The EU and Australia: Shared Opportunities and Common Challenges Introduction

Published by the Australian Institute of International Affairs on behalf of the EU-Australia Leadership Forum. 32 Thesiger Court, Deakin, Canberra ACT 2600, Australia Phone: +61 2 6282 2133 Facsimile: +61 2 6285 2334 Email: [email protected] Website: europeaustraliaforum.eu

ISBN 0-909992-99-1 ISBN 13 978-0-909992-99-6

Cover: Opera House lit in EU colour on Europe Day, 9th May 2017. Photo by Daniel Boud for EU Delegation to Australia and the EU-Australia Leadership Forum. © Daniel Boud

This publication has been produced with the assistance of the European Union. The contents of this publication are the sole responsibility of authors and the consortium implementing the EU-Australia Leadership Forum and can in no way be taken to reflect the views of the European Union. THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 3

EU-Australia Leadership Forum Sydney, Australia on 2-6 June, 2017 Australia on 2-6 Sydney, Published on the occasion of the inaugural of Published on the occasion Edited by Melissa Conley Tyler and Antonia Mochan Edited by Melissa Conley Tyler The EU and Australia The EU and Shared OpportunitiesShared and Common Challenges PREFACE Preface INTRODUCTION

4 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 5

provider – a cooperative power and an indispensable – a cooperative power and provider in Asia and Oceania. power for peace, including largest is Australia’s Union the European Beyond security, trade partner in services investor. direct and the largest destination for Australian the second-largest also are We in investment. Our mutual interest direct foreign we For this reason, is clear. widening our trade relations Agreement, Trade a bilateral Free now negotiating are partto be launched hopefully in the second 2017. of open up new commercial would The Agreement opportunities, innovation and but would also promote And our new employment in the EU and Australia. will soon bring our EU-Australia Framework Agreement partnership to a new strategic level, in all fields from to migration. energy from policy to research, foreign our partnership,In this new era of personal relationships and Australian leaders will be an between European important asset. The EU-Australia Leadership Forum new ties. can open new channels and create brings together young and This innovative platform politics, business, academia and the senior leadersfrom Union and Australia. the European media from years ago I took part exchange in an international Ten friendships and the network I built the programme; in my daily work. with me today, still back then are Even in the world of social media, there is no substitute social media, there Even in the world of and face-to-face conversations –for personal relations particularly diplomacy. in the field of we need environment, In our difficult international we invest in Today partnershipsstrong than ever. more friendship leaders, and a renewed a new generation of and Australia. between Europe

In 2015 we have put a new crisis management mechanism in place; since then Australia has taken part in our Africa, and the of the Horn operation fighting piracy off cooperation with our military and civilian missions can runs 15 military EU currently The only expand further. the globe, and beyond that, and civilian missions around the in all corners of engaged in peace processes we are Union has become a global securityworld. The European The European Union and Australia share the same the same Union and Australia share The European policy on all major foreign the same outlook worldview, Our partnershipissues, the same principles and values. since 1962, when ambassadors has evolved greatly to Canberra and Brussels, first accredited were policy has become incredibly Our cooperation on foreign intense – both bilaterally and inside the United Nations, free From Organization. Trade the G20, the World working together we are trade to maritime security, to build win-win solutions based on cooperation and legality. international launched the EU-Australia Leadershiplaunched the EU-Australia Forum – last – she made a passionate case September in Brussels Europe. and united for a strong for our friendship, and Australians who died thousands of She remembered world wars, fighting in our continent during the has that a united Europe peace and the 70 years of She celebrated made possible for its member states. the European and Europe, inside economic prosperity based on rules, to a global order contribution Union’s on cooperation, on sustainable development. from project: the European the evolution of reflecting an to an indispensable economic common market times we have taken an And in recent global power. step forward.impressive When Minister for Foreign Affairs Julie Bishop and I Affairs Julie Bishop and I Foreign When Minister for by Federica Mogherini, High Representative of the Union for Foreign Affairs for Foreign the Union of High Representative by Federica Mogherini, Commission the European of Vice-President and and Security Policy Foreword Foreword Preface 6 INTRODUCTION PREFACE with extremist ideologies, it is more important than ever thanever with extremist ideologies,itismore important Middle Eastandtheemergence of non-stateactors In aneraof uncertainty, withongoingconflictinthe long-term economicand securityinterests. of Australia’sunderstanding ourregion, andsupports Australia’s engagement withtheEUadvancesEurope’s of the worldpoliticallyandeconomically, part important Indeed, withtheIndo-Pacific region anincreasingly beyond –andisalsocriticaltoAustralia’s success. prosperity tooverhalfabillionpeopleinEurope and is criticaltodeliveringpeace,securityandeconomic The continuedsuccessof theEUanditsinstitutions contributes tothesecurityof ourregion. world, multilateralcooperationwiththeEUdirectly We recognise thatinanincreasingly interconnected as theG20andWorld Trade Organization. Australia workswiththeEUinarangeof fora,such and free trade. values, respect fortheinternational rules-basedorder Our cooperationissustainedbyourshared democratic the fabricof Australia’s nationalidentity. and Australia’s strong European heritageiswoveninto lives inbothWorld Wars ontheEuropean continent, andculturalhistory. Thesacrificeof Australian military Our spiritof collaborationisfoundedinourshared at alllevels:political,businessandcivilsociety. cooperation across avastrangeof international issues, of ago andithasevolvedintoaclosepartnership Australia’s relationship withtheEUbegan55years of theCommonwealthof Australia by HonJulieBishopMP, MinisterforForeign Affairs Foreword

history andheritage. history global challenges,andcontinuestohonourourshared remains dynamic,iswellplacedtorespond tofuture toensure thatthebilateralrelationship necessary andcivilsociety,frameworks, linkagesacross industry relationship betweenAustraliaandtheEU,establishing Forum.Itmarksanewchapterinthe Leadership I ampleasedtolaunchthisinauguralAustralia-EU many of ourPacific neighbours. areas forthefuture securityofespecially important environment anddevelopment,forexample,are is crucial.Ourcooperationonclimatechange,the investment, oureconomicrelationship withtheEU andlargest sourcelargest of tradingpartner foreign Agreement, assoonpossible.AsAustralia’s second- and mutually-beneficialAustralia-EUFree Trade We are alsokeentolaunch negotiations forabalanced already takingplacebetweenAustraliaandtheEU. institutional frameworkforthecooperationthatis binding treaty thatwillprovide aformal, comprehensive the Australia-EUFrameworkAgreement. Itisalegally- commitment tothevaluesemblematicof theEU,is of reiteratingand theimportance oursteadfast Reflecting thedeepeningof ourbilateralrelationship, following thedisastrous eventsof World War II. societies thatbrought abouttheformation of theEU that weupholdthevisionof peaceful,openandfree THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES

I think the European Union is an extraordinary venture Bruce Wilson Director, RMIT EU Centre

The Berlaymont building headquarters of the European Commission

7 8 INTRODUCTION TABLE OF CONTENTS Deepening tradetiesbetween Australiaand the EU Digital disruptionindevelopment Claire Rogers The Multi-Stakeholder Steering Committee The future of EUtradepolicy David Treisman andGiovanniDiLieto Trade datashowsAustraliacangetmore outof adealwiththeEUthanUK International development inadigitalage Jacques AntónioVitorino,Pascal Delors, Lamy, EnricoLettaandYvesBertoncini The EU’s collective security:stronger together! Australia andtheEuropean Union:continuity&change EU-Australia free trade talks: services essential EU-Australia free tradetalks:services Trade andinvestment between theEUandAustralia The Australia-EUtradeandinvestment relationship NickGreiner Trade &Investment Australia-EU cooperationonsecurity, foreign policy&development Peter Jennings Security, Foreign Policy &Development II:Issues&Analysis Part timesChristianLeffler The EUandAustralia:working together inuncertain Stories of EU-Australiarelations LouiseHand Working together foracommonfuture Herman Van Rompuy A timelineof EU-Australiarelations 1962-2017 20 I:SettingtheScene Part ForumMelissaConleyTyler,The EU-AustraliaLeadership AntoniaMochanandMichaelZettinig A neweraof EU-Australiarelations SemFabrizi Introduction Table of Contents Cecilia Malmström

Chris Locke

Pascal Kerneis Steven Ciobo Jane Drake-Brockman Annmarie ElijahandJacqueline Lo

46 34 57 40 60 43 14 12 52 36 30 55 38 27 50 48 24 22 10 8 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 9 92 66 69 71 76 79 84 86 62 74 82

Melissa Conley Tyler Melissa Conley Tyler, Alfonso Martinez Karavoulias and Caroline Arranz Melissa Conley Tyler, Part III: Perceptions of the EU-Australia Relationship of Part III: Perceptions Union? European the What do Australians think of Migration & Society, Youth & Education Youth Migration & Society, history Australia and the EU at the edge of Anthony Elliott Migration, Mobility and Globalisation: & Environment Energy Climate, Jillian Broadbent investment Clean energy Australia has an internationalisation, not an innovation and R&D problem and R&D problem not an innovation Australia has an internationalisation, Glavas and Charmaine Henri Burgers Holmes, Cheryl Andrew world? Praeger & Les Field in a post-Brexit research What now for Australian health benefits reap risk to disaster change and reducing climate Addressing Lennart and Annabelle Workman Reifels policy border Australia’s from can learn Europe Research & Innovation & Innovation Research 64 21st Century discoveryVarghese of voyages Peter Bruce Wilson in innovation? interests shared Union-Australia: European 10 INTRODUCTION Leadership Forum. Leadership of theEU-Australia Steering Committee Multi-Stakeholder Inaugural Chairof the to Australiaandthe of theEuropean Union Fabrizi istheAmbassador His ExcellencySem By SemFabrizi A neweraof EU-Australiarelations Introduction

2. 1. Inparticular, thefuture ofbox tosupport thispartnership. We are deployinganewinstitutional tool strategic significance. has deepenedandbroadened toalevelof thispartnership Over thepastfewyears promoting aglobal rules-based system. democratic values andshared commitmentsto deeplyrootedstanding bilateral incommon partnership The European UnionandAustraliaenjoyalong- and Australia. investment agreement betweentheEU ever bilateralpreferential tradeand earlier thisyear. Thiswillbethefirst agreement wassuccessfullyconcluded system. Thescopingphaseof the cooperation inthemultilateraltrading investment relationship andstrong our substantialbilateraltradeand Free Trade Agreement, tobolster We are workingtowards aprospective Framework of 2008. This willreplace thePartnership cooperation, isnowready forsignature. which definesthespectrumof political The EU-Australia Framework Agreement, and forward-looking diplomacy.and forward-looking of Australiaanditsinnovative importance public diplomacyspaceinrecognition of the the European Unionhasventured intothis timeForum withtheUS–thisisfirst unknown –indeedAustraliahasaLeadership Forum”initiativesareWhile “Leadership not well beyondgovernment. of society, reaching outtonewstakeholders fromminded leaders thedifferent sectors dimension bycreating acommunityof like- architecture withaninnovativeandfresh complement thiscomplexinstitutional Forumwill The EU-AustraliaLeadership 3. Innovation, andEnvironment. Violent Extremism, Migration, asCounter-Terrorismmatters and make real progress onsuchimportant new SeniorOfficials’Committeesto several Wepersonnel. havealsostarted have secured exchangeof diplomatic on sustainabledevelopment;we together capitalcitiestojoinforces and Africa;wehavebrought cooperation projects inthePacific the implementationof development we havedelegatedtoeachother management operationspossible; We haveagreed tomakejointcrisis THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 11

The inaugural Forum in Sydney in June 2017 - “SharpenThe inaugural Forum Opportunities Shared and Common Perspective: Your and 150 Emerging than more Challenges” – will see European Australia and the Leaders from Senior Union to provide gathering together over five days security and the key political, of a focused analysis the many in the EU and Australia and social trends They will conclude with us. of ahead opportunities targeted to take our partnership recommendations forward challenging geopolitical scenario. in today’s The EU-Australia Leadership Forum is guided in its work (MSSC) whichby a Multi-Stakeholder Steering Committee the to chair as Ambassador of privilege the have I European Union to on theAustralia. The MSSC draws global leaders eminent from of support and expertise experience who with different Australia and Europe, to enhancing the EU- committed are and background them I am most grateful to all of Australia relationship. for embarking on this new initiative. come to I am delighted to see this unique project my posting to Australia. fruition at the end of I am particularly grateful to my fantastic team at EU Canberra who have worked extremely in Delegation hard on this my enthusiasm. initiative and shared

The EU-Australia Leadership Forum delivers on its Leadership objectives by holding an EU-Australia and Australia, plus a in Europe Forum, alternately workshops, such as the first targeted more number of ondevelopment’ ‘digital on how make the best use The EU-Australia Leadership Forum gathers emerging business, government, and senior leadersfrom in recognition academia, civil society and the media, stakeholders in the multiplicity of of the EU-Australia partnership, but also and the need for a comprehensive, approach. flexible and creative, This three-year project is funded by the EU Foreign is funded by the EU Foreign project This three-year strategic the EU’s Instrument (FPI) to advance Policy like-minded and tackle global challenges with interests players. the EU-Australia Leadership Since its inception support strong Forum has enjoyed the Australian from endorsed by Prime Minister It was officially Government. during his meeting with EU Presidents Malcolm Turnbull at the G20 in and Donald Tusk Jean-Claude Juncker launched by the EU’s November 2015 and officially Federica Mogherini and Australian High Representative Affairs Julie Bishop in September Minister for Foreign 2016 in Brussels. of digital technologies to advance our development of which was held policy goals, including in the Pacific, 2017 Canberra in March in 12 INTRODUCTION Commission spokesperson. She isaformer European independent consultant. andworksasan Expert Communications Forum Mediaand EU-Australia Leadership Antonia Mochanisthe andCommerce. Industry Australian Chamberof Policy attheGerman- andDirector of Expert Events Management Forum Australia Leadership Michael ZettinigistheEU- International Affairs. Australian Instituteof Executive Director of the Leader andNational Forum TeamLeadership is theEU-Australia Melissa ConleyTyler By MelissaConleyTyler, AntoniaMochanandMichaelZettinig andCommonChallenges Shared Opportunities The EUandAustralia:

both intra-EUandfrom anEU-Australia onsecurityco-operation, with articles dimensions of theEU-Australiarelationship, security, foreign policyanddevelopment byexaminingthe The publicationstarts took timetocontribute. who andothers in Australianuniversities Steering Committee(MSSC),EUCentres ofmembers theMulti-Stakeholder Weaffairs. are gratefultoallthemany of the brightestmindsinEU-Australia reprinted piecesof analysisfrom some We are delightedtohaveoriginal and Brussels in2016. Forum, whichtheylaunchedtogetherin of theEU-AustraliaLeadership support President of theCommission,fortheir andSecurityPolicyAffairs andVice- Representative of theUnionforForeign andFedericaMogherini,High Affairs, MP, theAustralianMinisterforForeign We are gratefultotheHon Julie Bishop as wellsomeinteresting statistics. milestones of theEU-Australiarelationship For eachtheme,wepresent atimelineof Australian andsometimesjointperspectives. EU-Australia relationship, from European, of themainthemesof the an overview We havedesignedthispublicationtogive Forumproject.Australia Leadership ofChallenges” isproduced theEU- aspart andCommon Shared Opportunities EUandAustralia: This publication,“The

very different experience. very of theworldcanlearn from eachother’s global implicationsandwhatthetwoparts lookat the and Australia.Ourcontributors issue highontheagendaof boththeEU Our finalthematicarea ismigration,an the healthimpactsof climatechange. reminder of lookingat whythismatters, in developingcleanenergy, aswella done withEUandAustralianpartners are tackledbydetailingsome work being Energy, climatechangeandenvironment the EUwillimpactAustralianpartners. examinehowtheUKleaving contributors an institutionalandgloballevel.Again,our and innovationwhichisexaminedatboth intheareaoperation of scientificresearch relationship. There issignificantco- recognised dimensionsof theEU-Australia We thenturn toperhapslesswidely leaving theEUforfuture trade relations. We alsoexaminetheimplicationsof theUK significant emphasisontradeinservices. reality of EU-Australiatradetoday, there is future Free Trade Agreement. Reflectingthe tothe of playintrade,andlooksforward relationship examinesthecurrent state The sectiononthetradeandinvestment onthatcrucialissue. there are alsoarticles ForuminMarchAustralia Leadership 2017, on digitaldevelopmenthostedbytheEU- Followingonfrom perspective. theworkshop

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 13 This publication comes at a key point in EU-Australia This publication comes close to with a Framework Agreement relations, start and negotiations about to signature on a Free and find it informative hope you We Agreement. Trade thought-provoking.

Michael Zettinig Project Leader and National Executive Director, Australian Institute of International Affairs International Australian Institute of Leader and National Executive Director, Project Antonia Mochan Antonia Events Management and Director of Policy, German Australia Chamber of Industry Australia Chamber of German and Commerce Policy, of Events Management and Director Media and Communications The EU-Australia Leadership Forum project is financed by the European Union and delivered by a consortium Union and delivered is financed by the European led by MWH – now partThe EU-Australia Leadership Forum project Stantec, in partnershipof Industry Affairs for International with the Australian Institute Chamber of German-Australian (AIIA), the and (AESA). and Agriconsulting Europe (GACIC) Commerce To close the publication, we present the findings of the findings of publication, we present close the To into perceptions done by the project original research very are We the EU in Australia. grateful to all our of interviewees for sharing their views with for that project us and allowing them to be published. us and allowing them Melissa Conley Tyler 14 INTRODUCTION THE MULTI-STAKEHOLDER STEERING COMMITTEE He hasheldhiscurrent office sinceSeptember2013. is ininternational lawandinternational economy. Italy andtheEUabroad. MrFabrizi’s academicbackground and accomplishedrepresentative of bothhishomecountry and financialdevelopmentinAustralia. toeconomic the Order of Australiain2003for service Life &HealthAustraliaLtd. She wasmadeanOfficerin LimitedandChairofWoolworths theBoard of SwissRe of theCleanEnergy FinanceCorporation,aDirector of Bankof Australiaandcurrentlyof Chair theReserve Ms Broadbent isaformer Memberof theBoard organisations. government corporationsandarts number of Australianandpublicallylistedcompanies, ontheboards of aOctober 2009.Shehasserved are amongthe100membercities of theinitiative. stress of factors themodern era.Melbourne andSydney striving toimprove urbanadaptationtothechallengesand pioneered bytheRockefellerFoundation:a seminal project appointed asProgram Managerat100ResilientCities, European NGOsandyouthforums.Mostrecently, hewas the project over itslifetime. together from leaders theEuropean UnionandAustraliato guide The EU-AustraliaMulti-Stakeholder Steering Committee brings Steering Committee The Multi-Stakeholder HE MrFabrizi isadistinguisheddiplomat Committee &EUAmbassadortoAustralia Chair of theMulti-StakeholderSteering Fabrizi Sem Mr Excellency His of of the University Wollongong on1 Ms Broadbent commencedasChancellor Chair, CleanEnergy FinanceCorporation AO Broadbent Jillian Ms experience from arangeof different hasextensive Mr AlvaradoMartinez President, European Youth Forum Martinez Alvarado Luis Mr

the European migrationcrisis. commenting ontopicalsocietalphenomenasuchas and reconciliation bothhomeandabroad, publicly debates ongambling,urbanpoverty, homelessness inpublic the nationalagenda,aswellparticipating issueson been fundamentalinplacingglobalpoverty Service Medal. Service inIndonesia withaPublic acknowledged forherefforts of Foreign andTradeDepartment Affairs andhasbeen to Cambodia.Sheisaseniorcareer officer withthe Deputy Headof Mission inIndonesiaandAmbassador Australian HighCommissionertoCanada,Ministerand representative holdingpositionssuchas overseas, asAustralia’sPrior tohercurrent post,MsHandserved connections toEurope. in additiontoenjoyingwell-establishedbusiness the CommitteeforEconomicDevelopmentof Australia, including asaMemberof theBoard of of Governors community. MrGreiner holdsanumberof positions, tothe sector reform andmanagementservices a Companionof theOrder of Australiaforpublic of New SouthWales from 1988-92.Hewas awarded justice and leadership andethics.Hehas justice andleadership Mr Costelloisaleadingvoiceonsocial Chief Advocate,World VisionAustralia AO FAIIA Costello Tim Mr and Trade of Foreign Australian Department Affairs AssistantSecretary,First Europe Division, PSM Hand Louise Ms Mr Greiner wasPremier andTreasurer European AustralianBusinessCouncil Chairman, The Hon Nick Greiner AC

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 15

Mr Christian LefflerMr Deputy Secretary General, Economic and Global Issues, European Action ServiceExternal Mr Pascal Lamy Delors Institute Emeritus, Jacques President Commission for European As a former the of and then Director-General Trade A diplomat and senior figure within the European within the European A diplomat and senior figure Action Service, External Commission and European Mr in and versatile career Leffler has built an impressive affairs. and international He joined the Swedish regional ServiceForeign in Egypt and in 1980, and was posted in Brussels basing himself permanently France before post as Deputy Secretary his current in 1991. Before General, Mr Leffler served for the as Managing Director Americas. He has studied at the Graduate Institute of Studies in Geneva and the London School International Economics, and speaks five languages. of World Trade Organization (2005-2013), Mr Lamy is (2005-2013), Organization a Trade World affairs, and opinion leader in European notable figure in particular a number trade and finance. He holds from and elsewhere, both in Europe public offices of France to the Center on International Transparency Regulation to the Global Agenda Council European Forum. Economic at the World on Global Governance An expert integration, a 2014 Prospect in European the world’s of poll casted Mr Lamy among the top 50 leading thinkers.

