The European Union and Australia have finalized a landmark free-trade agreement after eight years of negotiations. The deal, announced during EU chief Ursula von der Leyen's visit to Canberra, eliminates key trade barriers and strengthens cooperation on defense and critical minerals.
Under the pact, EU exports to Australia are projected to grow by a third over the next decade. Australian beef exports to the bloc will increase more than tenfold, though falling short of farmer demands. The National Farmers' Federation called the outcome disappointing, citing insufficient gains for key agricultural sectors.
Australia will phase out use of "prosecco" for exports within 10 years but can continue domestic use. Producers may retain certain geographical names like "feta" and "gruyere" if used domestically for at least five years.
The agreement includes expanded access to rare-earth minerals, reducing reliance on single suppliers like China. Von der Leyen emphasized shared security, stating, "Our security is your security," as both sides launched a new defense partnership.
Electric vehicles from Europe will benefit from Australia’s higher luxury car tax threshold, with 75% now exempt. The deal could add A$7.8 billion to Australia’s GDP by 2030.
Von der Leyen urged unity amid global instability, calling the Middle East conflict a stark reminder of energy vulnerabilities. Both nations aim to diversify trade amid shifting dynamics with the U.S. and China.