{"id":158,"date":"2023-06-09T04:48:36","date_gmt":"2023-06-09T02:48:36","guid":{"rendered":"http:\/\/localhost\/esf\/?page_id=158"},"modified":"2025-10-03T13:52:35","modified_gmt":"2025-10-03T11:52:35","slug":"eu-australia","status":"publish","type":"page","link":"https:\/\/www.esf.be\/new\/bilateral-negotiations\/eu-ongoing-bilateral-negotiations\/eu-australia\/","title":{"rendered":"EU-Australia"},"content":{"rendered":"\n
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You can find the statistics of the Trade in Services and Investment between the EU27 and Australia here (dated 11\/2022):<\/p>\n\n\n\n

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EU AND AUSTRALIA SERVICES INDUSTRIES CALL<\/strong> TO CONCLUDE AN AMBITIOUS EU-AUSTRALIA FTA<\/strong><\/a><\/p>\n\n\n\n

Brussels <\/em>& Sydney, 20<\/em> October 2023 <\/em>\u2013 The European Services Forum (ESF) and the Australian Services Roundtable (ASR), representing the interests of the European and Australian services sectors of Europe and Australia in international trade and investment negotiations, urge the political decision-makers of the European Union (EU) and Australia to bring the comprehensive free trade agreement (FTA) negotiations to a rapid final conclusion,  preferably at the forthcoming side meeting in the margins of the G7 Trade Ministers meeting in Osaka on 28-29 October.<\/p>\n\n\n\n

ESF and ASR expect the FTA to yield numerous advantages for both our economies by eliminating or reducing barriers to trade and increasing market access and regulatory cooperation in services and investment.  Beyond the headlines on agriculture and commodities trade, ESF and ASR <\/strong>wouldlike toremind the negotiators that trade in services has a bigger and faster growing share of two-way trade than any other sector.  For both partners, services make up over 1\/3 of total trade.  At the global level, digital services are taking a rapidly growing share in services trade, a trend which ESF and ASR would also like to see reflected at the bilateral level.  Holding up this deal any longer means leaving the growth opportunities from 21st<\/sup> century services trade once again hostage to traditional agricultural market access sensitivities.<\/p>\n\n\n\n

The two trading partners already have deep services business trade. Services imports from Australia to the EU27 were US$ 7 billion while services exports from the EU to Australia amounted to US$ 18.8 billion in 2021 (36.4% of total). For Australia, the services intensity of exports to the EU is especially high, with services representing over 43% of Australia\u2019s total exports to the EU, while its global average is 11%.<\/p>\n\n\n\n

Services also dominate affiliate business activity in each-others\u2019 markets. There are twice as many EU affiliates in the services sector in Australia than in the mining or manufacturing sector. The Foreign Direct Investment (FDI) brought by Australian affiliates into the EU is similarly focused on services industries (+90% of EU Inward FDI in 2020). Services-related issues are crucial forward-looking components of the final agreement.<\/p>\n\n\n\n

In times of geopolitical tension, negotiators need to look at the big picture and deliver appropriate compromise on outstanding sensitive matters; the industry reality is that conclusion of the FTA would contribute to services supply chain robustness and resilience across all modes of delivery (whether online or via movement of people) in professional services, in business services (including environment-related services) and in all digitally-enabled services trade.  These are the fastest growing components of global trade today \u2013 the ESF and ASR expect the FTA to foster ongoing cooperation both bilaterally and globally on digital trade as well as sustainable trade.<\/p>\n\n\n\n

The negotiations for an EU-Australia FTA have made significant progress in recent months, thanks to the willingness of both sides to strengthen bilateral ties, but the deal remains threatened by sensitive agricultural and commodity trade issues. There is a rapidly closing window of opportunity to conclude a deal. We urge political leaders to prioritize prompt resolution of all outstanding matters to enable an ambitious, balanced and comprehensive outcome, which leaves it to stakeholders to get back on with the conduct of international business.<\/p>\n\n\n\n

Brussels                                                             20 October 2023                                          Sydney<\/p>\n\n\n\n


Contacts:<\/u><\/strong>       Pascal Kerneis, ESF Managing Director – p.kerneis@esf.be<\/a> Tel: +32 476 321 027                       Jane Drake-Brockman, Director, ASR – jdb@jdbsolutions.asia<\/a>  Tel: +61 497 679 917<\/p>\n\n\n\n

ESF and ASR welcome the launch of the EU-Australia trade negotiations<\/strong><\/h2>\n\n\n\n

On the occasion of the travel of EU Trade Commissioner Cecilia Malmstr\u00f6m to Australia on 18 June 2018, the European Services Forum (ESF) and the Australian Services Roundtable (ASR) welcome the launch of the EU-Australia Free Trade Agreement (FTA) negotiations.  Services represent over 35% of Australia\u2019s total exports to the EU, and vice-versa. Services-related issues will be crucial components of the final agreement. See Press release here<\/a>.<\/p>\n\n\n\n