Mr Pascal Kerneis Mr Managing Director, ServicesEuropean Forum is a legal expertMr Kerneis with an Mr Peter Jennings PSM Executive Director, Institute Policy Australian Strategic at senior levels inMr Jennings has worked served Banking Federation, at the European negotiations and WTO participating as advisor in GATS on financial services the 1990s. He is throughout Commission Advisory many European member of and Trade including for the Transatlantic Groups, Investment Partnership (TTIP) between the EU and speaker on trade in servicesthe US. He is a regular articles and author of and investment conferences on trade in services issues in various publications. related Services position at the European In his current Forum Agreement Trade advocates a Free strongly Mr Kerneis between the EU and Australia. academic background and an impressive career career and an impressive academic background Until his trade law. and international in European the ESF he of appointment as Managing Director the Australian Public Servicethe Australian Public national defence and on relations politics and international security and taught and the Australian New South Wales at the University of expertise of include His areas Academy. Defence Force crisis management, international strategic policy, Mr recently, More policy. security and international upon the impacts on Australia Jennings has reflected was He attacks. awarded terrorist European and Brexit of a Public Service Medal in 2013 for his contribution to Australian overseas operations and the French Knight in 2016. decoration of 16 INTRODUCTION THE MULTI-STAKEHOLDER STEERING COMMITTEE relations withAustralia. of the French Ministerof Foreign foreconomic Affairs Ross McInneswasappointedspecialrepresentative position asChairman of theBoard atSafran.In2015, main his major European companyboards inadditionto and aerospace sector. MrMcInnescurrently sits on three post heworkedasChiefFinancialOfficerinthedefence knowledge of economicdiplomacy. Priortohiscurrent possesses extensiveglobalexperienceinand An Oxford graduate,theFrench-Australian MrMcInnes ofFellowship bytheUniversity Technology Sydney(UTS). Hehasbeenawardedmatters. aDistinguished his firm commitmenttoandinterest inthecontinent’s onEUenlargement, indicating inparticular on EUaffairs, European UnionLawandhehaspublishedextensively Parliament from 2004to2006.MrLettahasaPhDin Trade, inadditiontobeingaMemberof theEuropean Minister forIndustry, andForeign Commerce andCrafts and asMinisterforEUAffairs government, heserved European politics.Duringhistenure intheItalian prominently bothinItaly’s andin domesticaffairs Sciences Po inParis, MrEnricoLettahasfeatured Dean of theParis School of at International Affairs Dr Enrico Letta Board of Safran relations with Australia,Chairman of the French SpecialRepresentative foreconomic McInnes Mr Ross Former ItalianPrimeMinisterandcurrent (PSIA)ofAffairs SciencesPo Dean of theParis Schoolof International

and EconomicsCorrespondent atthelatter. The AgeandAustralian,aswellNationalAffairs Political Correspondent forTheSydney Morning Herald, at theAustralianFinancialReview, as MsTingleserved Journalism. Before takinghercurrent position Gallery the Paul Lyneham award forExcellenceinPress skills,shehaswontwoWalkleyreporting awards and recognition of thiscommitmentandof heroutstanding Asa on markets,economicsandpoliticsover30years. inCanberra. International Affairs the implicationsof Brexit attheAustralianInstituteof speaker, MrNiblettrecently delivered aspeechon between theUKandUS.Anaccomplishedpublic ontransatlanticrelationsof publications,particularly known astheauthorof andcontributortoanumber Officer atCSISinWashington. DrNiblettiswell- was theExecutiveVicePresident andChiefOperating journalist, Ms Tingle has written extensively journalist, MsTinglehaswrittenextensively andinvestigative An awarded reporter Political Editor, AustralianFinancial Review Tingle Laura Ms Chatham Housesince2007.Before thishe asDirector ofDr Nibletthasserved Director, ChathamHouse CMG Niblett Robin Dr THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 17

Jennifer Westacott Mr Peter FAIIA Varghese AO Ms Jennifer Westacott Jennifer Ms Australia Chief Executive, Business Council of a prolific has enjoyed Ms Westacott and private in both the public career Chancellor, University of Queensland Queensland University of Chancellor, as the took up his position Mr Varghese fourteenth at The University Chancellor of Chief Executive of the Business Council of Australia Business Council of the Chief Executive of sectors. Her policy experience extends to economics sectors.experience extends to economics Her policy and sustainable and competitiveness, infrastructure global engagement and education, healthcare, growth, her concerns innovation. Of late she has expressed leave-vote for global the UK’s over the implications of rating. credit financial uncertainty and Australia’s Queensland on 11 July 2016. Prior to this appointmentQueensland on 11 was Secretary the Department of of Mr Varghese 2012 to December from Affairs and Trade Foreign appointments include High July 2016. His diplomatic Commissioner toCommissioner to India (2009-12), High Washington Malaysia (2000-02) and postings to Tokyo, an Officer in was appointed and Vienna. Mr Varghese in 2010 for distinguished (AO) Australia of the Order serviceto public administration, particularly in leading in the Australian intelligence community reform policy and foreign of and as an adviser in the areas security. international

ideas, whenever we’re looking for people who ideas, whenever we’re are pushing the boundaries, we’d go to Europe. pushing the boundaries, we’d are would go to Europe. Whenever we’re looking for Whenever we’re would go to Europe. Whenever we’re looking for policy innovation, we Whenever we’re Mr Herman Van Rompuy HermanMr Van President, European Policy Centre Policy European President, Rompuy was elected the first full- Mr Van Council in the European of time President Emeritus Professor FAIIA GillianTriggs the Australian Human Rights of President Aboriginal and Torres Commission, Acting Justice Commissioner Strait Islander Social 2009, holding the office up until 2014. Prior to this he up until 2014. Prior to this he 2009, holding the office served Belgium and held several as Prime Minister of positions in his home countryother government from Budget to Secretary State for Finance and Minister of of Mr Van Small Businesses. An economist by background, since 1973. Today Rompuy has been involved in politics he serves at several universities, including as professor Rompuy in 2014 Mr Van Recently in Paris. Sciences Po led the EU Delegation at the G20 Summit in Brisbane. Emeritus Professor Triggs is a distinguished academic is a distinguished academic Triggs Emeritus Professor She has advised lawyer. commercial and international on organisations and international governments commented on current rights law, human international from migration crisis phenomena such as the European perspective and contributed to the a legal expert’s in Australian human rights treaties implementation of and Cooperation Trade She is also the co-editor of law. Union in the New Millennium (2002). with the European 18 PART I: SETTING THE SCENE Part I:SettingtheScene Part THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 19 20 PART I: SETTING THE SCENE 1960 Article XXVII(5)of GATT.Article Australia negotiated under Agreement between EUand 1968 the European Communities. Australia’s Ambassador first to becomes Sir EdwinMcCarthy 1962 of EU-Australiarelations 1962-2017 A timeline Australian Prime Minister Malcolm Fraser visits Australian PrimeMinister MalcolmFraservisits the ECandproposes to President Roy Jenkins that the informal discussion be transformed that theinformal discussionbetransformed

Council of Ministers approves directives and Australianegotiated under on thetransferof nuclearmaterials. into regular high-level consultations. the European Commission. Article XXVIII of theGATT.Article Australian PrimeMinister Agreement between EEC on anEC-Australianagreement Ministerial consultationsbegin between theEUandAustralia. Gough Whitlamvisits 1970 1975 1974 1979 1976 1977 1977

between AustraliaandtheEuropean Communitysigned. Cooperation Agreement andJointPolitical Declaration. Cooperation First Australia-EUTroikaFirst Talks onAsiaheldinBrussels. Negotiations commenceonFramework Trade and Framework Agreement to achieve commongoals. Conformity Assessment, Certificates and Markings andMarkings Conformity Assessment, Certificates Agreement onMutualRecognition inrelation to Australian PMBobHawke visits Brussels. 1986 President of theCommission,Jacques Delors. Hawke visitsBrusselsto meetthenew AustralianPrimeMinister Bob In February 1985 and Australiacomesinto force. A 30year Agreement between Euratom 1982 the European CommissioninAustralia. Delegation istheofficial representative of established inCanberra.TheHeadof the European Communitiesto Australiais The Delegationof theCommissionof the 1981 1980 Exchange of letters between theEuropean Commission andAustraliasuggestinga Agreement onScientificandTechnical

European Community-Australia European Community-Australia Cooperation comesinto force. Wine Agreement issigned. 1990 1999 1998 1996 1995 1994

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 21

2016 the EU–Australia Leadership Forum. Launch of 2017 Cecilia Commissioner for Trade European Minister and Australian Trade Malmström the of Ciobo announce conclusion Steven scoping paper. EU–Australia FTA Inaugural EU–Australia Senior and Emerging place in June in Sydney. Leaders Forum takes 2015 The EU-Australia Crisis Management is signed in Brussels. Cooperation Agreement concluded for the EU– Negotiations are Agreement. Australia Framework Commission and Geosciences European Australia sign earth observation arrangement. Trade begin a Free to EU and Australia agree scoping exercise. (FTA) Agreement

Australian Governor-General. 2014 Affairs Julie Bishop and EU for Foreign Minister Andris Piebalgs Commissioner for Development Cooperation Agreement. sign Delegated Australian Prime Minister Julia Gillard attends attends Julia Gillard Australian Prime Minister Summit. Meeting (ASEM) the Asia-Europe 2011 President Commission European visits Australia. José Manuel Barroso 2013 the EU by an First visit to 2010 2010

2003 2004 2008 Agenda for 2001 2002 Agreement signed. Agreement Cooperation signed. Framework is agreed. Framework Inaugural Development Inaugural Development EU-Australia Partnership signed in Brussels. Dialogue held in Brussels. of Commissioners. of 2000 Centres in Australia. Centres Revised EU-Australia Wine Revised Protection Agreement Agreement Protection EU-Australia Consumer Australia Prime Minister Australia Prime Minister and meets the full College for European Studies at the Studies for European Opening of the ANU Centre the ANU Centre Opening of John Howard visits Brussels John Howard Canberra, the first of five EU five Canberra, the first of Australian National University, University, Australian National 1990 22 PART I: SETTING THE SCENE Steering Committee. Forum Multi-Stakeholder EU-Australia Leadership and amemberof the of theEuropean Council He isaformer President European Policy Centre. is President of the Mr Herman Van Rompuy By Herman Van Rompuy Working togetherforacommonfuture values. Butthesevaluesare notuniqueto main. JoiningtheUnionmeantjoiningthose of the wasonlypart one million.Aperson wasonlyonemilliondividedby A person humanbeing. the uniquenessof every overignoring over deceit,dictatorship, Wall wasalsovalue-based.Itavictory this fatalevolution.Thefallof theBerlin spiral of violenceandhate.TheEUstopped inanever-endingdehumanising ourselves inexorablyweareBy dehumanisingothers Wehuman person. renounced revenge. dignity, andtheirreplaceable valueof each and thus,ontherestoration of human based onreconciliation betweennations and allthepreceding TheUnionwas wars. the crueltyandbarbarismof World War II an economicproject. Itwasouranswerto placevalue-based. Itwasnotinthefirst The European Unionwascreated as more durablethantheeconomicones. identity, andculture. Thosebondsare even a notionthatencompassescivilisation, something ungraspablethatunitesthem: are economic,certainly, butalsohave European Union.Thisleadstotiesthat ofto countriesthatare the nowpart in Australiawithfamilyandhistoricalties economic ties.There are manypeople the samevalues.We alsohavestrong We belongtotheWestern world.We share ofpolitically,and course we have much in common. not betruegeographically, butcertainly historically may Australia andEurope have acloserelationship. This

of rivalry isstillon.Yetof rivalry there isonevital other means.Inthatrespect, the“oldplay” Clausewitz, thecontinuationof politicsby the thoughtofIt is,attheriskof distorting about confrontation andcompetition. scramble formarketsandresources isstill less of weapons.Theglobaleconomic more andmore amatterof economy, and Power andinfluenceintheworldare alone andfornationalism. There isnoplaceinthisworldforstanding are issuesthataffectAustralianstoo. suchasAustralia.Because these partners in-hand withlike-mindedinternational borders. We canbestfightthemhand- fight suchthreats byretreating behind our threat of international terrorism. We cannot andtheclimate change,cybersecurity illegal immigration,environment and issues suchasinternational taxevasion, global andcross-border issues.Theseare and keepthreats atbaywhenitcomesto people wantustodefendtheirinterests Within theEuropean Unionweknowthat EU belongtotheWestern world. of freedom andprosperity. Australiaandthe the ideathatthesevaluesare theguarantors to defendthosevalues.We havetodefend andtogetherwehave of ourclosestpartners the European Union.We findtheminmany

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES

difference: today’s global economic interdependence. to defend free and fair trade. I welcome the statement The major powers cannot achieve prosperity by made by our leaders to commence work towards the undermining what is the right way to peace. The launch of negotiations for an FTA. It would more than EU as a peace project is underpinned by economic complete the EU-Australia Framework Agreement. interdependence. My last overseas engagement as President of the And that is why we have to work together to deepen European Council was attending the G20 Summit in the good relationship we already have. The EU-Australia Brisbane in November 2014 and I have also travelled Leadership Forum is a good step in that direction, the country in a personal capacity while I was Prime bringing together not just governments but our Minister of Belgium in 2009. So I think I have a good business people, media, academics and civil society. idea of the similarities (as well as the differences) We have to deepen our relationship. An EU-Australia between the EU and Australia. Most of all I remain FTA would be a major achievement. It will of course convinced of the importance for our common future take a lot of work and political will. In a world with new of working together.‌ and unexpected protectionist threats the EU is ready

Australia and the EU are likeminded partners with a shared interest in promoting a rules-based global order. In this context, the Leadership Forum is a very important and welcome initiative and I am convinced that it will be successful in its aim to address key global issues of joint interest.

Antonio Tajani MEP President of the European Parliament

2523 24 PART I: SETTING THE SCENE Leadership Forum. Leadership of theEU-Australia Steering Committee of theMulti-Stakeholder Trade. Sheisamember of Foreign and Affairs Government Department Commonwealth Division intheAustralian Secretary, Europe Assistant is theFirst Louise HandPSM By LouiseHand Stories of EU-Australiarelations enjoy withus. of activities. We’ve chosensomeforyouto anamazingarray individuals undertaking in manywaysarelationship focussedon productive relationship, anddiverse and fostering goodgovernance. Itisaclose, sustainable developmentchallenges,and terrorism, addressing economicand in arangeof areas includingcombating Australia andtheEUare valuedpartners as cooperatinginmultilateralforums, also through bonds.Aswell interpersonal based onourcloseinstitutionallinksbut to freedom anddemocracy, notsolely relationship basedonashared commitment ties, wehavebuiltadynamicandenduring European Union(EU)establishedformal sinceAustraliaandtheIn the55years Photo: AndyStevenPhotography Technical Avramova presentsMarta her workattheAustralianWineIndustry Conference, July2016.

months attheAWRI towork on this project ofUniversity Bordeaux, isspending12 Avramova, fromPhD student,Marta the and Germany. strains from Australia,France Brettanomyces bruxellensis,comparing the genomicsof thewinespoilage yeast group’s work.Onekeyproject isresearching contributestoanaspectof the partner University. Knownasthe‘BAG alliance’, each and Germany’s HochschuleGeisenheim ofthe University Bordeaux inFrance education andtechnologytransferwith forgrapeandwineresearch, partnership Institute (AWRI) joinedatrilateral In 2013theAustralianWineResearch “Fresh Science”

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 25 Actually, it IS rocket science! it IS rocket Actually, has Neumann, scientist, Dr Paddy Australian rocket space travel: that could revolutionise invented technology space junk for fuel and is will be drive recycles his rocket (ISS). Space Station International tested soon on the heats engine Drive, the rocket Named the Neumann the space it into plasma to propel solid metal turning systems ion thruster propulsion vehicle. While similar been used on space missions, they have previously which is employed Xenon gas atoms as propellant, and cumbersome deploy. to expensive, limited supply, widely available metals use of The Neumann Drive’s for space travel. could be a breakthrough space junk, we would be actively to recycle “If we were environment, the near-Earth debris from removing the lifespan of collision, increasing lowering rates of it for fuel for the valuable assets in orbit, and processing a market for material in space, have created drives. We Neumann says. space,” from sourced Drive was The latest landmark for the Neumann Neumann start-up in late 2016, when the formalised Airbus company to a deal for European Space agreed Defence & Space to transport the ISS in a drive to place will take Tests 2018 for a 12-month test program. on the Bartolomeo research a commercial platform, Columbus module attached to the European platform the ISS. The aim is to demonstrate how the drive of for an environment performs out-of-world in a real extended period.

