24/03/2026
Australia–EU Deal Sealed: A New Era of Trade, Investment & Global Opportunity
After eight years of negotiations, Australia has secured a landmark Free Trade Agreement with the European Union - the world’s second-largest economy - unlocking enhanced access to a market of 450 million people.
The Agreement will significantly reduce trade and investment barriers, strengthening two-way investment flows. In 2024, the EU was Australia’s second-largest source of foreign investment, with a stock valued at $869.3 billion.
Tariff reductions will lower the cost of key European imports, including wine, spirits, and food products, while reducing input costs for Australian businesses through cheaper vehicles and machinery.
Nearly all Australian exports of manufactured goods and mineral resources will enter the EU tariff-free, including critical minerals and hydrogen, supporting Australia’s ambition to become a renewable energy leader and reinforcing global supply chains.
Australian companies, including particularly SMEs, will gain improved access to EU government procurement markets valued at approximately $845 billion annually, alongside expanded opportunities in services sectors such as finance, education, tourism, and communications. Professional mobility will also be enhanced through streamlined recognition of Australian qualifications.
The Agreement will enter into force following completion of domestic ratification processes on both sides.
Complementing the FTA, Australia and the EU will advance cooperation through a defence agreement, with Australia also set to join the EU’s €158 billion Horizon Europe research program.
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