Ruqayyah Snyder
Australia and Italy have a long history of diplomatic relations, with formal ties established in 1949. The two countries have strong economic ties, with Italy being Australia's 11th largest supplier country in 2020. In 2019, two-way trade in goods and services between the two countries was valued at $11.1 billion. While Australia and Italy do not have a direct free trade agreement (FTA), they are both members of larger FTAs, such as the Regional Comprehensive Economic Partnership Agreement (RCEP), and Australia is currently negotiating an FTA with the European Union, of which Italy is a member.
| Characteristics | Values |
|---|---|
| Status of free trade agreement between Australia and Italy | Australia and Italy do not have a free trade agreement (FTA) with each other. However, they have established formal diplomatic relations since 1949 and have good business relations. |
| Australia-Italy trade relations | In 2019, two-way goods and services trade between Australia and Italy was valued at $11.1 billion. Australian merchandise exports to Italy included wool, animal hair, coal, leather, and beef, totalling $692 million. Goods exported from Italy to Australia were valued at $7.1 billion, including medicaments, travel goods, passenger motor vehicles, and heating and cooling equipment. |
| Australia-Italy investment relations | In 2019, Australia's stock of investment in Italy totalled $8.0 billion, while investment in Australia from Italy was $1.3 billion. Australian investment in Italy focuses on areas such as urban redevelopment and energy. |
| Recent agreements | In 2018, Australia and Italy signed the Agreement on Scientific, Technological and Innovation Cooperation. Australia and Italy are also part of international groups such as the Group of Western European and Other States (Weog) and the World Health Organisation (WHO). |
| Free trade agreement negotiations | Australia and Italy, as part of the European Union (EU), are negotiating an FTA. However, there are disputes over the protection of geographical indications (GI) for food and beverage names, such as "parmesan" and "prosecco." |
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What You'll Learn
Australia and Italy's history of diplomatic relations
Australia and Italy established formal diplomatic relations in 1949, with the end of World War II marking a turning point in their relationship. In the post-war period, Australia was vulnerable and lacked population and unskilled labour. This, combined with Italy's difficult economic situation, led to a wave of Italian migration to Australia. As a result, the number of Italian-born residents in Australia grew from 33,632 in 1947 to 289,476 in 1971.
The migration increased further during the gold rush in Western Australia, with a bilateral treaty between the United Kingdom and Italy giving Italians freedom of travel, residence, and business. This period also saw the first Australian prime minister, Edmund Barton, visit Italy in 1902, where he had an audience with Pope Leo XIII at the Vatican.
However, prior to World War II, relations between the two countries were minimal and framed within different boundaries. Italy's participation in the Axis Alliance during the war pitted them against each other, leading to the internment of thousands of Italians in Australia.
In the post-war period, Australia and Italy worked to improve their diplomatic relations. In 1949, Italy appointed Guilio del Balzo di Presenzano as its first minister in Australia, and Australia reciprocated by opening a legation in Rome with Cedric Kellway as its first minister to Italy. In 1951, an agreement was signed between the two countries regarding immigration arrangements for Italians migrating to Australia.
In recent times, Australia and Italy have continued to strengthen their relations, with both countries having embassies and consulates in each other's territories. They have also signed agreements in various fields, including scientific, technological, and cultural cooperation. In 2019, two-way goods and services trade between the two countries was valued at $11.1 billion, demonstrating the strong economic ties between Australia and Italy.
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The Agreement on Scientific, Technological and Innovation Cooperation
Australia and Italy have a history of positive relations, with formal diplomatic relations established in 1949. In 2018, the two countries signed the Agreement on Scientific, Technological and Innovation Cooperation, further strengthening their economic integration and collaboration. This agreement builds upon the two countries' existing cooperation in various sectors, including science, technology, innovation, and culture.
Under this agreement, Australia and Italy have identified key areas of collaboration, including medicine and physics and astronomy, as well as biochemistry, genetics, molecular biology, Earth sciences, and planetary sciences. These two macro areas alone account for over 50% of the scientific collaborations between the two countries. Additionally, there is a strong emphasis on research and innovation.
The Association of Italian Researchers in Australasia (ARIA), established in 2014, is a testament to the growing collaboration and cultural exchange between Italy and Australia. ARIA brings together scholars not only in Australia but also extends to New Zealand and the Pacific Islands. The Italian community in Australia, including researchers and through initiatives like Screen Australia, actively promotes Italian culture, literature, music, arts, and the "Made in Italy" brand.
The two countries also have a history of economic cooperation. In 2019, two-way goods and services trade between Australia and Italy was valued at $11.1 billion. Major imports from Italy to Australia include medicaments, travel goods, passenger motor vehicles, and heating and cooling equipment. Australian investment in Italy focuses on areas such as urban redevelopment and energy.
