Last updated in October 2009
Political relations
Bilateral political relations between the Federal Republic of Germany and Australia have traditionally been friendly. The important role played by German immigrants in the late 19th century (Barossa Valley: wine growing) and after the Second World War (Snowy Mountains: hydroelectric power system) is appreciated and tribute is regularly paid to it. Economic and scientific relations are lively but could be further intensified (there is a 4:1 trade imbalance in Germany’s favour). Visits by German tourists lead to numerous personal contacts. Particularly popular are the Working Holidays programme, which enables some 16,000 young Germans to visit and get to know Australia every year, and the numerous school exchange programmes. There are 6,000 German students enrolled at Australian universities.
Shared values and political interests provide a sound basis for the trustful cooperation between Australia and Germany, which is cultivated by a regular exchange of visitors in both directions. The most recent visit was that by Australian Prime Minister Rudd, who met with Federal Chancellor Merkel in Berlin in July 2009. Over the past few years, a number of German parliamentary and business delegations have visited Australia.
Australia is aware of Germany’s importance as a leading nation within the European Union. Conversely, Australia is an important partner for Germany because of its growing influence in Southeast and East Asia and its support for peace, democracy, respect for human rights and good governance. It is therefore in the two countries’ common interest to cooperate closely in Asia. This is also necessary to combat international terrorism drug trafficking as well as other forms of cross-border crime. Germany and Australia also work together as partners with shared objectives in the G-20 (group of the 20 principal industrialized and threshold countries) and on climate protection.
Economic relations
Germany is Australia’s most important European trading partner, after the United Kingdom, and currently its tenth-largest trading partner worldwide. In 2008, bilateral trade was worth some EUR 7.7 billion (1st:China: EUR 30 billion; 2nd Japan: EUR 28 billion; 11th India: EUR 5.5 billion). Australia has, however, for many years recorded a large – and still growing – trade deficit with Germany, with German exports several times higher than German imports (Germany ranking fifth among suppliers of Australia’s imports and 18th among buyers of its exports). The reasons for this trade deficit are largely structural: Germany mainly exports high-quality final products, while importing raw materials and primary products. In 2008, imports from Australia were worth EUR 1,178 billion, and exports to Australia EUR 6,486 billion.
The main German exports to Australia are motor vehicles and vehicle parts, chemical and pharmaceutical products and electrical goods as well as plastics, machinery and paper and cardboard products. Australia’s principal exports to Germany were coal, ores, electrical goods, wool and foodstuffs.
There are over 300 subsidiaries of German firms, with a total of approximately 650 places of business, operating in Australia, including the two largest Australian construction companies. Bilfinger-Berger is involved in a number of important infrastructure projects in Australia through Baulderstone Hornibrook, as is Hochtief via its stakes in Leigthon Holdings Ltd. and Thiess Pty. Ltd. The most recent figures (2008) put Germany’s foreign direct investments (FDIs) at EUR 7.84 billion, raising the total investment volume to EUR 14.8 billion (6th place), and Australia’s FDIs at EUR 4.4 billion, raising the total investment volume to EUR 14.4 billion (5th place).
German business is represented in Australia by the German-Australian Chamber of Industry and Commerce in Sydney, with a branch office in Melbourne. The Australian business and trade promotion institution AUSTRADE is affiliated to the Australian Consulate General in Frankfurt/Main. A double taxation agreement has been in place since 1972.
Cultural relations
Cultural relations between Australia and Germany go back a long way, Germans being among the first European settlers in Australia. Numerous societies, many of which provide a point of contact for groups of visitors from Germany, have been set up by ethnic Germans and have become well established over the years.
At the political level, a German-Australian cultural accord has been in force since 15 June 2000 and a German/Australian film agreement since 12 September 2001. The signing of these agreements has given further momentum to cultural exchange.
Australia’s biggest city, Sydney, boasts a well-frequented Goethe Institute with a branch in Melbourne, the country’s second-largest city. In addition, there is a German School in both Sydney and Melbourne. While the old-established German International School Sydney has been awarding the International Baccalaureate, recognized in both Australia and Germany, since 2002, the German School Melbourne opened in January 2008, initially with a first grade class.
Some 40,000 (or approximately one per cent of all) pupils learn German at Australian schools. Among final-year pupils, German is, after French, the most popular European language, though Asian languages are very much in vogue. Chinese, for example, has already overtaken German in popularity. By assisting German teachers and providing curricular support, the Goethe Institute makes an active contribution to promoting German instruction.
Academic and scientific relations are particularly intensive at university level, with some 230 cooperation agreements currently in place between German and Australian higher-education institutions. The lively exchange between universities and scientists and academics on both sides is promoted by Germany through scholarship programmes, especially those of the Alexander von Humboldt Foundation and the German Academic Exchange Service (DAAD). To this end, the DAAD runs an information centre in Sydney, thus providing a first point of contact for those interested in studying or pursuing research in Germany. In Germany, the Institut Ranke-Heinemann in Essen and Berlin represents Australia’s and New Zealand’s universities, schools and vocational academies. It offers advice on all questions relating to studying in Australia and New Zealand.
