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EUROPEAN UNION &

AUSTRALIA
Key Facts
 Message
from the Ambassador
2014 is an important year for EU-Australia relations. There will be an
unprecedented stream of high level visitors from the EU institutions that will
help to advance cooperation in key areas such as foreign and security policy,
economic relations and cooperation on science and technology etc. The G20
Summit in Brisbane in November will also bring European Union leaders to
Australia.

Australia’s seat on the United Nations’ Security Council will mean greater
engagement with the EU on global issues such as non-proliferation, counter-
terrorism, maritime security and counter piracy, and will bring the EU and
Australia together on the world stage, dealing with issues both in Australia’s
neighbourhood and in the wider world.

This year also marks the 100th anniversary of WWI with a number of significant
commemorations over this and the coming few years in which the EU and EU
Member States will participate.

Hereunder you will find some Key Facts about the EU and its relations with
Australia. I trust you will find this useful.

Sem Fabrizi
Ambassador and Head of the EU Delegation to Australia
About the EU

Credit © European Union, 2014

The EU Comprises 28 Member States:

Belgium, France, Germany, Italy, Luxembourg and the Netherlands

(founding members – 1957); Denmark, Ireland and the United Kingdom
(1973); Greece (1981); Portugal and Spain (1986); Austria, Finland and
Sweden (1995); Cyprus, the Czech Republic, Estonia, Hungary, Latvia,
Lithuania, Malta, Poland, the Slovak Republic and Slovenia (2004); Bulgaria
and Romania (2007); and Croatia (2013).
 Demographics and geography

507 As of January 2013 the population of the

50.2
European Union was around 507 million.

1/2
In 2012 there were 50.2 million foreign-born
people living in the EU Member States (10 per

24
cent of the total population), with 17.2 million
born in another EU Member State and 33.0
million born in a country outside the EU.

9/5 The area of the EU is just over half that of

Australia (or slightly larger than the area of
Western Australia and the Northern Territory
combined), yet the coastline length of the EU
exceeds Australia’s.

///////////// The EU has 24 official languages.

The EU’s birthday

is celebrated
each year
on 9 May
marking the famous declaration
of then French FM Robert Schuman in 1950.

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 The €uro

Eighteen of the EU’s Member States are part of the euro area:
Austria, Belgium, Cyprus, Estonia, Finland, France, Germany,
Greece, Ireland, Italy, Latvia (which joined on 1 January 2014),
Luxembourg, Malta, the Netherlands, Portugal, the Slovak
Republic, Slovenia and Spain.

The euro area represents the second-largest financial market

after the USA.

The euro area is important to Australia:

• Approximately 35 per cent of the Reserve Bank of Australia’s

international reserves are held in euro (behind only the US
dollar’s 55 per cent benchmark allocation).

•R
 eflecting two-way trade, the euro is ranked third on the
Reserve Bank of Australia’s Trade-Weighted Index, behind
///////////// the Chinese renminbi and Japanese yen.

Enlargement The Lisbon Treaty

/////////////////////////////

More countries may accede The Treaty of Lisbon is the basic legal
to the European Union. document of the European Union. It
Accession negotiations are was signed by the EU Member States
in progress with Iceland, in December 2007 and came into force
Montenegro, Serbia and on 1 December 2009. Compared to
Turkey. Other countries of earlier treaties, the Treaty of Lisbon
the Western Balkans are provides for more efficiency in the
also working towards the EU’s decision-making process; more
goal of EU membership. democracy through a greater role for
the European Parliament and national
parliaments; and increased coherence
externally.
 EU Priorities
Peace and Stability

The EU today faces major challenges

and responsibilities. This requires a
strong EU, able to protect its interests
and to promote its core values of
human dignity, freedom, democracy,
equality, the rule of law and respect for
human rights. The Nobel Peace Prize
awarded to the EU in 2012 is a great
recognition of decades of efforts in
these areas.

Freedom and Security /////////////

EU countries are working together
to tackle international terrorism and
organised crime, particularly through
measures targeting the trafficking of
drugs, illicit firearms and human beings,
and the sexual exploitation of children.

