Doing business in Australia: Opportunities for Canadian exporters

Australia’s stable economy and business-friendly environment have long made an attractive market for Canadian companies looking to expand internationally. Today, the business case for exporting to the “Land Down Under” is even stronger, supported by Canada and Australia’s shared push to diversify trade partnerships and new strategic priorities that create significant trade opportunities for Canadian exporters.

“There are tremendous opportunities emerging right now in several sectors where Canada is well-positioned to meet Australia’s needs,” says Jeff Keats, Export Development Canada’s (EDC) chief representative for Australia.

“These include energy—where we’re seeing a huge focus on energy reliability—and critical minerals. These are areas where Canada has strengths,” Keats says.

Canada and Australia are allies on the global stage and have a strong economic relationship, supported by the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a free trade agreement (FTA) between Canada and 10 other countries in Latin America and the Asia-Pacific, including Australia.

On a practical level, many Canadians find Australia to be a comfortable place to do business because the two countries share a language and have similar cultures, governments and legal systems. These factors, along with the market’s overall strength and diversified business environment, make Australia a great destination for Canadian exporters.

This year marked a new stage in Canada-Australia relations, with leaders from both countries pledging to deepen co-operation in economic security and trade. Their focus is on clean energy, artificial intelligence (AI) and digital technology, critical minerals, defence and security and space. For Canadian exporters, the message is clear: Australia is a priority partner in Canada’s trade diversification strategy.

Australia’s economic fundamentals are sound, says Nadeem Rizwan, economist and country risk analyst at EDC. Despite uncertainty from global geopolitical forces, Australia is expected to sustain economic growth of around 2.5% over the medium to long term, supported by population growth, infrastructure investment, demand for critical minerals and a sophisticated services sector.

With strong connections to nearby markets—including China, Japan, India and the Association of Southeast Asian Nations (ASEAN)—Australia also offers a strategic entry point for Canadian exporters looking to establish a foothold in the Asia-Pacific. This region is expected to account for 50% of global gross domestic product (GDP) by 2040, making it an important part of any long-term diversification strategy.

Trade between Canada and Australia has strengthened over the years, with bilateral trade growing close to 7% annually since the CPTPP came into effect in 2018. Bilateral goods trade reached $7.8 billion in 2025, with Canadian goods exports to Australia accounting for $3.4 billion. Bilateral services trade in the same year totalled $4.6 billion.

“Australia has performed as a steadily strengthening export market for Canadian businesses over the past five years” says Rizwan. “While Australia is itself a major, resource‑rich exporter, it remains a significant importer of advanced manufacturing, capital goods and consumer products, creating natural alignment with Canada’s export profile.”

On the investment side, Australia is the largest destination in the Asia-Pacific for Canadian direct investment abroad (CDIA), which totalled $58.8 billion in 2024. Australia’s direct investment in Canada was $27 billion.

Trade agreements and market access

Canada’s most important trade agreement in the Asia-Pacific is the CPTPP. Once fully implemented, 99% of tariff lines among member countries will be duty-free.

Australia also has bilateral FTAs with several markets, including China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, New Zealand, Singapore and Thailand in the Asia-Pacific, as well as Chile, Peru and the United States outside the region. Its regional agreements include the ASEAN-Australia-New Zealand Free Trade Area, PACER Plus—which was built on the existing Pacific Agreement on Closer Economic Relations—and the Regional Comprehensive Economic Partnership (RCEP).

By partnering with an Australian firm or establishing an operation in the country, Canadian companies may be able to benefit from these agreements when exporting from Australia to its trade agreement partners.

In 2025, Canada’s leading goods export categories to Australia included machinery and equipment, aircraft and parts, precious metals and sulphur. Today, some of the most promising opportunities for Canadian companies are in sectors where Australia’s domestic priorities align with Canadian expertise. These include infrastructure, energy and energy transition, mining and critical minerals, agri-food and agtech, digital technologies, defence and aerospace.

Energy and energy transition

Australia is investing heavily in renewable energy infrastructure to meet its net zero targets and improve energy reliability. The country is building renewable energy zones, expanding transmission infrastructure and identifying priority projects to help move renewable energy development through planning and approvals. In March 2025, Australia’s National Renewable Energy Priority List identified 56 urgent projects across the country.

This ongoing energy transition is creating opportunities beyond wind and solar. Australia’s aging electricity grid, electrification needs, net zero aspirations and renewable power intermittency are creating demand for battery storage, grid optimization, transmission expertise, energy management, hydro and pumped hydro and technologies that improve system reliability. Infrastructure Australia estimates that the national electricity market will require about 3,000 kilometres of new transmission infrastructure by 2030 and about 6,000 km by 2050.

