The United States is Australia's second largest trading partner and largest single source of foreign investment. The trading relations between the United States and Australia's commercial partners in East Asia are also of fundamental importance to Australia's trade and investment prospects. Unite States' trade policies and practices at the regional and global levels have a major impact on Australia's economic interests through their impact on the world trading system. This report is a comprehensive review of the Australia-United States trade and investment relationship. Itt examines trends in bilateral trade and investment, and analyses recent trends in and the outlook for United States trade policy and the impact on Australia. The report recommends a course of action which addresses key challenges in the relationship.