History will look back at 2022 as the year when war returned to the heart of the European continent, redrawing the balance of powers across the world. Russia’s unprovoked and unjustified invasion of Ukraine on 24 February 2022 has shattered the common global order as we knew it, with little indication of when the decay will stop.
The war has roiled the markets and geopolitics of energy, driving oil and gas prices to their highest levels in nearly a decade, fuelling inflation and forcing many countries to reconsider their energy supplies. Forced to wrestle with soaring inflation, a cost-of-living crisis and the real prospect of energy rationing in the depths of winter, Europe’s leaders will soon face a daunting test.
In the year which marks the 60th anniversary of diplomatic relations between the European Union (EU) and Australia, “globalisation with friends” has never been more important. In an increasingly volatile international environment with political instability and economic nationalism on the rise, and in a time of rapid change, international alliances must be strengthened with likeminded partners.
As such, reaching a free trade agreement (FTA) between the EU and Australia is time sensitive not only as an economic tool for prosperity and growth, but also as a key geopolitical instrument to deepen the ties between strategic partners. Building on the Australia-EU Framework Agreement provisionally applied since 2018, and which formally entered into force on 21 October this year, a comprehensive and modern FTA between Australia and the EU will provide the necessary launching pad to turbocharge business opportunities in both directions, eliminating current restrictions and barriers whilst facilitating closer cooperation.
Last year as I was writing my report, the Australia-EU relationship had come under strain as the EU was reviewing the implications of the AUKUS announcement. The business community witnessed with great relief the relaunch of the negotiations in February 2022 and welcomed the reset of the relationship between France and Australia as new Prime Minister Anthony Albanese met with President Emmanuel Macron in Paris in July. I was pleased to be invited by the Prime Minister to join him in Paris to brief him on the EABC’s Business Mission, which had preceded his arrival by a few days, and to join his meeting with French friends and partners at MEDEF.
Since then, the negotiations have been advancing positively. In the last few weeks Australia has seen an increase in visits from key representatives of the EU and of Member States, including a Delegation of Members of the European Parliament led by Bernd Lange MEP, the Chair of the International Trade Committee who will be leading the critical ratification process for the FTA. European Commission President Ursula von der Leyen and Australia’s Prime Minister Anthony Albanese are scheduled to meet soon to discuss the agreement. We continue to encourage them strongly to push for the conclusion of a deal as soon as possible, ideally in the first half of 2023.
The EABC also welcomed the conclusion of the Australia-United Kingdom FTA on 17 December 2021. The agreement is excellent news for industry, and consumers, with the immediate elimination of tariffs on over 99 per cent of Australian goods exported to the United Kingdom (UK) and extensive new provisions to ease the movement of people. We congratulate the negotiating teams and urge both sides to fast-track ratification of the deal by both parliaments, so that the benefits of the deal to both countries can begin to flow by the end of the year.
Notwithstanding the highly unpredictable environment for travel, the EABC successfully returned to Europe after two years of isolation with our biggest delegation to date. Our 2022 Business Mission travelled to Paris, Brussels, London, Rome and Milan. From an organisational point of view, it was quite a logistical feat, and a very welcome return to direct and personal engagement with both well-established and new counterparts. It sent a powerful message of the business community’s commitment and support for the FTAs, and for the raft of other policy issues and initiatives to deepen bilateral trade and investment ties.
The Australian Government’s marked shift and unequivocable commitment to climate action, as well as Australia’s swift and concrete support for Ukraine, has fundamentally and positively re-cast the foundation for closer co-operation with European partners. Furthermore, Australia’s experiences in dealing with economic coercion and foreign interference, its leadership role in an increasingly strategically critical Indo-Pacific, and potential to become a clean energy powerhouse, have also highlighted the increasing importance of Australia as a partner for Europe.
Looking to the year ahead, the EABC will continue to support the process towards conclusion of the FTA, having engaged closely with Australian Trade Minister Senator the Hon Don Farrell (and his predecessors), European Commission Executive Vice President Valdis Dombrovskis, and their respective teams. We will continue to highlight the many other areas of work to be done to ease and stimulate further cooperation in strategic sectors.
There are immense opportunities between Australia and Europe in a variety of sectors including clean energy, critical minerals, quantum technologies, and cybersecurity to name but a few, and many of which will rely on the joint advances in science, technology and innovation. Looking beyond the FTAs with the UK and the EU, it will be crucial for the business community to participate in the world’s biggest research and development fund, Horizon Europe – a ‘once in the lifetime’ chance to unleash new cycles of innovation to drive future economic growth and job opportunities.
The EABC is fortunate to have the outstanding support and participation of a diverse and substantial network of Board Members, Corporate Council, Corporate Partners, and our many other Charter Member partners including bilateral Chambers, Embassies, Trade Commissions and Australian Government agencies, particularly the Department of Foreign Affairs and Trade and Austrade. Our ability to effectively prosecute our mission is made possible through the sustained financial support and commitment of many organisations and individuals.
I would like to extend my thanks to HE Dr Michael Pulch, who served as EU Ambassador to Australia from 2017 to 2022. Michael has been a strong supporter of the EABC and has made a significant contribution the advancement of EU-Australia relations. We warmly welcome the arrival of new EU Ambassador, HE Gabriele Visentin, who comes already well-known to the EABC as the former EU Special Envoy for the Indo-Pacific.
I would also like to express my gratitude to our outgoing Deputy Chair Bruce Morgan, to our Treasurer Sue Horlin, our new Deputy Chairs Jeff Connolly and Vicki Thomson, and all the members of the Board for their leadership and support.
As the year draws to a close, I hope that Europe will see a pathway to peace for Ukraine, and I look forward to our ongoing efforts to bring greater alignment between Europe and Australia to drive a stronger, smarter and more sustainable future for both of our regions.
