Trade policy experts in Australia and Europe say deeper collaboration between both nations is critical to protecting the rules-based international trading system.
Recommendations are outlined in a new e-book, Australia–EU Trade Relations in the Global Context, released by the Adelaide University’s Institute for International Trade (IIT) and the Australian Centre for International Trade and Investment (ACITI).
The e-book identifies Australia’s endowment of critical minerals and rare earths as a key anchor for deeper investment and cooperation, alongside development of Australia-EU and the Association of Southeast Asian Nations (ASEAN) value chains and coordinated approaches to economic security and supply chain resilience.
IIT Executive Director Peter Draper says the e-book identifies a range of policy areas where Australia and the EU can lift cooperation for mutual economic and systemic benefit.
“These include concluding the Australia–EU free trade agreement, EU engagement with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, and renewed efforts to reform the World Trade Organization,” Draper says.
“The EU’s experience of regulation in areas such as carbon border adjustment, AI and investment provides insights and learning that can inform Australia’s consideration of regulation in these areas.”
ACITI Executive Director Prudence Gordon says coercive trade actions have made trusted trade partnerships a strategic priority.
“All countries, including Australia and the EU, are seeking to diversify their trade relationships and build new strategic trade corridors,” Gordon says.
“For Australia, the free trade agreement with the EU will complete its network of FTAs with major trade and investment partners, thereby cementing the Australia Government’s drive to diversify economic relationships through trade cooperation.”
Draper notes that the EU is an important partner for Australia, describing it as one of three “big beasts” in shaping the global trading systems.
“It is the world’s second largest collective economic area and consumer market, and one well suited to many Australian exports, from agriculture and resources to sophisticated financial and information technology services,” he says.
Australia and the EU have been conducting their trade and economic relations under the 2008 EU-Australia Partnership Framework. The framework aims to facilitate trade in industrial products between the EU and Australia by reducing technical barriers and improving trade in services and investment.
In 2024, Australia ranked as the EU’s 20th biggest partner for trade in goods, accounting for 1% of the EU’s total trade. The EU was Australia’s third largest trading partner after China and Japan, with 8.6% of the total.
The total trade in goods accounted for €49.4 billion ($82.58 billion) in 2024.
Write to Aaliyah Rogan at Mining.com.au
Images: Adelaide University
