Europe and UK market profile

The European Union (EU) comprises 27 member states in a political and economic union – a single market for goods, services and capital – covering much of the European continent and representing a population of around 449 million.

The UK left the EU on 31 January 2020 and exited the EU VAT regime on 31 December 2020 with the EU-UK Trade and Cooperation Agreement coming into force in May 2021.

The European Green Deal – which aims to make Europe the world’s first carbon-neutral continent by 2050 – provides ample opportunities in services and industries that support the green transition.

The EU is a strong investment market for Queensland – in 2023 the EU was Australia’s third largest source of foreign investment, with total investment stocks worth A$787 billion. A significant range of EU corporates are major investors in Australia. 

Within the EU, Queensland’s priority markets are Germany, France, Spain, Sweden and Ireland. Non-EU priority markets in Europe include the UK, Switzerland and the Commonwealth of Independent States (CIS).

In 2023-24, Queensland’s total merchandise exports to the EU were valued at around $6.9 billion, over 6% of Queensland’s total merchandise exports. On the import side, 11.4% of Queensland’s total merchandise imports by value originated in the EU in 2023-24. 

Australia commenced free trade agreement (FTA) negotiations with the EU in 2018. While the EU is generally relatively open for most manufactured products, access for many agricultural products is constrained by high tariffs and restrictive quotas, as well as a range of non-tariff barriers. Agriculture remains an issue of high sensitivity for the EU in trade negotiations.