The Australian government is attentive to Canada's efforts to establish closer ties with the European Union and is aligned with Ottawa in this regard. Don Farrell, Australia's Trade Minister, addressed this issue in an interview, stating: "We are on the same page."
Attention to relations with the European Union
Farrell stated in an interview with the Sydney Morning Herald that Australia is keenly interested in the actions of Canadian Prime Minister Mark Carney aimed at strengthening relations with Europe. Carney has leaned towards Europe to help Canada cope with deteriorating trade relations with Washington. He announced on Sunday that Ottawa is seeking to establish a "unique coalition" with the European Union.
Trade agreements and the importance of the European Union
Farrell also discussed the possibility of new agreements with the European Union, stating that he is open to all options in this regard, but did not provide details. He expressed uncertainty regarding Donald Trump's tariff policy, the President of the United States, stating that it does not seem likely that a Democratic president could remove trade barriers. He added: "This situation makes us more serious about the importance of the European Union."
Farrell's remarks come as Anthony Albanese, the Prime Minister of Australia, is trying to pass his trade agreement with the European Union through Parliament. Farrell also noted that the approval of this new agreement in Parliament is not guaranteed, as the Labor Party holds only 30 out of 76 Senate seats, while the opposing Liberal-National coalition holds 27 seats and has threatened to oppose the agreement due to access to agriculture and climate policy.
Growth of trade with the European Union
The importance of the European Union for Australia is evident in practical terms. Trade in goods and services between the European Union and Australia reached over 91 billion euros in 2024, making the EU Australia's third-largest trading partner after China and Japan. Trade in goods has grown nearly 50 percent over the past decade.
The proposed agreement allows Australia to export 97.8 percent of its goods to the European Union duty-free.
Australia's interest in closer relations with Europe is not entirely new. In 2025, Canberra resumed non-binding discussions about connecting with Horizon Europe, the EU's research and innovation program, which is a step towards scientific cooperation rather than EU membership.
