CANBERRA/BRUSSELS, Mar 24: Australia and the European union have concluded a “landmark” free trade agreement after nearly eight years of negotiations, significantly boosting market access, cutting tariffs, and deepening economic ties between the two sides.
The deal was announced by Anthony Albanese and Ursula von der Leyen, who described it as a major step in strengthening a “growing strategic relationship” and reinforcing commitment to “open and rules-based trade.”
Under the agreement, “98 per cent of the current value of Australia’s exports” will enter the EU duty-free, providing a major lift to sectors including agriculture, manufacturing, and critical minerals.
Australian farmers stand to gain from the removal of tariffs on products such as wine, dairy, seafood, grains, fruits, and nuts, with wine exporters alone expected to benefit by around “$37 million annually.”
The pact also ensures “commercially meaningful access” through expanded quotas for key products like beef, sheep meat, sugar, and dairy, while protecting the right of Australians to continue using common food names such as “parmesan” and “kransky,” with phased adjustments for others.
On the import side, the removal of most Australian tariffs is expected to make European goods like “wine, spirits, biscuits, chocolates and pasta cheaper at Aussie checkouts,” while also lowering costs for machinery and vehicles.
Highlighting the significance of the deal, Albanese said, “After almost 8 years of negotiations, we have secured a landmark agreement that will deliver benefits for generations to come.”
“This deal creates major new opportunities for Australian exporters in the European Union’s massive $30 trillion economy, and will reduce costs for Australian consumers,” he added.
Trade Minister Don Farrell termed it a “hard-fought deal” that delivers “real commercial gains” for exporters and producers.
“The removal of EU tariffs on most of Australia’s exports gives Australian exporters the opportunity to diversify trade with 27 countries and 450 million consumers,” he said.
Calling it “strategically important and economically valuable,” Farrell added, “More trade, with more trading partners means more supply chain security, more well-paying jobs, cheaper prices, and more national income.”
The agreement also opens access for Australian firms to EU public procurement contracts worth around “$845 billion annually,” while improving mobility for professionals and expanding opportunities in services such as finance, education, tourism, and communications.
Described as a step to “bolster competitiveness, growth and resilience in an increasingly uncertain global trade environment,” the agreement will take effect once both sides complete their domestic ratification processes.
(UNI)
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