Updated February 26, 2019
Australia: Foreign Policy
Australia’s key strategic relationship is with the United
Australian support for the alliance remains strong with 76%
States while its largest trade partner is China. This has for
saying the U.S. alliance is important to Australia’s security.
many years created a dilemma for Australia that is similar
to that which many states in Asia face. While Australian
The Australia-U.S. Strategic Relationship
support for the U.S. alliance has traditionally been and
Australia has been a treaty ally since the signing of the
remains high, bilateral relations with Australia have
Australia-New Zealand-United States (ANZUS) Treaty in
experienced difficulties under President Trump. Australia’s
1951. Australia made significant military contributions to
ties with China have become strained as Australia has
the allied cause in the First and Second World Wars, and
sought to limit China’s influence in Australia and counter
the conflicts in Korea, Vietnam, Iraq, and Afghanistan. The
its rising influence in the Southwest Pacific.
Australia-U.S. alliance has endured and grown through
several geopolitical shifts since the end of WWII. Australia
Trump and Australia
is also a very close intelligence partner of the United States
While a candidate, President Trump made statements that
through the Five Eyes intelligence community, which also
called into question his commitment to long-standing
includes Canada, New Zealand, and the United Kingdom.
American alliances. In July 2016, Candidate Trump stated
Australia has viewed the United States as Australia’s most
“If we cannot be properly reimbursed for the tremendous
important strategic partner and a key source of stability in
cost of our military protecting other countries … then yes, I
the region. The Australia-U.S. Free Trade Agreement
would be absolutely prepared to tell those countries,
entered into force in 2005.
‘congratulations, you will be defending yourself.’†This
position departed from past U.S. policy and was regarded in
Australia as a cause for concern. Trump’s decision to
withdraw from the Trans-Pacific Partnership (TPP)
agreement also exacerbated concerns in Australia over the
U.S. commitment to allies and friends in the Asia Pacific
region.
Trump described his first call with former Prime Minister
Turnbull, which was one of his first as President, as “the
worst call by far†according to media reports. The president
reportedly stated his displeasure over a deal concluded by
former President Obama and Turnbull under which the
United States would receive 1,250 refugees from Australian
offshore detention sites. Trump described this deal as “the
worst deal ever.†President Trump’s actions were viewed
by some in the press as “injecting new uncertainty in the
US-Australia relationship†and reflecting the “transactional
view he takes of relationships, even when it comes to
Australia and the United States have had a very strong
diplomatic ties with long-standing allies.†The call, when
alliance relationship based in part on shared values and
taken in context with earlier statements, Trump’s
interests and bilateral security ties have remained robust.
withdrawal from the TPP, and other factors, led some
Increasing numbers of U.S. marines have rotated through
observers in Australia to question Australia’s extremely
the Northern Territory while Canberra and Washington
close relationship with the United States.
have explored expanded air and naval cooperation and
continue large scale military exercises such as Talisman
Subsequent actions, such as the visit to Australia by Vice
Saber and RIMPAC. In recent years, the two nations have
President Mike Pence and a positive meeting between
also strengthened information sharing and interoperability
Trump and Turnbull aboard the retired aircraft carrier USS
in cyberspace.
Intrepid for the 75th anniversary of the Battle of the Coral
Sea, sought to put the relationship back on track.
Positioned at the intersection of the Pacific and Indian
Nevertheless, in 2018, there was heightened concern in
Oceans, Australia’s geography fits well with the Trump
Australia about its relationship with the United States under
Administration’s Free and Open Indo-Pacific strategy.
President Trump’s leadership. Polling data indicated that
Australia also continues to work with the United States to
55% of Australians polled trust the United States to act
address the threat of Islamist militancy. Australia invoked
responsibly in the world, down 6 points from 2017 and
the ANZUS treaty to offer assistance to the United States
down 28 points from 2011, while only 30% of Australians
after the attacks of September 11, 2001, and was one of the
have confidence in Trump’s foreign policy. Despite this,
first countries to commit troops to U.S. military operations
https://crsreports.congress.gov
Australia: Foreign Policy
in Afghanistan and Iraq. Australia continues to have troops
Convention on the Law of the Sea (UNCLOS), which ruled
deployed in Iraq and Afghanistan.
largely in favor of the Philippines and against China’s
behavior and claims in July 2016.
The Australian government’s February 2016 Defence White
Australia is undertaking a number of measures to counter
Paper asserted that Australia seeks to “broaden and deepen
China’s growing influence in Australia. In June 2018, the
our alliance with the United States, including by supporting
its critical role in underpinning security in our region.â€
Australian parliament passed new espionage, foreign
The
interference, and foreign influence laws. In August 2018,
White Paper called for 12 new submarines and other vessels
Australia blocked Huawei from being involved in
to be added to the fleet while increasing defense spending
Australia’s 5G mobile network. In February 2019, Beijing’s
to 2% of GDP by 2021. It is projected that Australia will
“former top lobbyist in Australia†Huang Xiangmo had his
have 72 F-35 Joint Strike Fighter aircraft in service by
Australian permanent residency cancelled.
2020. Approximately 60% of Australian defense acquisition
spending has been on equipment from the United States.
