There’s an important link between Australia and U.S. in term of defence and trade.
For defence, their relationship began a century ago. In 1908, Prime Minister Alfred Deakin invited the Great White Fleet from United States to visit Australia during its “world tour”. Its arrival at Sydney raised the public interest in an independent navy for Australia, marking the turning point for the Royal Australian Navy. During WW2, U.S. general Douglas Macarthur was placed in direct command of the Australian army in 1942, with his headquarter located in Brisbane until 1944. Australia has been involved with most military operations with the United States military, such as Iraq War, Vietnam War, and Korean War. One agreement regarding defence is the ANZUS, a collective security treaty between Australia, New Zealand, and United States that was formed in 1 September 1951. Created to combat the threat of communism during the Cold War, it binds the three countries to co-operate in military orders in the Pacific Region. This gives …show more content…
U.S. is the three third most expansive two-way trading partners for goods and services, with export being the fourth and import being the second. Also, U.S. is the largest investor in Australia, while Australia is the fifth largest investor in U.S [5]. One agreement that is about trading is AUSFTA, a free trade agreement between Australia and U.S. that’s was formed in 1 January 2005. It’s supposed to removes barriers to trade and facilitates stronger trade and commercial ties, contributing to increased economic integration between participating countries. All tariffs were eliminated for imports to Australia from U.S., while most tariffs were eliminated for exports from Australia U.S. Also give policy relaxation and investment provisions to Australia. In the U.S., both houses of congress and manufacturing industry approves of the agreement, while trade unions and pharmaceutical industry are concerned that it would produce similar negative effects to NAFTA. In Australia, the Howard government supported it as they deem the agreement is instrumental to the potential gain to Australia’s economy. Opposition to the AUSFTA argues that the intellectual property changes are undesirable, lowering enforced amount of locally produced media would erode Australian culture, the integration of U.S. market would lead to manufacturing job being outsourced, and changes to PBS would increase medicine price. Overall, the trade relation