The European Union and Australia concluded a free trade agreement on Tuesday, ending eight years of negotiations and removing tariffs on the vast majority of goods traded between the two sides.
European Commission president Ursula von der Leyen and Australian prime minister Anthony Albanese confirmed the deal in Canberra.
The agreement will eliminate more than 99% of tariffs on EU exports to Australia, saving European companies around €1 billion annually in duties. Tariffs on critical minerals imported from Australia will also be reduced, as Brussels seeks to diversify supply chains.
The European Commission expects the deal to increase EU exports to Australia by up to 33% over the next decade.
Australian exports, including wine, fruit, vegetables, and chocolate, will gain tariff-free access immediately, while tariffs on cheeses will be phased out over three years. The agreement allows Australian producers to continue using certain geographical names such as feta and Gruyère, and expands quotas for Australian beef entering the EU, though below the levels sought by farmers.
Trade between the EU and Australia is significant, with €37 billion in goods exported from the EU in 2025 and €28 billion in services in 2023.