Dr Paddy Neumann works on the Neumann Drive. Neumann works on the Neumann Dr Paddy Photo: Horst Burghardt The BAG alliance project on Brettanomyces genomics genomics Brettanomyces on project alliance The BAG on this spoilage existing research complements the AWRI’s and grapegrowers yeast, which is supported by Australia’s body Wine Australia, their investment winemakers through the Australian Government. with matching funds from and is co-supervised by AWRI and Bordeaux scientists. and is co-supervised and Bordeaux by AWRI Marta Wine her work at the Australian presented was and 2016, July in Conference Industry Technical Science’ a prize for the best ‘Fresh awarded presentation wines. in the study of 26 PART I: SETTING THE SCENE These women tell us they have better leadership skills These womentellustheyhavebetterleadership to delivertrainingmore than160womenandgirls. engaged theAustralia-Pacific Technical College(APTC) Together, theEUandAustralianGovernment Project. the FijianSugarcane Industry being trainedundertheEU-fundedTraining to Support (FSC) havegrown inambitionandconfidenceafter The womenemployedbytheFijiSugarCorporation Pacific Technical Collegein2016. IVinProject ManagementPracticefrom theAustralia- Certificate IVinFrontline Managementanda graduated withaCertificate fortheFijiSugarCorporation, Agnes Rounds,anIndustrialNurse Encouraging confidentandambitiouswomen inFiji’s sugarindustry Photo: APTC cooperation inthefuture. examples of structures thatwilltakeustoward deeper Agreement Forumare andtheAustralia-EULeadership with excellentresults. TheAustralia-EUFramework ventures andexchangesare occurringonadailybasis space! Collaborativedevelopmentactivities,business relationship withinourregion -andallthewaytoouter sleeves-rolled-up nature of thecurrent Australia-EU These storiesillustratetheimaginative,enquiring,and regional programs from 2014-20. Australia,havingallocatedEUR800millionfor after the Pacific where theEUissecondlargest donor, Our developmentcooperationisespeciallyvisiblein High-level DialogueonDevelopmentCooperation. representatives inMarch forthe2nd EU-Australia Director-General metseniorDFAT StefanoManservisi was boostedrecently whenEuropean Commission forclosercooperationof thiskind Bilateral support structure anditslayout,makingitasaferplacetowork. of employees developabetterunderstanding themill,its an information centre attheFSC millinBa,Fijitohelp her! Followinghertraining,MsRoundsestablished Bold isagreat development,andwecongratulate needed myhelp,” shesays. ifthey boldlyassistingothers, I wasabletospeakvery “It gavemetheconfidencetoinnovatenewthingsand and knowledge. the trainingprovided byAPTC hasbuiltupherconfidence MsAgnesRounds,whosays trained isIndustrialNurse, that increases productivity andefficiency. Oneof those and animproved abilitytoimplementprojects inaway

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 27 and humanitarian aid than the rest of of and humanitarian aid than the rest for a force are the world combined. We for multilateralism, for human rights and we are cooperation. And international security provider. active as a global increasingly and project As the EU seeks to protect importantits values, it is more than ever that we work as closely as possible with the around countries and organisations our beliefs, that value world that share seeglobal security and open markets, that the importance to working together of too big or too tackle the challenges that are complex for one country to solve or region on their own. This is what lies at the heart the EU- of Australia partnership. Our close relationship over has been substantially strengthened the the past years, including through Framework a treaty-level negotiation of a Framework of the signature Agreement, on Crisis Management, Agreement Participation and humanitarian development increased cooperation and the ongoing work towards Agreement. Trade EU-Australia Free a future

tensions are escalating. Even within the Even within the escalating. tensions are elections have shown some EU, recent the liberalparts the population rejecting of economic model which has brought for the last 70 years. to the West prosperity In these uncertain times, the EU stands cooperative and predictable as a reliable, world. As the very in this troubled force a rules-based international foundations of being questioned, the EU will system are an indispensable power and more be more to preserve, a and enlarge strengthen cooperative global order. are We the second global economy. are We market and the leading global the largest in most parts investor the globe.foreign of in development cooperation invest more We Europe, as many other regions of the world, of regions as many other Europe, how to manage faces the challenge of migration. Our citizens look to us to provide of threat security against the perceived Beyond our southern violent extremism. war, Syria is still ravaged by civil borders, and to the east, conflict continues in eastern peninsula, Ukraine. Meanwhile, on the Korean The European Union’s Global Strategy for foreign and and for foreign Strategy Global Union’s The European security policy, which Federica Representative High the state described last year, in June Mogherini presented unpredictability.” “predictable affairs world as one of of

Christian Leffler is the Christian Leffler is the Deputy Secretary-General for Economic and Global External Issues, European Action Service. by Christian Leffler The EU and Australia: The EU and working together in uncertainworking together times 28 PART I: SETTING THE SCENE through taxtransparency andanti-corruptionmeasures. international systemthatisfairandjust,forexample deliver more effectivegrowth. We candeliver an including promoting innovationsthatcanhelpus growth byusingallthepolicytoolsatourdisposal, equitable sharingof thebenefits.We canaccelerate amoreand aglobaleconomicsystemthatdelivers We canpushforthecontinuationof openmarkets in which we canworktogether. goals andpriorities,weseeanumberof ways our share for. Forthosecountries,likeAustralia,whobroadly This isthekindof worldwewantandare ready towork • • • • • words withdeeds.Itsfiveprioritiesare to: active globalplayer, wellaware of theneedtomatch a boldstatementof intent,a“vision” of the EU as an The HighRepresentative’s GlobalStrategyrepresents • • • • • bedrock of amultilateralorder. for the21stcentury, based around theUNas establish anupdatedmodelof globalgovernance develop cooperativeregional orders; and and crises; develop anintegratedapproach toconflicts wider region; improve theresilience of societiesin our strengthen security;

engagement in the EU-Australia Leadership Forum. engagement intheEU-AustraliaLeadership can bringitclosertoreality, notleastthrough ourjoint toboththeEUandAustraliatogetherwe matters This isanambitiousvision.ButitonethatIbelieve peace andstability. principles of aglobalworldorder thatunderpins and bodiessuchastheG20,whilemaintaining international institutionssuchastheUN,WTO We canacttogethertoimprove theworkingof who target vulnerablepeople,especiallychildren. unscrupulous networksof andtraffickers smugglers as theoneinSyria.We cantacklethescourge of to peopleandcommunitiesaffectedbyconflictssuch refugees aswell andinternally displacedpersons scale uphumanitariananddevelopmentassistanceto We candeliveronourinternational commitmentsto more efficientuseof renewable energy. global securityof energy supply, includingthrough and security. We canworktogethertostrengthen administration, includingonthenexusbetweenclimate united engagementonclimateissueswiththenewUS Paris Agreement onclimatechangeandprovide for We canshowourdetermination toimplementthe

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 29 Pearson Brendan Chief Executive, Minerals Council of Australia Minerals Council of Chief Executive, that the EU will be self-absorbed over the next period. over that the EU will be self-absorbed on Australia’s relationship with the UK over the next couple of with the UK relationship on Australia’s years and that has the potential to distract from the otherwise the years and that has the potential to distract from generally positive relationship with the EU as an institution and with the EU as an institution generally positive relationship with its member states. Compounding this effect will be the factwith its member states. Compounding this For historical reasons, I think, there will rightly be a lot of attention will rightly be a lot of there I think, For historical reasons, 30 PART I: SETTING THE SCENE European Studies. CentreUniversity for the AustralianNational Associate Director of Annmarie Elijahis for European Studies. Centre National University Director of theAustralian Jacqueline LoisExecutive By AnnmarieElijahandJacqueline Lo Australia andtheEuropean Union:continuity&change level politicalagreement (theFramework a longwayinthelastdecade,withtreaty- noteworthy. Australia-EUrelations havecome In thiscontextrecent developmentsare Canberra andBrusselswasslow. formal progress intherelationship between basis forlike‑mindednessinternationally, relationship were difficult.Despiteaclear meant thattheinitialstagesof thebilateral markets later onAustralianthird country Policy, itsimpactonAustralia-UKtradeand The development of the Common Agricultural to theEuropean Communityin1973. became formally involvedandacceded for Australia–especiallyoncetheUK integration tookpresented clearchallenges other, form thatEuropean theparticular through European integration. Onthe member statesproposed tobringabout benefits of thepeaceandsecuritythat On theonehandthere wasnodenyingthe the European integrationprocess. – from with Australianencounters thefirst convictions –andtheiruneasycoexistence Historical documentsreveal thesetwin bilateral relationship. of the the noiseandtrouble inthehistory and thesecondisresponsible formuchof ofThe first theseusuallyprevails asapriority, would bestsuitAustralianeconomicinterests. that an‘open’ of version regional integration and inAustralia’s broad interests; second, objectives of theEuropean project are sound thatthefundamental by twoconvictions:first, integration has,from theoutset,beendriven Australian European thinkingandpolicyon

at atimewhenithadactuallyimproved. disruption totheAustralia-EUrelationship other thanwithdistantthird countries;and which are more concerned witheach of Brexit are known;majortradepartners negotiations withtheUKonceterms additional(complex)trade are clear: The practicalchallengesforAustralia best, inconvenient. question withtheproposed split.Itis,at of Australian relations withtheEU28into – theUKhasonceagaincalledterms cooperation –perhapsgenuinegoodwill EU relations appeartohavegivenway accession anditsramificationsforAustralia- the EU.Justaslongshadowof British formally commencenegotiationstoleave 50bytheBritishGovernment to Article vote of June2016andthetriggeringof Australian head-scratchingovertheBrexit No wonderthenthatthere issome constructive relationship. to takethree examples)nowunderpinsa EU (theNetherlands,Germany andFrance, insidethe serious bilateralworkwithpartners this relationship’s timehasfinallycome,and relations. Thediplomaticconsensusisthat trade relationship, inspiteof solideconomic the EUdoesnothavesomekindof formal remains oneof theonlycountrieswithwhich that Australia,togetherwithNewZealand, international tradeagreements reveals glanceattheEUmapof time. Acursory to abilateraltradetreaty. Thisisnotbefore Agreement) andhigh-levelcommitment THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 31

Mat Tinkler Save the Children Australia Save the Children to its members. Director Policy & International Programs, Programs, & International Policy Director a focus on the EU Brexit has brought… has brought… Brexit and why it exists and what it stands for and what benefits it brings be negligible. Australia could not afford to be so to be so could not afford be negligible. Australia a key project, the European fate of sanguine about the and the order international liberal the post-war plank of a continent for across peace and prosperity of source half a century. than more had more has rarely The Australia-EU relationship or public interest. coverage press diplomatic attention, perhaps scope for noise and trouble: is plenty of There surfaceas the historical differences bilateral trade in the or both. Brexit, the politics of negotiations, or from The relationship is stronger than at any other time in than at any other time in is stronger relationship The its policy makers Australian will continue to see history. integration. They will European the logic and necessity of consequences of also have to deal with the ‘downstream’ outcomes will not where countries, EU politics for third Plus ça change… always align with Australian interests.

Australian policy makers to blow this would do well to see the benefits It is difficult the water. notion out of with the scenario ‘either/or’ an countries of for third Brexit could so easily arise from UK and the EU, which that the politics. This is not to suggest for a moment is not important,Australia-UK relationship or that by agreed in the final terms Australia is uninterested long been the UK and the EU27. But Australia has and so far it has incidentally involved in UK-EU politics, no good. Australia is not being forced done precisely and Australian to choose between the UK and the EU, have to be collateral damage do not economic interests There is also the danger that Australia becomes is also the danger that Australia becomes There put forward by being Brexit of implicated in the politics British partner alternative as some kind of in a post-EU and trade policy. foreign Brexit also needs to be put in perspective. also needs to be Euroscepticism Brexit is no doubt is demonstrably on the rise, and there a second time. a serious hit. has taken project that the European The EU is potentially being transformed, and not onlyThe EU is potentially being transformed, its membership. These changes may matter more the terms to Australia than whatever messy divorce on Brexit The impact of UK and the EU27 can agree. factors, not least Australia will depend on a range of British domestic politics, and these may not be clear for years. impact on Australia may ultimately The material Its future direction is the subject of debate and political debate and is the subject of direction Its future capitals. Multispeed European contestation across now a live possibility – perhaps a necessity. is Europe integration does not rise or fall with the European Yet 27 other are fortunes the UK. There commitment of or committed member states, and the original six were UK accession in 1973. to integration well before countries might expect to witness plenty of Third about how the EU will soul-searching European function – perhaps with new impetus after the election of in France – but European Macron President integration is not at an end. 32 PART II: ISSUES & ANALYSIS Part II: Part Issues&Analysis THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 33 Security, Foreign Policy & Development

1997 Joint Declaration on relations between Australia and the European Union established common goals in the area of development and foreign policy

2003 Agenda for Cooperation focuses on security & strategic Issues, development cooperation in the Asia- I think there is a bit of a Pacific region and migration & asylum. subtle shift in government policy which is to think more

2008 EU-Australia Partnership Framework globally and less regionally, signed, includes increasing dialogue on foreign policy, security and development in terms of foreign policy co-operation in Asia-Pacific priorities, so Europe is having a bit of a comeback in terms of the level of Australian interest. 2014 Australia-EU Delegated Cooperation for Development signed, leading to - Peter Jennings PSM first arrangements between DFAT Executive Director of the Australian Strategic Policy Institute and Europe Aid to work together in Fiji and Sudan

Formal dialogue set up on counter-terrorism

2015 EU and Australia finalised negotiations on a Framework Agreement across all areas of EU- Australia cooperation

24 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 35 EU is top donor EU is top

Vanuatu Vanuatu EU is 3rd top donor top EU is 3rd AUS:$90M EU:$20M AUS:$90M EU is 3rd top donor top EU is 3rd AUS:$122M EU:$7M AUS:$122M Papua New Guinea Papua donor top EU is 3rd EU:$26M AUS:$416M Solomon Islands Philippines donor top EU is 3rd EU:$138M AUS:$93M top donor for AUS:$373M EU:$718M AUS:$373M Indonesia AUS:$104M EU:$488M AUS:$104M Vietnam East Timor Myanmar EU is top donor EU is top EU is 2nd top donor EU is 2nd top AUS:$63M EU:$33M AUS:$63M AUS:$55M EU:$380M AUS:$55M Pakistan Afganistan Afganistan EU is 2nd top donor EU is 2nd top AUS:$53M EU:$897M AUS:$53M EU is 2nd top donor EU is 2nd top AUS:$79M EU:$1,428M AUS:$79M The EU and Australia are the The EU and Australia are two major donors region in the Pacific a maritime capacity building a maritime capacity mission in the Horn of Africa. of mission in the Horn EUCAP NESTOR, EUCAP NESTOR, to an EU-led crisis management mission – an EU-led crisis management mission to In 2014 Australia contributed for the first for the In 2014 Australia contributed time third top donor for four. top donor and the third top donor for three two, the second 2015, EU institutions and EU Member States were the were States and EU Member 2015, EU institutions Among the top 10 beneficiary countries of Australia’s overseas aid in beneficiary 10 top Among the Australia’s countries of 36 PART II: ISSUES & ANALYSIS SECURITY, FOREIGN POLICY & DEVELOPMENT Forum. EU-Australia Leadership Committee of the Stakeholder Steering member of theMulti- Policy Institute.Heisa the AustralianStrategic the ExecutiveDirector of Peter JenningsPSMis By Peter Jennings foreign policyanddevelopment Australia-EU cooperationonsecurity,

security agenciesclosertogether. cyber securitydrawskeyintelligenceand Cooperation oncounter-terrorism andon geography andare increasingly highpriority. face shared threats thatare notlimitedby Brexit. AustraliaandEuropeafter also London can’tconvincinglyplaythatrole sensible conduittoEurope forAustralia, itself tostrengthen ties.Ifiteverwasa isneededontheEuropean continent effort from theEUmeansthatmore Australian Canberra alsorealises thatBritain’s exit the Afghanistantheatre. beyond these tiesandcouldexpand military of NATO,partner’ Australiahas built close and Horn of‘enhanced an Africaregions.As and maritimesecurityintheArabianGulf onwith theEUandothers counter-piracy for welloveradecadeinAfghanistan,and worked closelywithNATO counterparts has Force Third, theAustralianDefence a closerstrategicrelationship withParis. fleet creates astrong imperativetobuild Australia’s newsubmarine for design Second, the decision toselect aFrench that astrategyof isneeded. diversification dependent ontheChineseeconomyand that Australiahasbecomeunhealthily there First factors. isthereluctant realisation The changehasbeendrivenbyseveral foreign policyanddevelopment. with higherpriorityinAustralianthinkingonsecurity, of years After benignneglectEurope isre-emerging engagement betweenAustraliaandEU is alengthylistof areas where closer In terms of securitycooperationthere on implementation. policy measures, backedupwithafocus considered andwell-targeted practical and developmentwillrequire carefully cooperation onsecurity, foreign policy Delivering astepchangeinAustralia-EU capitals allsufferfrom resource constraints. and Canberra,BrusselstheEuropean canfailtobeactedon Opportunities to bothAustraliaandEUcountries. of cooperation thatdeliverreal benefits will onlybesustainedbypracticalforms a positivething,enhancedcooperation and theEUasaninstitution.Whilethisis engagement withEuropean countries Australia’s tointensify an opportunity Taken create togetherthesefactors strengthen ties. Canberra andBerlintosubstantially Group enabling Australia-Germany Advisory example workedhard toestablishan European engagement.Cormann, for –havedeepinterests incloser particular Julie BishopandMathiasCormann in figures inGovernment –MalcolmTurnbull, Finally, itshouldbesaidthatsomekey

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES

countries is already happening and likely to grow A new Australian Foreign Policy White Paper due later further. Sadly, there will continue to be a need to work this year will hopefully sustain the momentum in closer more closely on counter-terrorism and in developing collaboration with Europe. We should consciously look counter-radicalisation strategies. for opportunities to do more together to promote shared values and interests. Europe and Australia No country has a monopoly on how to do this are strong proponents of the international rule of law, effectively and there is a real urgency to intensify a concept which is under sustained challenge from intelligence cooperation and data sharing by bringing Russia and China and was recently dismissed by police forces and other security agencies together. the Russian Foreign Minister Sergey Lavrov as ‘an Likewise, the need for closer collaboration on cyber instrument for ensuring the growth of an elite club of security will continue to grow. Protection of cyber countries and its domination over everyone else. systems is an essential enabler for business, military It is clear that such a system could not last forever.’1 and science and technology collaboration. In the face of such illiberal challenges to the world order, Australia and the EU should look to more Industry collaboration will drive closer defence actively promoting the international rule of law through cooperation. The next Australian submarine – diplomacy and development assistance designed to 12 are to be constructed over a 20-year period – strengthen such capabilities among partner countries. headlines a growing list of Australian-European This might include such activities as joint Australia- military acquisitions. The days of simply exporting EU peacekeeping and stabilisation missions; closer defence equipment are long gone. Large defence alignment of development assistance projects; joint projects today are elaborate joint ventures that will work to enhance the cybersecurity of developing hopefully create shared opportunities to do business countries and partnering on the best way to build in Asia and elsewhere. A cautionary note is needed: military training ties with developing countries. Australia has had a few unhappy experiences in the past with European defence industry collaboration. There have been some impressive developments The submarine project simply must be made to in the last few years to strengthen Australia and EU succeed or else it will damage broader Australia- cooperation on security, foreign policy and defence. Europe industrial collaboration for years. In many respects our alignment is natural given our shared values and similar strategic perspectives. Distance will always impose limits on practical military- There is no doubt that further cooperation would yield to-military cooperation, but some of this needs to practical benefit. International partnerships work best happen if we are to sustain a genuinely closer Australia- when their members maintain high expectations of EU relationship. Canberra should look for opportunities what each will deliver. It’s up to Australia and European to second military and intelligence personnel to governments, institutions and civil society to set some counterpart agencies in EU countries. It is more than likely stretch targets for new forms of cooperation. our armed forces will cooperate together in Afghanistan and in other theatres for years to come. Where possible we need to promote deeper interoperability for our defence plans and systems so that our military forces will work together more effectively.

1 Russia’s Foreign Minister Sergey Lavrov, speaking at the 53rd Munich Security Conference in Germany, 18 February 2017.

2537 38 PART II: ISSUES & ANALYSIS SECURITY, FOREIGN POLICY & DEVELOPMENT Leadership Forum. Leadership of theEU-Australia Steering Committee of theMulti-Stakeholder Letta are members Pascal LamyandEnrico Institute. Delors is director of the Italy; andYvesBertoncini was primeministerof the WTO; EnricoLetta Director-General of Pascal Lamyisaformer in theProdi Commission; as JusticeCommissioner António Vitorinoserved European Commission; time president of the Jacques isathree- Delors By Jacques AntónioVitorino,Pascal Delors, Lamy, EnricoLettaandYvesBertoncini The EU’s collectivesecurity:stronger together!

majority of theterrorists were born. borders, butalsoonourownsoilwhere a looming totheeastorsouthof our as theyare inonewayoranothertothreats EU membercountriesasawhole,exposed of anagendabringingtogetherthe heart People’s aspirationtosecuritymustlieatthe individuals andtheirproperty. above allelsethreats tothesecurityof uncontrolled wavesof immigration,and of by fears climatechange,unbridledfinance, given afresh boostinacontextmarked thatEurope needstobe the “odetofear” each other. Itisonceagaintothetuneof their age-oldtendencytomakewarwith threatened bySovietexpansionismand feared fortheirsecurity, which was project intomotionbecauseEuropeans possibletosettheEuropeanIt wasfirst rings trueinthesphere of security. demonstrate that“strength liesinunity”also to losecontrol of thesituationandfailto if nationalandEuropean appear leaders temptation tofallbackintoisolationism demand forsecuritythatmaywellfuelthe Thesethreats havetriggered acivic forth. terrorism, Russianaggression andso the warinSyria,chaosLibya,Islamist impacting ourborders andourterritory: The EU’s neighbourhoodisrifewiththreats of theEuropean construction heart Place collective security(back) atthe

identify terrorists. identify area’s to external borders, includingeffort effectiveness of controls ontheSchengen a declineinthemistrustshowntowards the technical solidarityintheEU:italsoprompts does notonlymarkwelcomefinancialand refugees andmigrantsinGreece andItaly The creation of hotspotsforregistering organised crime. in theirstruggleagainstterrorism and gives Europeans anothervaluabletool of the Passenger NameRecord system adoption andsubsequentimplementation difficult forterrorists tooperate;andthe the arms tradeisgoingtomakeitmore tougher European legislationgoverning of toanother; terrorists from onecountry rapidtransfer warrant” hasledtothevery countries; theuseof the“European arrest of EU national border controls incertain revival clauses haspermitted thetemporary The activationof theSchengensafeguard the mostvulnerablecountries. strengthening of policecooperationamong against theIslamicState,inadditiontoa operations it hasledtojointmilitary given memberstate’s territory. Inparticular, collectively facearmed aggression onany symbolises theEuropean people’s willto (TEU) followingtheterrorist attacksinParis provided intheTreaty onEuropean Union The activationof themutualaidclause collective securitytools Make thebestuseof Europe’s

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 39

This article in English in Euractiv: euractiv.com/ originally appeared section/security/opinion/the-eus-collective-security-stronger-together and is used with permission. “permanent structured cooperation” in the defence cooperation” structured “permanent part; by those countries willing to take sphere and and improved least, increased last but by no means military of coordination budgets and investments so our improve and to as to avoid redundancies intervention capacities. to if we are is a crucial precondition This “military leap” to engage in our neighbourhood have the resources security to and in the world without allowing our but crucial role depend on our US allies, who play a thus favourable to the to disengage and are eager are pillar” a “European the construction of principle of in alliance. the Atlantic authorities it is up to the national and European Lastly, and agreements to complete this security strategy with traditional partnerships mobilising the EU’s capable of trade tools – financial aid, technical cooperation, solely on to avoid relying etc. – in order agreements, power”the virtues “soft crisis and war in of at a time of our neighbourhood. Every country in the EU should contribute to security Where our collective security. strengthening concerned, other global challenges are and numerous together”! “stronger we are

