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On 22 May 2018, the Council of the European Union adopted the decision authorising the opening of negotiations for a Free Trade Agreement between the EU and Australia.
So far the EU and Australia have been conducting their trade and economic relations under the 2008 EU-Australian Partnership Framework. This aims to facilitate trade in industrial products between the EU and Australia by reducing technical barriers and improve trade in services and investment.
Trade picture
- In 2024, Australia ranked as the EU's 20th biggest partner for trade in goods (accounting for 1% of the EU's total trade), while the EU was Australia's third-largest trading partner after China and Japan (with 8.6% of the total). Total trade in goods accounted for €49.4 billion in 2024 (an EU surplus of €27.9 billion).
- The EU's goods imports from Australia mainly comprised mineral products and vegetable products. Its main exports to Australia consisted of machinery and appliances, transport equipment, and chemicals.
- Total trade in services added another €38.1 billion in 2023 (an EU surplus of €17.9 billion).
- In 2023, the stock of EU foreign direct investment in Australia amounted to €122.8 billion and the stock of Australia's investment in the EU was €25.2 billion.
The EU and Australia
Since 2022, the EU and Australia have had a political Framework Agreement, which contains a number of economic and trade-cooperation arrangements.
An annual senior official-level Strategic Trade, Investment and Economic Dialogue provides a framework to discuss bilateral trade issues.
There is a Mutual Recognition Agreement between the EU and Australia to facilitate trade in industrial products by reducing technical barriers. The agreement creates mutual recognition of conformity assessment procedures. This is done to reduce the cost of testing and certifying of exports and imports.
In May 2024 the EU and Australia concluded a Strategic Partnership that covers non-energy and non-agricultural raw materials, with a special focus on strategic and critical raw materials that are necessary for the clean energy and digital transitions. The partnership is based on a Memorandum of Understanding (MoU) signed in May 2024 and a detailed roadmap endorsed in December 2024.
Australia is part of the Asia-Pacific Economic Cooperation (APEC), the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) and the Regional Comprehensive Economic Partnership (RCEP).
Negotations for a free trade agreement
On 22 May 2018, the Council of the European Union authorised opening negotiations for a free trade agreement (FTA) between the EU and Australia. Fifteen rounds have been held so far.
A Sustainability Impact Assessment (SIA) in support of FTA negotiations was launched in 2018 and concluded in 2020, to assess the potential impact of the future agreement. The final report and the Commission position paper can be found on the dedicated Sustainability Impact Assessments page.
Trading with Australia
- Importing into the EU from Australia
- EU trade defence measures on imports from Australia
- Exporting from the EU to Australia
- Trade relations are part of the EU's overall political and economic relations with Australia
- Australia is a member of the World Trade Organization
Exporters' stories
Increased exports mean BRM Aero produces around 80 airplanes a year, a number which is steadily growing. If the EU and Australia were to sign a trade agreement, orders would be likely to grow further still.
Latest news
The European Commission today published the report summarising progress made during the latest negotiation round for the EU-Australia trade agreement.
As part of its transparency commitment, the European Commission today published the report summarising progress made during the latest negotiation round for the EU-Australia trade agreement.
As part of its transparency commitment, the European Commission today published the report summarising progress made during the latest negotiation round for the EU-Australia trade agreement.