1. BY XAVIER & TYSON

3. Historical background to the relationship Australia is Americas closest ally in the Asia-Pacific region Australia is the second most important US ally in the world now after the United Kingdom Australia’s alliance has seen troop forces being deployed along side the United States in such conflicts as Korea, Vietnam and recently Iraq and Afghanistan. Since the events of 9/11 in 2001 and the ‘war on terror’ the relationship between the US has become extremely close. The United States is Australia's fifth largest merchandise export market and our most important market for services. It is Australia's largest import source for services and second largest import source for merchandise. The United States is the largest investor in Australia. Australia is the ninth largest provider of foreign direct investment in the United States.

4. Agreements and treaties A key pillar of relations between Australia and the United States is the Security Treaty between Australia, New Zealand and the United States, the ‘ANZUS’ Treaty. It binds our two countries in mutual cooperation on military and security issues and contains a commitment that both Australia and the United States will act to meet common threats. Australia was one of the first countries to join the United States in the coalition to fight terrorism following the attacks on 11 September 2001; this was one of the main reasons for Australia joining ‘ANZUS’. The Australian-United States Ministerial Consultations (AUSMIN) is held between foreign and defence ministers on a regular basis and are hosted alternately by Australia and the United States. Ministers discussed the situation in Afghanistan and Pakistan, non-proliferation, security in the Asia Pacific and other regional and global strategic issues. Other consultations among senior officials include the Trilateral Strategic Dialogue (with Japan), policy planning talks, political-military meetings and military-military talks. The Australia-United States Free Trade Agreement (AUSFTA) entered into force on 1 January 2005. It is a bilateral agreement with the world's largest economy and one of Australia's most important trading and investment partners. Over time, this comprehensive agreement will increase bilateral investment and trade and provide more jobs and improved living standards for both countries

5. What Australia gets out of the relationship The cooperation with the United States increases Australia's ability to protect itself and its interests by providing access to US intelligence resources, military technology, preferred status in military equipment purchasing, access to training courses and invaluable combined exercises. Australia believes the sustained engagement of the United States in the Asia Pacific provides support for regional stability and prosperity. While there will always be healthy competition between Australian and American businesses, the AUSFTA delivers dynamic gains which promise to yield important long-term gains both for Australia and the United States. The United States is a major market for Australian exporters and is the leading destination for Australian overseas investment. With its stable political system, strong economy and sizable consumer market, the United States is a prime location to do business.

6. According to the government, a strong and close relationship with the United States serves Australia's national interest and brings significant benefits. Australia's ability to influence and work with the United States is essential to our prosperity and security. The United States is Australia’s single most important economic partner country. Total trade (exports + imports) (A$m): 31,917 (2009) The Free Trade Agreement with the United States (AUSTFA) was designed to deepen our economic integration with the world’s most dynamic economy and, thus, increase our wealth. Upon AUSFTA’s entry into force on 1 January 2005, more than 97 per cent of Australia's non-agricultural exports to the United States (excluding textiles and clothing) became duty free and two- thirds of agricultural tariff lines went to zero. United States' investment in Australia (A$m): 418,445 Australia is the United States’ 14 th principal export destination Australia is the United States’ 32 nd principal import source

7. Recent events September 11 – Australia invokes the ANZUS treaty – “war on terror” leads to multiple troop deployments from the ADF to conflicts such as Iraq and Afghanistan. Mr Rudd visited the United States from 23 to 27 March 2009. During their meeting on 24 March 2009, he discussed with President Obama the global economic crisis, the situation in Afghanistan, climate change and a range of regional and global issues. Recently the Global Economic crisis prompted negotiations between both nations