It is up to these authorities to work on the creation the creation It is up to these authorities to work on Authorities must also pool their military to resources us: greater to better protect in order degree a greater operations external European solidarity in the funding of use of mechanism; an effective the Athena through and new cooperation in the field of “battle groups” and joint commands; industrial mergers through arms a a gradual strategy aiming at the implementation of Strengthen Europe’s collective security architecture collective Europe’s Strengthen authorities at this juncture National and European their vision beyond the short-term need to project a to promote years in order recent of emergencies collective security architecture, Europe’s vision of shared complementarycombining a variety of pillars on our and in our neighbourhood. soil, on our borders It is up to those same authorities to succeed in which is already Frontex, of completing the transformation Border into a fully-fledged “European under way, Control and logistical which must be allotted independent Corps”, and be enabled to act even outside of human resources to consolidate mutual trust. periods in order emergency such as commercial and financial sanctions against against and financial sanctions such as commercial Crimea, the latter’s invasion of of Russia in the wake with Central solidarity energy of the establishment countries and Ukraine in an effortEuropean to bolster to aid European in an increase supply, their security of their to strengthen in order countries such as Turkey crime and so forth.struggle against organised Office” capable of General’s Prosecutor a “European of by and terrorists acting effectively to hunt down criminals police and judicialrapidly mobilising the member states’ to promote apparatuses; and it is up to these authorities Europol both full police cooperation within a strengthened held by information and the effective communication of national intelligence services a European by promoting exchange to complement bilateral cooperation. of culture And finally, the EU has used the other tools that it that it the EU has used the other tools And finally, instability in its neighbourhood, possesses to tackle 40 PART II: ISSUES & ANALYSIS SECURITY, FOREIGN POLICY & DEVELOPMENT for thatevent. discussion paperwritten provides extractsof a March 2017.Thisarticle Development heldon28 Workshop onDigital Forum’s SectoralPolicy EU-Australia Leadership was co-chairof the for Development.He Director of GSMAMobile was previously Managing digital economies.He ethical, sustainable dedicated tobuilding consultancy delivery Digital, aresearch and Founder of Caribou Chris Lockeisthe By ChrisLocke International developmentinadigitalage spectrum, andtaxingmobileservices. raising revenue from auctioningradio and whichdriveincreased demand, whilst an openandcompetitiveenvironment, role, withpoliciesthatensure a supporting in thissuccess.Governments haveplayed The publicsectorhashadastrong hand becoming increasingly attractive. and thevalueformoneyof theservice drop, coverageincrease costs forservice who haveseentheir have beenconsumers drive thegrowth. winners Theuniversal regulation allowingtheprivatesectorto government and inmostcasessupportive advancement, effectivemarketingandsales, among themtherapidpaceof technology been drivenbyamixof principal factors, This rapidgrowth andpenetrationhas connections, in2014. utilizing mobilebroadband (3G&4G) is closeto50%,with40%of allconnections connections. Uniquesubscriberpenetration and7.7billion unique mobilesubscribers the world,withanestimated3.8billion achieved remarkable penetration around formal beginningsinthe1980sithas worldwide.Fromvalue forcustomers its driving innovation,businessmodels,and history, andisamajorachievementin rapidly adoptednewtechnologyinhuman Mobile technologyhasbeenthemost ininternationalthe role development. of digitalservices There timeto address hasnever beenamore important

‘rails’ upon which a wide range of further ‘rails’ uponwhichawiderangeof further impact hasbeeninproviding thepayment impact onwomen.Butitsmore immediate outof users poverty,lift withastronger over theplatform. Ithasbeenshownto percentage of theGDPof Kenya transported andasignificant now usingtheservice success, with70%of thepopulation of mPesa inKenya isawell-documented systemforpayments.Thelaunch transport messages forcommunications,butasthe technology hasnotbeeninusingSMS But oneof themostimpactfulusesof mobile mAgri, mHealthandmEducation. initiatives inareas suchasMobileMoney, manymobile havesupported donors on developmentchallenges,forexample the useof mobiletechnologytoimpact programs toaccelerate also supported have foundations andmulti-lateraldonors On topof allof thisactivity, more recently demand forhighspeeddata. of anddriving the networktoconsumers social networking,increasing thevalue appstores, applicationsand smartphones, technology companieshavedeveloped networks,inparallel the mobileoperator’s played theirrole inbuildingandmanaging drive thisgrowth. have Networkvendors toof arangeof workinconcert actors The privatesectorhasseentheactivities THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 41

- Shada Islam Director of Policy, Friends of Europe Friends of Policy, of Director programmes have looked primarily at mobile, for for have looked primarily at mobile, programmes to radio, an alternative that’s instance, as a channel workers, and used outreach of television or an extension impact, and reach extending of technology as a way an easier also using it to create and in some cases channel with clients. two-way communication Development Report World 2016 Bank’s The World dividends’ and argued focused on the ‘digital unevenly distributed, and persuasively are that they without intervention the significant economic and social via digital access will not gains that can be delivered the developed in many markets outside of be realised world. The report have illustrates that although we and the in digital adoption, seen exponential increases digital technology into everyinfiltration of aspect of time we have lives, during that same period of people’s a in global productivity, actually witnessed a decrease and fair elections, and a huge in access to free decrease in income inequality. increase

very important Union. for the European Australia has a very unique insight and perspective on Asia…Its insights, its knowledge its experience…could beAsia…Its insights, its knowledge its experience…could The previous decade or so of ICT4D and M4D ICT4D and M4D or so of decade The previous interventions that have primarily focused on the role existing digital technology can play in delivering development interventions cost effectively and to a more audience. Behaviour change communication broader Looking forward, the question. we need to rephrase already we do what we’re should not just ask how We what exactly is doing using digital tools, but instead ask in a digital age? development international of the role As well as providing the ‘rails’ for a wide range of a wide range of the ‘rails’ for As well as providing and services,innovative products technology adoption completely new ways the backbone for is also providing aid and assistance. delivering international of innovation has been built. As CGAP illustrates in built. As CGAP innovation has been their ‘Digital mobile payments enable innovationFinance Plus’ model, delivery costs of and decreased and payment processing industries: for a wide range of 42 PART II: ISSUES & ANALYSIS SECURITY, FOREIGN POLICY & DEVELOPMENT country that has accelerated from virtually zero mobile thathasaccelerated from virtually country inMyanmar–a recent USelections,andmore worryingly impact of fakenewsonFacebook andTwitter duringthe in themedialandscape.We haveseentheoft-discussed unintended consequenceof Facebook’s dominantrole the negativesocialandpoliticalimpactsthatcomeasan This benefitdoes,however, needtobeweighedagainst humanitarian crises. the platform workwellintimesof and naturaldisasters theyhavemadetomake to belaudedfortheefforts is aphenomenallyusefultoolincrisissituations,and organisations. Facebook,aid forexample, humanitarian it –are criticaltointernational development and thantheyalleviateBank intheWDR2016report more totheincomeinequalityidentifiedbyWorld digital platforms -thatthemselvesmaycontribute The questionsposedbytheriseof largely monopolistic whose livesare beingshapedbydigitaltechnology? do tomeettherapidlychangingneedsof ourclients a digitalage,andhowdoweneedtochangewhat and theorganisations welead–whatisourrole within run. We therefore needtoaskthisquestionof ourselves upon whichthemedia,work,societyandeconomy architecture just asanend-userdevicebutthevery recast bytherapidadoptionof digitaltechnology, not and humanitarianaidorganisations isfundamentally The role of civilsociety, thepublicsector, Governments political exchangesandthedominanceof fakenews. recent adoptionof Facebook isleadingtofractious inthespaceof –where afewyears the only country phone adoptiontobeinganalmostentirely smartphone- THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 43 assessments and teacher monitoring tools forassessments and teacher monitoring tools all on the table. were children Syrian refugee in the significance profound This is of the clock which can turn war, context of back generations, particularly of in terms living go from education. People children’s lives comparable to those we are secure privileged to enjoy in Australia, to living on rations with little or no in tents relying access to schooling. How can we educate in these conditions? children All the education gains made in Syria over the past decade have been wiped out, to the United Nations. One in according have been damaged. Syrian schools three Their homes and schools may have been could be the but technology destroyed, catch up gateway that lets Syrian children lost education. on years of I look forward to seeing how schooling is over children digitally to refugee delivered coming months and years; the education vital is of children this generation of of importance peace and leadership to future in the Middle East.

At a recent EU-Australia Digital Development Seminar, Seminar, Digital Development EU-Australia a recent At experts to together Australia and the EU came from social as a powerful of technology discuss digital driver the world. around and economic development move Digital moves quickly and we need to going to embrace the quickly too if we are technology in all power of transformative its compelling applications, for the simple this power can make that harnessing reason the world a better place. useIn developing countries, the inventive communities technology can provide of with the skills and expertise to mitigate and withstand conflict and the impact of skills know that the lack of We disaster. drivers of are workforces and resilient displacement and migration following can also be used to conflict. Technology displaced populations. build the skills of Driving education Google and For example, Facebook, among other tech giants recently Microsoft Vision at a summit World with joined forces out digital solutions to thrash in Jordan than 6 for the education crisis facing more The use of million displaced Syrian children. tablet-based mobile apps, video learning, literacy tools, online courses, educational online teacher-training, games, remote

Claire Rogers is the CEO Claire Vision Australia World of the and was co-chair of EU-Australia Leadership Sectoral Policy Forum’s on Digital Workshop Development held on 28 2017 March By Claire Rogers By Claire Digital disruption in development Digital disruption 44 PART II: ISSUES & ANALYSIS SECURITY, FOREIGN POLICY & DEVELOPMENT technology atascalableleveltoseeandmeasure results. However, oneof thechallengeswefaceisunrolling can replicate across Asia,potentiallyprotecting millions. a sustainableimplementationmodelthatWorld Vision Part of running thepilotinDhakainvolvesdeveloping thesurrounding community.text messages,toalert withina60-metredetectors radius,alongwithphone the household.Secondly, asignalissenttoallother The detectionof rapidheatsetsoff analarm within open fires are usedforheating,cookingandlighting. which iscriticalinsmokyslumenvironments where Firstly, itdetectsrapidrisesinheat,ratherthansmoke, The Lumkanifire alarm combinestwokeyinnovations. What kindof fire alarm willworkinthesesituations? live inslumsworldwide,including500millionAsia. exposed wiring,andsmokyopenfires. Over800million tinderboxes, withtheirmixof flammablematerials, identification documents.Highdensityslumsare insurance, peoplelosehomes,businessesandeven when,without and entrench manymore inpoverty year called theLumkani.Slumfires killthousandsevery Vision ispilotingauniquefire alarm inBangladesh, Technology canalsobeusedtosavelives.World Where there’s smoke households toincrease theireconomicresilience. more than200,000smallholderfarmersupported staffhave with communities.Sofarover300certified World Visionfieldstaffworking directlyit supports input.UsingtheMoodleplatform, on participant The PALS approach isconstantlyevolvingbased learning andcoaching. (PALS)Support approach thatpromotes peer-to-peer award-winning Project ModelAccredited Learning and withDynamindeLearning todesignan Vision partnered development programming around theworld.World the learnings of field-basedstafffrom across its people indevelopingcountries.Itworksbycapturing is anonlinelearning modeltoassistsmallbusiness World Vision’s LivelihoodsAcademy, forexample, natives, andprobably thefastestwaytoseereal change. astransforming developingsocietiesintodigital important The transformation of digitalwithinNGOsisjustas better trackpeople’s inprograms. participation leverage technologytoimprove theirowndataand Non-government organisations (NGOs)canalso programming runsatthepaceof infrastructure. the actualembeddingof digitalintodevelopment grows atunevenrates.Inmyview, itworksbestwhen digital solutions.Theavailabilityof technologyoften All toooften, countriesseeatwo-speed economyfor finance, skillsandtraining. overcome constraintswhenitcomestoaccessing especially likelytobenefitfrom thewaysthatICTcan technologies andfinance.Women entrepreneurs are market information, newinnovations,production businesses, grow theircustomerbaseandaccesscritical toexpandtheir people havegreater opportunities Through newandtraditionalforms of ICT, smallbusiness small andmediumenterprisesindevelopingcountries. benefitsformicro, technology (ICT)alsohasimportant The widespread of dispersion information communications Overcoming constraints

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 45

This article in the published was originally Australian Institute of International Affairs’ International Australian Institute of Australian Outlook blog: internationalaffairs.org.au. with permission. It is republished in the learning we glean from these failures. we glean from in the learning the aid landscape in ways that Digital is transforming yearswe couldn’t have anticipated even ten ago; let’s exciting times that that we live in embrace it and relish solutions to mean when it comes to finding innovative is no literally, the sky, problems, the world’s many of longer the limit. Because digital moves so fast, it’s clear that courage, clear so fast, it’s Because digital moves must fearlessly We is required. rather than caution, it comes to the good, bad and ugly when explore traditionally Especially as a sector, digital technology. need to recognise organisations cautious not-for-profit rigorous we are provided that it is ok to fail sometimes; Digital is also changing how NGOs communicate with Digital is also changing how NGOs communicate and we need and real, direct their donors. It is more to building to keep up. This is critical when it comes the world. people-to-people links around Governance development is also changing how Technological Like other NGOs, governments. people engage with technology Vision is establishing the best uses of World to participateto enable communities in democratic to account. Our program and hold governments processes and Action, mobilises and equips model, Citizen Voice we’ve services. government citizens to monitor So far, between relationships seen how this can improve and servicecitizens, governments resulting providers, in the better delivery health and education. All these of children. of the well-being things contribute towards Trade & Investment

1997 Trade was a major focus of a Joint Declaration on relations between Australia and the European Union

I still feel that the EU is a force for global 1999 Agreement signed on Mutual good, a force for growth, for creativity, a Recognition in Relation to Conformity Assessment, Certificates and Markings force for the power of free trade, for the power of democracy; what it has to do is unshackle itself from the temptation of regulation and government intervention…. It will be trade routes that will allow 2003 Agenda for Cooperation highlighted a Europe to come out of this stagnating number of important trade issues, such as wine, WTO, market access for least- growth… The greatest opportunity is to developed countries, agriculture stand side-by-side with countries like Australia, Canada and New Zealand and the more free-market Asian economies and say the only way for global prosperity and peace is free trade 2008 Trade Policy Dialogue created by Partnership Framework Agreement - Jennifer Westacott Chief Executive of the Business Council of Australia Agreement on trade in wine signed

2015 Agreement to work towards a Free Trade Agreement

24 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 47 Other EU

largest largest 3rd export market exports in 2015-16 8.5% of Australia’s total total Australia’s 8.5% of China trading partners

Japan 40.5% 28.7% The structure of the EU’s total total the EU’s The structure of 1/5 two-way trade with Australia is Australia with two-way trade compared to trade with the Extra EU-28 World. with the Extra to trade compared more servicesmore dominated t larges partner 2nd direct investment investment direct comes from the EU comes from largest trading largest 14.4% of Australia’s total Australia’s 14.4% of of Australia's foreign foreign Australia's of two-way trade in 2015-16 two-way trade

Other Singapore Australia's exports Australia's are predominantly manufactured goods. manufactured EU's exports to Australia EU's to the EU are dominated USA by commodities mineral imports in 2015-16 Largest (fuels and mining products) (fuels and mining products) . products and agricultural source of imports of source 19.7% of Australia’s total total Australia’s 19.7% of EU The EU is one of Australia’s Australia’s one of The EU is TRADE & INVESTMENT

The Australia-EU trade and investment relationship By Nick Greiner

PART II: ISSUES & ANALYSIS PART Australia’s economic relationship with the seeking to wind back the clock on global The Hon Nick Greiner European Union (EU) is strong and dynamic. trade, an accelerated agreement would be AC is the Chairman of the European-Australia Two-way trade in goods and services totals a powerful reaffirmation by two like-minded Business Council and over A$95bn, making the EU Australia’s partners of the benefits of open trade a Member of the second largest trade partner behind China, and the positive economic benefits which Board of Governors, Committee for Economic and ahead of both the United States undeniably flow. Development of Australia (A$69bn) and Japan (A$60bn). Services (CEDA). He was Premier trade is a considerable and rapidly growing The surge of protectionist and nationalist and Treasurer of New forces must be met with conclusive counter- South Wales from 1988- component of this, amounting to A$30bn 1992. He is a member annually. Underpinning this relationship arguments making the case for how of the Multi-Stakeholder is a vast two-way investment partnership, consumers overall, not just a privileged Steering Committee few, benefit from access to cheaper and of the EU-Australia having grown from A$585bn in 2004 to Leadership Forum. nearly A$1.6 trillion today, confirming the better quality goods and services, and EU as Australia’s most significant investor. technological advancements which use fewer resources and produce better outcomes. Despite this positive record, the Such goods and services are also inputs in architecture for the economic relationship is an increasingly integrated global economy, underdeveloped, and is critically missing a allowing domestic businesses to compete in Free Trade Agreement (FTA). Obviously, the markets around the world. EU and Australia are like-minded partners with strong cultural, historical and political By removing trade barriers and facilitating linkages. We share common values and investment flows, FTAs boost the respect for human rights, democracy, the competitiveness of exporters which flow into rule of law, the strength of international the creation of new businesses and jobs. institutions, and the mutual benefits of Progressive trade policies also provide free and open trade. Australia has or is opportunities for growth of less-developed negotiating FTAs with all of its major trade economies, providing access to markets partners: the US, China, Japan, South Korea, whilst at the same time encouraging India, Indonesia – and an FTA with the EU capacity-building reform. FTAs enhance has crucially been the missing link. regional economic integration and build shared approaches to trade and investment. The EU’s recently concluded FTA with Canada, CETA, could easily serve as a An Australia-EU FTA would help the template for such an agreement with relationship achieve its full potential. Australia and would allow a similarly An ambitious and comprehensive comprehensive agreement to be locked in agreement will help dismantle trade barriers for the mutual benefits of both partners. (including behind-the-border barriers) Given the momentum behind forces and improve market access for both sides,

