EU and Australia Finally Strike Free Trade Deal After Nearly a Decade of Talks

Whereas talks stalled on agricultural produce, the EU and Australia reached a common position after nearly a decade since trade talks started. The breakthrough took place in the context of geopolitical upheavals and trade reconfigurations. On 24 March 2026, a signing ceremony for the EU-Australia Free Trade Agreement (FTA) took place in Canberra between Australian Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen.

Basically, the FTA removes 99% of tariffs on both sides. EU secures access to Australia’s #CriticalMinerals, while Australian agricultural produce gains access to the tightly-controlled EU market.

However, most of the farm produce will be under a rate-quote basis, meaning that the agricultural products will be able to enjoy duty-free up to a certain volume. Australian farmers qualified the quotas as disappointingly small, whereas French farmers argued that the quotas were too generous.

“The EU and Australia may be geographically far apart but we couldn’t be closer in terms of how ​we see the world. With these dynamic new partnerships on security ⁠and defence, as well as trade, we are moving even closer together.”

EC President Ursula von der Leyen

As an example, Australia will be able to export 30,600 tonnes of beef to the EU annually, with 55% of that volume being exempt from customs duty. In a similar deal with Mercosur, the EU has also committed to importing beef from Latin America. Both sides will beef up geographical indication regulations to protect country-of-origin appellations.

On the other hand, Australia will exempt EU-made Electric Vehicles (#EV) from duty up to a threshold of AUD 120,000. This means that 75% of EV imported from the EU into Australia will be tax-free.

Australian PM Albanese highlighted that the FTA would add about AUD 10 billion (USD 7B) annually to the #GDP of Australia. In 2025, the EU-Australia trade in goods volume reached EUR 47 billion, while trade in services stood at EUR 37 billion, making the EU the 3rd-largest trading partner of Australia. In terms of investment, investment stock from EU to Australia cumulated to EUR 523 billion, accounting for 18% of Australia’s total Foreign Direct Investment (#FDI).

During the visit, Von der Leyen also had the opportunity to address the Australian Parliament to discuss current challenges and to motivate the deal. Observers note the growing engagement of the EU in the Indo-Pacific region, with similar deals struck with India in January 2026, with Indonesia in September 2025, and with New Zealand in 2023.