The Single Market

The EU Single Market is an economic

space within which people, goods,
services and capital move around
Europe as freely as within one country.
The large part of the Single Market
was completed in 1993, with remaining
isolated gaps being progressively
abolished.

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Growth and competitiveness

The EU’s strategy for a smart, sustainable and inclusive economy has been
revitalised with the on-going implementation of its economic reform package,
Europe 2020. This is helping Europe to recover from the global financial
crisis and emerge stronger, by boosting competitiveness, productivity, growth
potential, social cohesion and economic convergence. In parallel, the EU is
also reforming its financial and economic architecture to ensure a better
functioning of the Economic and Monetary Union.

To reinforce Europe’s underlying competitiveness and enable the European

economy to take advantage of the opportunities of globalisation, the EU
remains focused on investing in people, innovation and research, infrastructure
and energy, and creating the right climate for firms to reach new markets and
create new jobs
Environment

Addressing environmental
challenges is a key priority
for the EU. For example, the

///////////////////////////////////
Natura 2000 network of
protected areas now covers
almost one-fifth of the EU’s
land area and more than 217,
000 km2 (approximately 4
per cent) of its seas. The EU
continues to enact stringent
environmental standards and
to set itself ambitious goals
in areas such as air quality
and industrial chemicals.
Regarding climate change,
the EU not only has existing
binding emissions reduction
and renewable energy targets
for 2020, but we are already
working on our targets for
2030. Furthermore, the EU
is addressing climate change
through a suite of broad-
based and more targeted
policies, ranging from a
comprehensive emissions
trading scheme, to vehicle
emissions standards and
energy efficiency labelling for
appliances.
Education

The EU promotes education and

training for all citizens. It encourages,
inter alia, lifelong learning, student
mobility across borders, and
multilingualism. Under its recently
launched Erasmus+ programme,
the EU promotes European higher
education to third countries and
seeks partnerships with non-EU
institutions as well as providing
scholarships for students and
academics to study in Europe.

Creativity and Innovation

The Europe 2020 strategy for smart,

sustainable and inclusive growth places
knowledge and innovation among its
main priorities. Promoting investment
in research and innovation is essential
to facilitate a sustainable economic
recovery and smart growth. As part
of the Europe 2020 strategy, a review
of EU Innovation policy recommends
that we explore the feasibility of
proposing a European Innovation Act.
This will encompass all the conditions
necessary for sustainable development
which would form an integral and
crucial part of the future European
reform agenda.
 The EU in the World
The EU as a security provider

Over the recent years the EU has increasingly acted as

security provider in its neighborhood and beyond on the
basis of its Common Security and Defence policy. It has
deployed 23 EU military or civilian crisis management
missions to address security challenges. The EU is for
example leading a successful naval counter piracy
operation (EUNAVFOR ATALANTA) off the coast of
Somalia.

The EU’s High Representative Baroness Catherine Ashton

leads the international negotiations with Iran (E3+3)
regarding the nuclear program. The EU is part of the
so called Middle East Quartet (with the US, Russia and
the UN) which seeks to advance the Middle East Peace
Process and is a key contributor to peace efforts in Africa.

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 The EU as a global economic player

The EU works within the international community to remove trade

barriers, develop poorer regions and promote peaceful cooperation
within its frontiers, helping to bring everyone the benefits of open
markets, economic growth and stability.

The EU is the world’s biggest trader and its currency, the euro, comes
second only to the US dollar in international financial markets.

In 2012, the EU economy was the largest in the world, accounting for almost
one-quarter of global gross domestic product (GDP) at current prices,
exceeding the combined GDP of China, Japan, and the Republic of Korea

The EU is the world’s largest trader of merchandise goods. In 2012,

(latest figures available) extra-EU two-way merchandise trade reached
$US4.5 trillion, representing 15 per cent of global merchandise trade.

The EU is the world’s biggest exporter and importer of services, with

two-way trade valued at $US1.5 trillion in 2012, accounting for 22.5 per
cent of global services trade.

