Australia

Political relations

The bilateral relationship between France and Australia, which dates back to World War I, is based on common interests and values (defending multilateralism and law, the peaceful settlement of disputes).

The relationship soured in 2021 following the termination of the contract to build twelve ocean submarines signed with Naval Group. However, Prime Minister Albanese, who formed part of the Australian opposition at the time, indicated his desire to “repair the bilateral relationship with France”. Following the elections in May 2022 and the new government led by Prime Minister Albanese coming into office, a compensation agreement of €555 million was signed with Naval Group as a settlement for the contract termination.

Furthermore, the discussions between President Macron and Prime Minister Albanese have confirmed the shared determination to rebuild a bilateral relationship of trust. 
A joint statement published on 1 July 2022, upon Anthony Albanese’s visit to France, confirmed the shared desire to rebuild the bilateral relationship and develop a roadmap underpinned by three pillars: defence and security, resilience and climate action, and education and culture.

In the Pacific, France’s presence and that of its three overseas communities (New Caledonia, French Polynesia and Wallis and Futuna), which Australia supported in their accession as members of the Pacific Islands Forum (PIF – the main regional political organization) is today seen as an important element of stability in its regional environment.

Economic relations

Trade and direct investment are an essential part of our strong bilateral relationship. Australia accounts for our 5th largest trade surplus (almost €2 billion in 2020). Over 600 French companies are set up there (employing 70,000 people).