After eight years of discussions, Australia has successfully finalised a significant trade agreement with the European Union, the world’s second-largest economy.
The Australia-European Union Free Trade Agreement aims to reduce trade and investment barriers between Australia and the EU, which comprises approximately 450 million consumers.
Today, Prime Minister Anthony Albanese, President of the European Commission Ursula von der Leyen, Minister for Trade and Tourism Senator Don Farrell, and European Commissioner for Trade and Economic Security Maroš Šefčovič announced the successful conclusion of negotiations. This agreement, alongside the Australia-EU Security and Defence partnership, is a crucial element of our expanding strategic relationship.
The deal is set to enhance our economic and strategic ties, reaffirm our shared commitment to open and rules-based trade, and diversify our trading landscape. This will significantly boost Australia’s competitiveness, growth, and resilience amid an increasingly unpredictable global trade environment.
As a result of this agreement, 98% of the current value of Australia’s exports to the EU will enter the market without tariffs.
Australian farmers and producers are expected to gain from the elimination of nearly all EU tariffs on agricultural goods, including wine, nuts, fruits, vegetables, honey, olive oil, most dairy items, wheat, barley, and seafood.
For instance, Australian wine growers and exporters are poised to gain approximately $37 million each year due to the removal of EU import tariffs.
Additionally, the agreement provides substantial access for other key agricultural products through new or expanded tariff rate quotas, benefiting items like beef, sheep meat, sugar, rice, wheat gluten, skimmed milk powder, and natural butter.