2448 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 49 18% exports industrial challenges, including the future and societal and climate change, defence energy manufacturing, of transport, healthcare, the infrastructure, and security, intellectual property and many others. digital economy, like-minded partners, both Australia and the EU are Two is fundamentally prosperity open economies whose trading system. As noted by the linked to the global Australia’s Bank, trade constitutes over 41% of World Europe’s GDP. EU’s the it amounts to 83% of while GDP, 500 million middle class consumers presents market of opportunitiesenormous for Australian companies to export goods and services high-quality whilst abroad, and integration with Asia, economic growth Australia’s in the world, makes it an region the fastest growing obvious strategic partner for Europe. opportunity Let us move A great be realised. to is there quickly to achieve it. 2% growth in exports just 2% growth to China to compared imports 9.5% EU goods export risen by 18% have – Australia’s other top export other top markets. in exports – Australia’s and 18.3% decrease Japan to Australia’s exports and importsAustralia’s significant with the EU show 2014/15 and 2015/16. between rates growth A comprehensive Australia-EU FTA should aim to should aim to Australia-EU FTA A comprehensive beyond the scope enhance co-operation in areas traditional trade and investment agreements, of to help both parties to shared develop solutions An ambitious agreement would lay the foundations would lay the foundations An ambitious agreement qualifications as professional of for mutual recognition especially for particular skilled well as labour mobility, significant regulatoryworkers. It would also reduce faced by companies and individuals alike by burdens standards adopting common or mutually recognised and control, origin, border (for instance, rules of biosecurity measures). including agricultural products. European firms will firms European products. including agricultural Asian FTA field with Australia’s be on a level playing partners investment approvals, to foreign in relation be developed for ongoing co- and mechanisms will services trade. operation on fast-growing 50 PART II: ISSUES & ANALYSIS TRADE & INVESTMENT the University of Adelaide. ofthe University Adelaide. Centre at forGlobalAffairs is theDirector of theEU Jane Drake-Brockman By Jane Drake-Brockman Trade and investment betweentheEUandAustralia ahead toreach $10.7billionin2015-16, growing as fast asChinawhichsurged growth market, thoughithasnotbeen TheEUisalsoaservices performance. export are tothis strong alsobigcontributors providers business andtechnicalservices this istourism-butAustralianprofessional, billion toclientsintheEU.Probably halfof providers sold$10.5 -16, Australianservices market.In2015 Australia’s export topservices isthattheEUgenerally The secondstory as muchpublicpolicyattention. perhapstwice suggests thattheydeserve Fromsectors. this anAustralianperspective relative toother their averageimportance industrieshavenearlydoubled services commercial relations withtheEU, means isthatwhenitcomestoAustralia’s Whatthis in totalAustralianexports. averageamere 22% given thatservices of the EU.Thisisaremarkable outcome, tothe28MemberStates Australian exports accountingfornearly40%ofexports data for2015-16showdirect services isthatbalanceof payments story The first investment storiesare allaboutservices. The factistoday’s bigbilateraltradeand ignore newemerging publicpolicypriorities. current Australianbusinessrealities and In retelling it,weriskremaining blindto That islargely yesterday’s story. and theEUhastraditionallybeenaboutagriculture. The narrative oncommercial relations between Australia

from the EU increased by 9% p.a, but very from theEU increased by9%p.a,butvery same period,Australia’s of services imports of thetotal)increased by2%p.a.Overthis chemical products whichaccount for65% equipmentand machinery, transport from theEU(chieflymanufactures including Meanwhile Australia’s merchandise imports of thetotal)fellbyanaverageof 7%p.a. related materialswhichaccountfor44% materials, mineralfuels,lubricantsand products includingcrude (chiefly primary Australia’s totheEU merchandise exports shows thatduringtheperiod2010-2014, bilateral merchandise trade.Eurostat data significantly withtherecent evolutionof isthatitcontrasts onservices story strandtothispositivebilateral The fourth than 9%p.a.overthelastdecade. with theEUhasgrown onaveragemore Australia’s totalbilateral tradeinservices on averagewithothertradingpartners. overall tradingrelationship withtheEUthan inthe relatively muchmore importantly figure meaningthatservices imports, is alsoAustralia’s largest source of services isthattheEU A third aspectof thisstory for only12%of Australia’s exports. InChina’snumbers. account case,services and sustainedgrowth inChinesestudent due torapidgrowth inChinesetourists THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 51 Total (Extra EU-28) (Extra 2014-2015 excl. HK excl. China 2010-2015 Australia Switzerland USA 20% 50% 10% 40% 30% Australian outward FDI in the EU. The servicesAustralian outward and investment story in UK-oriented. Meanwhile, is strongly UK takes a much higher share trade, the merchandise EU imports of terms Australia than its weight in of from in EU exports while its share to Australia is merely GDP, would seem unlikely weight. Brexit in line with its GDP in a trade deal with interests EU27 offensive to reduce market access boost Australia’s Australia, and it might in the EU27. interests risks being more A bilateral negotiation with the EU27 trade than a negotiation with about merchandise stuck in hope we don’t get the EU28 would be. Let’s narrative. yesterday’s ‌ EU goods export rate markets growth

The UK represents almost half of EU services almost half of importsThe UK represents than Germany, Australia (four times more from servicesthe second largest trading partner after the EU exports services of of than a third UK) and more The UK to Australia (twice as much as Germany). EU investment in than half of more of is the source of Australia and is the destination for two-thirds Might the story change after Brexit? Possibly yes. yes. Might the story Possibly change after Brexit? The story bilateral comes to its climax in the proposed and the EU. trade negotiations between Australia big bilateral business opportunities lie in Today’s the collaborative innovation and development of servicesmodern economy: in intensifying an exchange servicesin data-related that to business processes inputs all industry gains across can drive productivity sectors. The simple fact is that the rise of knowledge-based knowledge-based The simple fact is that the rise of importance intangible activities and the growing of and the digitalisation assets, together with increasing services of enhanced role inputs in manufacturing and importance agricultural, all lead to an increasing of services and in Australia. both in Europe The EU is by far the biggest exporter and importer of biggest investor services in the world – and the world’s negotiations offer The proposed in the services sector. a potential opportunity leverage its for Australia to in this sector. own strengths The final piece in the storyThe final piece in the line is that 2015-16 data largest become Australia’s show the EU to have investment (FDI). direct foreign destination for outward inward of source largest Australia’s And the EU ranks as 25% share. with an approximate FDI stock in Australia, is that EU investment directed? And to which industries top 3 recipient to FDI Markets data, Australia’s According business industry the EU are FDI from inward sectors of services, and IT services software and financial services. importantly Australia’s servicesimportantly exports Australia’s to the EU also p.a. 3% by an average of increased 52 PART II: ISSUES & ANALYSIS TRADE & INVESTMENT Forum. EU-Australia Leadership committee of the member of thesteering conferences. Heisa several WTO ministerial been invitedtospeakat having trade inservices, ininternational expertise recognised globallyforhis in European law. Heis and alawyerspecialising Forum European Services Managing Director of the Pascal Kerneis isthe By Pascal Kerneis essential EU-Australia free tradetalks:services

in terms of balanceof paymentandtrade look attheAustralianfigures, worldexports greater thanagriculturaltrade.Whenwe totheEU,even per centof totalexports significant at€7.8billion,representing 45.9 are also of services Australian exports exports. €18.6 billionof whichwasservices (AU$71.63 billion)in2014,38.6 percentor with atotalvolumeof €48.2billion toAustralia The EUisasignificantexporter willnotmake muchsense. services substantial disciplineandcommitmentsto any EUfree tradeagreement (FTA) without itisobviousthat attributed toservices, share of theEU’s international trade Withsuchanimportant world exports. representing more than40percentof all in2014, US$2.1trillionof services exported EU tradeintoconsideration,countries Ifwetakeintra- cent of globalexports. 2014, representing more than25 per in of (AU$1.349 exports trillion)worth withUS$985billion of trade inservices The EUisbyfarthebiggestglobalexporter to bereflected inthetalks. Thiswillneed between thetwoparties. of to bilateraltrade greater importance are sectors agricultural trade,theservice possibly contentiousissuesrelated to While muchof theattentiongoesto comprehensive free tradeagreement’. will launchnegotiationsforaso-called‘deep and In comingmonths,theEuropean UnionandAustralia

closely analysed whenstudyingtheimpact willalsoneedtobe The dimensionof services in theframeworkof thebilateralFTA. need tobeintegratedatthepoliticallevel arenegotiators aware of this,butitwillnow Agreement (TiSA)isastrong signalthat negotiations aimedataTrade inServices are major proponents of plurilateral negotiations. Thefactthatthetwoparties into considerationduringthetrade These newelementswillneedtobetaken to goods. related arevalue of services thoseexports the of cent and39.1per are services, exports figures fortheEU,60.5percentof allEU goods.Whenwelookexported at the same embeddedinto are services goods exports to thisdatabase,36.3percentof Australian According are services. Australian exports — showsthat46.1percent of total (OECD) andtheWorld Trade Organization Economic CooperationandDevelopment database developedbytheOrganisation for in Value Added(TiVA) and indicators trade interms of valueadded—theTrade But thenewwayof calculatinginternational small 18percent. a leavingtradeinservices total exports, manufacturing) represent 82percentof in goods(commodities,agriculture and THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 53 of Australia’s Australia’s of services total exports in 2015-16 of Australia’s total total Australia’s of in two-way trade services in 2015-16 25.7% 15.3% 20.8% OF SERVICES MARKET in 2015-16 SECOND LARGEST SECOND EXPORT services imports of Australia’s total Australia’s of largest trade largest The EU is the LARGEST TRADE IN SERVICES PARTNER in services partnerfor Australia LARGEST SOURCE OF SERVICES IMPORTS LARGEST OF SERVICES IMPORTS SOURCE a so-called ‘sustainable development chapter’a so-called ‘sustainable that will establish rules on labour and the environment. regulatory disciplines and cooperation; and state-to-state dispute settlement; competition; public procurement: including central, regional, local, local, including central, regional, public procurement: and public entity services; intellectual property rights: copyrights, patents and data flows; trade in services: trade and movement border cross people; of market access including investment: pre-establishment protection; servicesectors and post-establishment goods: tariffs cuts on manufactured goods (+95 per goods (+95 goods: tariffs cuts on manufactured and commodities, non-tariff barriers cent), agriculture origin; and rules of like standards • • • • • • • • • When we specifically focus on trade and investment in services, we will see the negotiations deal with the regulatory following elements: the market access pillar, natural disciplines and cooperation, the movement of qualifications. of persons and the mutual recognition • • • • • • • • Taking all of this into account, what should the content this into account, all of Taking for trade and investment in the EU-Australia FTA of the EU FTA”, and comprehensive services be? By “deep in: will include trade understands a trade agreement • of Brexit on EU trade policy and its possible influence on EU trade policy and its possible Brexit of many Indeed, EU FTA. in a strong interest on Australia’s Australian exporters and investors in the EU presently of and a significant share United Kingdom, the via trade EU service exports UK. This will the come from to Australia trade in international since the UK is a major player remain in services, 6.8 after ranking second the US, representing world trade in servicesper cent of EU per cent of and 15.6 exports in 2014 with US$337 billion. 54 PART II: ISSUES & ANALYSIS TRADE & INVESTMENT access in the services sectors: construction; construction; sectors: access intheservices EU willlookforincreased publicprocurement market will bepublicprocurement. There isnodoubtthatthe elementof thenegotiations important Another very System (ICS). EU willinsistonincludingthenewInvestmentCourt State DisputeSettlement(ISDS)anditislikelythatthe protection chapterincludingtransparent Investor-to- The FTA shouldincludeastate-of-the-art investment autonomous reforms. toensureand ratchetclauseformanysectors future with negotiatedexceptions;andadoptastandstill practices, exceptions; bindtheircurrent regulatory should aimtoremove allequitycaps,withnegotiated theparties sectors, For marketaccessinservices Pacific (TPP)—whichisnowuncertain. Partnership Agreement) andAustralia’s commitmentsintheTrans- recently signedCETA (Comprehensive EconomicTrade improving ontheEU’s commitmenttoCanadain the improved byreplicating or But thiscouldbefurther framework of theTiSAnegotiationsof November2016. at leastthelevelof theirbesttabledoffer inthe thenegotiations shouldstart parliament. Theparties appreciated bytheEUmemberstatesorEuropean andbut itisamethodthatnotwellunderstood industries, aswellof theAustraliangovernment, the preferred methodof EUandAustralianservice commitments usinganegativelistapproach. Thisis scheduling of marketaccessandnationaltreatment willhopefullyadoptthe In thebilateraltalks,parties financial services. and telecoms basic for 1995, andsubsequentlyin1997 General Agreement onTrade (GATS) inServices in thosetakeninthe Uruguay Round—inparticular commitments takenintheframeworkof theWTO’sthe are international commitmentsbetweenthetwoparties to underlinethatthecurrent biddinglevelof legal Regarding themarketaccesspillar, itisimportant

could beinspired bytheEU-CanadaCETA. mutual recognition inprofessional qualifications,which toachieve some thattheagreement try important engineering, lawandmedicine.Itwilltherefore be likeaccountancy,services auditing,architecture, to dobusiness.Thisisnotablythecaseforprofessional isnotalwayssufficient companies andnaturalpersons To gettingaccessfor sectors, conclude,insomeservices procedures. and workpermit delivery are allinterested ingettingfasterbusinessvisa services andnon- services migration. Economicoperators, periodonly, foratemporary persons notforpermanent of the matteristonegotiateaccessskilledbusiness for EUandAustralianbusinessesinthisFTA. Theprinciple “movement of are naturalpersons” alsoakeypriority The negotiationsforthecommitmentsof theso-called companies. service applyto Owned Enterprises(SOEs)willalsocertainly or ‘livingagreement’. ThedisciplinesonState cooperation data flowandsectorspecificregulatory e-commerce, cross border financialservices, transport, energy,postal services, environment, maritimeandair some sectorspecificdisciplinesinregards totelecoms, chapterorannexwillinclude also likelythattheservice licensing requirements itis andprocedures. LikeinTiSA, impactassessment,transparencywith stakeholders, of That is,transparency of regulation, priorconsultation horizontal chapterondisciplinesfordomesticregulation. willalsonegotiatetheadoptionof astrong The parties request toaccessAustralia’s sub-federallevel. a testtoseethedifficultythatwillresult from the on Government Procurement (GPA), sothiswillbe Australia isnotyetamemberof theWTO Agreement telecom andIT; security;andtheenvironment. in administrationsandallpublicentities;insurance; architecture and engineering;cleaningcatering It isrepublished withpermission. Australian Outlookblog:internationalaffairs.org.au. Australian Instituteof International Affairs’ wasoriginally publishedinthe This article

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 55 Australian investors exposed Australian investors the data on trade in also compared We goods and services Australian to that of investments in the UK and in the EU, and separated out specifically vice versa. We EU to get an accurate the the UK from risks. the post-Brexit of picture capital of examined two aspects We Australian of investment. Firstly exposure the investors who hold stocks and bonds in the UK and EU financial markets and secondly any investor in the UK and EU who holds stocks and bonds in Australia. by the hard The market volatility created negative will have a significant direct Brexit bearing on both the Australian financial market and to some extent on Australian portfolios abroad. for the past decade the average Notably, Australian portfolios of in the EU exposure stocks and bonds markets (minus the UK) is worth nearly double than that in the UK. Overall the UK and EU stocks and bonds portfolios we studied jointly account for all than one-fifth more of approximately asset holdings in Australian financial markets.

less competition. When we looked at the data and when we was Australia and the EU, there compared and less competition, crossover much more than with the UK. A hard Brexit would see a sudden exit of the would see a sudden exit of Brexit A hard likely the EU and now seems more UK from line May’s given UK Prime Minister Theresa on this. As part our submission to a parliamentary of inquiry we examined data on the flow of trade in goods and services between all separating out the UK from regions, three the EU. trade The inquiry is examining Australia’s with the UK post- and investment relations in particular a Brexit, the merit and risks of trade agreement. possible bilateral free Australia should be striving to gain an this advantage in any trade agreement, means cooperating with a trade partner so exports of and crossover is more that there imports between the two countries and Australia should prioritise a free trade agreement trade agreement prioritise a free Australia should historically capitalise on to Union with the European Kingdom, rather than with the United optimal relations, Brexit. afterimmediately a hard

David Treisman is a is a David Treisman in Economics Lecturer at the Monash Business School, Monash University. Giovanni Di Lieto is a in International Lecturer Business at the Monash Business School, Monash University and Council Australian the Member of International Institute of Affairs Victoria. of a deal with the EU than the UK the EU than the a deal with of and Giovanni Di Lieto By David Treisman Trade data shows Australia can get more out get more Australia can data shows Trade 56 PART II: ISSUES & ANALYSIS TRADE & INVESTMENT would necessarilyimprove Australia’s economicoutcomes. However, it’s levelling whetherthisregulatory uncertain present subordination totheEuropean singlemarket. thisreset wouldbeanimprovementthe UK, from the For Australia’s tradeandinvestmentrelationship with Trade Organisation. bydefaulttothemultilateralrules ofrevert theWorld Without atimelyagreement, theUKandEUwill Trade Agreement. happen before theadvanceof theAustralia-EUFree 50of theEUTreaty.Article Thisisalsoevenunlikelyto finalise anagreement before thetwo-yearterm setby unlikelythattheUKandEUwill difficulties, itappears Considering thepresent politicalclimateandtechnical negotiate international tradeagreements. a separatecustomsentityandsobeingentitledto process from theEU.OnlythenUKwillbecome untilthe conclusionofcan bepursued itswithdrawal No formal AustraliantradenegotiationswiththeUK Likelihood of ahard Brexit European partners. and maximisetradecompetitivenesswiththevarious negotiations inwaysthatminimisefinancialexposure should bemindfulof sequencingtradeandinvestment between theUKandEU,Australia’s economicdiplomacy of post-BrexitGiven thepoliticaluncertainty negotiations for Australia’s financialsolidity. implications forpatterns of financialflows,andultimately of Londonpost-Brexit canhavedeeperlong-term the Australianfinancialmarket.Thefuture positioning as agatewayfortheUKandEUfundsdestined of London Our analysisalsohighlightstheimportance

score withtheEUandviceversa. achieve more favourabletradingterms thantheUKcan targeted withboththeUKandEU,inorder sectors to game shouldbeatseparatebilaterallevelsincarefully blanket dealswiththeUK.Instead,Australia’s end Australia shouldavoidmultilateraloptionsandhasty rigorous andtransparent evidence-basedapproach. be negotiatedinAustralia’s economicinterests witha and investmentarrangementswiththeUKEUwill It’s crucialtoensure thatanyfuture preferential trade other countries”. thisincrease istypicallyoffset from bytradediversion countries,althoughsomeof flows betweenpartner free tradeagreements “can significantlyincrease trade bilateralandregional Productivity CommissionReport, In fact,asestablishedbythe2010AustralianGovernment’s process concludes. free theBrexit tradeagreement immediatelyafter of economicgainstobereaped from anewbilateral of theBrexit process. Yet, there isnoclearevidence for aquickbilateraldealtocountertheuncertainties Nonetheless, punditsinbothhemispheres are calling This article originallyappeared inTheConversation. This article

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 57

genuine concerns about the impact and genuine concerns majority the great trade policy, detail of still are two thirds, around Europeans, of trade”. positive about “free trade is Meanwhile, beyond our borders, world, a way to for good in the a force engage with other nations to foster change, a way to support our values and standards, the globe and them across and spread on the planet a way to help the poorest their lives. and improve develop, grow, people have been liftedMillions of out of poverty trade. because of technological of Globalisation is the result and open trade. It has made it progress and people to move easier for products changed lives. and it has improved around; Some may feel these changes go too fast; others may feel they miss the old times … even while they enjoy the latest smartphone or low-cost trip to a Mediterranean beach. said that globalisation has Sometimes it’s left people behind: leaving them with some a declining income and uncertain future. The truth is that many jobs and wages automation: have declined because of

In 2016, we saw many trying to reverse the trend of of trend trying saw many In 2016, we the reverse to openness. and increasing globalisation, increasing – Build a wall!” say “Close a border! was to Their reflex all our problems. the solution to as though that were It isn’t. the world, The fact is that the nations of need Europe, and especially the nations of dependent on each other. are each other, and have trade together, work together, We it. The alternative all seen the benefit from is at the There is little short catastrophic. of the moment extensive discussion about trade I of the future 2016. But it’s events of want to talk about, not the past. us who I want to talk about how those of still believe in our open societies can About how we can to this threat. respond and to the rising public interest respond – with a about trade agreements concern trade policy that is effective, transparent, and based on our values. Above all, I want to talk about why trade is worth fighting for; and how we will fight for it. is about openness; and opportunity. Trade jobs depend on 31 million European exports. Not to mention the jobs which depend on quality imports; within on trade market itself;the internal or on the €4.5 investment and direct trillion in foreign companies have created the jobs foreign many are in the EU. And, while there

Cecilia Malmström is the Cecilia Malmström Commissioner European for Trade. By Cecilia Malmström The future of EU trade policy of The future 58 PART II: ISSUES & ANALYSIS TRADE & INVESTMENT and amongourtoptentradingpartners. world’s largest biggest economicblocs, andfifth fourth alongpause.Theseare respectivelylast yearafter the with theMercosur countriesinSouthAmerica,restarting We are makinggoodprogress intalkswithJapan, and enoughtokeepusbusy.pipeline. Certainly the EU,andabout20more tradedealsalready inthe we havealonglistof willingtodealwith manyothers world isbiggerthanonecountry. Trump ornoTrump, partner, one,the is ourmostimportant andanecessary firmly inthefreezer atleastforawhile.Yet, eveniftheUS Donald Trump seemslikelytoputourEU-USnegotiations So let’s considerourtradeagenda.Theelectionof And trademustbeseentodeliver. behind. We musthaveafunctioningsocialsystem. together tomitigatetheeffectsthatleavesomepeople That iswhypoliticiansandbusinessmustworkbetter increasing. Theydon’treally care aboutthereason. where peopleare losingtheirjobsandcleavagesare solution. Butlet’s notbenaïve–wehaveasituation won’t endupsolvingourproblems: we’lljustdelay the change atthedoorof free tradeorglobalisation,we But ifwe–incorrectly –layalltheblameforeconomic Against thisreality, tradedealsare ahandyscapegoat. take placeasfasttechnologyevolves. education tohelppeopleadapt.Anadaptationthatmust industrial revolution ismore investment,trainingand in the19thcentury, theanswertonewglobalised, powered factories.Theyadaptedtochange.And, justas hundreds of cottageswere weavers’ replaced bysteam- Yet industrialrevolution, thefirst as survived ourancestors at afasterspeedthaneverbefore. the newdigitalage.Whateveryoucallit,itishappening IndustrialRevolution” or“Industry“Fifth 4.0”; or simply It isanewindustrialrevolution; youmightcallitthe replacingwith machinesandcomputers manualwork.

