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1 [1] (April 10, 2026)

handle is hein.crs/govetzt0001 and id is 1 raw text is: Australia: Background and U.S. Relations Overview The Commonwealth of Australia is a close ally and partner of the United States, and the relationship is underpinned by the 1951 Australia-New Zealand-United States (ANZUS) Treaty. The two countries enjoy close trade, political, cultural, intelligence, and defense relations. As geopolitical competition in the Indo-Pacific has increased, the alliance has deepened over shared concerns about the military and economic rise of the People's Republic of China (PRC or China). In September 2021, the governments of Australia, the United Kingdom (UK), and the United States launched the AUKUS security partnership, which is intended to provide Australia with nuclear propulsion technology for its next generation submarines and to jointly develop advanced military capabilities. Australia and the United States also coordinate through the Quadrilateral Security Dialogue (or Quad, with Japan and India). Australia is the world's sixth-largest country by surface area (2.96 million sq. miles). Originally inhabited by Aboriginal and Torres Strait Islander peoples, the modern Australian state developed from a British penal colony established in 1788. In 1901, Australia was granted sovereignty over its domestic affairs; in 1942, it adopted the 1931 Statute of Westminster, claiming legal independence from the UK and full control over its foreign relations. Australia is a member of the Commonwealth of Nations, an association of former British territories, and retains the King of the United Kingdom as its head of state. Po tcs and Governance Australia has a bicameral legislature and holds elections at least once every three years, with snap elections possible. Updated April 10, 2026 The most recent general election was held in April 2025.The incumbent Labor Party Prime Minister Anthony Albanese won reelection while the Liberal Party opposition candidate lost his seat in parliament. The Labor Party and the Liberal-National Parties Coalition are the country's two main political forces. The Green Party of Australia has been an influential political force at times. Economics and Trade The Australia-United States Free Trade Agreement (AUSFTA) came into force in 2005. Under AUSFTA, the two countries provide reciprocal duty-free access to a broad range of exports. The United States is Australia's second- largest trading partner in goods and services. The United States also is Australia's largest source of foreign direct investment. Data from the U.S. Trade Representative reveals that total U.S. goods and services trade with Australia was $62.8 billion in 2025. In April 2025, the Trump Administration announced that imports from Australia would face a baseline 10% tariff with some exceptions, under the International Emergency Economic Powers Act (IEEPA). After the Supreme Court ruled against the use of IEEPA to impose tariffs in February 2026, President Trump imposed a 10% global tariff for 150 days under Section 122 of the Trade Act of 1974. The Trump Administration also has imposed 50% global tariffs on steel and aluminum imports under Section 232 of the Trade Expansion Act of 1962, but has not provided Australia with a tariff exemption as it did during the President's first administration. Strategic Outlook The Australian government's assessment of its security environment has shifted considerably in the past decade. In the mid-2010s, Australia's security community perceived few imminent or proximate threats to its national security. In 2024, Australia's inaugural National Defence Strategy (NDS) noted the commonwealth faced its most challenging strategic environment since World War II. In part, this assessment is motivated by concerns related to U.S.-China competition, China's military modernization, a lack of perceived transparency in China's military build-up, and China's activities in Australia's near neighborhood (particularly the Pacific Islands). While Australian officials have not labeled China a military threat, the NDS states that China has employed coercive tactics in pursuit of its strategic objectives, including to alter the regional balance of power in its favor. The NDS asserted Australia must work even more closely with the U.S., our closest ally and principal strategic partner. To adjust to this changed strategic environment, Australia is pursuing updates to its force structure and defense spending