The cancellation of Donald Trump's much-anticipated talk with Prime Minister Anthony Albanese has shifted the spotlight from Australia's relationship with the US, to its alliance with the European Union.
Prime Minister Anthony Albanese on Wednesday (AEST) revealed he would begin negotiations on a security and defence partnership with the EU.
The announcement followed a trilateral meeting with European Commission President Ursula von der Leyen and European Council President Antonio Costa on the sidelines of the G7 Summit in Canada.
The partnership would strengthen co-operation on global security challenges between Australia and the EU.
Officials from the EU and Australia are expected to conclude discussions "pretty quickly", and Mr Albanese said it would be an important framework for co-operation in areas like defence and counterterrorism.
Defence Minister Richard Marles and Foreign Minister Penny Wong had been working on a potential agreement for some time, with Mr Marles meeting the bloc's High Representative for Security Policy Kaja Kallas at a recent dialogue in Singapore.
The EU already has similar partnerships with seven other countries, including Japan, South Korea and the UK.
On the other hand, Australia's long-stalled trade agreement with the bloc is still some ways away, though talks have resumed.
"We have been getting closer and I think at this time it would send a very important signal about the importance of free and fair trade," Mr Albanese told reporters in Calgary.
The EU was Australia's third-largest trading partner in 2022/23, with two-way trade valued at $106 billion.
Negotiations over the proposed free trade agreement first began in 2018 but have been held up by several points of contention.
Australia has urged the EU to drop or reduce its tariffs on all agriculture exports, but trading bloc is concerned by Australian producers using terms like prosecco or feta for products that did not originate from specific regions in Europe.
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