There is an old saying that in life, everything new is better — everything except friends. Europe and Australia are indeed long standing friends, and on 24 March we marked a defining new moment in the relationship between Australia and the European Union.
Eight years of negotiations is no small feat, but the outcome is well worth it. The European Union and Australia have now concluded a landmark Free Trade Agreement, signed the Australia–EU Security and Defence Partnership, and Australia has also announced the start of negotiations on association with Horizon Europe for 2027.
Together, these three pillars bring our nations into closer alignment than ever before. As Prime Minister Albanese noted, ‘Our relationship with Europe is grounded in our shared belief in democratic values, in human rights, and in inclusive societies.’
Over the eight years of negotiations, we have lived through a pandemic, wars and regional tensions, accelerating climate impacts, major trade disruptions, and many other socalled ‘unprecedented events’ — a term I hope we can soon retire.
But to simply call this period ‘challenging’ would understate the uncertainty that is felt across our regions. In these times, one truth has become even clearer: although the IndoPacific and Europe are less predictable, they have never been more interconnected. The agreements we have signed acknowledge this by bringing us closer together.
There is a reason Australia is the largest nonNATO contributor to Ukraine, with support amounting to AUD 1.7 billion — because the security of Europe matters to us. Going forward, the Security and Defence Partnership will boost our cooperation in supporting Ukraine, maritime security, space security, cybersecurity, countering hybrid threats, counterterrorism and crisis management.
These agreements create the foundations for the European Union and Australia to grow and prosper safely as trusted partners. The best way to navigate today is to do more together, exactly why last year in Rome Prime Minister Albanese and President von der Leyen committed to deepening our cooperation.
Our Free Trade Agreement is comprehensive, balanced and commercially meaningful. It will reduce costs for Italian and Australian consumers and open new markets for producers. It will allow individuals to work and invest more easily in Australia. It is, like all good agreements, a winwin. It will boost Europe’s longterm prosperity, secure access to a trusted supplier of critical raw materials, and deepen our shared commitment to rulesbased trade.
At a time when many are experiencing costofliving pressures and uncertainty in global markets, the FTA could increase European GDP by up to four billion euros by 2030. It will help our businesses connect and invest in one another, strengthening ties between partners who play by the same rules. Businesses both small and large will have a launchpad to the IndoPacific.
Australia is a highincome market, and the ‘Made in Italy’ brand is not only well known but deeply loved. Australians have always enjoyed premium Italian products, and we know that the quality is worth investing in. It is exciting that through this FTA we will see more opportunities for Italian products to be available at home — a market where over a million citizens have Italian descent.
With the removal of 99 per cent of tariffs on EU exports to Australia, businesses are expected to save around one billion euros in duties each year under the FTA. As Europe’s secondlargest exporter, Italy will win big from these concessions.
The agreement also delivers for individuals and service providers by making it easier for professionals to work in Australia through improved recognition of European qualifications and licences.
And when it comes to critical minerals, if you place the periodic table over a map of Australia, you will find nearly all of them. The FTA offers the EU greater security and choice by eliminating tariffs on critical minerals and improving conditions for services and investment.
Beyond the FTA, Australia and the EU have also agreed to commence negotiations on association with Horizon Europe — the EU’s flagship research and innovation funding program. We already do a lot in this space, but we could do more. We want to deepen our science and innovation partnership with the EU. Horizon Europe will help bring together our brightest minds, top universities, research institutes and funding to answer the biggest questions of our time, from climate change to cuttingedge echnology and the next generation of healthcare.
While the technical details are important —the announcements convey a deeper meaning, a shared commitment to addressing global challenges and supporting prosperity and security. Even though we are geographically distant, we are now closer than ever.
My thanks to the Italian Government, I look forward to seeing the benefits flow between our two countries.
