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handle is hein.crs/goveqdj0001 and id is 1 raw text is: Australia: Background and U.S. Relations

Overy ew
Australia's relationship with the United States, forged as
allies in all major U.S. wars, remains close. The two
countries enjoy close trade, political, cultural, intelligence,
and defense relations, and maintain close people-to-people
ties. As geopolitical uncertainty in the Indo-Pacific has
increased, the alliance has deepened. Driven by concerns
about the People's Republic of China's (PRC's or China's)
military and economic rise, the governments of Australia,
the United Kingdom (UK), and the United States launched
the AUKUS partnership in September 2021. AUKUS is
intended to provide Australia with nuclear propulsion
technology for its next generation submarines and to jointly
develop advanced military capabilities. Congressional
approval and involvement is required throughout AUKUS
implementation. Australia and the United States have
embraced the Quadrilateral Security Dialogue (or Quad,
with Japan and India), further aligning regional strategies.
History, Po t cs, and Governance
Australia was first inhabited between 40,000 and 60,000
years ago. The Aboriginal population were hunter-
gatherers; Aboriginal and Torres Strait Islander people now
make up 3.8% of Australia's population. Britain colonized
Australia from 1788-when Britain established a penal
colony there-to 1901. That year, Australia became the
Commonwealth of Australia, a dominion of the British
empire that was sovereign in its domestic affairs; Australia
established control over its external affairs over the course
of the next four decades. The United States recognized
Australia's independence and established bilateral relations
in 1940. The country's parliament is bicameral, with a
House of Representatives and a Senate. Elections occur at
least once every three years, but the government can call
early elections. The Labor Party and the Liberal-National
Party Coalition are the country's two main political forces.
Prime Minister Albanese of the Labor Party has stated his
intention to hold a referendum on Australia becoming an
independent republic and removing the British King as
Head of State, but has not committed to a timeframe. In
October 2023, a referendum on a proposed constitutional
amendment that would have created an Aboriginal and
Torres Strait Islander body to advise parliament failed with
a vote of 60% to 40%. Supporters saw the amendment as a
way to increase Indigenous representation in policymaking,
while opponents claimed the legislation would divide the
population and hinder decisionmaking.
Econom cs and Trade
The Australia-United States Free Trade Agreement
(AUSFTA) came into force in 2005. The U.S. goods trade
surplus with Australia was $17.7 billion in 2023, a 23.2%
increase from 2022. The United States is Australia's largest
foreign investment destination. Top Australian exports and

Updated July 29, 2024

services include raw materials, energy, agriculture, and
tourism. Australia is among the world's top exporters of
energy and resources, including lithium, cobalt, and other
critical minerals. China is Australia's largest two-way trade
partner and accounted for 26.8% of Australia's global trade
in 2023. Although the two countries signed a Free Trade
Agreement in 2015, China restricted some imports from
Australia in 2020 following Canberra's endorsement of an
inquiry into the origins of the COVID- 19 disease. China
began lifting those trade restrictions in 2023 and Australian
goods and services exports to China in 2023 increased by
more than 18% compared to 2022.
Government: Federal parliamentary democracy
Headof State: King Charles Ill is represented by Australian
Governor General Samantha Joy Mostyn
HeadofGovernment: Prime Minister Anthony Albanese
Population: 26 million; 2.4% growth; 86% urban (2023 est.)
Life expectancy: 83 years (2022 est.)
Area: Slightly smaller than the contiguous 48 U.S. States
GDP: Per capita $65,370 with 1.6% growth (2023 est.)
Natural Resources: Alumina, coal, iron ore, copper, tin,
gold, silver, uranium, rare earth elements
Exports / Destinations: Iron ore, coal, natural gas, gold,
aluminum oxide, meat, wool, wheat ! China 40.84%, Japan
12.38%, South Korea 6.5%, United States 5.3%
Exchange Rate: A$1.47 US$1 (7/12/2024)
Source: The World Bank
Strategc Outlook
The Australian government's assessment of its security
environment has shifted considerably in the past decade,
from a relatively more benign one in the mid-2010s to a
markedly deteriorated one in 2023. The primary driver of
this shift was the emergence of great-power competition
between the United States and China, as well as multiple
instances of alleged PRC interference in Australian politics
since 2017. A 2024 Lowy Institute poll found that more
than 70% of Australians think China is somewhat or very
likely to become a major military threat in the next 20
years, up from 45% of Australians in 2018.
The Australian government is reorienting elements of its
military strategy, force structure, and procurement
practices. It has laid out plans to increase defense spending
and grow its military capabilities, and allocated $US37.5
billion for FY2025, 2.02% of its GDP. Australia plans an
additional $33.8 billion in defense spending over the decade
until 2033-2034. Australian governments also have
responded to China's outreach to the Pacific with renewed
diplomatic engagement in the region.

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