The EU's Relations with Australia: Overview

The bilateral relationship is   now set in the context of the 2008 European Union – Australia Partnership Framework, which was  launched at the EU-Australia Ministerial meeting on 29 October 2008 in Paris.  The Partnership Framework is a comprehensive   restatement  of our shared values and close historical, political, economic and cultural ties.

Building on these strong foundations, it sets out a number of medium and longer term objectives and spells out an immediate action plan on how to best achieve them through concrete measures.  The aim is to maximise our level of cooperation to achieve our common goals in:

• foreign policy,
• security threats especially from terrorism,
• international trade,
• regional cooperation in the Pacific.

We also aim to   work together to  help meet global challenges such as

• climate change and protection of the environment generally,
• energy security
• protection of fisheries and forests.

The Partnership Framework will replace the 1997 Australia-European Union Joint Declaration on Relations [link] and the subsequent March 2003-08 Agenda for Cooperation. But this is not where the story ends, as the Partnership Framework remains a living document to be reviewed and adapted as objectives are achieved and circumstances change.

Several sectoral agreements complete the picture. Most notable among them are the following:

• 1982 Agreement between the Government of Australia and the European Atomic Energy Community concerning transfers of nuclear material from Australia to the European Atomic Energy Community;
• 1994 Agreement Relating to Scientific and Technical Cooperation between the European Community and Australia (expanded in scope in 1999);
• 1994 Agreement between the European Community and Australia on trade in wine;
• 1999 Agreement on mutual recognition in relation to conformity assessment, certificates and markings between the European Community and Australia.

Political relations

The EU and Australia share many common views in the field of foreign and security policy. The importance of co-operation on these issues was underscored in the Joint Declaration of 1997, with particular reference to the following areas:

• human rights and fundamental freedoms;
• issues that affect world peace and security;
• strengthening the United Nations and other international organisations;
• the promotion of peace and stability in Europe and the Asia-Pacific region.

Economic Relations

The EU has been Australia's largest trading partner for the last ten years. Similarly, the EU is also the largest source of foreign investment in Australia, the second major destination for Australian investments abroad and the largest partner for Australian bi-lateral trade in services. The importance of Europe as a reliable and stable partner has seen a remarkable boost following the Asian financial crisis, and trade and investment flows continue to grow at unprecedented rates.

The following agreements underline the importance and contribute to the success of the bilateral economic relationship:

• The Wine Agreement (1994) aims at protecting a number of geographic indications and traditional expressions while improving access of Australian wines to the European Community market.
• The Mutual Recognition Agreement (1999) is expected to facilitate more than a third of bilateral trade in industrial products. A parallel agreement was also signed with New Zealand. These agreements are the first Mutual Recognition Agreements the EU has ever signed with a third country.

Australia's largest export to the EU is coal, followed by wool. Australia is also the largest supplier of wine to the EU. In turn, the EU exports mainly medicines, passenger motor cars, telecommunications equipment aircraft and parts, paper and paper board to Australia.

Co-operation

Significant progress has been achieved in the area of scientific and technical co-operation. The S&T agreement of 1994 was the first such co-operation agreement concluded by the European Community with an industrialised country outside Europe. Originally limited to six clearly defined areas, the agreement has been broadened in 1999 to allow Australia to participate in all EU thematic research programmes and to access all large-scale research facilities of the EU.

The EU and Australia also co-operate on environmental issues. A 1991 exchange of letters established a framework for collaboration and dialogue between the European Commission and the Australian government.

In the area of industry, the EC/Australia Joint Group on Industrial Co-operation was established in 1991 in order to "encourage greater mutual understanding of EU and Australian industry and industry-related policies and to promote industrial cooperation between the EU and Australia". Topics to date include: Environment issues, Information Technology and Information Society.

In 2001, the EU and the Australian National University set up, in Canberra, the National Europe Centre which plays an important role in enhancing the links between the EU and Australia. In 2006 two new Europe Centres were opened, and on 18 April 2007, Mr Jan Figel', Commissioner for Education, Training, Culture and Youth, and The Hon Julie Bishop MP, Minister for Education, Science and Training, signed a Joint Declaration on Education.

Further progress is anticipated in the areas of consumer policy and co-operation in education.

General data

Sources: EUROSTAT (Comext Cronos), DG Trade A2, May 2004

see also EU-Australia Key facts