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Landmark trade deal signed after eight-year talks
Australia and the European Union have concluded a comprehensive free trade agreement valued at approximately A$10 billion (US$7 billion; £5.2 billion), marking the end of protracted negotiations that began in 2018. The accord was formally signed on Tuesday in a ceremony attended by Australian Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen, both of whom hailed the pact as a "win-win" for both parties.
Tariffs eliminated, agricultural exports boosted
The agreement will remove nearly all tariffs on bilateral trade, with significant implications for Australia's agricultural sector. Under the terms, the EU will lift duties on key Australian exports, including wine, fresh produce, olive oil, seafood, most dairy products, and grains such as wheat and barley. The Australian government estimates that local wine producers and exporters will save around A$37 million annually as a result.
For Australian consumers, the deal is expected to lower prices on a range of European goods, including wine, spirits, biscuits, chocolates, and pasta.
Food naming rights resolved with phased transitions
A contentious issue in the negotiations was the use of European geographical indications-names like prosecco, parmesan, and feta-on Australian products. The agreement permits Australian producers to continue using the term prosecco for domestically sold sparkling wine, though the name will be phased out over a decade for exports to the EU. Similar arrangements apply to parmesan, while feta will be subject to grandfathering provisions and extended phase-out periods.
Prime Minister Albanese framed the resolution as a reflection of Australia's multicultural heritage. "Our modern history has been shaped by migration," he said. "Whether it's Greeks bringing feta, Italians introducing parmesan, or Eastern Europeans popularising kransky sausages, these connections to Europe run deep."
Australia is now the only country outside Italy granted permission by the EU to use the term prosecco.
Defence and critical minerals cooperation expanded
Beyond trade, the agreement strengthens collaboration in defence and security, including joint efforts in counterterrorism, maritime security, space, and the defence industry. Von der Leyen emphasised the pact's focus on "collective resilience" in a geopolitical landscape where "great powers use tariffs as leverage and supply chains as vulnerabilities."
She referenced tensions such as former US President Donald Trump's tariff policies and China's dominance in critical minerals markets, stating that "trust matters more than transactions" in the Australia-EU relationship.
The deal also includes provisions to deepen cooperation on critical minerals projects, with a particular focus on lithium and tungsten, both essential for technologies like electric vehicles and renewable energy infrastructure.
Meat industry criticises quota limitations
While the agreement has been broadly welcomed, Australia's red meat sector has expressed disappointment over the terms governing beef and sheep meat exports. The deal increases the annual quota from 3,389 tonnes to approximately 30,000 tonnes-significantly below the 50,000-tonne target sought by industry groups.
"This is unquestionably a missed opportunity for Australia's red meat producers, processors, and exporters," said Andrew McDonald, a representative of Meat and Livestock Australia.
Next steps and long-term outlook
With the agreement now signed, both sides will proceed with domestic ratification processes. Von der Leyen described the deal as a "perfect balance," noting that it would facilitate greater access for Australian exporters to the EU market while increasing the availability of European goods in Australia. The pact is expected to enter into force in 2027, following approval by the European Parliament and Australian Parliament.
