Australia Trade

Subchapters:

  • Business Relationships
  • FTAs ​​and Treaties
  • Development Cooperation
  • Prospective fields of study (MOP)

Business relations

Trade relations with the EU

The EU is Australia’s fourth largest trading partner and third largest source of foreign investment. Australian exports to the EU are dominated by coal, gold and agricultural products, while European exports are dominated by industrial goods (cars, medicines). More than 2,000 EU companies have a representative office in Australia.

  • Allcountrylist: Overview of major industries in Australia, including mining, construction, transportation, tourism, and foreign trade.

Trade exchange with the EU (million EUR)

2018 2019 2020 2021 2022
Exports from the EU (million EUR) 31,000.8 30,820.3 28,962.4 ON ON
Imports into the EU (million EUR) 8,348.3 8,248.2 6,814.8 ON ON
Balance with the EU (million EUR) -22,652.5 -22,572.1 -22,147.7 ON ON

Source: European Commission

Trade relations with the Czech Republic

Trade exchange remains at a stable level, in 2020 there was an increase in Czech exports to Australia compared to the previous year. Imports to the Czech Republic decreased. The largest item of Czech exports to Australia is still passenger cars, followed by engines, toys, and construction machinery. The largest items of import from Australia are wool, coins and medical devices.

Trade exchange with the Czech Republic (million CZK)

2018 2019 2020 2021 2022
Exports from the Czech Republic (billion CZK) 9.5 10.0 11.0 ON ON
Imports to the Czech Republic (billion CZK) 4.3 3.5 2.7 ON ON
Balance with the Czech Republic (billion CZK) -5.3 -6.5 -8.3 ON ON

Source: CZSO

FTAs and treaties

EU-Australia Free Trade Agreement

Australia and the European Union began negotiations on the FTA on June 18, 2018. The agreement is expected to remove customs and other technical barriers to access to the Australian market for European companies, level the playing field with regard to third countries that already have concluded agreements, eliminate double certification or established mutual recognition of certifications, protection of geographical indications of origin for European food and drink producers, easier access for European companies to the Australian public procurement market. The abolition of the 5% customs tariff on passenger cars, which make up around 40% of Czech exports to Australia, will be a significant benefit for the Czech Republic.

So far, the last tenth round of negotiations took place on 9-19 March 2021 via video conference.

Other agreements with the EU include the 1998 Agreement on the Mutual Recognition of Conformity Assessment, Certificates and Labeling between the European Community and Australia, which was subsequently amended in 2012.

Contracts with the Czech Republic

1994 Agreement on Mutual Promotion and Protection of Investments

1995 Treaty for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion in the Field of Taxes on Income

2002 Agreement on cooperation in the peaceful use of nuclear energy and transfers of nuclear material

2011 Social Security Agreement

2012 Air Services Agreement

2017 Australia Youth Work and Holiday Program Agreement

Developmental cooperation

There is a reduction in foreign aid; in the 2021-22 budget year by 10.5% (AUD 144 million) to a total of 4.335 billion – of which AUD 335 million will go to vaccination roll-out in the Pacific and South East Asia. In the next three years, the aid will be reduced by 4%. Australia’s development strategy “Partnerships for Recovery: Australia’s COVID-19 Development Response” orients ODA to address the consequences of the COVID-19 pandemic (health, social and economic) in the Indo-Pacific region, where Australia is trying to counter Chinese influence. More detailed information can be found on the Australian Department of Foreign Affairs and Trade website.

Australia’s development program (DFAT)

Prospective fields of study (MOP)

Information and communication technologies

Due to numerous foreign cyber attacks, Australia has a significant interest in further strengthening cyber security and digital infrastructure in general. Limiting face-to-face contact during the pandemic has accelerated the rise of digital solutions including health and education services – Australian universities are dependent on international students, with higher education one of the sectors most affected. Restrictions have contributed to increased interest in the use of e-commerce resources, solutions for remote access and collaboration, online entertainment, and at the same time new solutions are being implemented in the healthcare sector. The Australian government’s “Digital Business Plan” considers the revision of digital identity systems to be one of the key elements of digital transformation.

Mining, mining and oil industry

Australia is an important global exporter of a wide range of mineral resources (bauxite, iron ore, aluminum, gold, silver, coal, nickel, natural gas, crude oil). In early 2020, Australia became the largest exporter of liquefied natural gas. Chinese demand for high-grade iron ore will continue. Australia will continue to secure an increased share of world rare earth mining. Australian miners are implementing new automation, maintenance and quality control technologies. Demand for mining equipment and related products will remain long-term in Australia.

Energy industry

In 2019, renewable sources accounted for 22% of electricity production. Australia’s Technology Roadmap lists hydrogen, batteries, carbon dioxide separation, capture and storage, green steel and soil carbon as priority supported technologies on the path to reducing emissions. He includes increased energy efficiency, charging infrastructure for electric and hydrogen vehicles in the second category of emerging technologies, and nuclear technologies in the third category. The fourth category includes already advanced technologies – coal, gas, wind and solar solutions; the government does not intend to further invest in these technologies. At the same time, the prime minister announced a retreat from burning coal to more intensive use of gas as a transit energy source during the transition to renewable sources. The government will support the opening of new fields and the construction of additional gas infrastructure – which is already developed thanks to the large-scale export of LNG and can be used in the future for the transition to hydrogen. There are opportunities for Czech companies that are engaged in the production of mining components and related equipment and equipment for conducting natural gas, but also hydrogen; renewable resources especially from the priority group of emerging technologies and green technologies in general. For example, although the market for solar systems for home use is already saturated, demand for home battery storage and related solutions such as shared networks remains high. Due to the huge agricultural overproduction, interest in solutions using biomass burning can also be assumed.

Water management and waste industry

Despite the general lack of water resources in some parts of the country, Australia has a developed water management structure and continues to build irrigation systems, dams, desalination plants. The main challenges for Australian water managers will remain the increasing demand due to population growth, climate change and extreme climate and weather events – a period of prolonged drought culminated in devastating fires on the east coast of Australia at the turn of 2019/2020, on the other hand, New South Wales was affected by extensive flooding in March 2020. Technologies and innovations helping to expand infrastructure and ensure safe sources of drinking water will continue to be in demand. The waste and recycling industry is less developed compared to the EU, the Australian government, within the framework of the National Wate Policy Action Plan, supports limiting waste exports and building recycling capacities,

Agricultural and food industry

Australia will continue to be a major exporter of agricultural products and food. Australian agriculture is very developed, agricultural production and food are of high quality, two-thirds of production is exported – mainly to Asia, but also to the USA and the EU. The most exported grain, wool, wine, meat, milk and dairy products, seafood. Mainly non-alcoholic beverages and syrups, alcoholic beverages, confectionery and fats and oils are imported. There will continue to be potential for the import of agricultural machinery and machinery for the processing industry – packaging, capping, labeling lines.

The entire Map of industry opportunities can be found on the export.cz server.

Australia Trade