EU-Australia Trade Deal Boosts Agri-Food and Exports
-t1fr1rpo7s.webp)
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
More News from Europe
Get real-time updates and developments from around the world, keeping you informed and prepared.
EU Law Primacy in VAT: ECJ Rules on Hungarian National Practice
Appstore VAT Ruling: Who owns your In-App Purchase tax? C-101/24
VAT Treatment of EU-Funded Projects for Non-Profit Associations
Right to Deduct VAT on Fixed Asset Reconstruction: Court Ruling
Italy’s EUR 1 Billion VAT Dispute with Meta, X, and LinkedIn Explained
EU 5% Digital Service Tax Could Generate EUR 37.5 Billion: CEPS Study
Restrictions on VAT Deduction: Key Legal Cases & Compliance Insights
EU Parliament Approves ViDA: VAT Reforms & Digital Tax Compliance
-e9lcpxl5nq.webp)



