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1 [1] (January 25, 2022)

handle is hein.crs/govegow0001 and id is 1 raw text is: Australia Overview Australia is important to Congress because it is a key U.S. ally and trade andinvestmentpartner at a time of increasing geopoliticaluncertainty 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 recentyears, as Australia's relations with China have become strained, Australia and the United States have strengthened their partnership to address the geopoliticaluncertainty in the region. This includes the announcement of the Australia, United Kingdom, United States (AUKUS) agreement, which is to provide Australia with nuclear propulsion technology for its next generation submarines. Ties between the United States, Australia, Japan, and India have beenboostedby the developing Quadrilateral Security Dialogue known as the Quad. In addition, Australia signed areciprocal access agreement with Japan-another close U.S. ally-in January2022 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-gathereis with a complex spiritual culture focusing on creation myths, rituals, laws, and connections to ancestors and the Australian landscape. Captain James Cookclaimed Australia for Britain in 1770, and in 1788 the first European settlement, largely made up of British convicts, was established. Australia evolvedinto a pastoral settler society based on sheep, wool, and minerals. Despite the centrality of the bush or the outback to the nationalmyth, 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 Aus tralia 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 Govemor General Sir David Hurley. In practice, power is held by the Prime Minister and Cabinet, who are elected members of Parliament. Parliamentary elections mustbe 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. Prime Minister ScottMorrisonis leader ofthe LiberalParty and Anthony Albanese is the leader of the opposition Labor Party. Morris on, of the Liberal-National Coalition, became Prime Minister following a Liberal Party leadership ballot in August 2018. He was elected Prime Minis ter n May 2019 with 77 of 151 seats in the House of Representatives. Elections are now expected by May 2022. Figure 1. Australia in Brief :onomics and I rade Australia's economy is projected to rebound after setbacks due to the Coronavirus Disease2019(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 in goods and services and accounts for approximately one-third of Australia's trade with the world. Although the Australia- China Free Trade Agreementcame into force in 2015, China has restricted some imports fromAustralia. 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 largesttwo-way tradepartner in goods and services, and the United States was the largestinvestor in Australia. The United States is Australia's largest foreign investment destination. Strategic Outlook Foryears, Australia's geopoliticalcontext has been defined by its trade relationship with China and its strategic relationship with the United States. As tensions mounted with China, 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 andregionhave 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 s ignificantreversalfrom2018 Updated January 25, 2022