Updated October 25, 2019
Australia
Overview
Figure 1. Australia in Brief
Australia is a longstanding ally of the United States which
has supported the U.S. in every major conflict since World
War I. Australia is, along with the United States, a member
of the “Five Eyes” intelligence sharing group of nations.
Australia remains committed to its alliance relationship
with the United States while seeking to preserve its
significant trade relationship with China and maintain its
influence in the South Pacific. Australian Prime Minister
Scott Morrison, of the right of center Liberal Party, has
developed a positive relationship with President Trump
who hosted Morrison for a state visit in September 2019.
Australia is also a key producer of natural resources and
was the United States’ 16th largest goods export market in
2018; U.S. exports to Australia have increased 81.3% since
the U.S.-Australia Free Trade Agreement came into effect
in 2005. Australia is also adjusting to geopolitical
uncertainty related to the rise of China and concerns over
the United States’ commitment to the region by developing

strategic ties with Japan and other Indo-Pacific nations.
Australia has a bicameral parliament consisting of the
Historical Background
House of Representatives and the Senate. Its
Representatives are elected through a preferential ballot.
The Commonwealth of Australia was first inhabited
The Senate has 76 seats, with 12 senators from each of the
between 40,000 and 60,000 years ago. The Aboriginal
six states and 2 senators from each of the two territories.
population were hunter-gatherers, and developed a complex
One half of the state senators are elected every three years
spiritual “Dreamtime” culture focusing on creation myths,
and territory senators are elected every three years.
rituals, laws, and connections to ancestors and the
Although the government must call elections every three
Australian landscape. Captain James Cook claimed
years, it may call early elections. A double dissolution,
Australia for Britain in 1770, and in 1788 the first European
when all members of both legislative bodies must stand for
settlement, largely made up of convicts, was established at
election, may be called if government legislation is blocked
Sydney. Australia evolved into a pastoral settler society
twice in three months. Australia has compulsory voting
based on sheep and wool, with the increasing importance of
over the age of 18.
minerals. Despite the centrality of the “bush” or the
“outback” to the national myth, Australia has evolved into
Strategic Outlook
an urbanized society. While geographically situated in the
Australia maintains a complex array of international
Indo-Pacific region, Australia continues to have deep
relations, yet its geopolitical context is to a large extent
cultural ties to Britain, the United States, and Europe.
defined by its trade relationship with China and its strategic
Political Setting
relationship with the United States. Shifts in the
geostrategic dynamics of Asia are leading Australia to
The Commonwealth of Australia is an independent nation
hedge—increasingly by partnering with other Asian
within the British Commonwealth. The Head of State is the
states—against an increasingly assertive China and the
ruling monarch of the United Kingdom, Queen Elizabeth II,
perceived relative decline of U.S. influence in the region.
who is represented in Australia by the Governor General Sir
Such developments also reflect a change in the regional
David Hurley. In practice, power is held by the Prime
security architecture, which until recently has been
Minister and Cabinet, who are elected members of
grounded in the post-World War II “hub-and-spoke” system
Parliament. Parliamentary elections are called by the
of U.S. alliances, toward networks of security partnerships.
government, but must be held at least once every three
For Australia, this shift towards security networks, where
years. The Liberal-National Party Coalition and the Labor
middle powers in Asia increasingly rely on each other,
Party are the two main political forces in Australia. The
offers an opportunity to build on and complement its ties
Green Party, the Centre Alliance and the One Nation Party
with the United States. Prime Minister Morrison has
are also represented in parliament. There is a strong
announced that he intends to visit India and Japan in 2020
Republican movement in Australia that supports breaking
and stated “my visit [to India] will be another step in
with the British Crown. Scott Morrison, of the Liberal-
cementing India in the top tier of Australia’s partnerships.”
National Coalition, was elected Prime Minister in May
Australia also has done much in recent years to develop its
2019 with 77 of 151 seats in the House of Representatives.
strategic relationship with Japan. Australia and Japan
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Australia
signed a Joint Declaration on Security Cooperation (JDSC)
2.2% in 2020. An Australia-United States Free Trade
in 2007 and a Japan-Australia Economic Partnership
Agreement was established in 2005 and the United States
Agreement in 2015. The JDSC established a regular 2+2
ran a trade surplus of nearly $17 billion with Australia in
meeting of foreign and defense ministers. Prime Minister
2016. The State Department estimates that U.S. exports to
Morrison is viewed by observers as active in thinking about
Australia account for roughly 300,000 American jobs. The
Australia’s place in the world and how it can prosper in an
United States is also Australia’s largest foreign investor.
era of great power competition. While rejecting