Leading exporters and importers in world trade

/////////////

$USbn in merchandise and services, 2012

7,000
Services Goods
6,000

5,000

4,000

3,000
Based on
2,000
World Trade
1,000 Organization
data
0
Extra- US China Japan Rep. of H.K., Canada India Australia
EU27 Korea China
Development Assistance

55% of global Overseas Development

Assistance comes from the EU making it the
largest donor in the world. The EU is also
the 2nd largest donor in the Pacific next
to Australia, collectively the world’s largest
provider of Aid for Trade (€9.5 billion in
2011); and the largest importer of agricultural
products from least-developed countries
(€3.7 billion in 2012). /////////////
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The EU is:
a key actor in the G20
process and in other
international fora such
as the WTO and the
UN.
The EU and Australia
People-to-People links

The 2011 Australian Census found that

more than one-third of the 5.3 million
Australian residents born overseas were
born in the European Union – some 1.9
million people.

Today, around half of the nearly one

million Australians living and working
abroad are in Europe and around 1.2
million Europeans visit Australia each year.
In 2013, over 39,000 students from the
EU’s 28 Member States came to Australia
to study. More than 1000 students take
part in the EU-Australia bilateral mobility
projects and more than 200 have taken
part in Erasmus Mundus.

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 The EU’s economic presence in Australia

The EU is Australia’s leading investor with an accumulated

investment of $A647 billion at the end of 2012 – 31 per cent
of total foreign investment in Australia.

A 2011 update of a survey on EU investment in Australia

conducted by the Delegation of the European Union to
Australia, in cooperation with EU Member State diplomatic
missions, found that:

• there are nearly 2,400 EU companies with a presence in

Australia, with a total estimated turnover of almost $A270
billion or just over 14 per cent of total sales in Australia; and

•
these companies directly created close to an estimated
500,000 jobs in Australia, and allowing for the flow-on
(multiplier) effects, were responsible for generating more
than 1.4 million jobs, directly and indirectly, or just over 12
per cent of the Australian workforce. /////////////

Level of foreign direct investment in Australia

$Abn by major partners, 2012
180

160

140

120

100

80 Based on
60
Australian
Bureau of
40
Statistics
20
data
0
EU27 US Japan Singa-pore Switz- Canada China H.K., Bermuda
erland China
Australia’s economic presence in the EU

The EU is the second major destination for Australian foreign investment after
the United States, reaching $A392 billion at the end of 2012 - 30 per cent of
total Australian investment abroad.

From an EU perspective, Australia is the EU’s:

• 15th largest partner in two-way goods trade;

• 10th largest partner in two-way services trade, and

• 9th largest foreign direct investment partner.

//////////////////////////////
 EU – Australia Trade

In 2012, the EU was Australia’s second-largest

trading partner (in goods and services) after
China, with total trade worth $A82 billion.

The EU was Australia’s

third-largest merchandise
trading partner after
China and Japan, with
two-way trade totalling
$A59.7 billion or 12 per
cent of Australia’s total
trade in goods.

The EU was Australia’s largest partner for

trade in services in 2012, when two-way trade
in services between the EU and Australia was
worth $A22 billion. This represents one-fifth
of Australia’s total trade in services.

$A82 billion
$A59.7 billion
12 per cent
$A22 billion
/////////////
one-fifth
///////////////////////////////
Merchandise trade

Australian exports to the EU totalled

$A17.1 billion in 2012 (6.9 per cent of
total exports), down 13 per cent on the
previous year.

This makes the EU the fourth-largest

market for Australian exports after China,
Japan and the Republic of Korea.

In 2012, three of Australia’s main export

items to the EU were coal, gold and
alcoholic beverages (mainly wine).

Viewed from an EU perspective, Australia

was the EU’s leading external supplier of
rapeseed, lead, zinc ores and wool in 2012;
the second-largest source of wine, titanium
ores and sheep/goat meat; and the third-
largest supplier of unwrought nickel.

The EU is Australia’s second-largest source

of imports after China, which were valued
at $A42.7 billion in 2012 (18 per cent
of total imports), up 6 per cent on the
previous year.

