The Beaver and the Kangaroo

When it comes to famous animal duos, a beaver and a kangaroo probably aren’t the first to spring to mind. But as global dynamics shift and long-standing alliances evolve, the partnership between the red and white and the green and gold is growing stronger by the day.

The Australian Prime Minister, the Hon Anthony Albanese MP, visited Canada before the G7 Summit, marking his first visit to the country since re-election, and the first visit since Canadian Prime Minister, the Rt Hon Mark Carney MP was elected. As such, the moment drew significant attention from the international community.

Prime Minister Albanese was welcomed by Prime Minister Carney, who presented him with the iconic Stetson cowboy hat. In return, Prime Minister Albanese gifted Prime Minister Carney an Akubra alongside a framed poster from the movie Gallipoli, a noted favourite of Prime Minister Carney.

Join us at Nexus APAC as we explore the relationship between the land down under and the Fashion Nova of denim on denim.

Defence

Australia and Canada’s defence relationship has been steadily growing since Australia was inducted in the Five Eyes alliance in 1956, eight years after Canada was inducted in 1948.

While this relationship initially focused on intelligence sharing, particularly during the height of the Cold War, it has since evolved into joint operations and military collaboration. This has included Canada’s contribution of over 600 troops to the Australian-led mission in Timor-Leste in 1999.

Additionally, Australia and Canada were among the first countries to join the Global Coalition Against Daesh.

Australia and Canada’s defence relationship received mainstream media attention in March 2025, when it was announced that Canada would be purchasing the $6.5 billion Jindalee Operational Radar Network (JORN) from Australia to bolster its Arctic defence. This sale will be the largest defence export in Australia’s history.

While it was believed that the United States would be the first to purchase JORN, Canada seized the opportunity following President Donald Trump’s return to the White House.

Furthermore, at the recent G7 Summit, Prime Minister Albanese and Prime Minister Carney discussed the possibility of Canada joining the AUKUS Pillar 2 stream, which focuses on information and technology sharing.

This comes at a time when the United States is conducting an internal review of AUKUS and questioning its value. As such, Canada and Australia’s relationship, particularly through the lens of defence, will become increasingly vital.

Trade

As the global economy shifts out of an era of liberalism and free trade, Australia’s existing free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), will be more crucial than ever.

The CPTPP is a free trade agreement between 12 countries, including Australia and Canada. Since its inception, it has resulted in an annual 6.6% growth in bilateral merchandise trade between the two countries from 2018 to 2024.

As of the end of 2023, Australian investment in Canada totalled $109 billion, making Canada the fifth-largest destination for Australia’s outward investment. In return, Canadian investment in Australia reached $104 billion, positioning Australia as the eighth-largest source of foreign investment for Canada.

While these figures underscore a strong bilateral relationship, Canada’s appeal as a stable destination for Australian capital is expected to grow further amid ongoing uncertainty surrounding the US trade policies.

At the recent G7 Summit, Prime Minister Albanese and Prime Minister Carney discussed deepening cooperation on critical minerals, an area vital to clean energy supply chains. Prime Minister Carney highlighted Australia’s importance in this space, stating that it “had a lot to contribute to the G7.”

On a smaller (but arguably more symbolic) note, during the height of the election campaigns, Prime Minister Albanese played a role in securing the continued export of Vegemite to Canada. While the deal may not match the scale of broader trade or investment flows, it served as a meaningful demonstration of the strong rapport between the Albanese and Carney governments.

Diplomatic

Canada and Australia are also important diplomatic partners. Under the Canada-Australia Consular Services Sharing Agreement, Canadians are entitled to receive consular services from Australian officials in several countries where Canada does not have an embassy or consulate, and vice versa. This enables Canada to leverage Australia’s geographical advantages and longstanding regional partnerships in Southeast Asia. In addition, Australia and Canada share diplomatic facilities in numerous cities, including Rabat, Kyiv, and Vientiane.

Australia and Canada also have a strong history of mutual support during historic bushfire seasons, with Australia recently sending 96 firefighters to assist in the ongoing bushfires in Alberta. Canada also sent firefighters to Australia during the historic ‘Black Summer’ bushfires of 2019-2020.

While not formalised through official agreements, Australia and Canada maintain close cooperation across all levels of crisis response. As Prime Minister Carney noted, “Australia always does step up,” with Prime Minister Albanese affirming that Canada “can always rely upon Australia.”

In addition, Australia is home to a significant Canadian diaspora, with 50,223 Canada-born residents recorded in the 2021 Australian Census. This is mirrored in Canada, where the 2021 Canadian Census reported 46,765 people identifying as having Australian ethnicity.

Photo credit: Anthony Albanese