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Australia eyes closer EU ties as it follows Canada's strategy

Australian trade minister signals interest in deeper EU relationship amid US trade tensions and tariff concerns.

Australia eyes closer EU ties as it follows Canada's strategy

Australia is aligning with Canada’s push to forge closer ties with the European Union, according to Australian trade minister Don Farrell, who told the Sydney Morning Herald on Tuesday that Canberra is “on the same page” with Ottawa and “will take great interest in what Mark Carney does.”

Australia eyes closer EU ties as it follows Canada’s strategy

Canada’s prime minister clarified this week that his nation is seeking a “unique alliance” with the EU rather than full membership, after the Wall Street Journal reported Canada was exploring “associate member” status. According to the Journal, Canada and the EU are discussing arrangements that would allow Canadian goods, services, and workers in key sectors—AI, energy, defence, and critical minerals—to move freely across borders. Talks also encompass shared infrastructure projects including underwater cables, data centres, cloud storage, satellite networks, and energy transport facilities. Prime Minister Carney has reportedly spoken with EU leaders, including French president Emmanuel Macron, about visa-free living and work arrangements for Canadians in the EU.

Australia’s interest in deepening EU ties comes as the country faces escalating trade disputes with the US and seeks to diversify its trade relationships beyond its long-standing security pact and free trade deal with Washington. Australia has previously faced US tariffs on its exports.

Farrell did not elaborate on whether Australia is actively pursuing a deeper relationship with the EU or specify what form such an arrangement might take. However, he indicated openness to various options in future EU arrangements, excluding fibre-optic cables due to distance considerations. “The world is dividing into protectionists and free traders,” Farrell said. “It’s indisputable that Australian prosperity of the last 50 years has all been about our engagement with the world.”

Australia and the EU signed a free trade agreement in March after eight years of negotiations, which removed tariffs on almost all goods and potentially eased EU access to Australian critical minerals. A spokesperson for Australia’s Department of Foreign Affairs and Trade did not respond to a request for comment.

Key facts

  • Australian trade minister Don Farrell said Canberra is aligned with Canada’s EU engagement efforts
  • Canada is seeking a ‘unique alliance’ with the EU, not full membership, according to PM Mark Carney
  • Proposed Canada-EU arrangement would allow free movement of goods, services, and workers in AI, energy, defence, and critical minerals sectors
  • Australia has faced US tariffs and is diversifying trade relationships beyond its US security pact
  • Australia-EU free trade agreement signed in March after eight years of talks

Sources

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