MARKET STRUCTURE · AUSTRALIA

Australia formally recognises Palestine, as Albanese begins US visit

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Australia's government officially recognizes Palestine as an independent state, aligning with Canada and the UK amid international tensions.
Australia formally recognises Palestine, as Albanese begins US visit
Why it matters
On September 20, 2025, Prime Minister Anthony Albanese announced that Australia formally recognizes Palestine as an independent state, a move that aligns with similar actions by Canada and the United Kingdom. This recognition is part of a broader international initiative aimed at revitalizing the two-state solution for peace between Israel and Palestine. Albanese's announcement coincided with his arrival in New York for the UN General Assembly, where he is expected to address various global issues, including climate change and social media regulations. However, the decision has drawn criticism from 25 Republican members of Congress, who argue that it undermines US interests and could lead to punitive actions against Australia. They described the recognition as a dangerous precedent that rewards terrorism, particularly in light of ongoing tensions with Hamas. Albanese and Foreign Minister Penny Wong reiterated Australia's commitment to a two-state solution, emphasizing the need for the Palestinian Authority to undertake significant reforms and ensure that Hamas plays no role in the future governance of Palestine.
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