From Trade To Knowledge: Australia-EU FTA Advantage

November 18, 2025

This week's visit by European Commission Trade Chief Maroš Šefčovič marks a pivotal moment to shift the Australia-EU Free Trade Agreement beyond goods and services-towards building 'knowledge trade routes.'

Central to this vision is securing Australia's full participation in Horizon Europe, unlocking opportunities for research collaboration, innovation, and shared expertise.

Associate membership to the EU's €95.5 billion flagship research and innovation fund will position Australia at the centre of global innovation, commercialisation, and strategic influence.

Ahead of the trade talks, the Group of Eight has released the Go8 Horizon Europe Capability Statement, to illustrate the tangible benefits of formal association with the world's largest research and innovation fund.

Go8 universities are already actively engaged, collaborating in 85 Horizon Europe projects worth €280.8 million, advancing breakthroughs in health, clean energy, and advanced technologies.

From research that has transformed early detection and intervention for infants at high risk of cerebral palsy, particularly in First Nations communities, to developing a 'variant-proof' COVID-19 vaccine, and pioneering plasma-based processes for sustainable chemical manufacturing, the capability statement showcases what Australia can achieve even with limited access to Horizon Europe funding.

The case studies demonstrate that when Australian institutions collaborate internationally, the benefits extend beyond academia- driving commercial innovation, strengthening communities, and contributing to global solutions, but they also demonstrate the opportunity cost of limited access.

The Go8 has advocated for association to Horizon Europe for almost a decade. Recently the Australian Government announced it would begin exploratory discussions with the European Union.

Group of Eight Chief Executive Vicki Thomson said,

"The Government should be commended on this initiative - it is both timely and essential. This is a once in a generation opportunity to place Australian universities, businesses, and researchers at the heart of global innovation, accelerating breakthroughs in health, technology, sustainability, and national wellbeing."

"Crucially – access to this global fund will enable us to scale our research and development capacity, driving commercialisation and creating high-value jobs for Australians – from research scientists and engineers to data analysts, biotech specialists, and advanced manufacturing roles."

"If we do not act, we risk falling behind. Other nations are already leveraging Horizon Europe to secure leadership in emerging technologies and industries. Without full access, Australia faces missed opportunities, diminished competitiveness, and a growing gap in innovation capability."

"Full participation in Horizon Europe is a direct investment in a Future Made in Australia. It means more Australian discoveries commercialised here, more high-value jobs for Australians, and more sovereign capability in critical sectors."

"Associate membership is about more than R&D. It is a platform to embed knowledge trade routes and strengthen the EU-Australia Free Trade Agreement by deepening strategic, economic, and innovation ties between the two regions."

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