1 minute read / March 26, 2026
The EU and Australia have announced the adoption of a groundbreaking Security and Defence Partnership. They have also concluded negotiations for an ambitious and balanced Free Trade Agreement (FTA) and agreed to launch formal negotiations for the association of Australia to Horizon Europe.
Security and Defence Partnership (SDP)
The EU and Australia are already long-standing allies and partners, whose global outlook is aligned in terms of defending multilateralism and the rules-based international order.
As the interconnection between security in Europe and the strategically important Indo-Pacific region becomes clearer, the value of deeper partnership is abundantly clear for both sides.
Building on the strong existing interaction at leaders’ and ministerial level, backed up by a solid network of expert level cooperation, the SDP will put in place a robust institutional framework, helping to ensure maximum efficiency in addressing current geopolitical challenges.
A balanced and ambitious Free Trade Agreement (FTA)
With the conclusion of negotiations for an ambitious and balanced free trade agreement (FTA), the EU is opening the market to one of the world’s fastest-growing developed economies and thereby bringing significant economic opportunities to European companies, consumers and farmers.
EU exports are expected to grow by up to 33% over the next decade, with export value reaching up to €17.7 billion annually. Key sectors with strong growth potential include dairy (expected to increase by up to 48%) motor vehicles (52%), and chemicals (20%). EU investment into Australia has the potential to grow by over 87%.
