US And Australia Launch Talks On Financial Services

by Mary Swire, for LawAndTax-News.com, Hong Kong

17 August 2004

In a joint statement released on Friday, US Treasury Secretary John W. Snow and Treasurer of Australia, Peter Costello, expressed their approval regarding the enhanced economic relationship between the United States and Australia, and revealed that 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.

According to the statement, in order 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 facilitation of cross-border flows of business, and the maintenance of high regulatory standards for investor protection

To this end, Australia and the United States will be discussing 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, the two men announced.

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