On the 22nd of May 2018, the Council of the European Union adopted the decision authorizing the opening of the negotiations for a Free Trade Agreement<\/a> between the European Union and Australia. As of 2017, the EU was Australia\u2019s second biggest trade partner in bilateral trade in goods after China. Trade between the two has risen steadily in recent years reaching \u20ac38bn in 2017.<\/p>\n\n\n\n

Taking into account the development of the possible launch of FTA negotiations between the two parties, ESF consulted its members during the second half of 2017 and finalised its Position Paper on the European services industries for the FTA on 25th January 2018. You can find the detailed position here:<\/p>\n\n\n\n

European Services Industries Priorities for the EU-Australia Free Trade Agreement<\/a><\/p>\n\n\n\n

Book \u201cPotential Benefits of an Australia-EU FTA- Key Issues in Options\u201d<\/strong><\/h2>\n\n\n\n
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On 15 October 2018, Adelaide University Press published the new book \u201cPotential Benefits of an Australia-EU FTA \u2013 Key Issues an Options\u201d edited by Jane Drak-Brockmann and Patrick Messerlin.  ESF Director Pascal Kerneis contributed to two chapters of the book: Chapter 6 \u201cLimit of the EU Negotiating Competence\u201d and Chapter 14 \u201cProfessional services\u201d. You can find the book here<\/a>.<\/p>\n\n\n\n

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Book \u201cAustralia, the European Union and the New Trade Agenda\u201d
Published by ANU Press: June 2017<\/h4>\n\n\n\n

ESF Director contributed to the Book entitled \u201cAustralia, the European Union and
the New Trade Agenda\u201d that was published by ANU Press in June 2017.<\/p>\n\n\n\n

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You can find the flyer of the book here<\/a>.<\/p>\n\n\n\n

You can download the book for free here<\/a>.<\/p>\n\n\n\n

You can find the Chapter by ESF Director here below:<\/p>\n\n\n\n

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  1. Gains for Trade in Services in an EU\u2013Australia Free Trade Agreement: A European Perspective (PDF, 0.2MB)<\/a> \u2013 Pascal Kerneis<\/em> doi<\/a><\/li>\n<\/ol>\n<\/div>\n\n\n\n
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    ESF Trip to Australia \u2013 June 2017<\/strong><\/p>\n\n\n\n

    During a recent trip of the Secretariat to Australia, where ESF Director attended, as member of its Steering Committee, the EU-Australia Leadership Forum, European and Australian chief negotiators expressed a large interest in a FTA with the EU, with a particular focus on services which represent 38% of total EU exports to Australia, and 46% of total Australia exports to the EU. ESF Director also visited New Zealand negotiators in Wellington, who strongly supported the importance of services in the forthcoming bilateral deal. Members were reminded that there were hopes the mandates to start FTA negotiations between EU-Australia & EU-New Zealand would go forward by the end of November. But much will still depend on the discussion in the Council (and in the TPC) on the architecture of future FTAs. This means, on whether member states would accept to move ahead with the FTA (full competence of the EU) and taking more time to decide on the way forward for the agreements requiring \u201cmixed competence\u201d, which would include investment protection. Once launched, ESF expects these negotiations to move quickly, as Commission President Juncker expressed the wish to conclude the talks by the end of his term (November 2019 \u2013 see Speech of State of the Union). EU-Australian negotiations are quite high on the Commission\u2019s priorities. Negotiations are tasked to be completed by March 2019 if possible (i.e. by Exit day!). These negotiations will be based on a negative list, using TiSA or CETA as a basis.<\/p>\n\n\n\n

    In line with announcements made by president Jean-Claude Juncker on Wednesday (13 September 2017) in Strasbourg, the Commission released the draft mandates it is requesting from member states to negotiate free trade negotiations with Australia and with New Zealand. It also published executive summaries and the whole Impact Assessments that the Commission is bound to run before putting any decision\u2019s proposal to the Council.<\/p>\n\n\n\n

    The two draft mandates for the FTAs with Australia and New Zealand are nearly identical and are in accordance with the scoping exercises that were adopted last April (see ESF PC30 of 30 June 2017). They contain well-known EU goals in FTAs, and are structured like the future table of content of the future deals .<\/p>\n\n\n\n

    The mandates also stand out for calling for a high degree of ambition in the area of services: the EU wants the two parties to conclude free trade agreements that go beyond the offers made in the currently stalled multilateral Trade in Services Agreement \u2013 or TiSA \u2013 negotiations.<\/p>\n\n\n\n

    Furthermore, the Agreement should include rules concerning \u201cperformance requirements related to foreign direct investment\u201d. This is an issue that ESF should look at into more details, since it ensure that none of the Parties may impose, or enforce any requirements, or enforce any commitment or undertaking, in connection with the establishment, acquisition, expansion, management, conduct or operation of all investments in its territory to exporters or investors activities listed in the agreement (see Article 8-5 of CETA<\/a> as a reference).<\/p>\n\n\n\n

    The Agreements should also contain regulatory disciplines. \u201cTo that end, the negotiations should cover matters such as:<\/p>\n\n\n\n