Key engagement

Australia and Luxembourg have a warm relationship and cooperate in multilateral organisations, including on climate change, human rights and disarmament.

Outlook

There is potential for greater trade and investment ties, including in high-tech sectors, such as ICT, biotechnology and space.

Bilateral relations

Reflecting common values between our two countries, Australia and Luxembourg work closely to promote global peace and security and respect for human rights through international organisations, including the United Nations.

We work together on many issues of common interest in the UN Human Rights Council and share a strong commitment to the abolition of the death penalty.

Australia and Luxembourg signed a Working Holiday Visa Arrangement in 2016, allowing young Australians and Luxembourgers to travel and work in each other’s countries for a one-year period. The agreement has effectively bolstered people-to-people links.

Foreign policy

Luxembourg is a strong supporter of multilateral organisations. It is one of six founding members of the EU, a signatory to the Brussels Treaty (providing for collective self-defence between its members), a NATO member and a founding member of the Council of Europe.

Luxembourg hosts several European institutions, including the Secretariat-General of the European Parliament, the European Court of Justice and the European Investment Bank. Luxembourg served alongside Australia as a non‑permanent member of the UN Security Council in 2013-14.

Fast facts

Luxembourger visitors to Australia (2023)

987

Australian resident returns from Luxembourg (2023)

340

Resident Australian population born in Luxembourg (2021 census)

300

Australian residents of Luxembourg descent (2021 census)

329

Luxembourg working holidaymakers (2023)

33

Luxembourg student arrivals in Australia (2023)

31

High level engagement

• 2023 — Prime Minister, the Hon Anthony Albanese MP, met with then-Luxembourg Prime Minister, Xavier Bettel, on the sidelines of the NATO Leaders’ Summit in Vilnius.
• 2019 — Then-Luxembourg Deputy Prime Minister, Etienne Schneider visited Australia for trade and investment meetings.
• 2019 — Then-Prime Minister, the Hon Scott Morrison MP met with then-Luxembourg Prime Minister, Xavier Bettel in Portsmouth for the 75th anniversary of the D-Day landings.

Agreements with Luxembourg

Australia has several bilateral agreements with Luxembourg.

Texts of bilateral agreements are available at the Australian Treaties Database.

Public diplomacy

The Australian Embassy to Belgium and Luxembourg and Mission to the European Union and NATO, based in Brussels, works to promote a close and meaningful relationship with Luxembourg through in-person public diplomacy events and on social media. Together with the Australia-New Zealand Chamber of Commerce in Luxembourg (ANZCCL), the embassy works to promote the bilateral economic relationship. 

In 2023, among other events, the Embassy hosted a high-level panel discussion on bilateral trade and investment opportunities, with keynote remarks delivered by then-Luxembourg Foreign Minister Jean Asselborn and panellists from Luxembourg’s business community.

The Embassy also works with government and business stakeholders, as well as the think tank community and NGOs, to run information seminars and other activities.

The Embassy promotes Australian Indigenous culture in Luxembourg through supporting cultural events and art exhibitions.

Australian Embassy in Brussels

Facebook: @AustraliainBrussels

Twitter: @AusEmBrussels

Economic diplomacy

Luxembourg has a stable and open economy with one of the highest GDP per capita levels in the world (US$126,598 in 2022).

Trade with Germany, France and Belgium — Luxembourg's nearest neighbours — account for over half its two-way trade. Since 1921, Luxembourg has been in an economic union with Belgium — the Belgium-Luxembourg Economic Union (BLEU).

More economic and trade information [PDF].

Australia continues to seek opportunities to promote Australian business and raise awareness of potential benefits of increased trade and investment between Australia and Europe, including Luxembourg.

Business

Australia has a solid trade and investment relationship with Luxembourg. Luxembourg ranks as Australia’s seventh largest investor (stocks) valued at $104 billion in 2023, with FDI (stocks) valued at $7 billion in Australia. Australia is currently negotiating a bilateral tax treaty with Luxembourg which will further encourage economic integration through foreign investment and trade.

Two-way trade in 2023 was $195.6 million.

Luxembourg is a favourable market for Australian FDI based on its strong economic performance, dynamic services sector and business-friendly regulations. In 2018, Australia’s Macquarie acquired ValueInvest, a specialised asset management firm.

The Australian Trade Commission (Austrade) Paris Office aims to attract foreign direct investment into Australia and promotes the Australian education sector. Austrade also focuses on identifying opportunities for Australian companies in high potential areas, such as the space sector.