An open economy deeply integrated in global trade
Australia is a trading nation. We have 16 free trade agreements (FTAs) and have led the formation of multiple, regional trade agreements in the Asia-Pacific region. Low tariffs and preferential access to Asian markets make us a natural gateway for global trade. Over 70% of our trade is now with fast-growing economies in the Asia-Pacific region.
As a nation, we seek new trading opportunities. January 2022 marked the formal start of the world’s largest trade agreement, the Regional Comprehensive Economic Partnership (RCEP). Covering nearly a third of global output, the agreement links ASEAN (Association of Southeast Asian Nations) with China, Japan and South Korea – as well as Australia and New Zealand.
Investment helps power our major industries, especially in resources and energy. Foreign direct investment (FDI) has grown by approximately 7% per year for the last decade and has now topped A$1 trillion. Our top national investors are from the US (18%), Japan (13%) and the UK (12%). But investment from other parts of Asia is rising quickly – especially from Southeast Asia.