After years of negotiations, the European Union and Australia have reached a free‑trade agreement. The final text was agreed in Canberra during a meeting between EU Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese, as the EU Commission reported. At the same time, the parties announced a security and defence partnership.
The trade deal calls for the elimination of tariffs on both sides and will make it easier to trade services and invest in each other’s markets. The Commission estimates that EU exports could rise by up to 33 % over the next decade, with annual export values potentially reaching €17.7 billion. Key sectors expected to experience strong growth include dairy products (up to a 48 % increase), motor vehicles (52 %) and chemicals (20 %). EU investment in Australia could grow by more than 87 %.
“The EU and Australia may be geographically far apart, but when it comes to our worldview we could not be closer” von der Leyen said. “With the new partnerships in security and defence as well as trade, we come even closer together. These agreements create lasting, trust‑based structures to promote peace and security through strength, advance prosperity through rule‑based trade, and work together to uphold global institutions”.
EU officials will soon publish the negotiated drafts of the free‑trade agreement. The Commission will then submit a proposal to the Council for signing and concluding the agreement. Once the Council accepts the proposal, the EU and Australia can sign the treaty. After signing, the agreement requires the European Parliament’s assent and a Council resolution for the agreement to enter into force. Once Australia also ratifies the agreement, it will become effective.
