Australia and the European Union have signed a $10 billion free trade agreement, opening new markets to Australian producers.
A free trade deal would give Australian exporters greater access to global markets of more than 450 million people. It would also remove tariffs on European imports and potentially offer a billion-dollar boost to the economy.
Prime Minister Anthony Albanese said the relationship is important against the backdrop of a “less predictable” international environment.
“It is a win-win,” he told reporters in Canberra on Tuesday, highlighting that the pact will eliminate tariffs on exports such as wine, seafood, beef and dairy.
“This benefits Australian consumers and companies too, with greater choice in goods and services at lower prices, including important inputs for our manufacturing and primary industry sectors.”
European Commission President Ursula von der Leyen, also in Canberra, highlighted the “tangible benefits” to European businesses of saving around one billion euros ($1.7 billion) in tariffs.
She said she expected the exports of goods to Australia to grow by 33 per cent in the next decade.
Von der Leyen said “collective resilience” is important, alluding to the use of import taxes by United States President Donald Trump as geopolitical leverage.
“Today, we are telling an important story to a world that is deeply changing, a world where great powers are using tariffs as leverage, and supply chains as vulnerabilities to be exploited,” she said.
“Trust matters more than transactions. It is a story of building strength at home and diversifying abroad through a reliable network of agreements that we respect and uphold.”
Negotiations over a proposed free trade agreement stalled in 2023 over sticking points that included greater access to European markets for Australian beef and sheep.
In a statement prior to the press conference, the pair revealed that several agreements were signed, including a defence and security pact that would include “defence industry cooperation, cyber and economic security, and counterterrorism”.
This is a developing story and this article will be updated.
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