The European Union and Australia enjoy a strong, dynamic and continuously evolving partnership, the foundations of which were laid in the 1960s. The relationship is currently based on the 2008 European Union - Australia Partnership Framework, a comprehensive statement of shared values and close historical, political, economic and cultural ties. As our relationship evolved, the EU and Australia have moved to upgrade bilateral ties. To this end in 2017 the EU, its Member States and Australia signed the EU Australia Framework Agreement.

This Agreement (currently under provisional application pending the completion of ratification procedures) builds on an existing solid cooperation basis and will enable the further promotion and expansion of relations across a broad range of areas of mutual interest, such as:

• Foreign policy and security issues at global and regional level;
• International trade;
• Development and humanitarian aid;
• Migration and asylum;
• Research and innovation;
• Environment and climate change;
• Education and culture;
• Energy and transport.

A number of mechanisms are already in place to foster cooperation, in particular a series of formal bilateral dialogues as well as several sectoral agreements, including:

• The 1994 Agreement  Relating to Scientific and Technical Cooperation between the European Community and Australia (entered into force 25 July 1994); 
• The 1998 Agreement on Mutual Recognition in relation to Conformity Assessment, Certificates and Markings between the European Community and Australia (entered into force 1 January 1999), amended in 2012;
• The 2008 Agreement between the European Community and Australia on Trade in Wine (entered into force 1 September 2010);
• The 2010 Agreement between the European Union and Australia on the Security of Classified Information (entered into force 1 July 2011);  
• The 2011 Euratom-Australia Agreement for Cooperation in the Peaceful Uses of Nuclear Energy (entered into force 1 January 2012);
• The 2012 Agreement between the European Union and Australia on the processing and transfer of Passenger Name Record (PNR) data by air carriers to the Australian Customs and Border Protection Service  (entered into force 1 June 2012);
• The 2015 Agreement between the European Union and Australia Establishing a Framework for the Participation of Australia in EU Crisis Management Operations (entered into force 1 October 2015).

The European Parliament and Australian Parliament also engage in ongoing and productive cooperation. In 1979, the European Parliament established a Delegation for Relations with Australia and New Zealand (DANZ) which engages in regular inter-parliamentary meetings with Australia's federal Parliament and discusses issues of common interest.

In addition to formal dialogues and agreements, the EU and Australia engaged on a more informal cooperation track through the EU-Australia Leadership Forum.This platform (funded by the EU) enabled European and Australian leaders in politics, business, media and civil society to meet and discuss new ideas for the relationship. Emerging and Senior Leaders Forums took place in Sydney in June 2017 and Brussels in November 2018. The project ended in 2019.

Despite having only 6% of the world’s population, the EU accounts for 15.4% of world GDP and its imports and exports with non-EU states accounts for 15.5% of global trade. This makes the EU the second-biggest trade player in the world (after China). It is simultaneously the world's biggest investor; the source of 30% of the world's foreign direct investment (FDI), as well as the top investment destination, receiving 34% of world FDI.

The EU’s trade policy safeguards growth and jobs in Europe. The European Commission together with EU countries and business ensures that negotiated trade deals result in market access for EU exporters. Globally, the EU has more than 200 Free Trade Agreements in place, covering a third of global trade.

The EU and Australia share a strong economic relationship. The EU (27) is Australia's second-largest trading partner (after China and Japan), and its second-biggest trading partner in services. It is also the third-largest source of foreign investment in Australia, and the third-most popular destination for Australian FDI abroad.

The EU as a key trade partner for Australia

In 2019, the EU (27) was Australia's third-biggest merchandise trading partner, accounting for AUD 60.9 billion (or 8.7%) of Australia's total goods trade. 15.8% of Australian goods imports, worth AUD 48.7 billion, were from the EU (second after China), while 3.1% of Australia's goods exports, worth AUD 12.2 billion, were destined for the EU; making it Australia’s eighth-biggest customer for goods.

The EU is Australia's second-largest services trading partner (after the USA), with AUD 21.5 billion worth of two-way services traded in 2018 (11.3% of Australia’s total). It was Australia's second-largest services supplier (after the USA), representing 14.7% of Australia's services imports (worth AUD 14.4 billion), and the third-biggest client of Australian services, purchasing 7.6% of Australian service exports (worth AUD 7.1 billion). 

