Key facts
- Australia's trade minister, Don Farrell, stated that Australia is "on the same page" as Canada regarding deepening ties with the European Union.
- Canberra is watching Canada's attempt to build a closer relationship with the EU.
- Canadian Prime Minister Mark Carney is seeking a "unique alliance" with the EU.
- Farrell expressed openness to potential new arrangements with the EU.
- Farrell is not confident a Democrat president would reverse U.S. trade barriers.
- Trade in goods and services between the EU and Australia topped €91 billion in 2024.
- The EU is Australia's third-largest goods trading partner after China and Japan.
Australia is aligned with Canada on deepening ties with the European Union, according to Don Farrell, Australia's trade minister. Farrell stated that Canberra will "take great interest" in the outcomes of Canadian Prime Minister Mark Carney's pursuit of a closer relationship with Brussels. Carney has been pivoting towards Europe as Canada navigates challenging trade relations with the United States, reportedly floating the idea of Canada becoming an "associate member" of the EU.
Farrell indicated that Australia would be open to various potential new arrangements with the EU, though he did not provide specifics. He also commented on U.S. President Donald Trump's tariff policies, expressing skepticism about their reversal by a future Democratic administration, which he said makes the EU increasingly important for Australia. These remarks come as Australian Prime Minister Anthony Albanese works to secure parliamentary approval for a new EU trade deal, a process facing potential opposition over agricultural access and climate policy.
Trade between the EU and Australia in goods and services reached €91 billion in 2024, positioning the bloc as Australia's third-largest goods trading partner. The proposed trade deal aims to eliminate duties on 97.8% of Australian goods exports to the EU. Australia has previously explored closer scientific cooperation with the EU through non-binding talks about associating with the Horizon Europe research program.