13 April 2026

Australia and EU Officially Sign Off on New Agreement

Australia and the European Union (EU) have now concluded negotiations for an Australia-EU Free Trade Agreement (A-EU FTA), a comprehensive, progressive and commercially meaningful free trade agreement.

This landmark deal will further strengthen Australia’s economic and strategic partnership with the EU, unlocking a massive, high-income market of around 450 million consumers with a GDP of about $30 trillion.

Once fully implemented, 98% of the current value of Australia’s goods exports will enter the EU duty-free, delivering new market opportunities for many key Australian industries.

Goods

Once fully implemented, 94.8% of the value of Australia’s agricultural exports will enter the EU duty-free. Tariffs will be eliminated on:

  • Wine, tree nuts, barley, seafood, onions, carrots, honey, olive oil.

For key agricultural products where tariffs are not eliminated, the A-EU FTA will create annual tariff rate QUOTAS, including on:

  • most dairy products including cheese
  • beef, sheep meat, natural butter, skimmed milk powder, high protein whey.
  • milled/semi-milled rice, sugar wheat, gluten, ethanol
  • natural butter, skimmed milk powder, high protein whey.

Industry

On full implementation, all tariffs on Australia’s advanced manufacturing and other industrial goods (except steel) will be eliminated, including:

  • machinery and electrical goods, auto parts
  • textiles, wood and plywood, chemical and pharmaceutical
  • aluminium, zinc, lead and silicon, plastics and rubber products
  • optical and photographic or cinematographic products
  • toy games and sports-related products.

All tariffs will also be eliminated on Australian energy and resource products, including critical minerals, lithium hydroxide, and hydrogen and its carriers.

The agreement will allow extended travel and movement for Australians within the EU, and offers better access for Australian institutions, suppliers to world-leading European researchers, engineers and technicians, recognitions of qualifications & access to EU Government contacts, mining, manufacturing, energy, tourism and education.

Benefit will not flow through until agreement is enters into force which could take between 18-24 months to final.

 

The EU and Australia free trade agreement is set to strengthen trade ties, creating new opportunities across supply chains and freight logistics. As tariffs ease and market access improves, businesses can benefit from more efficient cross-border movement of goods and expanded trade routes. Leveraging these developments will be key for companies looking to optimize logistics strategies and stay competitive in the global market.

Source: Department of Foreign Affairs and Trade