There is a mutual recognition agreement between the EU and Australia to facilitate trade in industrial products by removing technical barriers. The agreement establishes mutual recognition of compliance assessment procedures. This reduces the testing and certification costs of exports and imports. The Australian government has a delegation to the EU at its embassy in Brussels. A European Union delegation is based in Canberra.  The EU and Australia have concluded negotiations for a political framework agreement with a number of economic and trade cooperation agreements. The EU is Australia`s second largest trading partner after China and Australia is the EU`s 18th largest trading partner. Australia`s exports are dominated by mineral and agricultural products, while 37% of trade in commercial services, including transport and travel, is exploited. EU companies have a strong presence in Australia (approximately 2360) with an estimated turnover of 200 billion euros (just over 14% of total turnover in Australia). These companies have directly created 500,000 jobs in Australia. The EU is Australia`s second largest foreign investment target and the EU is by far Australia`s main source of foreign investment in 2009 worth 2.8 billion euros (11.6 billion euros in 2008). Trade increased, but was divested in 2009 due to the global financial crisis.  In August 2019, Australian Senator Simon Birmingham published a list of names that the EU intends to protect as part of its new trade agreement.
The list of proposed names included beers, spirits, cheeses and meats which, in accordance with the EU, aimed at protecting the identity of European products from non-European products. This notion of segregation is called „geographic indications” or „gis” that will change the name of the product with respect to the country of origin.  On 22 May 2018, the Council of the European Union adopted the decision authorising the opening of negotiations for a free trade agreement between the EU and Australia. The United Kingdom, because of its British colonial past, maintains very close relations with Australia and is the two Commonwealth kingdoms. However, the United Kingdom was no longer a member of the European Union as of 31 January 2020. Relations between the Commonwealth of Australia and the European Union (EU) are based on a partnership framework first concluded in 2008. It covers not only economic relations, but also broader political issues and cooperation.  Australia`s relations with Europe are a consequence of the historical ties created by colonialism and European mass immigration to Australia. Possible initial observations of Australia by Portugal and Spain have been the subject of speculation.