Australia, Mexico Celebrate 59 Years of Diplomatic Relations

Since the establishment of diplomatic relations in 1966, Australia and Mexico have spent 59 years cultivating a strong and multifaceted partnership marked by growing economic ties, shared values, and active diplomatic engagement. Both countries maintain embassies in each other’s capitals, Australia in Mexico City and Mexico in Canberra, with additional Mexican Honorary Consuls across key Australian cities including Sydney, Brisbane, Melbourne, and Perth, reflecting the depth of their bilateral cooperation.

Strong Bilateral Foundations

Australia and Mexico maintain a solid bilateral relationship built on shared values and mutual economic interests. Their collaboration spans education and research, food and agribusiness, oil and gas, infrastructure, finance, mining, technology, and services. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) further reinforces their commercial ties, promoting trade liberalization and economic integration across the Asia-Pacific.

Multilaterally, both countries engage actively in global forums such as the United Nations, the G20, Asia-Pacific Economic Cooperation (APEC), and MIKTA, a grouping of Mexico, Indonesia, South Korea, Turkey, and Australia that aims to promote cross-regional dialogue and cooperation.

Trade Relations

According to Mexico’s Ministry of Economy, in 2024, Mexico’s main export to Australia was motor cars and vehicles designed for passenger transport, totaling US$246 million. These exports primarily originated from Mexico City (US$275 million), Nuevo Leon (US$117 million), and Puebla (US$114 million).

Likewise, Mexico’s main import from Australia in 2024 was canola or rapeseed oil, valued at US$75.1 million. Key Mexican states purchasing Australian goods included Mexico City (US$167 million), the State of Mexico (US$107 million), and Nuevo Leon (US$74.3 million).

Total trade between the two countries amounted to US$1.01 billion in exports from Mexico to Australia and US$775 million in imports, resulting in a positive trade balance of US$237 million for Mexico. Australia represented 0.16% of Mexico’s total exports and 0.12% of its imports.

Foreign direct investment (FDI) between the two countries reflects deepening commercial integration. From January to December 2024, FDI from Australia to Mexico totaled US$607 million, primarily in the form of inter-company debts (US$520 million), followed by reinvested earnings (US$63.3 million) and equity capital (US$23.6 million). The top destinations for this investment were Mexico City (US$491 million), the State of Mexico (US$50.4 million), and Nuevo Leon (US$22.5 million).

Cumulatively, between 1999 and 2024, Mexico received US$10.3 billion in FDI from Australia, showcasing sustained investor confidence. According to the Mexico's Ministry of Economy, from January to March 2025, Australia ranked as the fourth-largest source of new FDI inflows to Mexico, accounting for 5.7% (US$1.2 billion) of total foreign investment in the first quarter alone, marking the strongest start to the year since 2023, MBN reported.

Trade and Investment Rankings

Australia’s population in 2024 stood at about 27.2 million people. According to World Bank data, its Gross Domestic Product (GDP) reached US$1.75 trillion in 2024. The International Monetary Fund (IMF) projects a real GDP growth rate of 1.8% for Australia in 2025, indicating steady economic expansion.

While Australia is Mexico’s main trading partner in Latin America, it ranked 37th globally and 11th among Asia-Pacific nations in 2022. In 2024, Australia ranked 26th as an export destination and 49th as a source of imports for Mexico. For Australia, Mexico ranked 39th as an export destination and 21st in imports, according to the Department of Foreign Affairs and Trade of Australia.

Australia’s global exports in 2024 were led by iron ore and concentrates (19.3%), coal (13.2%), natural gas (10.5%), and education-related travel services (8.0%). Notably, education, intellectual property services, and tourism are also strong contributors to the bilateral service trade.

Business Landscape and Diplomatic Engagement

According to the Canberra Business Chamber, there are about 280 Mexican companies with some degree of Australian investment in Mexico.

In terms of diplomatic engagement, high-level engagements have further strengthened ties. In May 2024, Speaker of the Australian House of Representatives Milton Dick attended the 10th MIKTA Speakers’ Consultation in Mexico City. In November 2024, Australian Prime Minister Anthony Albanese met with President Claudia Sheinbaum during the MIKTA Leaders’ Gathering at the G20 Summit in Rio de Janeiro.