In 2012, Australia’s main import items

from the EU were medicaments (including
veterinary), passenger motor vehicles and
civil engineering equipment and parts.
Services trade

The EU is the largest market

for Australian services
exports, which totalled $A8.4
billion in 2012 (17 per cent of
total exports). Similarly, the
EU is the largest source of
services imports by Australia,
worth $A13.5 billion in 2012
(22 per cent of total imports).
Services comprise more than
a quarter of total two-way
trade between the EU and
Australia.

The main trade in services

between the EU and
Australia is in travel and
transportation. In 2012,
/////////////
personal travel (excluding
education) services was
//////////////////////////
ranked Australia’s largest
export to the EU, followed
by gold and coal, valued at
$A4.1billion. Two-way trade
in education-related travel
services totalled $A1 billion,
placing the EU as Australia’s
third-largest trading partner
in education-related services
after China and India.
EU-Australia Cooperation
Political Relations

While EU - Australia diplomatic relations date back to 1962 when Australian

Ambassador based at The Hague, Sir Edwin McCarthy, was accredited to
Brussels, a Partnership Framework, signed in 2008, set out a new, enhanced
and dynamic framework for cooperation.The Partnership Framework includes
collaboration to strengthen dialogue and cooperation in shared foreign policy
and security interests; promote trade and investment; enhance our bilateral
cooperation in the Asia-Pacific region; seek opportunities to cooperate on
the environment, energy security, fisheries and forestry; and to strengthen
cooperation in science and technology, education and culture.

The Partnership Framework is a

living document, regularly reviewed
and enhanced in response to
the changing global challenges
and the political and economic
climate. The two sides are in the
process of negotiating a treaty-level
framework agreement proposed in
2010 by then PM Julia Gillard. The
aim is to further strengthen and
deepen engagement between the
EU and Australia consistent with
both sides’ like-mindedness on
many issues.

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Foreign and security policy

As world partners, the EU and Australia work together on foreign

and security policy issues. Cooperation is particularly strong in
the Asia-Pacific region in areas such as counter-terrorism, asylum,
organised crime prevention, development and humanitarian aid.
The EU and Australia conduct regular ministerial consultations,
and talks between senior officials over the range of topics.

Trade and economics

The EU and Australia work closely in the WTO which offers the
best opportunity for multilateral trade liberalisation, with the 2013
Bali WTO Ministerial Meeting giving new impetus to the Doha
Round. On a bilateral basis, a new agreement on trade in wine
came into force on 1 September 2010, considered to be a win-win
for both parties. The EU and Australia also cooperate on global
economic and financial issues through the G20 and bilaterally.
Environment

The EU and Australia cooperate across a wide

variety of multilateral environmental agreements.
Bilaterally, we hold high level dialogue dedicated to
environmental issues. An emerging important area
where Australia and the EU have been working in
concert to address a global problem is in the scourge
of illegal logging. Both the EU and Australia have new
legislation prohibiting the importation of illegally
logged timber into their respective markets.

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Education

Since 2009, an EU-Australia Policy Dialogue on diverse education issues was

established which continues on an annual basis alternately in Europe and
in Australia. The EU and Australia also support annual short term mobility
projects built around a common module as well as a Joint/Double degree
program. The EU, together with a number of Australian universities, has
created a network of Europe Centres in Australia to promote EU Studies,
undertake research and encourage knowledge of the bilateral relationship.
Science and Technology

The EU is Australia’s largest scientific partner. In

1999, Australia became the first non-European
country to sign a Science and Technology
Agreement with the European Union. In
2014 the EU launched Horizon 2020, the new
€77bn research and innovation programme
which runs for 7 years with a focus on societal
challenges. Horizon 2020 provides abundant
opportunities for new bilateral research and
innovation cooperation for the benefit of
society.

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 Delegation of the European Union

18 Arkana Street
Yarralumla ACT 2600
Telephone: + 61 2 6271 2777
Email: [email protected]
This brochure does not attempt to be a comprehensive document.
It is intended for use as an aide memoire only.
For more information visit: http://eeas.europa.eu/delegations/australia/
Manuscript completed January 2014
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