Australia and the EU: security, prosperity and partnership
By Benjamin Hayes, Ambassador of Australia to Poland, the Czech Republic and Lithuania
Last week, European Commission President Ursula von der Leyen undertook an historic visit to Australia, in a defining moment for the Australia-EU relationship. Prime Minister Anthony Albanese and President Von der Leyen made three significant announcements, marking a step-change in Australia-EU relations: the conclusion of negotiations on an Australia-EU Free Trade Agreement; the signing of an Australia-EU Security and Defence Partnership; and the launch of formal negotiations for Australia’s association to Horizon Europe, the world’s largest research and innovation program.
These commitments represent strategic decisions of likeminded partners in responding to the most challenging strategic environment since the Second World War. They also signal our alignment and shared commitment to the values that underpin the European project: rules-based cooperation; democratic and open political systems; human rights and dignity; and respect for sovereignty.
Today, Europe and the Indo-Pacific are highly integrated and interdependent regions. Our supply chains are enmeshed, we face threats unconstrained by geographic distance, and our prosperity relies on security and stability in both regions. Australia’s ongoing support to Ukraine - $1.7 billion, the largest of any non-NATO member – reflects this reality and our commitment to these values.
Australia and Poland are working more closely together than ever, with shared purpose, perspective and interests. We are middle power democracies with open economies and a deep stake in protecting global rules and norms. The decisions announced last week in Canberra are consequential and will support our deepening bilateral relationship.
Australia-EU Free Trade Agreement (FTA)
The FTA is about much more than tariffs or quotas. It is about hardwiring resilience into economic relations between trusted partners. According to the European Commission, the agreement will remove more than 99 per cent of tariffs on EU goods exports to Australia, cut around €1 billion a year in duties for companies, expand access in services and goods, and strengthen supply-chain resilience in critical raw materials. The EU also expects its exports to Australia to grow by as much as 33 per cent over the next decade. Where Poland seeks new markets, Australia’s network of Free Trade Agreements in the Indo-Pacific provide a gateway to the world’s fastest-growing economic region.
The Polish Government has put sovereignty, defence, competitiveness, stronger industrial policy, lower strategic dependence, decarbonisation, digital transformation and long-term support for Ukraine at the centre of its agenda. It also recognises the need to secure critical raw materials, mobilise private capital, simplify regulation and strengthen the EU’s industrial and R&D base. Poland is looking for practical partnerships that deliver resilience, capability and growth – and through the FTA we can deliver this together.
For Australia, Poland is Central and Eastern Europe’s industrial engine: a serious manufacturing base, with strong engineering talent and a pivotal logistics and political role in supporting Ukraine. By leveraging Australia’s strengths in critical minerals, advanced mining, clean energy expertise, deep capital pools and access to the Indo-Pacific, the Australia-EU FTA can translate our complementarity into concrete strategic advantage. More secure inputs for industry, more options for exporters, more certainty for investors and stronger two-way business links. This matters in sectors Poland cares deeply about – from defence production and energy transition / security, to advanced manufacturing.
Australia-EU Security and Defence Partnership (SDP)
The SDP is equally significant. This partnership signals globally that Australia and Europe are trusted partners, intent upon deeper cooperation on defence industry, cyber security, maritime security, counter-terrorism, hybrid threats, space security and capacity-building with partners. Australia and Poland are working closely in many of these areas and we are investing in deterrence by scaling up our defence industrial base. But we cannot do this alone. For Australia, Poland is a source of true partnership to achieve scale – and we are the same for Poland.
Horizon Europe
Horizon Europe is the EU’s flagship research and innovation program and the world’s largest pooled research fund. Subject to satisfactory negotiations, once associated, Australian organisations are expected to be able to lead and participate in Horizon projects from 2027. This opens the door to much deeper collaboration between Australian and European universities, institutes and industry.
Horizon Europe is an opportunity for Australia and Poland to move up the value chain together, tapping into complementary R&D capabilities with innovation driving industrial and economic outcomes. Potential sectors of interest include dual-use technologies, advanced manufacturing, cyber, AI, clean energy, critical minerals extraction, processing and refining, medical innovation, applied science and research commercialisation.
Better, Stronger and Sovereign – Together
The economic upside of these three agreements is vast, both for Australia and our EU partners. At a time when protectionism is rising, supply chains are under stress and economic coercion so growing, the Australia-EU announcements last week send a simple but clear message: open societies can still choose openness, doing so with trusted partners, clear rules and strategic purpose – based on our shared interests. These new pillars of cooperation with the EU provide an even stronger framework for Australia and Poland to take forward our growing, vital partnership. They bring us closer at a time where this matters more than ever. Because together, we are better, stronger, and sovereign.