Australia–EU FTA Concluded After 8 Years, Unlocks Duty-Free Access For 98% Exports
Australia has finalised a landmark free trade agreement with the European Union, marking the conclusion of eight years of negotiations and opening up a market of over 450 million consumers.
The Australia–EU Free Trade Agreement was jointly announced by Anthony Albanese and Ursula von der Leyen, alongside trade officials from both sides, signalling a major step forward in strengthening economic and strategic ties.
Under the agreement, 98 percent of Australia’s exports by value will enter the EU duty-free, significantly improving market access for key sectors. Agricultural exports stand to gain substantially, with tariffs eliminated on products such as wine, dairy, seafood, grains, fruits, nuts and olive oil. Australian wine exporters alone are expected to benefit by around US$ 37 million annually through tariff removal.
The pact also provides expanded quota access for sensitive products including beef, sheep meat, sugar and dairy, offering new commercial opportunities in what has traditionally been a restricted market.
On the import side, the phased removal of most Australian tariffs on EU goods is expected to lower prices for products such as wines, spirits, processed foods and machinery, benefiting both consumers and businesses.
The agreement preserves the use of common food names such as parmesan and kransky in Australia, while allowing domestic winemakers to continue producing and selling Prosecco. Transitional arrangements have been agreed for certain protected European terms including feta, romano and gruyere.
Beyond agriculture, the deal eliminates tariffs on nearly all manufactured goods and mineral exports, including critical minerals and hydrogen—supporting Australia’s ambitions in clean energy and supply chain resilience.
Investment flows are also expected to strengthen, with the EU already being Australia’s second-largest source of foreign investment, valued at over $869 billion. Australian firms will gain improved access to EU public procurement markets worth an estimated $845 billion annually, particularly in infrastructure sectors such as rail and construction.
The services sector is another key beneficiary, with enhanced access for Australian providers in financial services, education, tourism and telecommunications. The agreement also streamlines professional mobility and recognition of qualifications across the EU.
The FTA will come into force following ratification by both parties.
Describing the deal as a “major milestone,” Albanese said it would create long-term opportunities for exporters while reducing costs for consumers. Trade Minister Don Farrell added that the agreement delivers meaningful gains in a market that has long posed entry barriers, while also helping diversify Australia’s trade base in an uncertain global environment.