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Trade balance between the two countries
Australia and Italy have a history of diplomatic relations dating back to 1949. In recent times, Australia has been opening up to economic integration and free trade agreements with Italy and the European Union.
In 2019, two-way goods and services trade between the two countries was valued at $11.1 billion. Australian merchandise exports to Italy totalled $692 million, with the principal exports being wool, animal hair, coal, leather, and beef. Goods exported from Italy to Australia were valued at $7.1 billion. Major imports from Italy included medicaments, travel goods, bags, passenger motor vehicles, and heating and cooling equipment.
The export of Australian services to Italy in 2019 was valued at $607 million, while services imported from Italy totalled $2.7 billion. The services trade was dominated by personal travel. Australia's stock of investment in Italy in 2019 totalled $8.0 billion, while investment in Australia from Italy was $1.3 billion.
In 2022, Italy exported $5.74 billion worth of goods to Australia, including vaccines, packaged medicaments, and cars. During the same year, Australia exported $1.21 billion worth of goods to Italy, primarily coal briquettes, wool, and hot-rolled iron. Over the past five years, exports from Italy to Australia have increased at an annualized rate of 5.15%, while exports from Australia to Italy have increased at a rate of 12.7%.
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Australia-Italy working holiday visa agreement
Australia and Italy have a strong historical relationship, with formal diplomatic relations established in 1949. Since then, the two countries have continued to strengthen their ties, with the Australian and Italian governments signing an Agreement on Scientific, Technological and Innovation Cooperation in 2018.
In addition to this, Australia and Italy have a working holiday visa agreement in place. This agreement allows citizens of both countries to work and live in the other country for up to a year while enjoying a holiday. The working holiday visa is available to individuals between the ages of 18 and 30 (35 for Australian citizens) and prohibits family members from accompanying them. To apply for this visa, individuals must submit several documents, including a national visa application form, a valid passport, passport photographs, proof of financial means, travel itinerary, proof of travel insurance, and proof of a paid visa fee.
The working holiday visa agreement has had a positive impact on tourism and cultural exchange between Australia and Italy. Australian tourism in Italy has accounted for 1.3% of total tourism, with many visiting to study and explore the country's historical sites. The visa also allows individuals to take up temporary or seasonal work in various industries, including hospitality, agriculture, and tourist services.
The COVID-19 pandemic caused a contraction in trade and travel between the two countries in 2020. However, with the easing of restrictions, the working holiday visa agreement continues to facilitate cultural exchange and strengthen the relationship between Australia and Italy.
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Ongoing free trade agreement negotiations
Australia and Italy have a strong economic relationship, with two-way goods and services trade valued at $11.1 billion in 2019. Australia has also been increasing its economic integration and free trade agreements with Italy and the European Union.
Australia and Italy have an Agreement on Scientific, Technological and Innovation Cooperation, signed in 2018. Australia also has a working holiday visa agreement with Italy, which has allowed Australian tourism to account for 1.3% of total tourism within Italy.
Australia and the European Union (EU) are currently negotiating a free trade agreement (FTA). A deal with the EU would give Australian companies better access to Europe's 500 million consumers and reduce their reliance on China. However, the deal appears to be deadlocked over the issue of geographical indications (GIs). The EU has requested that Australia protect a list of over 200 foods, agricultural products, and spirits as GIs, which would prevent Australian businesses from using these names. This includes names such as 'parmesan' and 'prosecco', which are widely used by Australian businesses.
Australia has not yet committed to protecting the additional GIs requested by the EU, and negotiations are ongoing. Australia's Trade Minister, Don Farrell, has argued that Australia shares an emotional attachment to these products as a nation of immigrants. Australia's relationship with its largest trading partner, China, is also a factor in the negotiations, with the need to diversify export markets being considered.
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Frequently asked questions
Australia and Italy have been working towards a free trade agreement, but the deal appears to be deadlocked over the issue of naming rights for certain food and beverage names, such as 'prosecco' and 'parmesan'.
The EU has requested that Australia protect a list of over 200 food and agricultural products as Geographical Indications (GIs). This means that Australian businesses would have to stop using these names if they indicate a geographical origin in Europe.
A free trade agreement with Italy would give Australian companies better access to Europe's consumers and reduce their reliance on China as an export market. It would also strengthen the economic ties between the two countries, which already have a history of trade and diplomatic relations.
As of June 2023, the free trade talks between Australia and the EU have stalled due to the naming rights issue. However, Australia has expressed interest in negotiating and implementing more free trade agreements, so it is possible that an agreement may be reached in the future.
