Source: Australian Treasurer
From capital markets to critical minerals, trade to technology, manufacturing to infrastructure.
This Summit is about stronger returns and stronger economic ties between 2 great countries.
So thank you, Ambassador Rudd, for the invitation, for the introduction and for all your work with officials to bring us together in DC to talk about the big opportunities before us.
In partnership with my friend Heather Ridout – our Consul‑General, who will host you tomorrow in New York.
And generously sponsored by Macquarie, represented here by Shemara – Australia has a tradition of outstanding business leaders, and Shemara exemplifies it.
To all the representatives from Australian and US funds, peak bodies and investors who have taken the time to join us today – welcome.
It’s a special honour to be joined by Treasury Secretary Scott Bessent.
President Trump told our Prime Minister he would make sure his top people were at this summit.
They are, and I’m looking forward to introducing Secretary Bessent as our keynote speaker in a moment.
But first, let me take a few minutes to talk you through why I think this summit is so important, and so timely.
Not just as a way to explore mutually beneficial investment opportunities.
But as a powerful demonstration of the strategic and economic alignment between our 2 countries which has done so much to secure prosperity for our people.
This summit has gathered together some of the key stewards of capital across the United States and Australia.
Our super fund representatives here today manage almost a trillion US dollars.
The US companies and investment firms here have a market cap of at least $1.8 trillion.
And over the course of these 2 days in DC, we’ll be joined by Governors and Congressional representatives from 5 US states – Illinois, Florida, Tennessee, California and Connecticut – that make up more than a quarter of the American economy.
It’s a remarkable collection of capital and capability.
So together, you represent very substantial investment opportunities.
To collaborate on capital flows towards roads and bridges, energy infrastructure and data centres.
To highlight a point made by Secretary Bessent in the Economist:
Longstanding trusted allies with shared interests make the best economic partners.
Across 14 Presidents and 16 Prime Ministers, Australia and America have sought to create a more peaceful, prosperous world – together.
By the time the ANZUS treaty was signed in 1952, Australia and America had already partnered to shape the post‑war order of Bretton Woods.
And we collaborated to bring about a period of relative calm after the Cold War that we both benefitted from.
Through all of this we invested in each other’s success.
Ford played a major role in the shift of Australia’s economy from primary industries to a stronger manufacturing base in the twentieth century.
Macquarie Group pioneered private infrastructure investment in both of our countries.
And BlueScope started its US operations – leading to $5 billion of investment in American steel.
The last 17 years or so have presented more challenges, starting with the Global Financial Crisis.
But together, we’ve weathered 3 major economic shocks, war and geopolitical tensions with remarkable resilience.
Australia and the United States are 2 of the best positioned economies in the world right now.
Our economies are both growing, inflation is down, and our labour markets strong.
What makes that unusual around the world, and in historical terms, is we haven’t had to pay for this progress on inflation with much higher unemployment in our economies.
This is a unique combination and a sound foundation that positions us to be the primary beneficiaries of the churn and change which defines uncertain times in the global economy.
And to make the most of the 5 big shifts we identified in our own Intergenerational Report that will define the coming decades.
Supply chain fragmentation, revolutions in energy, the acceleration of AI, an ageing population and the associated changes to our industrial base.
Amidst this churn and change, we’re an island of dependability in a sea of uncertainty.
This American–Australian partnership is full of shared interests, mutual benefits and enormous opportunity.
Australia has and will be an essential contributor to US prosperity.
Our economic partnership is mutually beneficial and has never been more critical.
The US has enjoyed an uninterrupted trade surplus with Australia since 1952, currently two‑to‑one.
We impose zero tariffs on US imports.
Around half of our exports are inputs into American domestic production processes.
We can supply 36 of the 50 minerals the United States lists as critical – for advanced technology and defence.
Under AUKUS, we’re paying our own way at the same time as bolstering our defence capability.
We are already one of America’s top 10 foreign investors.
And we have trillions of patient, friendly pension capital ready to invest in the new opportunities that lie before us.
Above all else, this is the reason we’re here today.
In Australia, super, or pension savings, have been building steadily now over a long period of time.
And what was around 100 billion US dollars a few decades ago has now grown to a pool of capital worth $2.6 trillion.
At home, that helps us take pressure off public pensions and budgets.
It funds decent, dignified retirements for our people.
And it’s helped make us a net exporter of capital.
Australia’s superannuation sector manages the fourth biggest pool of pension funds in the world.
Larger than the capital controlled by the sovereign wealth funds of the United Arab Emirates and Saudi Arabia – combined.
Even more remarkable to be in the top 4 when you consider we don’t crack the 50 biggest countries by population and we’re ranked 14th by GDP.
This pool of capital has and will keep on identifying and making the most of investment opportunities at home – in housing, in energy, in technology and in infrastructure.
In the next 3 decades, Australia’s super pool could be almost two‑and‑a‑half times the size of the Australian economy.
Increasingly this means capital needs to be deployed abroad too – in markets which are safe, well‑capitalised and can deliver the right risk‑adjusted returns.
Markets like this one.
That’s why it’s no surprise that America is the biggest international destination for Australian super fund capital.
The current value of Australian super fund investments in the US is around $400 billion – due to reach $1 trillion over the next decade.
So, Australia’s superannuation sector has the size, scale and presence to play a big role driving new American industries and creating jobs.
By investing in deep and liquid US equity markets.
And directly in your infrastructure too.
Data centres in Las Vegas.
Toll roads in Indiana.
Container terminals in Long Beach.
And more.
Our funds want to partner with other investors in the US and beyond to finance these kinds of projects.
Which is why we also have a vision to build Australia’s stature as a financial centre for the Indo‑Pacific.
Australia has the talent, the financial infrastructure and the institutional capability to mobilise capital efficiently –
Facilitating capital flows, structuring investments and directing funds to where they can generate the best returns.
And we look forward to working with the people in this room to help us realise this potential.
Now, it’s almost time to hear from Treasury Secretary Bessent.
So let me say a few words about the meeting we wrapped up just an hour or so ago with Director Hassett.
I was grateful for the very constructive conversation.
And grateful we were able to cover so much ground over the course of an hour or so.
We continued the discussion on tariffs, picking up from President Trump’s call with Prime Minister Albanese just over a fortnight ago.
We also spoke about critical minerals.
How Australian resources can help fuel American industry and advanced manufacturing.
And the need to create secure, sustainable, reliable and resilient supply chains.
And how investors can continue to drive growth and dynamism in both our economies.
With patient, productive investment that bolsters industry, maintains our edge in the global economy, strengthens resilience, and creates jobs and opportunity.
Secretary, I was struck by the words you used towards the end of your confirmation hearing.
‘I think it’s Main Street’s time.’
That motivation is at the heart of this summit.
From Main Street to Middle Australia –
Stronger returns and stronger ties in the service of both countries together.
In what will be a defining decade for us all.
To hear more about all of that, please join me in warmly welcoming the US Treasury Secretary, Scott Bessent.
MIL OSI News –