I. Introduction
This is a country that has abundant and diverse natural resources and naturally attracts high levels of foreign investment. It includes extensive reserves of coal, iron ore, copper, gold, natural gas, uranium, and renewable energy sources. A series of major investments, such as the US$40 billion Gorgon Liquid Natural Gas project, will significantly expand the resources sector. The country also has a large services sector and is a significant exporter of natural resources, energy, and food. Key principles of it’s trade policy include support for open trade and the successful culmination of the Doha Round, (aimed to achieve major reform of the international trading system through the introduction of lower trade barriers and revised trade rules), for multilateral trade negotiations, particularly agriculture and services. The economy grew for 17 consecutive years before the global financial crisis. Subsequently, the government introduced a fiscal stimulus package worth over US$50 billion to offset the effect of the slowing world economy, while the Reserve Bank of Australia cut interest rates to historic lows. These policies - and continued demand for commodities, especially from China - helped the economy rebound after just one quarter of negative growth. As a result of an improved economy, the government could return to budget surpluses as early as 2015. It was one of the first advanced economies to raise interest rates as well, with seven rate hikes between October 2009 and November 2010. The Gillard government is focused on raising the economic productivity to ensure the sustainability of growth, and continues to manage the symbiotic, but sometimes tense, economic relationship with China. (CIA Factbook)
II. Environmental Conditions Foreign investment is generally encouraged but approval is required for certain types of investments. It is