This report argues that the Indian Ocean is poised to become a significant area of cooperation between France and Australia in light of the 2018 French Indo-Pacific strategy to enhance France’s military, economic, diplomatic and political assets in the region. 

The exercise of sovereignty in the French overseas territories of the Indian Ocean, including Reunion Island, Mayotte, the Scattered Islands, and the Subantarctic Islands, is a significant component of the strategy. Despite their unique characteristics and geopolitical contexts, each of these territories contributes to France's ambition to become a credible regional power in the Indo-Pacific Region. French sovereignty over some of these territories, however, is disputed. Mayotte is claimed by Comoros, while the Scattered Islands are contested by Madagascar and Mauritius. 

This report provides an overview of France's strategic positioning in the region and how this might provide a new horizon for bilateral relations between France and Australia. 

The Indo-Pacific strategies of France and Australia showcase fundamental differences, accentuated by the AUKUS crisis. Australia's strategy is China-centric and strongly aligned with the United States. In contrast, France has been advocating for a "third way" in the Indo-Pacific that aims to maintain independence from Chinese coercion without being systematically aligned with the United States. Despite these differences, France and Australia continue to be major strategic partners in the Pacific region.