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USA profile

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(Last updated: 25 Jun 2008)

Current business situation

The Department for Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to the USA. This is regularly updated, and should be checked before planning travel.

New US visa category created exclusively for Australians

The new E-3 visa is available and will greatly assist companies seeking to take advantage of opportunities available under the Australia-United States Free Trade Agreement. Further information is available.

Australia-United States Free Trade Agreement

The Australia-United States Free Trade Agreement (AUSFTA) came into force on 1 January 2005. The AUSFTA is an agreement that gives Australian businesses expanded access to the world’s largest importer and investor.

US Food and Drug Administration (FDA) Regulations

The US Food and Drug Administration (FDA) Regulations covering food (human and animals) exports to the USA have changed. New Bioterrorism Act regulations came into effect on 12 December 2003. Food exporters that do not comply with these new regulations will have their goods refused for entry to the United States.


Please note the following exemption: Truck terminals and other stationary facilities that serve merely to assist transportation vehicles in the process of transporting food are not required to be registered with FDA.  For the purpose of the registration Interim Final Rule, truck terminals and freight forwarders that are part of the transportation network and have possession, custody, or control of food for the sole purpose of facilitating its transport are not required to be registered with FDA.


FDA acknowledges that this response is not completely consistent with certain prior guidance.

Austrade would recommend that exporters access the Implications for Australian Exporters guide which details export compliance rules under these new regulations. Exporters can also access the Department of Agriculture Fisheries and Forestry website for further information. Australian exporters should also discuss requirements with their Austrade Export Adviser.

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Country facts

Capital city: Washington D.C.
Surface area: 9,364,000 sq km
Population: 302 million
Official language(s): English
Head of State & Head of Government: President The Hon. George W Bush
Australian exports to the USA: A$10,036 million
Australian imports from the USA: A$23,678 million
The USA's principal export destinations: Canada, Mexico, China
The USA's principal import sources: China, Canada, Mexico
(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Economic climate

Key economic indicators and statistics for 2007:

GDP – US$13,843.8 billion
GDP per capita – US$45,845
Real GDP growth – 2.2 per cent
Inflation – 2.9 per cent

 

The US economy is market-oriented, and businesses and large corporate bodies have a strong voice in the development of economic policy. Strong traditions in competition and enterprise have made the USA the world’s leader in software, electronics, and communications technology.

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

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Political climate

The USA is a federal republic with a strong democratic tradition, based on the US Constitution. The Constitution reserves certain powers to the states, which are presided over by a Governor, state legislature, and State Supreme Court.


The US Federal Government has three branches that monitor one another through a system of checks and balances:

  1. The Executive, headed by the President.
  2. The Legislative, headed by a bicameral Congress and comprises the Senate – 100 members for a six-year term, and the House of Representatives – 435 members for a two-year term
  3. The Judicial, of which the Supreme Court carries supreme interpretive powers of the Constitution.

The President and members of the Senate and House of Representatives are democratically elected by citizens aged 18 or over.


The Chief of State and the Head of Government is President George W Bush. Cabinet is appointed by the President with Senate approval.


The US consists of 50 States headed by an elected Governor.

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Trade relations and statistics

Many US corporations view Australia as an investment destination for Asia Pacific operations. There is growing appreciation of Australia as a supplier of leading edge products.


The Australia-United States Free Trade Agreement (AUSFTA) came into force on 1 January 2005. The AUSFTA is an agreement that gives Australian businesses expanded access to the world’s largest importer and investor. 


The North American Free Trade Agreement was signed in 1994 between Canada, Mexico, and the USA. 


The USA is the world’s richest market and Australia’s second largest export destination with a nine per cent share of Australia’s export market. The USA is Australia's single largest trade and investment partner. Australia is the 14th largest export destination for the USA and the eighth largest foreign investor in the USA.


Major Australian exports to USA (2007):

  • Bovine meat – $1,148 million
  • Alcoholic beverages – $866 million
  • Medical instruments – $461 million
  • Meat (excl. bovine) – $421 million

Major Australian imports from USA (2007):

  • Aircraft and parts – A$1,469 million
  • Computers – A$1,036million
  • Civil engineering equipment – A$1,017
  • Measuring and controlling instruments – A$895 million

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Sidebar Content

Sidebar Content

Export Snapshot

'USA: A New Crocodile Rock in America'
This 'postcard' by Austrade's Chief Economist, Tim Harcourt, features a short article and key statistics.

US business guides

In PDF format:

- Doing business in the US
- US e-commerce guide
- USA Technology Team

Selling to the U.S. Government

Austrade provides services for Australian companies looking to sell to the U.S. Government at home in Australia and locally within the United States. Read more

OECD Guidelines for Multinational Enterprises

Multinational Enterprises should be aware of the OECD Guidelines for Multinational Enterprises that provide voluntary principles and standards for responsible business behaviour in a variety of areas, consistent with applicable domestic laws. These Guidelines are endorsed and promoted by the Australian Government. For more information, go to the ANCP website.

     

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Austrade makes no warranty, express or implied as to the fitness for a particular purpose, or assumes any legal liability for the accuracy or usefulness of any information contained in this document. Any consequential loss or damage suffered as a result of reliance on this information is the sole responsibility of the user.