Australia and the South Pacific
The Australia-United States Defense Trade Cooperation
Canberra also is taking action to counter China’s expanding
Treaty assists Australia’s stated goal of attainting high
influence in the South Pacific through its “Pacific Step Upâ€
levels of interoperability with United States military forces.
Policy. Prime Minister Morrison’s January 2019 visit to
While the White Paper assessed major conflict between the
Vanuatu and Fiji; increasing aid and investment from
United States and China as unlikely, it identified “the East
Australia to Pacific island states; and Australia, Papua New
China and South China Seas, the airspace above those seas,
Guinea, and the United States’ joint development of the
and in the rules that govern international behavior,
Lombrum naval facility on Manus Island demonstrate
particularly in the cyber and space domains†as potential
Australia’s growing commitment. Prime Minister Morrison
areas of friction.
reportedly discussed redevelopment of the Blackrock
Australia’s Relations with China
Peacekeeping and Humanitarian Assistance and Disaster
Relief Camp in Fiji and further enhancement of bilateral
The Australian economy has benefited from strong exports
security cooperation in Vanuatu. The Pacific Islands receive
to China. China became Australia’s number one export
31% of Australia’s foreign assistance budget. Prime
destination in 2009 and in 2017, 33.2% of Australian
Minister Morrison has announced the creation of an
exports went to China. The China-Australia Free Trade
Australian Infrastructure Financing Facility for the Pacific
Agreement came into effect in December 2015. As China
as well as additional funding for Australia’s export
transitions from export-oriented manufacturing to a more
financing agency. Australia, New Zealand, and the United
consumption- and service-driven economy, demand for
States also held an inaugural Pacific Security Cooperation
Australian products may increasingly include not only raw
Dialogue in June 2018 “to discuss a wide range of security
materials, such as iron ore, but also agricultural products,
issues and identify areas to strengthen cooperation with
food, wine, tourism, education and business services.
Pacific Island countries on common regional challenges.â€
A number of issues have caused tensions in Australia’s
In responding to reports of China’s reported efforts to
relationship with China. Among these are Chinese political
establish a presence in Vanuatu, Australian Prime Minister
donations in Australia, the sale or lease of farmland and
Malcolm Turnbull stated “We would view with great
energy and transportation infrastructure to Chinese business
concern the establishment of any foreign military bases in
interests, and differences over the South China Sea
those Pacific island countries.†Chinese aid to Pacific island
maritime territorial disputes. Chinese donations to
states, as tracked by the Australian Lowy Institute Mapping
Australian political parties have raised concerns over
Foreign Assistance in the Pacific project, increased
China’s influence in Australia. Senator Sam Dastyari of the
significantly from 2006 to 2016, with cumulative aid
Labor Party resigned after media scrutiny of his acceptance
commitments totaling $1.78 billion over that period.
of Chinese funds. Australian sources also suspect that
China may be behind a February 2019 cyberattack of the
Australia’s Foreign Policy Orientation
Australian Parliament and Australia’s major political
Australia’s political leadership has generally believed it
parties. The Northern Territory granted the Chinese
does not have to choose between the United States and
company Landbridge Group a 99-year lease for port
China. This view stems from a longstanding debate in
facilities in Darwin. The port, which was attacked by the
Australia that can be traced to former Labor Prime Minister
Japanese in 1942, is strategically located in the north of
Paul Keating’s [1991-1996] effort to deepen Australia’s
Australia and former President Obama reportedly registered
engagement with Asia. Former Liberal Prime Minister John
his displeasure over the lease. The Australian government
Howard [1996-2007] subsequently articulated a position
blocked the sale of Kidman & Company agricultural
that Australia does not have to choose between its history
enterprises in 2015 and national security concerns were
and geography. This conventional wisdom, that Australia
referenced when Australia prevented the A$10 billion sale
does not have to choose, is increasingly being challenged.
of Ausgrid, the New South Wales electricity distributor, to
China appears to be displeased with recent actions by
China in 2016. Australians are also concerned that Chinese
Australia and may be seeking to influence Australia to
buyers are putting upward pressure on real estate prices.
adopt policies more in line with China’s and to create
Australia has expressed concern about expansive Chinese
greater distance between Australia and the United States.
sovereignty claims in the South China Sea, and former
Foreign Minister Julie Bishop urged China to abide by the
Bruce Vaughn, Specialist in Asian Affairs
ruling by an arbitral tribunal under the United Nation
IF10491
https://crsreports.congress.gov
Australia: Foreign Policy
Disclaimer
This document was prepared by the Congressional Research Service (CRS). CRS serves as nonpartisan shared staff to
congressional committees and Members of Congress. It operates solely at the behest of and under the direction of Congress.
Information in a CRS Report should not be relied upon for purposes other than public understanding of information that has
been provided by CRS to Members of Congress in connection with CRS’s institutional role. CRS Reports, as a work of the
United States Government, are not subject to copyright protection in the United States. Any CRS Report may be
reproduced and distributed in its entirety without permission from CRS. However, as a CRS Report may include
copyrighted images or material from a third party, you may need to obtain the permission of the copyright holder if you
wish to copy or otherwise use copyrighted material.
https://crsreports.congress.gov | IF10491 · VERSION 5 · UPDATED