Australia, EU Finalize Trade Pact and Boost Security Ties

(MENAFN) Australia and the European Union on Tuesday finalized a free trade agreement (FTA) valued at AUD10 billion (around $7 billion), alongside a security and defense partnership, according to reports.

Negotiated over the past eight years, the FTA is expected to give Australian exporters wider access to markets encompassing more than 450 million people.

EU Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese signed the long-awaited trade deal, along with several other agreements, during a meeting in Canberra. After the signing, Albanese emphasized the significance of the relationship in a “less predictable” global environment, stating, “It is a win-win,” and noting that the pact will eliminate tariffs on exports such as wine, seafood, beef, and dairy.

“Today, we are also launching our new Security and Defense Partnership (SDP),” von der Leyen said in a social media post. She added, “We will deepen our cooperation from joint maritime exercises to space, defense industry and countering hybrid threats. And we will work hand in hand to strengthen the resilience of our democracies.”

Under the terms of the FTA, Australia will remove a 5% tariff on European imports, including vehicles from manufacturers like BMW and Mercedes, as well as fashion, food, and beverage products. In return, the EU will expand access for Australian exports such as beef and lamb.

However, meat exporters quickly criticized the agreement, arguing that it fails to provide the market access that had been promised over the years of negotiation.

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