This demand opens opportunities for Canadian cleantech companies with globally competitive expertise in renewable energy technologies, including:

• Engineering, design and project delivery services
• Grid modernization and transmission solutions
• Energy storage solutions
• Clean technology and decarbonization solutions
• Digital tools and services that improve grid performance and reliability
• Renewable energy services

Critical minerals and mining technologies

Critical minerals hold significant potential for co-operation between Canada and Australia. Australia is a major mining economy with abundant critical minerals that support the energy transition. The strongest opportunity for many Canadian companies, however, isn’t simply selling minerals into Australia. It’s supplying the mining expertise, technology and services to help Australia develop and process its own resources more efficiently.

“Canadian mining equipment providers and firms that can help electrify, decarbonize, or optimize mine sites are already seeing traction,” says Keats. This group includes companies with capabilities in mining equipment, environmental technologies, automation, AI, mine-site electrification, engineering, processing and refining.

There’s also growing interest in strengthening local and regional processing capacity. In October 2025, Canada and Australia reinforced bilateral engagement through a Joint Declaration of Intent on Critical Minerals Collaboration, providing a framework to support co-operation, investment and innovation across the critical minerals value chain.

Beyond opportunities for mining suppliers and service providers, the Canada–Australia critical minerals relationship translates to new avenues for project partnerships, investment, offtake arrangements and broader supply chain collaboration. As both countries work towards a more resilient and diversified critical mineral sector, Canadian companies may find opportunities to participate across multiple stages of project development and commercialization.

Infrastructure

Australia is an infrastructure leader with a large project pipeline. Its 2025 Infrastructure Market Capacity Report puts the five-year major public infrastructure pipeline at AU$242 billion, with transport projects accounting for more than half of the total. This creates opportunities for Canadian:

• engineering firms;
• infrastructure technology providers;
• construction services companies;
• advanced building-solution providers; and
• suppliers of specialized equipment.

Brisbane’s 2032 Olympic and Paralympic Games are also expected to support further investment in transport, venues and related infrastructure.

Aerospace and defence

Canada’s strengths in aerospace make the sector a good fit for the market. “Australia, which was the largest helicopter market in Asia-Pacific in 2025, has well-developed aviation infrastructure, but relies heavily on imports to meet many of its aviation and aerospace needs,” says Rizwan. "This creates opportunities not only in aircraft and parts, but also in maintenance, repair and overhaul services."

This alignment can also drive opportunities in Australia for Canada’s defence and security sector. Like Canada, Australia has committed to increased spending on defence. Keats notes that both countries have moved to deepen defence trade co-operation and industrial collaboration, such as Canada’s recent agreement to buy a cutting-edge radar network system from Australia and its industry partner, BAE Systems Australia, for its Arctic Over-the-Horizon Radar program—a major initiative to modernize NORAD surveillance.

Agri-food and agtech

Australia is an agri-food powerhouse that exports a large share of its agricultural production. The opportunity for Canadian exporters in Australia is increasingly tied to agtech, agricultural equipment and productivity-enhancing solutions. Key trends include sustainable food production, lowering emissions, using green energy and adopting technologies that can help farms produce more with fewer inputs.

Australia’s agricultural equipment market is projected to reach US$5.5 billion in 2025, with imports accounting for roughly 65% of total market demand, says Rizwan. Canadian manufacturers and suppliers may be well-positioned to offer equipment, fertilizers, precision agriculture tools, automation, or technologies that help reduce costs and emissions.

Digital technologies and advanced manufacturing

Australia’s service-driven economy is creating opportunities in digital and knowledge-based industries. Key drivers behind this demand include Australia’s need to improve productivity, strengthen data and cyber resilience and support growth in sectors such as mining, energy, infrastructure and financial services. Areas to watch include:

• Cybersecurity
• AI
• Data centres
• Digital services
• Advanced manufacturing

For Canadian exporters, the strongest fit may be proven digital solutions that can solve specific business or operational problems.

Australia is a geographically large, decentralized market. It’s comprised of six states and 10 territories (seven external and three internal, including the Australian Capital Territory). Approximately 70% of the population is concentrated in Australia’s eight largest cities and 85% live within 50 km of the coast, leaving large parts of the Northern Territory and Western Australia sparsely populated.

Given its size, understanding Australia’s significant regional differences and industry centres is an important step when planning your market entry.

• Sydney (New South Wales) and Melbourne (Victoria) are major financial and professional services hubs.
• Perth (Western Australia) and Brisbane (Queensland) are important centres for mining and critical minerals. Brisbane is also becoming more important for infrastructure opportunities linked to the 2032 Olympic and Paralympic Games.
• South Australia is the country’s defence hub.
• Other states and territories may offer specific opportunities, depending on the sector, project pipeline and local incentives.

