Australian government officials are in town this week to promote investments from California in the wake of a bilateral trade agreement that went into effect this month.

The USA-Australia Free Trade Agreement, which went into effect on Jan. 1, make it easier for U.S. companies to invest in Australia. U.S. companies can now invest up to $800 million through mergers and acquisitions without being subject to governmental review.

Before the pact was signed, any foreign investment of $50 million or more was reviewed by Australia’s Foreign Investment Review Board.

California is already the largest exporter of goods Down Under of any U.S. state; now many California companies are considering establishing a presence in Asia by setting up regional headquarters in Sydney, where Chinese is now the most commonly-spoken language after English, said Garry Draffin, chief executive of Invest Australia, the government’s investment arm.

“Now, 90 percent of all investments in Australia are not subject to scrutiny,” said Draffin, who is visiting Los Angeles this week as part of the AustraliaWeek 2005 series of events.

The trade pact also allows U.S. companies to bid on $52 billion in procurement contracts with the Australian government.

California exported $2 billion worth of goods to Australia last year, primarily computers, software, aircraft parts, pharmaceuticals and books. Last year, the U.S. invested $22.7 billion in Australia