Over the last decade the importance of the Australia-European Union trade and investment relationship has been undervalued on both continents. The size and continuing growth of the relationship, particularly two-way investment flows, deserves greater attention by government, industry and the media. This study is intended to contribute to this process. Australia and the EU have become more relevant to each other as a result of changes in each other's region: in the EU's case, greter political and economic integration, and for Australia, structural change in its economy and closer engagement in the Asia-Pacific region. As the study describes, the Australia-EU relationship has entered a new phase with the conclusion of the Uruguay Round of multilateral trade negotiations. The commitment of both sides to deepen and broaden the relationship provides a promising basis on which to address the remaining issues in the trade relationships.