Australia is a strong supporter of the U.S. rebalancing to Asia strategy, as it has long held the view that continued U.S. presence in the region is a stabilizing influence on the region that enhances Australian security interests. Australia has a strong focus on international trade and is the world's 13 th -largest economy. The United States is the largest investor in Australia and Australia is the ninth-largest provider of foreign direct investment in the United States. Political Context in Australia

The expansion of Australia's already close alliance relationship with the United States was facilitated politically by a dramatic increase in Australian popular opinion of U.S. leadership with the election of President Obama. Tony Abbott strongly supported the Gillard government's decision to move forward with the deployment of U.S. Marines to the Northern Territory and to deepen the alliance with the United States. Australia's Strategic World View

Australia has long sought to balance its strategic relationship with the United States with its profitable economic relationship with China. More recently, Minister of Defense Stephen Smith has stated that: 
the presence of the United States in the Asia Pacific region is unambiguously a force for peace and security and for prosperity and that's why we strongly support what we're doing already ... and the point we've made to China is that it's not inconsistent with Australia having a comprehensive relationship with China as we do and also having a military alliance with the United States. While Canberra clearly seeks to have a strong economic relationship with China, while also having a strong strategic and economic relationship with the United States, some Australian strategic analysts are of the view that the desire to strengthen the alliance reflects growing unease among some in strategic circles in Canberra with the rise of China and is a hedge against strategic uncertainty in the Asia Pacific. A new 2013 Defense White Paper is planned to rearticulate Australia's strategic vision into the future. Australian Force Posture Review

The Australian Defense Force Posture Review, which was released by Prime Minister Gillard and Defense Minister Stephen Smith on May 3, 2012, was conducted in the context of a number of Australian strategic and security terms of reference, including:
The rise of the Asia Pacific as a region of global strategic significance; The rise of the Indian Ocean rim as a region of global strategic significance; The growth of military power projection capabilities of countries in the Asia Pacific; The growing need for the provision of humanitarian assistance and disaster relief; and The rising importance of energy security and security issues associated with expanding offshore resource exploitation in Australia's North West and Northern approaches. The report further stated:
This review complements the work underway with the United States on its global force posture review initiatives involving Australia, specifically the implications for Australia's force posture of the initiatives announced during President Obama's visit to Australia in November 2011. This Indo-Pacific conception of strategic geography is consistent with the evolving U.S. strategic conception of the Indo-Pacific region as articulated by Secretary of State Clinton as part of the rebalancing to Asia strategy. In this way, Australia favors a strategic environment that includes the United States as an active and engaged partner in Asia. The Defense Budget and Capability Development Plans

Although there is much political will in support of the U.S. rebalancing to Asia strategy in Australia, there may be budgetary limits on the extent to which Australia can follow through with its defense plans. This has led to significant cuts to the defense budget. Australia has recently made some increases in its defense capabilities. Such a system could reinforce the rebalancing to Asia strategy. Issues for Congress

There are several issues for Congress related to Australia's role as an ally of the United States in the context of the Obama Administration's rebalancing to Asia strategy.
Australia, a traditionally staunch U.S. ally, is exploring ways to support the U.S. strategy of increasing its involvement in Asia—often called the rebalancing to Asia strategy—at a time when Australia has embarked on significant cuts to its defense budget. Australia is seeking to strengthen its long-standing defense alliance with the United States without jeopardizing its important trade relationship with China. Australia's strategic geography is increasingly focused on its north and west at a time when the United States is also increasingly focused on the same areas, namely Southeast Asia and the northern reaches of the Indian Ocean. An analysis of Australia's role in the United States' Asia strategy is particularly relevant as Congress considers future U.S. strategy, force structure, and defense procurement decisions.
Australia's place in the U.S. rebalancing to Asia strategy is an important one to a large extent because the United States and Australia share many values and strategic perspectives. Australia's strategic worldview generally is one that views the United States as a force for good in the world and in Australia's Indo-Pacific region. The May 2012 Australian force posture review gives insight into Australian strategic thinking relative to its defense posture. While there is strong support for further developing bilateral defense cooperation with the United States, planned Australian defense budget cuts, and their potential impact on Australian defense capability plans, may place limits on the extent to which Australian defense capabilities can grow in the years ahead. That said, Australia has a relatively strong economy and a political context that could lead to more defense capability development in the future. What is clear is that there is strong bipartisan elite and popular support in Australia for remaining a close and valuable strategic ally of the United States.
During President Obama's visit to Australia in 2011, he and Australian Prime Minister Julia Gillard announced the deployment of up to 2,500 United States Marines to Australia's Northern Territory. This deployment is one of the most tangible examples of the rebalancing to Asia strategy, and also demonstrates Australia's resolve to support that strategy. When in Australia, President Obama stated, "Our alliance [with Australia] is going to be indispensible to our shared future, the security we need and the prosperity that we seek, not only in this region but around the world." The Marine rotational deployment announcement, and subsequent disclosures of additional plans to further expand the United States' already strong alliance relationship with Australia, did much to give the rebalancing to Asia strategy military substance. It was also during his speech to the Australian Parliament that President Obama pledged not to cut the United States' Asia Pacific force posture as cuts to the U.S. defense budget are considered.
Australia's decision to place renewed emphasis on its strategic relationship with the United States within the context of America's rebalancing to Asia strategy makes its partnership with the United States a valuable piece of U.S. strategic engagement with the Indo-Pacific region. Australia's decision to strengthen its American alliance may also reflect growing uncertainty in Canberra with the evolving correlates of power in Asia.