Aussie-US relations trump all- April Palmerlee

Saturday, 23 September 2024

IAN ROYALL

Aussie-US Alliance: A Pillar of Prosperity and Security for the Future Credit: Herald Sun

Australia’s relationship with the US is critical to both our economy and national security. The alliance is solid and continues regardless of changes in the government of the day in either country. In 2005, the relationship became even closer with the introduction of the Free Trade Agreement. Since that time, bilateral trade has doubled, and two-way investment has trebled. 

The total value of US investment in Australia reached $1170 billion in 2023, accounting for more than a quarter of all foreign investment. There are 323,000 Australians working in high-paying jobs for over 1000 US majority-owned companies in Australia. Australia’s exports to the US and the income generated from US investment in Australia accounts for 7 per cent of Australia’s GDP - roughly equivalent to the construction sector’s contribution. 

The US is also the top destination for Australian investment. There are 240,000 Australians working in the US, enabled by the special E-3 visas. In addition, nearly 100,000 Americans are employed by Australian companies in the US. The election of Donald Trump is the next chapter in the relationship. During his first administration, the trade and investment relationship between Australia and the US boomed and our defence and intelligence co-operation strengthened. Australia’s standing as a long-term trade and investment partner was recognised when Australia was exempted from Section 232 tariffs on steel and aluminium. 

As we look ahead to 2025 under a new administration, stock markets and other economic indicators predict a very strong US economy. Australian investors, companies with existing US operations and new US market entrants all stand to benefit from a strong US economy. 

Australia’s defence and security relationship is expected to remain as strong as ever under the new administration. A key priority will be progressing the AUKUS partnership. The Australia-US relationship is constantly evolving but its underpinnings are stable, led by common values and mutual trust from decades of government and business interaction. We can look forward with confidence to new opportunities for Australia under the next administration. April Palmerlee is the CEO of the American Chamber of Commerce in Australia. She will be speaking to AmCham in Melbourne on November26 on the implications of the US election result.