isolationism and protectionism, Morrison has emphasized
Relations with China
Australia’s national interest and has expressed concern with
Revelations regarding China’s attempts to influence
a “negative globalism that coercively seeks to impose a
Australia’s society and region appear to have had an impact
mandate from an often ill-defined borderless global
on Australian perceptions of China. Examples of China’s
community.” Morrison has also urged Australia to
influence in Australia include China’s hacking of the
“maintain our unique relationships with the United States—
Australian parliament and major political parties, allegedly
our most important ally—and China—our comprehensive
buying influence through political donations, including to
strategic partner—in good order, by rejecting the binary
former MP Sam Dastyari, efforts to purchase or lease
narrative of their strategic competition.”
critical infrastructure, and efforts to sway Australia’s
Chinese language media and speech on university
Relations with the United States
campuses. A 2019 poll found that 77% of Australians
Australia and the United States enjoy a close alliance
believe that “Australia should do more to resist China’s
relationship. Australia has been a treaty ally since the
military activities in our region” while 74% feel that
signing of the Australia-New Zealand-United States
“Australia is too economically dependent on China” and
(ANZUS) Treaty in 1951. Australia made major
79% agree that “China’s infrastructure investment projects
contributions to the First and Second World Wars, and to
are part of China’s plans for regional domination.”
the conflicts in Korea, Vietnam, Iraq, and Afghanistan.
Australia is undertaking a number of measures to counter
Australia is also a close U.S. intelligence partner through
China’s growing influence. In 2018, the Australian
the “Five Eyes” group of nations, which also includes
parliament passed new laws on espionage, foreign
Canada, New Zealand, and the U.K. U.S. Marines have
interference, and foreign influence, and Australia blocked
been conducting regular rotational deployments in northern
Huawei from participating in the country’s development of
Australia since 2012. The ongoing strength of the bilateral
its 5G mobile network. Canberra has responded to Chinese
defense relationship, as well as growing multilateral
influence operations in the Pacific region with its Pacific
connections, was recently demonstrated through the July
Step Up policy and renewed diplomatic focus on the South
2019 Talisman Sabre military exercise, which included
Pacific. Prime Minister Morrison visited Vanuatu and Fiji
34,000 personnel from the U.S. and Australia. The 2019
and has increased aid to Pacific island states. In responding
Australia-U.S. Ministerial (AUSMIN) consultations
to reports of China’s alleged efforts to establish a presence
“emphasized the need for an increasingly networked
in Vanuatu, former Australian Prime Minister Malcolm
structure of alliances and partnerships to maintain an Indo-
Turnbull stated, “We would view with great concern the
Pacific that is secure, open, inclusive, and rules-based” and
establishment of any foreign military bases in those Pacific
also “welcomed a major milestone in the Force Posture
island countries.”
Initiatives, as the rotational deployment of U.S. Marines in
Darwin reached 2,500 personnel in 2019.” Australia also
Climate Change
joined the U.S.-led maritime force protecting Persian Gulf
Prime Minister Morrison defended Australia’s record on
shipping in August 2019. Australia, Papua New Guinea,
climate change at the United Nations in September 2019
and the United States are also working together to develop
where he asserted stated “We are committed to reducing
the Lombrum naval facility on Manus Island in Papua New
greenhouse gas emissions by 26 to 28 percent below 2005
Guinea. President Trump hosted Prime Minister Morrison
levels by 2030.” The Morrison government announced an
on a State Visit in September 2019. When asked “How
A$3.5 billion (1AD=0.68USD) Climate Solutions Package
important is our alliance relationship with the United States
in February 2019. Critics of the government point out that
for Australia’s security?,” 72% of Australians polled
Australia’s emissions have increased over the past five
responded that it was very important or fairly important.
years, that most projections see Australia overshooting its
Sixty-six percent also agree that “Donald Trump has
2030 targets without more drastic measures, and that
weakened Australia’s alliance with the United States.”
projections indicate Australia will experience increasing
temperatures, and increasing frequency of floods, coral
Economics and Trade
bleaching, ocean acidification, droughts and bushfires as a
Australia has the world’s 14th-largest national economy and
consequence of climate change. Australia has one of the
is a key exporter of natural resources. It also plays an active
world’s highest levels of greenhouse gas emissions on a per
role in international trade fora. Australia has ratified the
capita basis and is also the world’s third-largest exporter of
Comprehensive and Progressive Agreement for Trans-
fossil fuels.
Pacific Partnership. Australia is also involved in
negotiations for the Asia-centric Regional Comprehensive
Bruce Vaughn, Specialist in Asian Affairs
Economic Partnership. Australia expects a return to budget
IF10491
surplus in 2019 and Australia’s GDP is expected to grow to


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Australia


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