While developments in the Middle East and Europe will continue to demand the attention of the United States and others, the potential for conflict in the Indo-Pacific region positions Australia in an increasingly strategic corner of the globe. The Trump Administration and Australia

The U.S.-Australia relationship began on a difficult note under President Trump, who described his first call with Prime Minister Malcolm Turnbull, one of his first as President, as "the worst call by far," according to media reports. Ours is a formal alliance, and the ANZUS Treaty of 1951 is the cornerstone of our longstanding relationship. The two sides reaffirmed the "strong state of bilateral defense and security cooperation ... bolstered by more than a decade of operations together" in Afghanistan and Iraq and more recently through the Global Coalition to Counter the Islamic State. Australia is one of those countries. In response to a question related to the Japanese foreign minister's proposal for a new strategic dialogue between India, the United States, Japan, and Australia, U.S. Acting Assistant Secretary for South and Central Asian Affairs Alice Wells stated,
The quadrilateral that the Japanese foreign minister discussed would be building on what has been a very productive trilateral that we have with India and Japan, and if you look at the largest military exercise that we do, Malabar, Japan is a part of that exercise. In discussing the Force Posture Agreement, which has a 25-year time frame, the 2014 AUSMIN Joint Communiqué stated that it "demonstrates the United States' strong commitment to the Asia Pacific and the Indian Ocean regions." The Head of State is the ruling monarch of the United Kingdom, who is represented by the Governor General in Australia. The Liberal-National Party Coalition and the Labor Party are the two main political forces in Australia. Since the 2016 election, Labor Party Leader Bill Shorten has strengthened his political position. His electorate voted "Yes" in favor of same-sex marriage. At the outbreak of World War II, the Territory of New Guinea was a League of Nations Mandate of Australia while the Territory of Papua was under the direct authority of the Commonwealth of Australia. Former Prime Minister John Howard invoked the ANZUS alliance to come to the assistance of the United States by sending Australian troops to serve in Iraq and Afghanistan. Australia and the United States also share a deep and broad-based intelligence relationship. Australia's Strategic Outlook

The shift in the geostrategic dynamics of Asia and relative decline of U.S. power brought on by the rise of China is leading Australia to explore multilateral as well as other bilateral security relationships. While the United States remains Australia's key strategic partner, Australia maintains other traditional security relationships, such as with New Zealand and the nations of the Five Power Defence Arrangements (FPDA). Australia, under the United Nations, played a key role in assisting Timor-Leste to become an independent nation. It has been reported that as many as 200 Indonesians are believed to have joined IS forces in Syria and Iraq. Australia has particular concern with terrorism in Indonesia due to past attacks against the Australian Embassy in Jakarta in 2004 as well as attacks which killed Australians in Bali, Indonesia, in 2002 and 2005. China

Australia's political leadership does not see Australia's economic relationship with China, which has been its largest trading partner since 2009, and its strategic relationship with the United States as incompatible. Other former government officials, such as Australia's former Ambassador to China Stephen FitzGerald have also come out in opposition to Australia's very close relationship with the United States and more supportive of close relations with China. There is also unease in some policy circles in Australia with China's increasingly assertive posture in the region. In the view of one Australian observer, Abe's address was a strategic landmark "which illuminates how Japan and Australia are leading the creation of a regional coalition to hedge against China, with—but also without—the United States." Australia has led peace-keeping efforts in the region, including in Timor-Leste and the Solomon Islands, indicating Australia's resolve to promote stability in the South Pacific. There is concern that dozens of Australians, and others from Southeast Asia, who have gone to fight with the Islamic State (IS) in Syria and Iraq may lead to future threats to Australia and Australians abroad. In November 2017, Australia, along with the other members of the Trans Pacific Partnership TPP-11 group, agreed to "core elements" as they continue to work towards a new free trade agreement. President Trump withdrew from the TPP agreement in January 2017.
The Commonwealth of Australia and the United States enjoy a close alliance relationship. Australia shares many cultural traditions and values with the United States and has been a treaty ally since the signing of the Australia-New Zealand-United States (ANZUS) Treaty in 1951. Australia made major contributions to the allied cause in the First and Second World Wars, and the conflicts in Korea, Vietnam, Iraq, and Afghanistan. Australia is also a close intelligence partner through the "Five Eyes" group of nations. U.S. Marines are conducting rotational deployments in northern Australia. This initiative and others demonstrate the closeness of the relationship. A traditional cornerstone of Australia's strategic outlook is the view that the United States is Australia's most important strategic partner and is a key source of stability in the Asia-Pacific region. Australian decision-makers have also believed that Australia does not have to choose between the United States and China. Some former Australian political leaders and former government officials, as well as media reports, have expressed concern about where Australia's relationship with the United States may be headed under the Trump Administration.
While Australia has a complex array of international relations, its geopolitical context is to a large extent defined by its economic relationship with China and its strategic relationship with the United States. Australia's political leadership generally believes it can have constructive trade relations with China while maintaining its close strategic alliance relationship with the United States. However, shifts in the geostrategic dynamics of Asia are leading regional states such as Australia to hedge, increasingly with other Asian states, against the relative decline of U.S. engagement in the region. This is one interpretation of what is behind the recent strengthening of ties between Australia and Japan, India, and other states in Asia. Australia also plays a key role in promoting regional stability in Southeast Asia and the Southwest Pacific, and has led peacekeeping efforts in the Asia-Pacific, including in Timor-Leste and the Solomon Islands.
Under the former Liberal Party government of John Howard, Australia invoked the ANZUS treaty to offer assistance to the United States after the attacks of September 11, 2001, in which 22 Australians were among those killed. Australia was one of the first countries to commit troops to U.S. military operations in Afghanistan and Iraq. Terrorist attacks on Australians in Indonesia in the 2000s also led Australia to share many of the United States' concerns in the struggle against Islamist militancy in Southeast Asia and beyond. Australia is part of the global coalition to defeat the Islamic State (IS). There are continuing concerns in Australia about domestic Islamist terrorist threats, including from "lone wolf" attacks. Dozens of Australian citizens are believed to have gone to the Middle East to fight for the Islamic State.
Australia's trade relationship with China has been a key source of economic growth. However, there is an ongoing debate in Australia on where the Australian economy is headed, as China's economic growth slows. Australia, which has free trade agreements with the United States, South Korea, Japan, and China, was part of the Trans Pacific Partnership (TPP) agreement, from which President Trump withdrew the United States in January 2017.
Australia currently has a coalition government led by Prime Minister Malcolm Turnbull of the Liberal Party. The domestic political scene in Australia has been dominated by controversy surrounding the dual-citizenship of Members of Parliament (MPs) and the gay marriage plebescite. Two Liberal-National Coalition Members, former Deputy Prime Minister and National Party Leader Barnaby Joyce and Liberal MP John Alexander, have had to resign due to the dual-citizenship controversy. They seek reelection in by-elections in December 2017. In November 2017, approximately 62% of Australians responding to a mail-in survey voted "Yes" in support of same-sex marriage, which opens the way for implementing legislation in parliament.