After years of negotiations, the European Union and Australia have agreed on a free‑trade agreement. The final text was signed during a meeting in Canberra between EU Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese, the EU Commission confirmed. At the same time, the parties announced a security and defence partnership.
The deal removes tariffs on both sides and eases trade in services and reciprocal investment. According to the Commission, EU exports to Australia could rise by up to 33 % over the next decade, with a yearly export value reaching as high as €17.7 billion. Key growth‑sectors include dairy products (potential increase of up to 48 %), passenger cars (52 %) and chemicals (20 %). EU investment in Australia is expected to grow by more than 87 %.
“When the EU and Australia are geographically distant, our shared worldview brings us closer together” von der Leyen said. “These agreements create lasting, trust‑based structures that promote peace and security through strength, advance prosperity through rule‑based trade, and champion the maintenance of global institutions”.
On the EU side, the negotiated drafts of the free‑trade agreement will soon be published. Afterward, the Commission will submit a proposal to the Council for signing. Once the Council adopts the proposal, the EU and Australia can sign the agreement. The treaty will then require approval from the European Parliament and a formal Council decision to conclude before it enters into force. When Australia ratifies the accord, it will become effective.