In 2019, the EU became the third-biggest investor in Australia, with total investment worth AUD 684 billion, or 18% of Australia's total.

The EU-Australia Free Trade Agreement Negotiations

In November 2015, Australian Prime Minister Malcom Turnbull together with European Council President Donald Tusk and European Commission President Jean-Claude Juncker, agreed to initiate the process of launching of Free Trade Agreement (FTA) negotiations. In September 2017, President Juncker proposed starting trade negotiaions with Australia in his State of the Union address to the European Parliament, and in May 2018, the Council of the EU granted the European Commission the negotiating directives to commence trade negotiations with Australia. The negotiations were formally launched by European Trade Commissioner Cecilia Malmström, Prime Minister Malcolm Turnbull and Trade Minister Steven Ciobo in June 2018 in Canberra, and are on-going (more information on the EU-Australia FTA is available here).

The EU has established a comprehensive system of environmental protection and, as one of the key brokers of the Paris agreement (COP21) in December 2015, is a leader in global efforts to tackle climate change. It addresses concerns through broad-based, targeted policies and activities ranging from the world's largest and most comprehensive emissions trading scheme to energy efficiency labelling for appliances. The EU continues to set stringent environmental standards and ambitious climate action goals, having achieved its binding greenhouse gases emissions reduction and renewable energy targets for 2020. New 2030 targets have been agreed by EU legislators and are underpinned by robust measures: to reduce greenhouse gas emissions by 40% from 1990 levels; to ensure at least 32% of final energy consumption comes from renewable sources; and to improve energy efficiency by 32.5%. The new European Green Deal proposes further measures and even more stringent climate, circular economy, biodiversity and other goals. The proposals would see the EU become carbon neutral by 2050.

The EU and Australia cooperate across a wide variety of international environmental agreements and hold high level dialogues dedicated to environmental issues. The EU and Australia continue to work together on global issues such as combating illegal logging and and addressing the scourge of illegal, unreported, unregulated fishing.

The EU and Australia have a vibrant, longstanding relationship in the field of education that is further strengthened by the EU-Australia Framework Agreement.  

Erasmus+ is the EU's programme for education, training, youth and sport for the period 2014-2020, replacing the previous programme Erasmus Mundus. Erasmus+ funds various projects for institutions and scholarships for individuals worldwide including Australia. A new iteration of Erasmus+ is currently under discussion. Please refer to our booklet Study in Europe  for more information on opportunities for Australians to study in the EU Member States.

Student & staff mobility

Short-term mobility for students, researchers and staff allows students to study in a foreign university and obtain credits recognised at their home institution as part of their degree. A grant is also possible for staff and students of Australian universities which have signed a bilateral agreement with a European university as part of an Erasmus+ mobility project. Each year new projects are selected for EU funding.

Each year new projects are selected. EU funding is available for projects with Australia as part of the wider Asia-Pacific region. Australia is a popular partner for European universities, representing 25% of mobility within the region. New projects have been selected in 2019 involving Australian institutions entailing 189 Australian students and academics coming to Europe and 180 European students and academics coming to Australia.

Erasmus Mundus Joint Master Degrees (EMJD) award full-degree scholarships to Master students from around the world covering tuition, travel and a living allowance. These are joint programmes offered by a consortium of universities. Students study in at least two different European countries during their 1-2 year programme. Upon graduation, they are awarded a joint, double or multiple degree. Australian higher education institutions can take part. Nearly 100 scholarships have been awarded to Australian Students since 2014.   

Jean Monnet activities aim to develop EU studies worldwide. For more than 25 years they have been promoting excellence in teaching and research on the European integration process at higher education level. Over the past 20 years, 43 projects have been awarded to Australian Universities though the Jean Monnet Grants Scheme for networks, Chairs, Centres of Excellence, study modules and projects. 

The EU-Australia Leadership Forum (EUALF), which ran from 2016-2019, was a 1.5 track EU funded program that brought together leaders from government, media, academia and the social sector to discuss the EU-Australia relationship and present opportunities for closer collaboration.

The_eu_and_australia_shared_opportunities.pdf

The EU and Australia towards a new era.pdf

Impacts and outcomes of the Leadership Forum.pdf