • Overall sales of agricultural machinery are strong and growing. US exporters should consider increasing their marketing activity in Australia and focus on one or more of its major farm shows (field days)

Australia is among the top five largest markets for American-made agricultural equipment and is considered a high-volume, low-risk market.

Agricultural Equipment

australia-image2.png

(total market size= (total local production + imports)-exports)

Unit: USD millons

 

Source: Industry estimates and the Global Trade Atlas

  • In 2017, Australia and the United States signed a bilateral Food Safety Recognition Agreement. The agreement is the third the United States has undertaken with a trading partner and allows both countries to recognize one another’s food safety and regulatory systems as comparable. The agreement was signed by the USA’s Food and Drug Administration and the Australian Department of Agriculture and Water Resources and will result in fewer in-country audits; with compliance being managed by the exporting country. The agreement is expected to greatly simplify US exports to Australia and Australian exports to the United States through greater reliance on Australian food control systems that ensure the production of safe food.

  • Given Australia's large agricultural base, market prospects for US food products are best in areas drawing on innovative products, economies of scale, and the US position as a counter-seasonal supplier of fresh product

  • The organic, healthy and natural products market in Australia continues to grow rapidly.

 

Web Resources:

 

 

AUTOMOTIVE

 

Australia is the sixth-largest destination for U.S. auto parts exports. The market has relatively few barriers for U.S. companies. Since auto production in Australia is winding down over the next couple of years, future U.S. parts exports will be destined for aftermarket use exclusively.

australia-image3.png

(total market size= (total local production + imports)-exports)

Unit: USD millons

  • Australia is the third largest destination for U.S. recreational transportation products. As stated earlier, U.S. manufacturers’ top priority is servicing the North American market. Since Australia’s summer season is opposite from ours, U.S. manufacturers can devote more time seeking sales opportunities in Australia. In addition, Australian and U.S. consumers share similar tastes, abundant outdoor recreational terrain, and overall recreational interests.

australia-image4.png

Federal Chamber of Automotive Industries; Australian Bureau of Statistics

  • Currently, there are relatively few barriers to exporting automotive products to Australia. If products can be classified as automotive items of minimum 51% US content, there are no customs tariffs under the US-Australia Free Trade Agreement. Documentation stating the rules of origin should accompany the shipment of goods. 

 

Web Resources:

 

 

AVIATION

  • Australia is a major buyer of US aircraft parts (HS8803, USD 494 million, 4th largest); powered aircraft (HS8802, USD 860 million, 3rd largest); helicopters > 2000kg (HS880212, USD 567 million, 2nd   largest) and overall for aircraft, spacecraft and parts thereof (HS88, USD 2365 million billion, 17th largest).

  •  Aircraft manufacturing and repair services in Australia generate revenue of USD 3 billion – including exports of USD 1.5 billion. Boeing Australia has the leading local market share at 26.6% with revenue of approx. USD 742 million (AUD 1 billion).

  • Boeing maintains its largest presence outside of the United States in Australia.

 

Web Resources:

 

Construction

 

  • The Infrastructure Priority List (IPL) is a prioritized list of nationally significant investments, detailing 100 major proposals to boost the Australian economy.  In addition to the projects mentioned in the budget, current high priority projects include:

  • M4 motorway upgrade (Sydney)

  • WestConnex (Sydney

  • Melbourne Metro Rail (Melbourne)

  • M80 Ring Road upgrade (Melbourne)

  • Ipswich Motorway (Brisbane)

 

Web Resources:

 

Overview of Opportunities in Australia

Relevant Industries to Focus On

Actionable Data, Insights & Resources

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