EU-Australia Trade Deal Boosts Agri-Food and Exports

On March 24, officials from the EU and Australia announced that they had concluded a comprehensive trade agreement, agreed to deepen defense collaboration through a new Security and Defense Partnership, and began formal talks on Australia's accession to Horizon Europe, the EU’s flagship research and innovation program. The free trade agreement was concluded during a meeting in Canberra, signaling a balanced deal aimed at boosting trade and investment between the two partners.

Main Trade Measures Agreed

Under the agreed terms, Australia will eliminate tariffs on almost 100% of EU exports of goods, with only limited exceptions, such as certain steel products. This measure will create more equal terms for EU businesses in Australia and is expected to save over EUR 1 billion annually in duties on exports already exceeding EUR 20 billion, with further growth anticipated.

One of the sectors that will benefit the most from this agreement is the agri-food sector, where the EU already recorded a trade surplus of EUR 2.3 billion in 2024. Under the agreement, tariffs will be reduced to zero, making it easier for EU farmers and food producers to access the Australian market and expand their presence. 

Some of the key products, such as cheese, will see tariffs phased out over three years, while others, including wine, sparkling wine, fruit and vegetable products, chocolate, confectionery, ice cream, and many processed agricultural goods, will enjoy immediate tariff-free access. Also, the agreement is drafted to balance increased trade with the protection of sensitive EU agricultural sectors. 

Notably, while market access is expanded, certain imports into the EU will be controlled through carefully structured tariff-rate quotas introduced gradually. At the same time, both sides have agreed to modernize their bilateral wine agreement, strengthening the protection of EU geographical indications (GIs) in Australia.

Conclusion

The confirmation that the two sides concluded a trade agreement brought to an end negotiations that began in 2018 and progressed through multiple rounds, with the 15th and final formal round taking place in April 2023. Between April 2023 and March 2026, further technical and political discussions continued. For the EU, this is another significant strategic agreement in the region, following the conclusion of similar trade negotiations with Indonesia in September 2025 and India in January 2026.

Source: European Commission