The United States was Australia's 2nd largest trading partner in 2016. The two parties signed a free trade agreement in 2004, which allows most Australian exports favourable entry into the US and encourages greater bilateral investment. Total merchandise trade (Exports + Imports) with the United States was A$42b in 2016.
Major Australian exports include beef, meat, aircraft/spacecraft parts and pharmaceutical products. Major imports from the US include motor vehicles, aircraft/spacecraft parts, medical instruments and measuring/analysing instruments. There has been a significant increase in Australian-US trade within the aeronautical engineering sector in recent years—for example Ferra Engineering, which is an SME based in Queensland exports aerospace structures and sub-systems to the US.