Australia and Spain have long maintained a strong relationship in international trade. Both countries have economies that rely heavily on exports, and as a result, a free trade agreement (FTA) between the two nations seems like a natural fit. However, as of 2021, there is no official FTA in place between Australia and Spain.
Although there is no FTA between the two countries, they still enjoy a positive and mutually beneficial trade relationship. Spain is Australia`s eighth-largest trading partner in the European Union, while Australia is Spain`s fifth-largest trading partner outside the EU. In 2019, bilateral trade between the two countries was valued at AUD 3.19 billion, with goods and services traded in a range of sectors, including mining, energy, and agriculture.
Despite the lack of an FTA, Australia and Spain have taken steps to strengthen their trade ties. In 2018, the two countries signed a memorandum of understanding (MOU) to boost cooperation in the mining sector. The MOU aimed to facilitate knowledge exchange, technical assistance, and investment opportunities between the two countries.
Furthermore, Australia and Spain are both members of the World Trade Organization (WTO). As such, they adhere to the WTO`s rules and regulations on international trade. The WTO promotes free trade by reducing barriers to trade, such as tariffs and quotas, and by encouraging countries to negotiate FTAs with one another.
In conclusion, there is no FTA between Australia and Spain at present. Nevertheless, the two countries continue to maintain a strong trade relationship, with bilateral trade valued at over AUD 3 billion. The signing of the MOU in 2018 demonstrates a commitment to strengthening ties, and both countries` membership in the WTO promotes free trade.