Global Daily Tax News, EU, Australia Complete Talks On Free Trade Deal, (Mar 25, 2026)

The European Union and Australia have concluded negotiations launched in 2018 on a free trade agreement.

The FTA final text was agreed during a leaders' meeting in Canberra between European Commission President Ursula von der Leyen and Prime Minister of Australia Anthony Albanese.

The EU said the agreement will give EU exporters privileged access to the Australian market, including:

• Removing over 99 percent of tariffs on EU goods exports to Australia, cutting some EUR1bn a year in duties for companies of all sizes;

• Opening of the Australian services market in key sectors, including financial services and telecommunications;

• Providing greater access for EU companies to Australian government procurement contracts; and

• Securing supply chains of critical raw materials (CRMs) by lowering tariffs on imports and opening investment opportunities.

The EU said the agreement will eliminate tariffs on major EU exports such as cheeses, meat preparations, wine and sparkling wine, some fruits and vegetables including preparations, chocolate, and sugar confectionary.

For sensitive EU agricultural sectors such as beef, sheep and goat meat, sugar, some dairy products, and rice, the agreement will allow zero or lower tariff imports from Australia only in limited amounts, through Tariff Rate Quotas.

EU exports are expected to grow by up to 33 percent over the next decade, with export value reaching up to EUR17.7bn annually.

For Australian exporters, the EU will eliminate tariffs on 87.3 percent of dairy products. The bloc will eliminate tariffs on all manufactured goods, except steel, including machinery, electrical goods, textiles, and auto parts. The Agreement will also eliminate EU tariffs on critical minerals, and on environmental goods including energy efficient goods, renewable energy products, and battery products.

The agreement follows on closely from new deals concluded by the EU with Indonesia in September 2025 and India in January 2026, as part of efforts to diversify the EU's network of trade partners.

The agreement will enter into force after the completion of both parties' respective ratification procedures.

Guidance on the benefits for exporters has been released by both the European Union and Australia.