Australia and France are two nations with strong economic ties, but many are still uncertain as to whether the two countries have a free trade agreement (FTA) in place. In this article, we`ll explore the answer to this question and provide some key insights into the current economic relationship between Australia and France.
The short answer is no, Australia and France do not have a free trade agreement in place. However, this doesn`t mean that the two nations don`t have a significant trade relationship. In fact, both countries engage in significant trade in several areas, including defense, aerospace, and agriculture.
Despite the lack of a formal FTA, Australia and France have taken steps to strengthen their economic ties in recent years. In 2018, for example, the two countries signed a Strategic Partnership Agreement (SPA), which aims to deepen cooperation in a number of areas, including economic relations. The SPA includes commitments to collaborate on trade and investment, as well as to work together on science and technology initiatives.
So, why don`t Australia and France have a free trade agreement in place? The reasons are complex and multifaceted, but one key factor is the European Union (EU). France is a member of the EU, which has its own trade policies and agreements with other countries. In practice, this means that any FTA between Australia and France would need to be negotiated with the EU as a whole.
Negotiating a free trade agreement with the EU is a complex and time-consuming process, which is one reason why Australia has instead focused on pursuing FTAs with individual EU member states. The Australian government has already signed FTAs with several EU countries, including Spain and Italy, and is currently negotiating agreements with others, such as Germany.
Despite the lack of a free trade agreement between Australia and France, both countries continue to engage in significant trade. In 2019, French exports to Australia totaled AUD 3.9 billion, while Australian exports to France were valued at AUD 1.9 billion. This trade is largely focused on high-value sectors such as defense, aerospace, and agriculture, and is expected to continue to grow in the coming years.
In conclusion, while Australia and France do not have a free trade agreement in place, they still engage in significant trade in several key sectors. The signing of the Strategic Partnership Agreement in 2018 is a positive development that should help to deepen economic ties between the two countries. However, negotiating a formal FTA will likely be a complex and lengthy process that will require collaboration with the European Union.