General Information » Economy » International Relations

Until the second world war, Australia was closely linked to Britain. As the country looked more to the US and immigrants arrived from Europe and Asia, the British connection became weaker. Defence treaties such as ANZUS, made in 1951 with New Zealand and the US, and the South-East Asia Treaty Organisation of 1952, show the change in focus.

Today, close engagement with Asia and the stability of the South Pacific are vital. The US is one of Australia’s most important economic partners as well as its closest security ally. In 2004, Australia and the US signed The Australia-United States Free Trade Agreement (AUSFTA). The Thailand-Australia Free Trade Agreement was signed in 2004 and The Singapore-Australia Free Trade Agreement (SAFTA) in 2003.

Less than 24 hours after the 2001 terrorist attacks in New York City, NATO invoked article five of the treaty, declaring the attacks to be against all members. Australian Prime Minister John Howard invoked the ANZUS Treaty at the same time. Australia remains a member of the ‘coalition of the willing’.



Asian Relations

Establishing Australia's role in Asia and the South Pacific has not been easy. Malaysia proved particularly stand-offish and relations with Indonesia hit an all-time low when Australia led the UN forces supervising East Timor's independence. Though they improved when PM John Howard announced the $1billion Australia-Indonesia Partnership for Reconstruction and Development after the Indian Ocean tsunami. Papua New Guinea, Fiji and the Solomon Islands have all undergone periods of instability recently, causing headaches for Australian diplomats and trade officials.