rather thanmerely submittingtoit,orlettingothers as avehicleforourvalues,wecanshapeglobalisation, – butpromoting themabroad. Byusingtradepolicy Trade isn’tjustaboutprotecting ourstandards athome providing transparency atallstagesof negotiations. Council topublishallnegotiatingmandatesimmediately, transparency. We willcontinuethatapproach, invitingthe will benefit.We inunprecedented conducted TTIP on ourtradeagreements, themore peopleandbusiness Europe. Themore transparent theinformation available proud of aswenegotiateonbehalfof thepeopleof We havenothingtohide:indeed,wemuchbe spread aboutwhattradeagreements do. undermines trustandalsoallowsmisinformation to A perception of secrecy orlackof scrutiny, both Trade deals shouldnotbedonebehindcloseddoors. promoting themabroad. is transparent, fair, protecting ourvaluesathomewhile So, in2017andbeyond–Iwillcontinuetoensure trade without losingtheenormous economicboostonoffer. beyond. Iwanttorespond to the concerns manyhave – for thebenefitstheybringtoEuropean citizens,and We donotmaketradedealsfortheirownsake:but at theirnegotiationswiththeEU. throw more energyour partners andmore resources If anything,sinceNovember, wehaveseenmanyof agreements withAfrica. economic partnership intheEU.OrourDCFTAbig investors withTunisia andour with China,nowthatChinesecompaniesare becoming have agreed tomodernise, ortheinvestmentagreement Zealand, andChile.OrtheCustomsUnionwithTurkey we Indonesia, orthoseweplantoopenwithAustralia,New on-going negotiationswithMexico,thePhilippinesand environmental goods,ordigital.Itisnottomentionthe the modern age:where tradeisincreasingly inservices, we are doingtomaketraderelevant andeffectiveto And thatisnottomentionthemultilateralworkinWTO

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES

shape it for us. It’s about ensuring other parts of the our values. Supporting globalisation and shaping its world embrace our high standards of protection in rules. Most countries still share this same vision: they areas like consumer safety, health, or environmental believe in the benefits of open trade and investment, protection. It’s about stopping trade that goes against and are ready to work with us bilaterally and in our values. Last year we agreed new EU regulations multilateral organisations like WTO. restricting the trade on minerals coming from conflict zones, and banning the export of goods used for We will pursue our trade agenda in the coming months torture or the death penalty. And it’s about ensuring with those like-minded nations. We will continue to that trade and development are sustainable, not used make the case of the benefits of the EU trade policy to undercut basic rights. for all, communicating and listening to EU citizens, workers, consumers and business. But building a wall The point I want to make is this. The EU is the largest is not the answer. market in the world; we have a lot to offer our partners, but also expect things in return in negotiations. But trade The success of the EU relies on our open societies and agreements do not deal with market access alone; trade open economies. We all have seen a Europe divided, must be responsible, and consistent with EU and universal separated by walls and borders in the 20th century. values; this is at the core of our negotiations. We can Those dark years should not return. create incentives for change and improve the living and Those who, in the 21st century, think that we can become working conditions of the poorest. And it works! great again by rebuilding borders, re-imposing trade Now, more than ever, it is important the EU shows barriers, restricting people’s freedom to move, are confidence and leadership. Confidence on the strength doomed to fail. of our Union, even if that is going to be a Union at 27. Even then, the EU will remain the largest trading partner This article is based on extracts from a speech given on 24 January and a committed trade negotiator, open for trade and 2017 at Bruegel, a European think tank. The original can be sourced at: bruegel.org/2017/01/the-future-of-eu-trade-policy/ investment, acting responsibly and in accordance with

Australia is largely developed, although we need quite a lot of investment… Europe is clearly a large market, just the volume of consumers… Australians, conversely, like things European: we like French champagne, cheese products, we like European motorcars, so there’s an awful lot of things where we’re already trading those types of products. Australia is a high price market for Europeans, there’s a natural affinity around that.

- Bryan Clark Director of International Affairs, Australian Chamber of Commerce and Industry

59 60 PART II: ISSUES & ANALYSIS TRADE & INVESTMENT Investment. for Trade, Tourism and the AustralianMinister The HonStevenCiobois By StevenCiobo Deepening tradetiesbetweenAustraliaandtheEU health of theglobaleconomy. and commercial interests andtothefuture tobothourpolicyis of highimportance the Trade Agreement, which inServices number of plurilateralinitiatives,including And weare workingtogethertoadvancea strong rules-basedmultilateraltradingsystem. a we haveacommoninterest insupporting international tradeandinvestmentagenda; work togetheronmanyelementsof the of the globaltradingsystem.We already vision of AustraliaandtheEUforfuture An FTA wouldhelptoadvancetheshared economy, research andinnovation. as standards andregulation, thedigital collaboration andcooperationinareas such This FTA willenhancemutuallybeneficial between like-mindedpartners. benchmark onwhatFTAs canachieve this FTA hasthepotential totrulysetthe both advanced,sophisticatedeconomies, And justasimportantly, becauseweare aswelltwo-wayinvestment. services, promote stronger tradeingoodsand agreement betweenoureconomieswill A comprehensive bilateralfree trade commencement of FTA negotiations. Commission andMemberStates fortheexpeditious Australia iscommitted to working withtheEuropean the agenda. aspectof engage theEUinthisimportant to totheopportunity and welookforward agriculture withourotherFTA partners substantive andbalancedoutcomeson Australia hasatrackrecord of negotiating our respective comparativeadvantage. in foodandagriculture products, reflecting conditions foropen,fairandequitabletrade abilateralFTAIt isimportant setsthe protection persist. are someareas where highlevels of border are comparativelylowonaverage,there While tariffsinbothAustraliaandtheEU Asia. networks andvaluechainsin as a launchingpadforlinkingwith commercial European businessesseekingtouseAustralia At leastsomeof thisinvestmentrepresents The EUisAustralia’s largest investmentpartner. technology. areas suchasinfrastructure andmedical Australian foreign investment,includingin significantdestinationfor is alsoavery under-reported intheofficial data,theEU when takenasabloc.Althoughthisis The EUisoursecondlargest tradingpartner economic linksalready inplace. An Australia-EUFTA willbuildonthestrong

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 61

This article is based on extracts from comments prepared for the Minis- This article comments prepared is based on extracts from in September 2016. Parliament the European ter when addressing In our recent FTAs we have found innovative ways found innovative ways we have FTAs In our recent technology in the modern of the role to recognise the EU In our negotiations with business environment. to innovate even furtherwe expect to be able our given in Fostering growth and approaches. common interests is an importantthe digital economy for Australia’s focus for and trade agenda, including economic international negotiations. our FTA will undoubtedly complex negotiations and there are FTAs sensitivity. of be difficult issues that touch on areas scoping phase as a useful mechanism see the current I our is a clear understanding of in ensuring there objectives. respective the scoping of committed to the timely conclusion are We the launch and expeditious movement toward process negotiations. of perspective, a bilateral it is clear that Australia’s From time has come and the challenge is an idea whose FTA an outcome that delivers real now is to work towards example for benefits for both sides and sets a positive the global trading system.

An FTA with the EU presents another opportunity with the EU presents to An FTA through for our professionals arrangements promote licensing professional of the mutual recognition On services, Australia also seeks through our FTAs the On services, our FTAs through Australia also seeks possible. and liberalising outcomes most comprehensive services approach We negotiations with the aim of as manyseeking to eliminate or minimise barriers across transparency. sectors as possible as well as improving Indeed, Australia’s reputation for clean, green food food for clean, green reputation Indeed, Australia’s it Asia. However, is well known throughout production agriculture the myth that Australia’s may have created In exports than they actually are. in volume greater are fact, the EU exports times the value Australia does four than we do. ten times more around and produces working with like-minded partnersAnother benefit of is on the regulatory both open we are because front: should be much we economies, there and transparent can achieve in the regulatory greater space to provide certainty for businesses, including SMEs, while reducing extent possible. tape to the greatest red We want an outcome in the FTA that will promote that will promote the FTA want an outcome in We flows. The investment two-way investment productive aimed at facilitating are in our FTAs provisions certainty appropriate investment and providing for ability to the Government’s investors while protecting And we should be able in the public interest. regulate given we to achieve this without too much difficulty legal systems. and transparent both possess robust and qualifications. Research & Innovation

1994 Joint Science and Technology Agreement signed, the first of its kind

The other opportunity is in technology and some of those areas… Being able to work together on the technology disruption that 1997 Cooperation in Science and Technology confirmed we’re all facing. We need to work together in Joint Declaration as far as policymaking is concerned, to make sure that as much as possible the transition away from low-skilled and semi- skilled work can be a softer landing for Europeans and Australians and ways we can work together to actually create jobs, 2011 Agreement on peaceful energy use … move into the new environmental areas

- Peter Khalil MP Australian Labor Party

2013 Australian government sets up a research office in Brussels The EU is Australia’s largest science and technology partner.

24 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES

Between 2007-2014 the total investment in projects involving at least one Australian partner was over

Australia was the first country to sign a scientific agreement with the EU.

28% 23% Australian research organisations have a higher rate of success in their applications than non-EU research organisations in total

2563 64 PART II: ISSUES & ANALYSIS RESEARCH & INNOVATION Leadership Forum. Leadership of theEU-Australia Steering Committee the Multi-Stakeholder He isamemberof Trade (2012-2015). Foreign and Affairs ofthe Department of asSecretary served Most recently, he policy andintelligence. in foreign trade affairs, included seniorpositions and spanned 38years career inpublicservice Mr Varghese’s extensive Prior tothisappointment, of University Queensland. is theChancellorof the Peter Varghese AO FAIIA By Peter Varghese voyagesof discovery 21st Century

published research tootherresearchers) for Citation rates(asignalof therelevance of Science Foundationof China. andtheNationalNatural of Health-USA, Foundation, theEU,NationalInstitutes and theEUwere theGerman Research ofmain funders projects involvingAustralia and aheadof CanadaandJapan. Thefour mainlandChinaandSwitzerland, USA, the EU collaboratoroutsidethe–after largest reviews, andAustraliawasthefourth on 73,000peer-reviewed and articles Australian andEUresearchers collaborated During2012-2016 somenumbers. But first, longer piece. Many more examplescouldbe givenina ofbest: TheUniversity Queensland(UQ). examples, takenfrom Iknow theuniversity pieceIwillgiveacoupleof In thisshort outcomes forsociety. knowledge fortranslationintotangible their prospects of developingvaluablenew international collaborationwillimprove submit toariskymaritimeodyssey, but neednot ofModern voyagers discovery naturalist Herman Spöring. naturalist DanielSolanderandFinnish Green, EnglishbotanistJosephBanks,Swedish back toEurope: Englishastronomer Charles of menexpectedtotakenewknowledge includedamultinationalmix its passengers and thensecretly seekTerra AustralisIncognita, thetransitof Venuswith instructionstoobserve Plymouthin1768 When HMSEndeavourleft of businessexpenditure onresearch and business andresearch lowlevels sectors, researchers,university gulliesbetweenthe which includefailingsinreward systemsfor of weaknessesintheinnovationsystem, never realises itssocietalpotentialbecause too muchpromising Australian research However, itiswidelyacknowledged that involving Australiansare inthetop1%. collaboration), where almost18%of papers ecology (apopulararea forAustralia-EU are strong –suchasinenvironment and Rates of inthetop1%bycitation papers contribute to3.9%of allpublications. population, Australia’s researchers accounts forlessthan0.4%of theglobal Australia isthird. AlthoughAustralia Academic Rankingof World Universities, inthetop100ofuniversities theprestigious Based onthenumberof anation’s credentials of appealingcollaborators. Increasingly, Australianresearchers havethe societal rewards. totranslateexcellentresearch into industry have enviabletrackrecords of workingwith decade to2016,andmanyinstitutions the world’s highlycitedpublicationsinthe institutions. EUstatesproduced 42%of from someof theworld’s finestresearch researchers inworkingwithcolleagues There are obviousadvantagesforAustralian 21.3% are inthetop10%bycitation. are inthetop1%of bycitationand allpapers averages, totheextentthat4.2%of papers Australia-EU publicationseasilyexceededworld

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 65

- Professor Andrew Holmes Andrew - Professor Healthcare Partners and Novartis Venture Funds. Funds. Partners and NovartisHealthcare Venture This will support for inflammatory work on a treatment disease and asthma. conditions such as Parkinson’s Australian ingenuity and combination of And a proven northern heft commercial has given many hemisphere accurate and of unwell people prospects millions of all magnetic resonance timely diagnoses. A majority of by UQ signal imaging scanners has been improved arrangements thanks to licensing technology, correction Siemens and General Electric. One of with Germany’s safety the UQ inventors contributed to European also workers are who guidelines for hospital and healthcare fields. exposed to electromagnetic such partnerships, more The challenge is to secure access to the useable outcomes society’s to broaden benefits not only and deliver high-quality research of within collaborating nations but also beyond. The HMS Endeavour’s scientists established a perpetual than 1000 Australian more a collection of legacy through plant and animal specimens, which led to the classification discovery voyagers of - many new species.Today’s of scope innovators and - have unprecedented researchers their national and cultural differences, from to gain strength so as to deliver enduring outcomes for global society. , 11 EU 1 President of the Australian Academy of Science and Melbourne Laureate Professor Emeritus Professor Laureate Melbourne Science and of the Australian Academy of President the UK historically and as we’re doing with China and India doing with China and and as we’re the UK historically The 25 Top Global Innovators: Government by Clarivate Analytics and Reuters News, published in March 2017 Global Innovators: by Clarivate Analytics and Reuters Government News, published in March The 25 Top What I would like to see change is a much deeper awareness, really really a much deeper awareness, like to see change is What I would throwing our lot in with the EU as we do with the US, as we did with as we do with the US, our lot in with the EU throwing A recent notable transaction involves Inflazome, a transaction involves Inflazome, a notable A recent by UQ Dublin-based company founded on research College Dublin. It attracted up to €15 and Trinity Dublin-based Fountain million in Series A funding from I am told that researchers and university commercialisation I am told that researchers UniQuest, seek European companies, such as UQ’s partners capital, commercial key reasons: for three expertise, and market access. It also factors that patents the EU jurisdiction apply across filed in one European UK), and in the post-Brexit (this is expected to endure intellectual property whereby has a culture that Europe respected. rights are organisations make the grade. organisations 1 Whereas Australia is a laggard for business investment Australia is a laggard Whereas in innovation, the EU can claim one-quarter the of in research top 2000 businesses for investment world’s institution, one Australian and development. Whereas the appears index of in a newly-published the CSIRO, organisations 25 most innovative government This is where Australian research institutions can learn institutions can learn Australian research This is where ways that will help this country the EU, in plenty from Innovation and the National the ambitions of realise the world benefits from Science Agenda and ensure Australian discoveries. more development, difficulties accessing early-stage capital, development, difficulties accessing early-stage and a small domestic market. 66 PART II: ISSUES & ANALYSIS RESEARCH & INNOVATION 1 Institute of Technology. at theRoyalMelbourne European UnionCentre is theDirector of the Professor BruceWilson By BruceWilson European Union-Australia:shared interests ininnovation? European Commission’s KnowledgeforGrowth: Prospects forScience,Technology andInnovation,publishedin2009 a criticalresource forgrowth approach to ensure thatknowledgebecame a group of economiststoadviseonan responded tothissituationbyconvening The EUCommissionerforResearch than intheUnitedStates. development intheEUwas30percentless crisis, businessinvestmentinresearch and in themid-2000s,evenbefore thefinancial collaboration.Similarly,business-university ranking amongstOECDmemberstatesfor have becomepainfullyaware of ourlow as theUnitedStatesandJapan. Australians especially incomparisonwithnationssuch hasbeenaseriousproblem, with industry intellectual resource and linkingiteffectively quality of theirscience;however, takingthis and Australiaare recognised widelyforthe (NISA) inDecember2015.BoththeEU National InnovationandScienceAgenda ideas’ in2009,before adoptinganew Australia announceditselfas‘powering itself tobethe‘InnovationUnion’, while this approach. In2011,theEUproclaimed (EU) andAustraliahavebothadopted emerging worldorder. TheEuropean Union their readiness forthechallengesof the innovation asakeymeansof improving have putapriorityonpoliciestopromote becoming more intense,manynations In aworldwhere globalcompetitionis quickly becamemuchlarger, revealing amore of European science. However, theagenda how tomaximisethecommercial benefits 1 :specifically,

to besuccessfulinglobalmarkets. assets withinaregion thathadthepotential regional businessesof thoseknowledge needed tobefocusedonapplicationby that EUregional structuralfundinvestments Value Chains(GVCs), withtheconclusion systems andtheevolvingcharacterof Global experience of place-basedinnovation examinedboththeEuropean working party regional innovationsystems.TheEU-OECD initiatives across theEU,andpromoting development activity, reducing fragmented on processes forincreasing research and order tofocusEuropean regional authorities A newpolicyframeworkwasdevelopedin Cooperation andDevelopment(OECD). with theOrganisation forEconomic group extendedquicklyintocollaboration The initialworkof theEU’s science-business require stronger collaboration. The seriousnessof these challengeswould economic butalsosocialandenvironmental. broad rangeof globalchallenges,notonly allow Europe tosuccessfullyrespond tothe system of research andinnovationwould challenges. Onlyaneffectiveandefficient a policyresponse tourgent andglobal it becameaquestionof howtostructure general conditionsforR&Dandinnovation, complex issue:muchmore thanimproving

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 67 shaped by the emerging global opportunities.shaped by the emerging Focusing (scientific and technological, knowledge assets regional global niche markets as well as applied) on emerging the EU’s is a key objective of (specialised ‘diversification’) smart This is an engaged planning specialisation process. minded which brings together entrepreneurially process and with business, academic public sector officials community participants (knowledge) to examine local assets and identify new opportunities in restructured value chains. The Australian NISA, on the other hand, focuses on and capital; collaboration; talent ad four pillars: culture These initiatives as an exemplar. skills; and Government sought to develop a national innovation system which new ideas, of focused on commercialisation was more partnerships of and strengthening between industry a framework for and business. The new policy provided supportnew Government new funding to to promote support for and the investment required collaboration new enterprises to establish themselves. going to Europe going to 250 Australians 250 Australians spending time in Australia and more than in Australia and more spending time 500 staff from Europe Europe from 500 staff

have supportedstaff have projects 71 research exchange ‘Smart to analyse their core specialisation’ asks regions assets, specifically those in which they have a comparative advantage, and seek new market opportunities which dispersed and flexible global value the more from result place-based innovation becomes chains. In other words, This was a dramatic shift for the EU, and in significant in Australia. Hence for 2014- contrast to the approach and innovation funding was consolidated 20, research public funding program as Horizon 2020, the largest in the world, with new emphasis on university-industry put Regional Policy the EU’s partnerships. However, innovation. ‘Smart on regional the focus squarely policy approach, specialisation’ was central to the new its importance in the condition that a Smart reflected for a region Specialisation Strategy be adopted in order to qualifythe structural innovation component of for Regional Development Fund. This ex the European ante conditionality was very than effective in that more and national Regional Innovation Smart200 regional generated in the Specialisation Strategies (RIS3) were (see the S3 Platform, the program first 18 months of http://s3platform.jrc.ec.europa.eu/). Greater collaboration could be made in the scientific field,

RESEARCH & INNOVATION & INNOVATION RESEARCH where Europe is in many areas at the cutting edge of technical and scientific advances. I think Australia and the EU should continue that collaboration, should improve on it

- Joseph Caputo President, Federation of Ethnic Communities’ Councils of Australia PART II: ISSUES & ANALYSIS PART

68 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 69

There is a clear role for government to to for government is a clear role There markets by access to foreign improve trade arrangements and negotiating free simplifying export It also procedures. managers and a global mindset of requires distance”. the “tyranny of moving away from industry. creative Australia’s for example Take Despite Australia occupying top 10 positions human capital infrastructure, of in terms exports creative of and online creativity, goods and services less than consist of fashion our total trade. If European 1% of and banks such as Rabobank can retailers set up successful businesses in Australia, being from what is stopping Australian firms or Asia? successful in Europe openness The benefits of not only leads to newInternationalisation and services,markets for your products to new insights that it also exposes firms innovation. Our own stimulate more using external shows that firms research innovative. more are knowledge sources for the Australian Centre from Research shows this is Research Entrepreneurship most helpful for young firms.

