Australia

Australia is an attractive market for Basque companies due to its strong economy, its political stability and its openness to international trade. This country offers significant opportunities in sectors such as mining, renewable energy, infrastructure and technologies, areas where many Basque companies have experience and innovative solutions. Furthermore, its strategic geographical location provides Basque companies with access to other Asia-Pacific markets, which facilities their international expansion. The growing demand for sustainable products and services in Australia is also in line with the strengths of Basque industry, which is further strengthening partnership opportunities and growth. Basque Trade & Investment has opened a new office in the country to support Basque companies interested in this market.

The Basque Country, gateway to Europe

Australia holds a prominent position on the global stage, thanks to its diversified economy, which is among the largest in the world, and to its social and political stability. It is a leader in the export of minerals, energy and agricultural products, and is positioned as a benchmark in innovation and sustainability in key sectors such as renewable energy, biotechnology and education. Furthermore, the greater economic importance of the Asia-Pacific region makes it into a strategic bridge for international trade, connecting emerging and developed markets, which encourages it to maintain good relations both with China and with India, Japan or the United States. Its high quality of life, advanced infrastructure and policies encouraging foreign investment consolidate the country as an attractive partner for business, tourism and migration.

Australia’s economy is one of the most robust and diverse economies in the world, underpinned by a sound financial system and with its sights set on international trade. Even though it has been traditionally known for its strong mining sector – particularly for exporting minerals such as iron ore and coal – the country has significantly broadened its economic base. Currently, sectors, such as renewable energy, technology, international education, sustainable agriculture, and financial and health services play a crucial role. This diversification lets Australia face global challenges with resilience and adapt to the demands of a constantly changing global economy.

Even though the GDP is going to rise by 2% in the coming years, the monetary policy is expected to limit the growth of consumer spending. The export market is expected to shrink slightly in 2025, mainly as its largest customer, China, will need fewer raw materials. Even so, Australia’s export volume is expected to remain steady thanks to the diversification of its customers, with the main ones being the United States or India. Furthermore, Australia will continue with its goal to diversify its industry, with special emphasis on renewable energy.

Australia’s external sector is a fundamental cornerstone of its economy, noted for being greatly centred on international trade and its integration in the Asia-Pacific region. Australia is one of the world’s main exporters of natural resources such as iron ore, coal and natural gas, which account for a significant part of its export revenue. Furthermore, its agricultural sector, particularly its products such as wheat, meat and wine, enjoys high global demand. The country is also a leader in the exporting of services, such as international education and tourism, both endorsed by its reputation for quality and safety. Thanks to key trade agreements, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and its approach to emerging Asian markets, Australia has consolidated its position as a global strategic trade partner.

In 2021, 2022 and 2023, the hike in the price of raw materials meant that Australia posted a record trade surplus. However, Australia’s surplus is expected to drop over the coming 5 years with the depreciation of raw materials. Australia’s industrial diversification could increase the number of exports in a near future.

The Australian market is highly competitive, dynamic and attractive for local and international companies alike, thanks to its economic stability, high purchasing power, and the favourable business landscape. The country has a growing and multicultural population, and offers diversified demand in sectors such as consumer goods, technology, infrastructure, education, health and renewable energy. Furthermore, its strategic location in the Asia-Pacific region makes it a gateway to other emerging markets, facilitating access to global supply chains. The strong legal protection for businesses, a transparent regulatory system, and its focus on sustainability and innovation make Australia a key market for trade expansion and strategic investments in the region.

Australia professes to have a transparent regulatory system and an independent judiciary, which create a predictable business environment. The reforms of intellectual property legislation address AI and streamline trademark renewals. Tax changes – including the OECD GloBE rules and the new public CbC reporting rules – can increase operating risks and compliance costs for multinationals. Australia’s strong export profile benefits from diversified commercial relations. Even though the global shift towards renewable energy may affect traditional exports, Australia’s strong trade position is underpinned by its extensive network of trade agreements and by the tariff reforms underway.

In Australia, state market intervention is noted for a balanced approach that encourages free trade and competition, but from a strategic overview to guarantee economic stability and social wellbeing. The government implements regulatory policies in key sectors such as mining, renewable energy, banking and health, to ensure sustainable and responsible development.

Furthermore, it encourages foreign investment by means of tax incentives and trade agreements, but it also keeps strict control over sensitive sectors such as critical infrastructure and national security. Economic stimulus programmes, subsidies for emerging industrial and inclusive labour policies reflect the state commitment to inclusive economic growth and innovation.

Australia, which has been a member of the WTO since 1995, has set a tariff ceiling of 5%. The market has established bilateral free trade associations with markets including Thailand, China, the United Kingdom, Japan, South Korea and the United States. Australia is also a party to regional agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) or the PACER Plus with the markets of the Pacific islands, the RCEP, ASEAN and New Zealand. The EU-Australia Trade Agreement, the Australia-India Comprehensive Economic Cooperation Agreement (CECA), and the Comprehensive Economic Partnership Agreement between Australia and the United Arab Emirates are still at a negotiation phase, but they are expected to offer important trade benefits once ratified.

Australia eliminated 500 or so tariffs from 1 July 2024, encouraging low-emission vehicles and reducing costs for consumers by removing tariffs on non-competitive imports, such as household appliances and personal care articles. These reforms highlight Australia’s commitment to improving trade efficiency and to encouraging sustainable practices from the environmental perspective. The thawing of trade relations with China, made abundantly clear by the lifting of the ban on Australian beef exports, is expected to rekindle market confidence. Such progress reflects a deliberate strategy to rationalise trade barriers and foster a favourable climate for investment, while paying special attention to complying with international regulations.

Australia is a country with few legal risks, due to its transparent regulation and a strong and independent judiciary. Moreover, this system will be even further shored up by the overhauling of the administrative system and the new anticorruption legislation. The country also seems to strengthen the protection of intellectual property. Australia has a relatively fast and not costly legal system, with a foreseeable and transparent legislative framework.