The EU and Australia are strengthening relations. The breakthrough agreement is getting closer
The announcement was made on Tuesday in Canberra during a meeting between European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese.
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— The EU and Australia may be geographically distant, but we cannot be closer to each other in terms of how we view the world – von der Leyen emphasized.
Almost complete abolition of customs duties and new opportunities for exporters
As agreed, the trade agreement is to lead to the abolition of as much as 99 percent. customs duties on exports from the EU to Australia. The European Commission estimates that this will bring savings of nearly EUR 1 billion annually to EU companies.
The agreement is also intended to open the Australian market to European services, in particular in the financial and telecommunications sectors.
The abolition of trade barriers will cover many agri-food products from Europe, such as: cheese and dairy products, cold cuts and other meat products, wine and sparkling wines, fruit, vegetables, chocolate and confectionery.
At the same time, the EU market will be partially opened to products from Australia. In the case of the so-called sensitive products – such as beef, sheep, sugar and rice – are provided for limited quantities with lower or no tariffs.
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Australia – an important partner for the EU in the digital and energy transformation
One of the most important elements of the agreement is access to Australian critical raw materials. Australia is a significant producer of, among others, lithium, aluminum and manganese.
These raw materials are essential for the energy and digital transformation in Europe.
In parallel, a partnership in the field of security and defense was signed. It is intended to create a framework for cooperation in the face of growing geopolitical challenges – both in Europe and the Indo-Pacific region.
The agreement provides for, among others: joint activities in crisis management, cooperation on missions and operations, and the organization of joint exercises and training.
This is the second partnership of this type concluded by the EU – so far, similar agreements have been signed with ten countries outside the Community.
Although the negotiations have been concluded, the trade agreement has not yet entered into force. The European Commission must prepare its full legal text and then obtain the consent of the European Parliament and member states.
