The EU and Australia concluded negotiations for an ‘ambitious and balanced’ free trade agreement (FTA). The FTA final text was agreed on Wednesday during a leaders’ meeting in Canberra between European Commission president Ursula von der Leyen and prime minister of Australia Anthony Albanese.

The agreement is expected to provide new opportunities for business by eliminating tariffs on almost 100% of EU exports of goods to Australia (with the exception of certain steel products), thus cutting some €1bln a year in duties for companies of all sizes.

According to the Commissions’ press release, the agreement will make it easier for EU companies to provide their services in Australia, including professional services as well as delivery, telecommunications, maritime transport and financial services.

EU firms exported to Australia €37bn of goods in 2025, and €31bn of services in 2024.

With the conclusion of negotiations, the EU is opening the market to one of the world’s fastest-growing developed economies.

EU exports are expected to grow by up to 33% over the next decade, the European Commission said, with export value reaching up to €17.7bln annually. Key sectors with strong growth potential include dairy (expected to increase by up to 48%) motor vehicles (52%), and chemicals (20%). EU investment into Australia has the potential to grow by over 87%.

The agreement will eliminate tariffs on major EU exports such as cheeses, meat preparations, wine and sparkling wine, some fruits and vegetables including preparations, chocolate, and sugar confectionary, the Commissions’ press release reads.

For sensitive agricultural sectors such as beef, sheep & goat meat, sugar, some dairy products and rice, the agreement will allow zero or lower tariff imports from Australia only in limited amounts, through carefully calibrated Tariff Rate Quotas, as EU stressed.   

In addition, the agreement includes a bilateral safeguard mechanism allowing the EU to take measures to protect sensitive European products and their producers in the unlikely event of a surge in imports from Australia causing injury to the EU market.  

Negotiations for an FTA with Australia started in July 2018. The 15th and last formal negotiating round was held in April 2023, followed by intersessional discussions at technical and political level, leading up to the conclusion of the negotiations on March 24, 2026. The deal is the latest addition to the EU’s agreements with the strategic Indo-Pacific region, following the conclusion of FTA negotiations with Indonesia in September 2025, and India in January 2026.

The two parties welcomed the conclusion of negotiations on the Australia-European Union Free Trade Agreement in Canberra on March 24, and will now take forward their respective domestic processes required for signature and entry into force.

“For EU businesses, this agreement will deliver immediate, tangible benefits. EU exporters, producers and farmers will save 1 billion euro in tariffs. Our exports of goods to Australia are expected to grow by 33% over the next decade,” European Commission president Ursula von der Leyen said at the joint press conference with Australian prime minister Albanese.