Canberra (TDI): Australia and the European Union have concluded negotiations for a comprehensive free trade agreement, on Tuesday. Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen announced the final text at Australia’s Parliament House.
The breakthrough follows almost eight years of negotiations launched in June 2018 that stalled in October 2023 over red meat access and geographical indications. Prime Minister Anthony Albanese announced the deal in a social post on X.
“Worlds apart, but now closer than ever. Australia and Europe are taking our relationship to the next level with a once in a generation Free Trade Agreement and Security and Defense Partnership,” the Prime Minister wrote.
Worlds apart, but now closer than ever 🇦🇺🇪🇺
Australia and Europe are taking our relationship to the next level with a once in a generation Free Trade Agreement and Security and Defence Partnership.
More jobs. More security. More local products in global markets.
And in an… pic.twitter.com/vmGHfgGcAR
— Anthony Albanese (@AlboMP) March 24, 2026
The agreement will result in 98% of the current value of Australian exports entering the EU duty-free. Australian farmers and producers gain from the elimination of nearly all EU tariffs on wine, seafood, horticulture, nuts, fruit, vegetables, honey, olive oil, most dairy products, wheat and barley.
Red meat receives two tariff rate quotas totaling 30,600 metric tons, with 55% duty-free. Almost all Australian manufactured goods and mineral resources, including critical minerals and hydrogen, will face zero import tariffs into the EU.
Australian service providers will enjoy greater market access in financial services, education, tourism and communications. Professionals benefit from streamlined qualification recognition and easier travel.
Australian consumers and businesses will see lower prices on EU imports such as wine, spirits, biscuits, chocolates, pasta, motor vehicles and machinery.
The deal also opens EU government procurement opportunities worth around €845 billion annually to Australian companies, including small and medium enterprises.
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Alongside the trade deal, the leaders launched a new Australia-EU Security and Defense Partnership, which will deepen cooperation in defense industries, maritime security, cyber security, counter-terrorism and countering hybrid threats including disinformation.
The partnership strengthened shared support for Ukraine and paved the way for negotiations on Australia’s association with Horizon Europe, the EU’s flagship research and innovation program.
Leaders emphasized mutual commitment rules-based trade and diversifying supply chains amid global uncertainties and tariff pressures. The EU is Australia’s third-largest two-way trading partner and second-largest source of foreign investment, with two-way trade in goods and services reaching AU$109.7 billion in 2024-25.
Negotiations involved multiple rounds, with the final text agreed today after technical and political discussions. The pact includes protections for certain Australian terms while providing phase-out periods for others such as the export of Prosecco.
Domestic use of prosecco by Australian producers remains protected. The agreement will enter into force after both Australia and the EU complete their domestic approval processes.
Muhammad Usman Hashmi
Muhammad Usman Hashmi is a researcher in International Relations, focusing on climate diplomacy, global governance, and political economy in the Global South. He has contributed to policy dialogues with the Foreign Policy Community of Indonesia and serves as a Senior Research Fellow at the International Council on Human Rights, Peace and Politics. He is also associated with Rethinking Economics Islamabad, contributing to research on development and sustainability. He can be reached at musmanhashmi99@gmail.com
