The Bilateral relationship between Australia and the European Union is one of the great importance,
particularly in the trade terms. The both parties share a common heritage and common
values. At the formal level these relations are governed by the 1997 Joint Declaration on Relations
between the European Union and Australia and the 2002 Agenda for Cooperation. In 2006,
the EU remained Australia’s largest merchandise trading partner, regained the position as the
third the most important market for Australian exports and principal source of imports. In terms
of trade with individual EU Member states, top destination for Australian exports remained the
United Kingdom and Australia’s largest source of imports continued to be from Germany. The
largest items in Australian exports to the EU-25 were coal, gold, alcoholic beverages, principally
wine and confidential items. The largest import products into Australia were medicaments,
including veterinary, passenger motor vehicles and telecom equipment. Further enhancement for
cooperation reflects the fact that there is a vibrant and expanding cooperative agenda between
Australia and the EU, being a key economic partners.