Prime Minister Malcolm Turnbull’s innovation agenda innovation is Malcolm Turnbull’s Prime Minister Labor and again afterbeing questioned the Coalition both tax incentive. R&D Australia’s cuts to make to agreed Investors say the tax incentive is critical in encouraging startups to channel funds into international Yet, innovative technology. comparisons consistently show Australia it has does not have an innovation problem, problem. an internationalisation The top ten R&D spenders globally each R&D. invest about A$10 billion per year on only active Imagine if these companies were been in the Australian market. It would have level the same impossible for them to reach shows companies innovation. Research of more are internationalised more who are innovative and perform better. Global Innovation Index released The recently Report shows that winning at innovation joining the global marketplace to requires servicesfind new users for your products, and technologies and to gain knowledge helping you to further innovate. narrow Too small market, so Australia is a relatively any innovation depends on from profiting the Enabling markets. Yet, international Report ranks Australia 134 out of Trade access to foreign of 138 nations in terms markets. The ABS estimates only 7% of Australian businesses is active overseas.

not an innovation and R&D problem and R&D not an innovation is senior Henri Burgers in strategy lecturer and innovation at the Queensland University Technology. of is Glavas Charmaine Business International at the Lecturer Queensland University Technology. of By Henri Burgers and Charmaine Glavas and Charmaine By Henri Burgers Australia has an internationalisation, an internationalisation, Australia has 70 PART II: ISSUES & ANALYSIS RESEARCH & INNOVATION years tobuildupanewlineofyears business. is notimetowaste,givenittakesaboutseventen technological skillsandinnovativepotential.Andthere and mininginwhichtheycanleveragetheirexcellent Theyshouldseekmarketsoutside Australia customers. thinkingbeyondtheir coal, METS-firms needtostart societal pressure tomoveawayfrom resources suchas technology drivenMETSsector. Withincreasing innovative, thankstoavery world, notintheleastpart among thesafest,mostefficient,andsustainablein the samethreat. MiningoperationsinAustraliaare would dowelltolearn from thatexample,astheyface Technology-based firms supplyingourminingfirms BMW Mini,allinthesamefactory. Volvos andfrom MitsubishiSUVs toSmarts tothe contract manufacturer producing rangingfrom cars the lastDutchcarmanufacturer becameanagile Compare thattoNedcar, thedemiseof whichafter response tothedemiseof localcarmanufacturing. about 75%of wouldfailin theautomotive suppliers disappeared. Professor GoranRoosestimatedthat andthenthecarmanufacturers automotive industry intheSouth Australiahadworld-classsuppliers clients disappeared. those wouldbeinsignificanttrouble ifoneof their on asmallnumberof andthemajorityof customers More thanhalf(56%)of Australianbusinessesare reliant Stop relying onyour customers currently findingitswaytoAustralia. of foreign direct investmentinbusinessesandR&D is keytodeveloppoliciesimprove thelowlevels for Australianfirms lookingtoinnovateandgrow, it Given lackof fundsisthemostfrequently citedbarrier aspercentage140 interms of of imports GDP. It currently ranks134outof knowledge. and capital, products, continue toopenupitsborders toforeign To gainaccesstosuchknowledgeAustraliamust

more competitive,successfulandrobust inthelongerterm. approach tointernationalisation willmakecompanies expansion, withlimitedresources. Taking aproactive toreap thebenefitsofopportunity international on aglobalscale,micro andsmallbusinesshavethe Internationalisation nolongerdenoteslarger enterprise assist firms inacceleratinginternational marketexpansion. improve overallbusinessefficiencyandcantherefore programming. Thesetechnologicaladvancements tasks, toweighingcompetitivedatawithoutcomplex from theabilitytodelegateroutine andnon-routine up work-flow processes, reduce costs,space and time; can beadaptedtoaninfinitenumberof taskstospeed advantage of robotic integration.Thesedays,robotics powerhouses. Smallbusinessesare already taking forlarge manufacturingRobotics are nolongerreserved increase production speedandlocalcustomisation. of “speed whichwill factories”inGermany andtheUSA, Adidas forexamplerecently announcedtheconstruction than manufacturinginlowlabourcostcountries. in developedcountriesforapriceequaltoorlower internationalisation byallowingbusinessestoproduce Robotics israpidlybecomingagamechangerfor to change. the Australiancostdisadvantage.Thismaybeabout keyobstacletocompetingontheglobalmarketis weoften hearthatthe When wetalktomanagers A criticalrole forrobotics This article originallyappeared inTheConversation. This article

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 71

2012 published papers were affiliated with affiliated 2012 published papers were non-UK institutions. internationally the more Unsurprisingly, significantly are collaborative researchers those researchers than productive more more who stayed at home and were focused. inwardly academic staff in UK About 28% of more non-UK citizens. Again, universities are the EU. from these are than half of the UK ramps as has been suggested, If, on mobility and work up restrictions entitlements, it is possible that many of will choose or be forced these researchers to leave. very Britain has been a significantUntil now, funds. net beneficiary EU research of €8.8 billion funding an estimated It received an of between 2007-2013 on the strength estimated €5.4 billion contribution. This made it the second most successful nation behind Germany. Looking forward, it is estimated that UK each could be £1 billion worse off research the decision to year as a consequence of leave the EU. the horizon Beyond The most significant impact could potentially funded programs be felt by research 2020 program. the Horizon through and This 30-year collaborative research innovation framework is by far the largest

The potential disruption that it may cause toThe potential disruption that it may cause collaborative research the many international UK is something involving the programs could scientific community the international certainly have done without. negotiations take, the Brexit Whatever form and however long the timeline, the disruption causes still so if Brexit It will be more is real. wider political and economic instability. Aftershocks in Australia will likely be some aftershocksThere felt too for some considerable time given here the extent that Australian researchers with bothengage in collaborative programs Europe. of the UK and the rest among are Firstly UK researchers some facts. collaborative in thethe most internationally 120,000 roughly the 60% of world. Around articles research by published each year with co-authored UK-based authors are than half of collaborators.international More in the EU. these are to the 2013 reportAccording on International the UK of Comparative Performance UK than 70% of more Base, Research between 1996 and working researchers Nobody can yet predict exactly what exactly what Nobody can yet predict be now the United the ramifications will to leave the European Kingdom has voted commentatorsUnion but UK science are Mark 2 – a Brexit foreshadowing already researchers. Brain Exit of uncertainty. incredible has created Brexit

Andrew Holmes AC AC Holmes Andrew the of is President Australian Academy of Science and Laureate Emeritus at the Professor Melbourne University of Cheryl Professor Praeger is Mathematics andof Statistics at the University Australia Western of Les Field is Secretary at the for Science Policy Australian Academy Science, and Senior of Deputy Vice-Chancellor New the University of of South Wales. By Andrew Holmes, Cheryl Holmes, By Andrew & Les Field Praeger What now for Australian research in a post-Brexit world? in a post-Brexit for Australian research What now 72 PART II: ISSUES & ANALYSIS RESEARCH & INNOVATION Switzerland andIsraelhavenegotiated becauseAustraliaismissingout. in European programmes. Myownaspirationwouldbeatthe levelthat We of wouldliketogettheendorsement government… enablingparticipation go wellbeyondthecurrent frameworkandseethisturned intoaction. We wouldliketohaveamuchgreater linkwiththeEU.We wouldliketo and facesignificantfeeincreases tostudyintheUK. might nowbecategorisedas“international” students workforce. There are concerns thatthesestudents of asignificantproportion theresearchin theUK, research studentsfrom EUmembernationsstudying We shouldalsonotethatthere are large of numbers Potential benefitsforAustralia collaborations intheUK. research andresearch fundingisleveragedthrough Accordingly, muchof Australia’s accesstoEuropean But projects are notautomaticallyeligibleforfunding. as anon-associatedindustrialisedthird country. inHorizon2020projects Australia mayparticipate program mayneednegotiation. the UK’s case,continuedaccesstotheHorizon2020 is conditionaluponthefree movementof people.In eligibility toapplyforHorizon2020funding, havenegotiatedWhile somenon-EUmembers associated nations. would flowtoresearchers in EUmemberstatesand runs from 2014-2020,anestimated€80billionfunding largest intheworld.Incurrent fundingcyclethat research fundingmechanisminEurope, andoneof the President of theAustralian Academyof ScienceandMelbourne Laureate Professor Emeritus

including Asia,EasttheAmericasandEU. countriesinregions collaborations withavarietyof partner the expansionof Australia’s bilateralandmultilateral The AustralianAcademyof Scienceisrecommending forAustralia. provide newopportunities of of thatrestriction theEU. Thelifting part maywell resources, collaborationsandsoonforthosewhowere meant thatthere waspreferential accesstopositions, ofof theEUhasoften theworld.HavingUKaspart The UKwillnowbepotentiallymore opentotherest Australian researchers. forEurope mayactuallyprovide newopportunities the UK.ItispossiblethatUKdecisiontoleave There are strong naturallinksbetweenAustraliaand European students. as alternative English-languagestudyoptions for Australia, theUnitedStatesandCanadawillallbenefit students, itislikelythathighereducationinstitutionsin more expensivedestinationforEuropean research If thisdoestakeplaceandtheUKbecomea This article originallyappeared inTheConversation. This article - Professor Andrew Holmes

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 73

to 18 projects from has grown in EU research programmes programmes in EU research Since 1994, Australian participation 1994, Australian Since Climate, Energy & Environment

1994 EU and Australia sign a Science and Technology Agreement, including environment as an area of cooperation

The EU is so much more advanced in its thinking on building sustainability 1997 Environmental protection cited as a common goal in Joint Declaration on into the business model of Relations between Australia and the European Union a business than we are…. Sustainability in businesses is about your core business… The EU has much more leadership in this area 2004 Environment identified as high priority - Kelly O’Shanassy area in the Agenda for Cooperation Chief Executive Officer of the Australian Conservation Foundation

2008 EU-Australia Partnership Framework signed, including High Level Dialogue on the Environment

24 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES

As of 30 August 2016 Australia was involved in 3 collaborative projects in Environment and Climate Change out of 27 collaborative projects totally in all Horizon 2020 Programmes (11.1%).

Total amount of grants awarded for those projects is €28.91m (14.7% of total)

From 1994-2013

Australia participated in 44 collaboration projects under Environment and Climate Change subject area programmes

2575 76 PART II: ISSUES & ANALYSIS CLIMATE, ENERGY & ENVIRONMENT Forum. EU-Australia Leadership Committee of the Stakeholder Steering is amemberof theMulti- Finance Corporation.She Chair of theCleanEnergy Jillian Broadbent AO is By JillianBroadbent Clean energy investment electricity hasincreased significantly. to amarket-based system,thepriceof take upof renewable energy andthemove generation anddistribution,theexpanded Withtheprivatisationofyears. energy combination of overthelast10 factors has nowsignificantlyeroded through a The competitiveadvantageweoncehad Australia. Thesecontractsare nowmaturing. were secured fordomesticgasinWestern West Shelf,North longterm contracts inAustralia’sdevelopment of gasreserves and In addition,withthediscovery and manufacturingtotheirindividualstates. priced powercontractstoattractinvestment Wales offered inparticular long-term, low State-owned utilitiesinVictoriaandNewSouth competitive advantageforAustralia. has meantthatcheapenergy hasbeena For manydecades,thisenergy abundance value. export comprisingover20%of thetotal exports, being thevastmajorityof ourenergy coal, liquidnaturalgas(LNG)anduranium, of energyexporter resources, withblack solar, wind,waveandbioenergy. Itisanet coal andgas),renewables, including resources across fossilfuels(principally Australia hasanabundanceof energy Australia’sUnderstanding Energy Context

these three outcomesfortheenergy system. address thetrade-offs involvedinachieving of measures to This hasimpededthedelivery reliable andsustainableenergy system. process towards thegoalof anaffordable, investmentandadjustment the necessary policyhasslowed from anationalbipartisan politicised.Themove system hasbecomevery emissions reduction andthepowergeneration In Australia,thedebateonenvironment, gas hasbeendirected toLNGexports. Australia’s newly discovered anddeveloped has increased accordingly. Thebulkof gas hasconsequentlygrown anditsprice emitting fossilfuel.Theglobaldemandfor Gas hasbeengloballyrecognised asalower of distributed energy. globally, andtheincrease inthe generation changing market,bothdomesticallyand inception, ithasbeenslowtoadjustthe and effectiveness.Whileappropriate atits acknowledged foritssoundprincipals infrastructure waswidelyregulatory (NEM). Thesystemandinstitutional to managetheNationalElectricityMarket regulated marketsystemwasestablished With privatisationinEastern Australia,a

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 77

its and a catalyst for transforming as intended role investment. energy encouraging clean expertise European Leveraging the investment portfolio 50% of Under the CEFC Act, meet this To energy. renewable to be in is required role the CEFC continues to play a critical requirement, energy renewable construction of in accelerating the million in commitments to in Australia – with $786 and a further solar projects, small and large-scale $543 Several large-scale million committed to wind projects. the have benefited from projects energy renewable developers, technologies European-based experience of and financiers, Fotowatio Renewable Ventures including: Construction (Spain); ENGIE, Neoen, and Bouygues Landesbank Girozentrale (France); Norddeutsche EKF (Denmark). and (NORD/LB (Germany); earliest investments was a $20 the CEFC’s One of Clean Carnegie million commitment to Australia’s Energy Wave Carnegie Limited (formerly Energy is the only company in the world Limited). Carnegie wind, storage wave, solar, of a combination to offer ideally which are and desalination via microgrids grid communities and fringe of suited to islands, off pleased to see the company were grid locations. We the European finance from subsequently receive Regional Development Fund to support the first stage south west England. Hub facility in Cornwall, its Wave of the future Towards on Having demonstrated a good track record investment performance and leveraging private capital, an effective policy tool. the CEFC is proving is using this to adapt and decarbonizeThe government system and to meet the energy future Australia’s target. emission reduction Australia’s challenge of Since the CEFC began investing, we have financed Since the CEFC began investing, we have financed many ‘firsts’ the Australian market, reflecting in In just four years, the CEFC has made commitments of In just four years, the CEFC has made commitments of with mobilising finance for projects than $3.5 billion, more principally $10 billion. Investments are a total value of generation – particularly energy in renewable solar and manufacturing, across efficiency, wind – as well as energy and small businesses, with a strong buildings commercial take up in the agricultural sector. This commercial approach and the positive return on and the positive return approach This commercial its portfolio,investment enables the CEFC, as it builds cost to cover its operating costs and the Government’s the public funds. This has allowed the achievement of of policy outcome at minimal cost. As a policy tool, through direct investment and co- investment direct As a policy tool, through the CEFC has supported investment programs, financing at a time when reduction and emissions in clean energy to commit and private capital has been less ready too conservative to invest in new technologies, their invests development and adoption. The Corporation filter into Australian based projects with a commercial catalysing private and companies with the purpose of sector funds into the sector. The role of the CEFC of The role billion fund established under an The CEFC is a $10 increasing for the purpose of in 2012 Parliament Act of sector. into the clean energy investment the flow of equity investment by a direct It is funded through this equity from with costs and returns Government, Annual Budget. Government’s picked up in the Federal the frames the function of While the CEFC Act the Government from corporation, specific directives adjustments in its made through to the CEFC are Investment Mandate. 78 PART II: ISSUES & ANALYSIS CLIMATE, ENERGY & ENVIRONMENT largest area the 2nd Climate Changeis Environment and (by funding). in thecurrent EUresearch program of Australia’s international collaboration THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 79 domestic product (GDP) by between 1.0% domestic product and 3.3% by 2060. change climate Harnessing synergies: risk reduction action and disaster to extreme exposure Globally increasing climatic events and disasters highlights between synergies the need to harness ongoing climate change mitigation, (DRR) adaptation and disaster risk reduction efforts. for Disaster The Sendai Framework Risk Reduction (SFDRR) is the principal to guide DRR effortsglobal treaty across and 187 UN Member States between 2015 focus 2030. The SFDRR places a strong on health and aims to achieve substantial the in global disaster mortality, reductions people affected (by injurynumber of or losses, economic illness), disaster-related damage to critical (health) infrastructure, basic (health) services.and disruption of an The SFDRR implementation reflects important shift — away from in approach disaster impacts, and towards addressing disaster risks managing and reducing deeply with climate — which resonates and which has change mitigation policy, practical implications for the way in which disaster societies understand and address varied sectors and health risks across domains. Ongoing SFDRR implementation and national levels regional at European opportunities vital learning presents to http://dx.doi.org/10.1787/9789264235410-en

. 1

indicate that in 2 the absence of furtherthe absence of climate action, the climate change economic consequences of will outpace global economic growth, adversely global annual gross affecting Climate change impacts and and impacts change Climate health risks to November 2016 In September and Union (EU) the European respectively, and Australia ratified the latest global on climate change, the Paris treaty both parties In doing so, Agreement. climate change committed to addressing the action to reduce and taking strong economic, potentially irreversible risks of and social impacts. environmental The commitment is timely; climate change being felt and will already impacts are be exacerbated as the global average rises, disproportionatelytemperature affecting vulnerable populations such and the elderly. as children climate of projections Medium-term impacts including significant change predict and duration, frequency, increased weather events such extreme severity of Health as heatwaves and floods. The World estimates that between 2030 Organization and 2050, an additional 250,000 deaths annually will be attributable to climate malnutrition, change, primarily from malaria, diarrhoea and heat stress Recent OECD estimates

WHO (2014), Quantitative risk assessment of the effects of climate change on selected causes of death, 2030s and 2050s, World Health Organization, Geneva. Health Organization, 2030s and 2050s, World death, causes of climate change on selected the effects of WHO (2014), Quantitative risk assessment of Climate Change, OECD Publishing, Paris. OECD (2015), The Economic Consequences of

1 2 Dr Lennart Reifels is a at the Fellow Research Melbourne, University of Fellow Visiting Research University at the Free Berlin, and recipient of an EU Scholar in of Residence award the EU Centre from Complex on Shared Challenges, whose work examined recent the implementation of the Sendai Framework for Disaster Risk Reduction in Europe. is Annabelle Workman a PhD candidate at the on Shared EU Centre Complex Challenge at The University of exploring Melbourne, health in the of the role national development of mitigation change climate policies. risk to reap health benefits health risk to reap By Lennart and Annabelle Workman Reifels Addressing climate change and reducing disaster disaster and reducing climate change Addressing 80 PART II: ISSUES & ANALYSIS CLIMATE, ENERGY & ENVIRONMENT Plan implementing theObamaAdministration’s CleanPower Environmental Protection Agencyestimatedthat emissions reduction. Forexample,theUnitedStates the (health)benefitsthatresult from greenhouse gas labour productivity. directly impacttheirbottomlines,forexample,through thatclimatechangecan demonstrate toindustry simultaneously resonate withthepublicandtangibly a practicalandlogicalresponse. These‘win-win’policies ambitious androbust climatechangepoliciesbecomes issue of climatechange,committingtoincreasingly totacklethelonger-termthat result from efforts term, localisedhealthco-benefitsof emissionsreduction Accordingly, whengovernments considertheshorter- billion in2030alone. accumulating toeconomicsavingsof uptoUS$54 and upto300,000fewermissedschoolworkdays, deaths, upto90,000fewerasthmaattacksinchildren, 2 1 change, methods the potentialbenefitstohealthfrom avoidedclimate health outcomes.Whileitcanbedifficulttoquantify environmental andsocialimpactsenhancelocal reduce theriskof domesticandregional economic, shorter-term existtoFurthermore, opportunities Australia andtheAsia-Pacific. climatic eventsandassociatedhealthimpactsin strategies withaviewtoreduce theriskof extreme inform effectiveDRRandclimatechangeadaptation percent across the country by 2030. As at 20 April 2017, further information isavailableat by2030.Asat20April2017,further percent across thecountry The CleanPower introduced Planwasanationalinitiative bytheObamaAdministrationtoreduce carbondioxide emissionsfrom powergenerationby32 climatechange/social-cost-carbon See, forexample,thesocialcostof StatesEnvironmental carbonmethodologyhistoricallyused bytheUnited Protection Agency:https://www.epa.gov/ 2 wouldresult inupto3,600fewerpremature 1 havebeendevelopedtoestimate interests andeconomicprogress. Paris Agreement, withoutunnecessarilycompromising to emissionsreduction targets, asrequired underthe increasingly ambitiouscommitments by supporting benefits of climateactionanddisasterriskreduction into policyinfuture willallowbothParties toreap the Continuing tomeaningfullyincorporatesocialcosts global climateanddisasterriskreduction policies. indemonstratingstrong in leadership their efforts in favourablepositionscollaborativelytocontinue address climatechange.TheEUandAustraliaare both development andacommitmenttoadequately that encompassescommonvaluesaround sustainable The EUandAustraliashare astrong bilateralrelationship disaster riskreduction policies Future directions: creating optimalclimate and https://www.epa.gov/cleanpowerplan THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 81

Fraser Cameron Director, EU-Asia Centre Director, I think that the relationship we can build onI think that the relationship that’s what we need going forward - new ideas. that’s between academics and thinktanks is one that canbetween academics and thinktanks is one that bring new ideas to the [EU-Australia] relationship andbring new ideas to the [EU-Australia] relationship Migration & Society Youth & Education

1997 Education identified as a priority in the Joint Declaration There’s a real challenge in the refugee flows into Europe and associated 2002 European Convention on the migration issues, which is a problem for Recognition of Qualifications us as well. We should be working with ratified by Australia. The European convention was inspired by the 1995 Europe because this is a global problem. Australian Qualifications Framework With 22 million people in UNHCR camps around the world, there needs to be an international response. 2003 Agenda for Cooperation agreed - Peter Khalil MP to intensify exchanges between EU Australian Labor Party and Australia

2004 Start of Australia’s involvement in Erasmus Mundus Since 2004 there have been:

Number of Australian 2007 Joint Declaration on Cooperation students in Erasmus in Education and Training Mundus Masters courses

Number of Australian candidates in Erasmus Mundus Scholars programmes 2008 EU Australia Partnership Framework

Number of Australian candidates in Erasmus Mundus Joint Doctorates

2009 EU-Australia Policy Dialogue on Education established

24 THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES

5 EU Centres operate in Australia.

2 1

2 They encourage greater awareness and knowledge of EU institutions & policies through research, outreach and academic links.

