FROM THE OFFICE OF PUBLIC AFFAIRS

August 13, 2004
JS-1857

Australia-United States Financial Services Discussions

U.S. Treasury Secretary John W. Snow and Treasurer of Australia, the Honorable Peter Costello M.P., are pleased to note the enhanced economic relationship between the United States and Australia, including in the financial services sector. Direct and portfolio equity investment by the United States in Australia was US$105 billion as at the end of 2003, with equity investment in banks and other financial sector institutions of US$17 billion as at 30 June 2003. Direct and portfolio equity investment by Australian companies in the United States was estimated at US$118 billion as at the end of 2003. All of Australia's major banks have a presence in the United States, and there is increasing investment by Australia's mutual funds in the U.S. economy.

To further promote this relationship, Australia and the United States have agreed to consider issues regarding financial services, including ways to further integrate the financial services sectors between the two economies. The substantial levels of financial sector investment between the United States and Australia provide a sound basis for building on these economic ties through future discussions.

Both countries recognize the benefits of facilitating cross-border flows of business and high regulatory standards for investor protection. To this end, Australia and the United States will discuss certain issues relating to securities, including cross-border access by foreign collective investment schemes and foreign markets, other such prudential issues, and related matters. These discussions will take place as appropriate in light of related domestic regulatory developments.