The EU and Australia have agreed on a free trade deal
On 24 March, the European Union and Australia concluded negotiations on a free trade agreement that had been ongoing since 2018. This was reported by DW.
European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese stated that the agreement reaffirms the mutual benefits of rules-based trade.
“Today we are telling an important story of a world that is changing profoundly. A world where major powers use tariffs as a lever of influence and supply chains as vulnerabilities to be exploited. In our story, open, rules-based trade delivers tangible results,” said von der Leyen.
Anthony Albanese noted that the EU and Australia support free and fair trade and regard it as a driver of prosperity.
The agreement has not yet entered into force. It must be approved by EU member states, the European Parliament and the Australian Parliament.
The agreement provides for the removal of over 99 per cent of tariffs on goods exported from the European Union to Australia. This is expected to save businesses around one billion euros annually. Tariffs are also being removed for key Australian export goods, including wine, seafood and horticultural products.
European companies will gain greater access to public procurement in Australia. The agreement also provides for simplified working conditions for EU professionals. It is specifically noted that the agreement will facilitate the European Union’s access to critical raw materials, in particular lithium and tungsten.
The document includes a separate section on small and medium-sized enterprises, which is intended to boost exports.
EU exports to Australia are expected to grow by 33 per cent over the next decade, reaching €17.7 billion a year.
In addition, Brussels and Canberra have announced the conclusion of an agreement in the field of security and defence. It provides for enhanced cooperation on shared challenges, particularly in the defence industry, cybersecurity, economic security and the fight against terrorism.
