About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline

LOG IN
LOG IN


1 [1] (June 2, 2022)

handle is hein.crs/govegov0001 and id is 1 raw text is: Congressional Re Informing the Iegislative del 3rch Serviae since 1914 Updated June 2, 2022 Australia Overview Australia is a key U.S. ally and trade and investment partner at a time of increasing geopolitical uncertainty in the Indo- Pacific. The United States and Australia enjoy close people- to-people, trade and investment, political, cultural, intelligence, defense, and alliance relations. In recent years, as Australia's relations with China have become strained, Australia and the United States have strengthened their partnership. This includes the announcement of the Australia, United Kingdom, United States (AUKUS) agreement, which will provide Australia with nuclear propulsion technology for its next generation submarines, and provides for the three countries to jointly develop advanced military technology and other capabilities. Australia's ties with the United States, Japan, and India have been boosted through the developing Quadrilateral Security Dialogue, known as the Quad. In addition, Australia signed a reciprocal access agreement with Japan in January 2022 designed to facilitate closer defense cooperation between the two nations. Background Australia was first inhabited between 40,000 and 60,000 years ago. The Aboriginal population were hunter-gatherers with a complex spiritual culture focusing on creation myths, rituals, laws, and connections to ancestors and the Australian landscape. Captain James Cook claimed Australia for Britain in 1770, and in 1788 the first European settlement, largely made up of British convicts, was established. Australia evolved into a pastoral settler society based on sheep, wool, and minerals. Despite the centrality of the bush or the outback to the national myth, Australia more recently has evolved into an urbanized society. While geographically situated in the Indo-Pacific region, Australia continues to have deep cultural ties to Britain, the United States, and Europe. Political Setting Australia is an independent nation within the British Commonwealth. The Head of State is the ruling monarch of the United Kingdom, Queen Elizabeth II, who is represented in Australia by the Governor General Sir David Hurley. In practice, power is held by the Prime Minister and Cabinet, who are elected members of Parliament. Parliamentary elections must be held at least once every three years. The government can choose to call early elections. The Liberal-National Party Coalition and the Labor Party are the two main political forces in Australia. On May 21, Labor Party Leader Anthony Albanese defeated Scott Morrison of the Liberal Party to become Prime Minister of Australia. Labor won 77 of 151 seats in parliament as compared with the Coalition's 58 seats. Observers viewed voter desire for action on climate change as a decisive issue in the election, which also saw gains for the Green Party and Teal independent candidates. Figure 1. Australia in Brief Economics and Trade Australia's economy is projected to rebound after setbacks due to the Coronavirus Disease 2019 (COVID-19) pandemic. Australian exports include raw materials, energy, agriculture, tourism, and education, with Australia among the world's top three exporters of resources and energy. China is Australia's largest two-way trade partner and accounts for approximately one-third of Australia's trade with the world. Although the Australia-China Free Trade Agreement came into force in 2015, China has restricted some imports from Australia. Despite this, Australian exports to China increased significantly in 2021. The Australia-United States Free Trade Agreement (AUSFTA) came into force in 2005. In 2020, the U.S. goods trade surplus with Australia totaled $9 billion and the U.S. services trade surplus with Australia totaled $9.3 billion. In 2019-2020, the United States was Australia's second largest two-way trade partner in goods and services, and the United States was the largest investor in Australia. The United States is Australia's largest foreign investment destination. Strategic Outlook For years, Australia's geopolitical context has been defined by its trade relationship with China and its strategic relationship with the United States. As tensions mounted in its relationship with China in recent years, Australia doubled down on its alliance with the United States and deepened strategic ties with Japan and other nations. Revelations regarding China's attempts to influence Australia's society and the broader region have had a negative impact on Australian perceptions of China. A 2021 poll found 63% of Australians believe China is more of a security threat while 34% felt China was more of an economic partner. This is a significant reversal from 2018