Key facts
- European Parliament Vice President Victor Negrescu suggested Australia could follow Canada's example in its relationship with the EU.
- Australia is considering signing a free trade agreement with the European Union.
- The proposed EU-Australia FTA faces domestic opposition in Australia.
- Canada and Australia signed a memorandum of understanding on October 27, 2026, to deepen financial cooperation.
- Bilateral merchandise trade between Canada and Australia was C$7.3 billion in 2025.
A senior European parliamentarian suggested that Australia could follow Canada's lead in deepening ties with the European Union, as Canberra considers signing a free trade agreement with the bloc. European Parliament Vice President Victor Negrescu is visiting Australia to lobby for the deal, which aims to diversify supply chains. However, the proposed FTA faces opposition in Australia, with the Opposition threatening to block it unless significant renegotiations occur, a stance rejected by both the Australian government and the EU. Meanwhile, Canada and Australia solidified their bilateral relationship with a memorandum of understanding signed on October 27, 2026, by Export Development Canada and Export Finance Australia. This agreement establishes a framework for cooperation on financing, investment projects, and business connections, aiming to support economic growth, energy security, and supply chain resilience.