From 2007-2013

19 Australian higher education institutions and 3 skills training providers participated in about half of all EU education projects with non-EU industrialised countries In 2015-16 Australia granted more than There were more than 43,000 International Students from EU coutries studying in Australia in 2016

2583 84 PART II: ISSUES & ANALYSIS MIGRATION & SOCIETY YOUTH & EDUCATION is publishedbyRoutledge Identity Troubles (2016), His mostrecent book, languages worldwide. translated inover12 editor of over40books, He istheauthorand Cultural Transformations. Mobilities, Migrationsand Hawke EUCentre for Executive Director of the Australia, where heis ofUniversity South Engagement atthe is Deanof External Professor AnthonyElliott By AnthonyElliott and theEUatedgeof history Migration, mobilityandglobalisation:Australia Lebanon 1millionandEthiopia742,000 2.8 millionrefugees, Pakistan 1.6million, countries –asof mid-2016Turkey hosted are mosturgently feltbyneighbouring While theeffectsof theserefugee emergencies and Somalia(1.1million). 2016), alongwithAfghanistan(2.7million) forrefugees (5.3million asof mid- country Syria, whichremains themainsource Over halfof allnewrefugees camefrom displaced, including1.5millionrefugees. 3.2millionpeople forcibly with afurther halfofIn thefirst 2016thistrend continued, refugees, and3.2millionasylumseekers. 12 months.Ofthese21.3millionwere rose from 59.5millionto65.3in of forcibly displacedpeopleworldwide UNHCR GlobalTrends thenumber report, Accordingdisplaced persons. tothe2015 of refugees asylum seekers, andother enforced mobilityof ever-growing numbers expensive citiesof theWest is,however, the chosen mobilitythroughout thepolished, The flipsideof suchacceleratedandfreely- trillion annuallyworldwide. and tourism–generatinginexcessof US$8 largest businessontheplanetisthatof travel 3 billioninternational flightarrivals,andthe human history. 2016witnessedmore than more frequently thananytimepreviously in are arguably travellingfurther, fasterand womenandmen before. Contemporary century, peopleare ‘on themove’asnever In theseearlydecadesof thetwenty-first

migration –bothenforced andfreely-chosen. rise, inotherwords, tonewwaysof ‘doing’ The adventof digitaltechnologieshasgiven EU countrieswere responding tothecrisis. to checkonhowtheauthoritiesindifferent enroute,other familymembers and even to navigatetheirjourneys, tosendtexts Europe, for example,usedsmartphones fleeing from Syria,IraqandAfghanistaninto enforced migration.Manyof themigrants evident inthetransformed landscapeof andthisisespecially for almosteveryone, The digitalrevolution hasanuprooting effect previously unimaginable. at-a-distanceconnected toothers in ways new information technologiesmeanweare time of instantaneouscommunications,where But whathaschangedisthatwenowliveina there’s nothingnewaboutenforced migration. digital technologies.Nowwecanagree that concerns technology,The first especiallynew I wanttohighlighttwomajordifferences. and thosethathaveoccurred inthepast. forcible displacements between contemporary recognise significantqualitativedifferences to without precedent, itisequallyimportant While thesheerscaleof thecurrent crisisis Germany alonereceiving 441,900 claims. million claimsforasylumacross Europe, with For example,2015witnessedover1.3 beyond theimmediateemergency zones. impactingwell - theyare nevertheless

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 85

working holiday visas working holiday visas to EU Citizens 195,000 195,000 seen as part of a growing field of study — its leading field of seen as part a growing of Barrytheorists include, in addition to Urry, Tim Wellman, and Nigel Thrift is unique what Cresswell — which probes about the contemporary the prism social world through Whilst the “mobilities paradigm” has been ‘mobilities’. of movement in general, the aim with issues of concerned Mobile Lives was to demonstrate that the development of various mobility systems has bearing on the way in of constituted and transformed. which our lives are the deepest links between the Mobilities restructure personal and the global, selfhood and society – discernible or in everything budget air-travel discount the rise of from contract workers fly-in fly-out to of the wholesale spread migration arising from the veritable explosion in enforced the globe across political conflicts in various hot-spots only new forms this, mobilities generate not In all of today. but also self-identity, and modes of self-experience of social deprivation and exclusion. of new kinds related the complexity of The mobilities paradigm captures advanced globalisation, and migration in our age of the political importanceunderscores seeking to of transcend what Slavoj Zizek has called “the double crisis. As the Australian the refugee blackmail” of Operation continues to pursueGovernment its policy of and the EU advances Global Borders, Sovereign and migration, the mobilities Compacts on refugees paradigm serves alternative are to highlight that there strategies. way” political “third granted more than granted more Australia Australia In 2015-16

Mobilities have been, among other things, a way of Mobilities have been, among other things, a way of migration about changes at the level of thinking afresh In Mobile Lives (2010), I joined with the British sociologist John Urry to investigate what it means to live a ‘mobile This work can be life’ at the start the 21st century. of Identifying those challenges is what our research teams Identifying research those challenges is what our for Mobilities, Migrations and at the Hawke EU Centre through have sought to address, Cultural Transformations and EU-focussed research, programs cultural outreach designed to build understanding and including projects chosen mobilities (travel, freely about the intersections of transport migration (refugees and tourism) and enforced and asylum seekers). I think the term ‘interculturalism’ is perhaps better for is perhaps better ‘interculturalism’ I think the term chosen movement and freely grasping the interplay of globe – and the migrations occurring across enforced the major challenges the world faces in fostering of within cities, regions interaction between cultural groups and indeed on the global level. revolution also spell significant problems for for also spell significant problems revolution multiculturalism took root multiculturalism. The idea of the levels it has attained globalisation reached before tend to assume multiculturalism of Proponents today. boundaries, and are have clear-cut that ethnic cultures so in a worldunchanging over time, but this is no longer super-diversity. of The combined forces of globalisation and the digital of The combined forces Secondly, this also underscores that migration is also underscores this Secondly, in fact global. issue, but is no longer just a regional what happens on the Thanks to globalisation, is no longer ‘elsewhere’ the planet other side of as Globalisation, but ‘inside’ or ‘internal’. or ‘other’ is a “runaway Anthony Giddens has argued, Lord mixed opportunitiesworld” of and risks, a world of pushing nation-statesintensive experimentalism history. beyond the edge of 86 PART II: ISSUES & ANALYSIS MIGRATION & SOCIETY YOUTH & EDUCATION Leadership Forum Leadership of theEU-Australia andTeamAffairs Leader Institute of International Director of theAustralian is NationalExecutive Melissa ConleyTyler By MelissaConleyTyler But notbylisteningtoAbbott Europe canlearn from Australia’s border policy. people smugglers’ businessmodel.people smugglers’ stopping theboatsthrough disrupting It istruethatAustraliahashadsuccessin arrivals andtheprohibitive expenseinvolved. people movementsduetothenumberof able touseAustralia’s techniquestostop The reality isthatmostcountrieswon’tbe Costs too much should take. Instead, here are thethree lessonsEuropeans to takefrom theAustralianexperience. Unfortunately, thisisthewrong message had been,theytoocould“stop theboats”. ifonlytheywere astoughhe was clear: Tony Abbott’s messagetoEuropean leaders as drawinginspirationfrom Australia. acrossothers Europe havebeenreported Australia’s migrationpolicyasamodel and leader NigelFarage hasapproved of audience: retiring UKIndependenceParty His words wouldhavefoundareceptive time couldbecome“anexistentialchallenge”. look of a“peacefulinvasion”thatcouldover Europe’s current migrationcrisisashavingthe Reformists inPrague,hecharacterisedthe and Alliance of European Conservatives in controlling itsborders. Speakingtothe why theyshouldheedAustralia’s success been explainingtoEuropean conservatives Former primeministerTony Abbotthas

Australia’s relationships. mostimportant migration havecreated frictioninoneof power Indonesiawhere issuesaround neo-colonialism and,crucially, withrising New Guineawhere Australiaisaccusedof withNauruandPapua affected, particularly international relationships havebeen costs related tothispolicy. Australia’s mentioningthenon-fiscal It isalsoworth toMaythisyearalone. 200,000 inJanuary emulate withmigrationflowsof more than 2,000 people.ThisisnotamodeltheEUcan year onoffshore processing forfewerthan Nauru. Australiaspendsmore than$1bnper per yearforholdingonManusIslandand detailsacostof report $573,111perperson This week’s AustralianNationalAudit Office Per capita,thefinancialcostisenormous. have lowrefugee numbers. attempted bytherichestof countrieswhich in mostothercountries.Itcanonlybe However, Australia’s successisnotreplicable policy settings. influence thenumberof arrivalsthrough Australia hasshownthatgovernment can arrivals willneverberesettled inAustralia. New Guineabasedonapolicythatboat of detentioncentres inNauruandPapua Indonesia, offshore processing andtheuse This hasinvolvedturning backboatsto THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 87

Australian residents were were Australian residents countries in European born More than More 2 million countries in the world where children of migrants score score migrants of children countries in the world where non-migrants. of better at school than children the economic benefits of Australia has reaped George history, Australia’s migration. Tracing to economic growth Megalogenis links periods of times when Australia was open to migration. drew Malcolm Turnbull, prime minister, The current this lesson: “openness and multiculturalism based on the most what has defined most of is mutual respect successful societies in the world”. worryWhen Europeans of about the impossibility cultural or religious those with different integration of Australia is a salutarybackgrounds, case study of what is possible. largest largest The EU forms the forms The EU residents in Australia residents group of overseas-born of group This is a dramatic change and results have been broadly have been broadly This is a dramatic change and results only three positive. For example, Australia is one of The Australian experience shows the economic and The Australian experience shows the economic and a small white From mass migration. cultural benefits of the second world war, settler society at the end of to a vibrant multiculturalAustralia has been transformed the population was nation. Statistics show that 28% of overseasborn – with at least another 20% the child of an overseas-born parent. Migration can work Australia is more The second lesson to be taken from work. positive: it is that mass migration can really The bottom line is that you can’t stop people people The bottom line is that you can’t stop by in Europe the scale occurring movements of policies. border adopting Australia’s The detention of refugees has a demonstrably high refugees The detention of Human cost for those in detention. The Australian National Inquiry intoRights Commission’s Children in on the negative Immigration Detention is unequivocal detention on detainees’ mental prolonged impact of and physical health. 88 PART II: ISSUES & ANALYSIS MIGRATION & SOCIETY YOUTH & EDUCATION public thattheprocess isundercontrol. mass migration,governments havetoconvincethe thistruth:thattobuildacceptanceofHe understood sincethesecondworldwar.cohort number of permanent migrantshit191,000:thelargest significant increases inoverallmigration;2007the line onborder securitywasalsotheonewhooversaw Theprimeministerwhotook suchahardministership. This isthefascinatinglessonfrom JohnHoward’s prime convinced thattheprocess isundercontrol. acceptance of massmigration,thepublichastobe toachievesocietal second lessonistiedtothefirst: The finallessontobedrawnfrom Australiaisthatthe It’s undercontrol level toimprove strategiesfordisplacementof people what extentcanwefunctionataregional andglobal and onward movementsintodestination countries There isastrong shared interest intheissueof to is reprinted withpermission. ber 2016andisthecopyrightof Guardian News&MediaLtd 2017.It publishedontheGuardian wasfirst websiteon19Septem This article Australia’s experience In thiscontextit’s vitaltodrawtherightlessonsfrom help prepare andrespond. ourpopulationstounderstand resettlement, weneedtothinkaboutwhatcan doto fewcountriesacceptlong-term move andwhere very At atimewhenhugenumberof peopleare onthe about beingoverrunbyswarms from thenorth. “uninvited” byboattapsintothenationalneurosis ofwelcomed. Bycontrast,newsreports peoplearriving carefully checkedandscreened Syrianrefugees was program. Theannouncementof 12,000placesfor refugee campscanberesettled through ahumanitarian it isorderly. SouthSudanesewhowaitpatientlyin The core aimof Australia’s migrationprogram isthat Policy andResearch Manager, FoundationHouse . - JosefSzwarc -

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 89 90 PART III: PERCEPTIONS OF THE EU-AUSTRALIA RELATIONSHIP EU-Australia Relationship III: Part Perceptions of the THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 91 92 PART III: PERCEPTIONS OF THE EU-AUSTRALIA RELATIONSHIP International Affairs. Australian Instituteof is aresearcher atthe Caroline Karavoulias at MonashUniversity. team andaLecturer is a expertprojectthe on Arranz Alfonso Martinez of International Affairs. of theAustralianInstitute National ExecutiveDirector Forum Team Leaderand EU-Australia Leadership Melissa ConleyTyler isthe By MelissaConleyTyler, ArranzandCaroline Karavoulias AlfonsoMartinez What doAustraliansthinkof theEuropean Union?

• civil society. were asked: Interviewees people from academia,business,politicsand with23leading were undertaken 17 interviews andintheend to ourrequest forinterviews We hadanencouraginglypositiveresponse some way, aswell those thatdidnot. existing linkstotheEuropean Unionin to ensure acombinationof thosethathad We identifiedanumberof organisations withknowledgeableindividuals. interviews be basedonaseriesof semi-structured It wasdecidedearlyonthatthestudywould of themainfindingsof thatstudy. summarisessome Thisarticle stakeholders. European UnionamongkeyAustralian has beentolookattheperceptions of the work of Forum theEU-AustraliaLeadership One of thefoundationelementsof the Methodology • • anti-globalisation trends. Thediagrams Europe, such asBrexit, therefugee crisisand about politicalandeconomiccrisesbesetting positive, respondents are currently worried While feelingsaboutEurope are generally General trends • • • • • what theythoughtof theEUingeneral; changed recently; whether ornottheirviewhad for EU-Australiarelations; and what theysawasthemajorchallenges for co-operationinthefuture. where theysawthegreatest potential

media, not least through reports frommedia, notleastthrough theUK. reports rathernegativelyintheAustralian portrayed up somewhat,suggestingthattheEUis gateway. respondents backedthis “Insider” how Australiacanrelate withoutaUK not onlyfortheEUitself, butrather about Indeed the“uncertainty”, asnotedabove,is current concerns about“thefuture of theEU”. explainsthe Australia relations partly This historicalcentralityof theUKinEU- pointtoEurope forAustralia. entry long-standing role of theUKasprimary prominently inthediscussionreflects the phenomenon, thefactthatitfeatures so Even thoughBrexit isundoubtedlyanew Findings working togetherinthird countries. defence andsecuritycooperation Other areas formutualbenefitinclude of research, technologyandeducation. Australia-EU collaborationlieintheareas for thatgreat sectors opportunities There iswidespread agreement across and otherinternal problems. policies, managementof refugee movements showed concern about its protectionist EU. RespondentslessinvolvedwiththeEU Australia’s lackof awareness aboutthe EU, akeychallengeintherelationship is For respondents well-acquaintedwiththe strength of feelingabouttheseissues. salient issuesfortheEUandrelative below depictthemajortopicsindicatedas

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES

Perceptions & Salient Challenges Opportunities issues for the EU Figure 1: Figure 2: Figure 3: Figure 4: Figure 5: Figure 6: as seen by insiders as seen by outsiders as seen by insiders as seen by outsiders as seen by insiders as seen by outsiders

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R P P S T R D I M I N C T D S I T AUS L T I A I D EU P T C R P AUS A M T C D P T C

2593 94 PART III: PERCEPTIONS OF THE EU-AUSTRALIA RELATIONSHIP Trump totheWhiteHouse. anti-globalisation movementsandthearrivalof Donald up tothechallengesposedbyriseof populism, toface heritage isnowaccompaniedbyexhortations ‘automatic’ mentioningof ashared culturalandpolitical Interms of commoninterests andvalues, thealmost of theirdirectdealing withthemaspart work. difficulty, thatwere not eventothoseparticipants The migrationandrefugee crisespresent another how itisviewed. the economyof theregion sincethenhaveaffected anddifficultiesin to thefinancialcrisis,uncertainty Whereas theEUwasseenasan“economic prior power” to Australianelitesseemslimited. inacademicliterature, buttheirrelevance important The EUenlargements since2004are mentionedas countries were largely overlooked inthediscussion. limited totheUK.We alsofoundthateastern European its processes. Thepreference forbilateral tiesisnotonly the perceived complexityanddifficultytounderstand discussion of theEUasacollective,whichistiedupwith of individualmemberstatesbeforeimportance a We alsoconfirmed previous findingsrelating tothe extend tootherfieldsorawiderrangeof respondents. the environmental arena, butthisdoesnotnecessarily in power andamoralleaderforsome,particularly Our research confirms thattheEUremains anormative Australian interests andideologiesare atanimpasse. trend tomoveawayfrom theseareas where EUand the priorityitoncehad.Thisreflects along-observed involved inbusinessorpolitics,thoughperhapswithout This issueisstillsalientandnotforgotten bythose of Europeanas themostvisiblepart protectionism. about agriculturalsubsidies,stillconsidered bysome Another historicalpointistheAustraliancomplaint between AustraliaandtheEU. raise concerns aboutthedifference inpolicypositions while itisanarea itisalsolikelyto of opportunity Agreement discussionwillnotbeunproblematic; it canbeassumedthattheEU-AustraliaFree Trade If thisstudyappliestothebroader Australianlandscape, liberal globalorder. countries andstandingside-by-sideindefendingthe together onglobalissues,workinginthird mutual benefit,sharingareas of excellenceandworking potential identifiedinthisstudy:collaboratingfor This shouldinvolvefocusingontheareas of greatest can create genuineinterest ingreater collaboration. people withmutualinterests togethertheproject fostering of people-to-peoplecontacts.Bybringing A clearwaytobuildonthisgrowing interest isthe a growing interest inAustraliaEurope. greater curiosity. SomeAustraliansbelievethere isalso and interest inEurope amongAustralians,leadingto relationship, haveatleaststimulatedgreater discussion the perception of crisis,whileoverallnegativeforthe datasuggestthattheissuesof Brexit and Interview in greater collaboration. forcreating genuineinterestcontacts are important lessonofA first thisstudyisthatpeople-to-people and considerhowitcouldbeimproved. of anamicableandproductiveparties relationship, a criticaltimetohighlighttheadvantagesboth international arena. Thissuggeststhatitis uncertain EU isnowfacingsignificantinternal issuesinamore The workdoneclearlyshowsaperception thatthe Forum andbroader EU-Australia relations Implications fortheEU-AustraliaLeadership

THE EU AND AUSTRALIA: SHARED OPPORTUNITIES AND COMMON CHALLENGES 95

Kelly O’Shanassy Kelly Chief Executive Officer of the Chief Executive Officer of Australian Conservation Foundation wholeness and togetherness that I like about it. wholeness and togetherness

which seems… to come through citizen responsibility citizen responsibility which seems… to come through

EU is the sense of responsibility to the greater Europe, Europe, to the greater responsibility EU is the sense of By coming together we’re much stronger together, that’s that’s together, stronger much we’re By coming together as well as a government responsibility. So, it’s the sense of the sense of So, it’s responsibility. as well as a government what I think of when I think of the EU… What I like about the the when I think of what I think of Project funded by the EUROPEAN UNION The EU-Australia Leadership Forum is implemented by a consortium led by MWH – now part of STANTEC. europeaustraliaforum.eu