Italy and Australia benefit from a unique relationship, based on strong and enduring ties, guided by shared values and principles, and aimed at the convergence of strategic interests. A large and well-integrated Italian community has contributed significantly to the development of this country’s economy, society, culture and way of life.
According to data from the Australian Bureau of Statistics for 2025, there are 152,000 Australian citizens born in Italy, and the number of Australians of Italian descent has risen from one million in 2016 to over 1.1 million in 2021, making Italian the seventh-largest ethnic group in Australia.
Bilateral cooperation is very strong and covers a range of areas: from scientific cooperation to technological innovation; from culture to sport and the arts. Trade relations between Italy and Australia remain solid and are constantly expanding. The figures for recent years show a trend of structural growth, with trade volumes – excluding cyclical fluctuations – indicating that ‘Made in Italy’ products are firmly established in the Australian market.
Total trade between Italy and Australia in 2025 reached 5.947 billion euros, with net exports amounting to 5.379 billion and imports from Australia totalling 568 million euros. Italy is Australia’s eleventh-largest supplier, ranking second among European countries. Italian exports are driven by the machinery and equipment sector, followed by: food products, beverages and tobacco; and pharmaceutical, chemical-medicinal and botanical products. Imports consist mainly of base metals and metal products, excluding machinery and plant.
The free trade agreement between the European Union and Australia, for which negotiations were concluded on 24 March 2026, represents a catalyst for opportunities. With a market of over 450 million consumers, the EU is already Australia’s third-largest trading partner and its second-largest foreign investor. The eighth in chronological order among the trade agreements concluded with the region’s major countries, the FTA sends a clear signal of the EU’s increased commitment to the Indo-Pacific region and reaffirms Europe’s role in promoting a system of international relations based on the rule of law and multilateral cooperation. The Agreement provides for the liberalisation of tariffs, with the removal of duties on 97.6 % of imported European goods and an estimated net annual saving for our exporting companies of over one billion euros (many European industrial and manufactured goods were previously subject to a common tariff of 5 %).
Italy’s main exports of goods to Australia, which include machinery, pharmaceutical products and electronic equipment, will benefit from the complete removal of tariffs. The agri-food sector will be supported by safeguarding the protected geographical indications (PGI) of authentic, high-quality Italian products: at the same time, farmers will be protected through the introduction of quotas on Australian exports and preferential tariffs, whilst also ensuring high European health and safety standards. Small and medium-sized enterprises, which form the backbone of our economy, will also benefit from the new FTA.
The bilateral economic relationship is not limited to the presence of large industrial groups, but is strongly integrated by an ecosystem of small and medium-sized enterprises with high technological value. In total, there are around 270 Italian companies with a stable and direct presence in the Australian market, through production facilities, sales branches or representative offices, operating across almost all sectors.
Scientific collaboration is robust and dynamic: there are 25 active agreements between Australian universities or departments and Italian universities; the two countries are collaborating on major projects (such as the Square Kilometre Array and the SABRE project on dark matter); there are 4,600 joint publications; and the community of Italian researchers in Australia numbers over a thousand.
On a cultural level too, bilateral relations are excellent, thanks in part to the strong efforts made by the Italian Community in Australia to promote Italian culture and ‘Made in Italy’ products. Furthermore, Italian remains one of the most widely studied foreign languages in Australia.