Australia established diplomatic relations with Andorra in 1998, with accreditation through the Australian Embassy in Madrid.
As an indication of the growing bilateral relationship, a Tax Information Exchange Agreement was signed in 2011. Then-Parliamentary Secretary for Foreign Affairs, Richard Marles, visited Andorra in April 2012, the first such high-level visit from either side.
Australia's economic relations with Andorra are modest. In 2017, Australian imports from Andorra were worth almost AUD135, 000 and Australian exports to Andorra were worth almost AUD292, 000 (World Bank figures).