Australia is a transparent market, but regulations can differ by state, so companies may need to engage with both national and state-level organizations. Austrade has a national mandate to attract investments, while state-level agencies can help companies understand local requirements, programs, incentives and approval processes. The Industry Capability Network, a member-based organization that offers various levels of access, connects small- to mid-sized businesses to opportunities in Australia and New Zealand.

Australian business culture is similar to Canada’s, but not identical. While Australia’s business environment is friendly, Canadian firms planning to operate there can expect several challenges:

• Competition: Australia is a fully developed market. Canadian exporters will compete against leading global competitors, established Australian companies and regional suppliers with lower cost structures.
• Distance and time zones: Even from Canada’s West Coast, Australia is far away. Frequent visits can be costly and time zones can complicate communication. Having a local representation or reliable partner can help maintain customer service and responsiveness.
• Logistics: Long shipping routes can make delivery more expensive or less predictable. Buyers may also have concerns about supply continuity. Exporters should be ready to explain how you will manage service, inventory, spare parts and support.
• Regulatory and tax complexity: Australia’s legal system is familiar, but it isn’t identical to Canada’s. Requirements can differ by state, and companies may need professional advice on tax, procurement rules, certification and equipment standards.
• Market expectations: Canadian companies shouldn’t assume that cultural familiarity will make sales easy. Keats says Australian buyers value established companies and proven technology. “You really have to show that your product works and meets a need or solves a problem,” he says.
• Extreme environmental conditions: Australia is subject to drought, flooding and wildfires, which can disrupt supply and transportation chains and create physical risks for companies with operations on the ground.

The first thing to consider is the strength of your business case. Is there demand for your product or service in Australia? Does it meet local regulations? Do you have a convincing value proposition? Does your company have the resources to operate from a long distance?

To improve your chances of success:

• Build a local presence or partnership. Australian buyers often expect responsive in-market support, especially for technical products, infrastructure projects and long-term service relationships. Building these local relationships is very important, particularly in certain sectors, like infrastructure and mining.
• Do your market and regulatory research early. Understand state-level requirements, procurement processes, certification needs, tax considerations and sector-specific rules before making major commitments.
• Show a proven track record. Australia is open to innovation, but buyers often want evidence that a product or technology has already worked elsewhere. Referencing customers, case studies and performance data can help.
• Plan for longer sales cycles. Public-sector procurement can take time and private-sector buyers may need time to build trust with a new supplier.
• Use available support. EDC, Canada’s Trade Commissioner Service (TCS), Austrade and state-level investment agencies can help Canadian companies understand the market and identify potential partners. EDC opened our Australia representation in 2017. Our experienced team in Sydney has the tools and practical knowledge you need to succeed in Australia. TCS, with offices in Sydney and Canberra, can help Canadian companies assess market potential, identify qualified contacts, solve problems and make connections in your target market.

EDC can help you assess the opportunity, understand the risks and prepare for entry into the Australian market. With expertise in international markets and a well-established presence in Australia, EDC can support Canadian companies with market intelligence, risk management solutions, financing support and connections that can help you enter the country with more confidence.

EDC can also help you navigate practical export challenges—from managing payment and credit risk to strengthening your working capital as you pursue new opportunities. And when local market knowledge or on-the-ground introductions are needed, the TCS can help you better understand the business environment and identify potential contacts.

EDC solutions for exporters include:

• A full suite of trade credit insurance products to lower your risk for doing business abroad
• Support with getting access to working capital
• Expertise to enable you to learn more about international markets
• Connections to international companies in need of your products and services
   

Ready to take the next step on your market diversification pathway?

Connect with EDC to discuss your plans for Australia.

Is Australia a good first market in the Asia-Pacific?

Australia can be a practical starting point for Canadian companies exploring the Asia-Pacific because it offers a familiar business culture, stable institutions, strong intellectual property protection and similar legal framework. While it shouldn’t be treated as a test market for all of Asia, it can be a useful regional base.

What are the biggest opportunities for Canadian exporters in Australia?

Strong opportunities include infrastructure, energy transition, mining and critical minerals, agtech, aviation, digital technologies and advanced manufacturing. The best fit is usually for Canadian companies with proven products, sector expertise and the ability to provide reliable in-market support.

What’s the biggest challenge for Canadian companies doing business in Australia?

Distance is one of the biggest practical challenges. It affects travel, shipping, service, time zones and customer support. Canadian exporters should also prepare for strong competition, state-level regulatory differences, tax considerations and longer procurement cycles.