Australia and European Union to Sign Free Trade Agreement Decades in the Making
The deal nearly a decade in negotiations looks set to be finalised but some industry groups remain opposed
The agreement represents the culmination of negotiations that began in 2018 and repeatedly stalled over agricultural access, environmental standards and geographic indication protections for European food and wine products.
The deal is expected to reduce tariffs on Australian exports to the EU and open up European markets to Australian agricultural producers, though the extent of access has been a point of contention. European producers had pushed for strong protections on product names like feta, prosecco and parmesan, while Australian producers resisted restrictions on terms they have used for decades.
For Australia, the agreement comes at a strategically important time as the country seeks to diversify its trade relationships amid ongoing tensions with China and the economic disruption caused by the Iran war. The EU is Australia's third-largest trading partner.
Analysis
Why This Matters
This is Australia's first comprehensive trade agreement with the EU and signals a deepening of economic ties at a time when both sides are looking to reduce dependence on volatile trade partners.
Background
Negotiations stalled multiple times over agricultural subsidies and geographic indications. The current geopolitical environment, including the Iran war and trade tensions with China, created pressure on both sides to finalise the deal.
What to Watch
The specific terms on agricultural access, how geographic indication protections affect Australian producers, and whether the agreement accelerates EU-Australia cooperation on other fronts.
Sources
- Australia and European Union to sign free trade agreement decades in the making
- European wine chocolate and cars to become cheaper in Australia amid landmark trade deal with EU
- Farmers rubbish worst ever EU free trade agreement
- Europe Clinches Critical Mineral Access With Australian Trade Deal
- Free trade deal with European Union brings down prices of essentials
- Europe Australia compromise on cheese and wine names in 10b trade deal