The European Union (EU) and Australia concluded negotiations in March on a comprehensive free trade agreement (FTA) aimed at boosting trade and strengthening supply chains
As part of the agreement, over 99% of tariffs on EU exports to Australia will be eliminated, generating around 1 billion euros in annual duty savings and contributing to a projected 33% increase in EU exports over the next decade. By 2030, it could contribute an estimated 4 billion euros to the EU’s GDP.
This FTA includes safeguards to protect sensitive EU sectors, such as import limits on products like beef, sugar, rice and dairy, and a mechanism allowing the EU to act quickly in case of import surges. It also strengthens the protection of EU geographical indications, covering hundreds of food products, spirits and over 1,600 wines.
The agreement is also expected to improve access to essential resources such as lithium and aluminium, supporting EU industries and diversifying supply chains.
Australian Prime Minister Anthony Albanese said the deal would contribute around 7 billion US dollars to the Australian economy each year. He added that eliminating almost all import tariffs on Australian critical minerals entering the EU would help stabilise global supply chains.
In parallel, the two sides agreed to deepen security and defence cooperation. “The EU and Australia may be geographically far apart, but we couldn’t be closer in terms of how we see the world. With these dynamic new partnerships on security and defence, as well as trade, we are moving even closer together”, commented Ursula von der Leyen, President of the European Commission.
Negotiations for the EU-Australia free trade agreement began in July 2018, with draft texts expected to be published soon. The agreement still requires the approval of the European Council and the European Parliament, as well as ratification by Australia, before it can enter into force.
Image Credits: seafoodsource.com
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