After eight years of negotiations, 15 rounds of discussions and a suspension of negotiations in 2023, Australian Prime Minister Anthony Albanese and the President of the European Commission Ursula von der Leyen signed a long-awaited free trade agreement on March 24, 2026 in Canberra.
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This agreement constitutes a victory for the Brussels Commission, which is striving to diversify its trade relations and secure strategic partners in a context of growing global tensions.
“Australia and Europe are friends and partners working together to promote peace, security and economic prosperity“, declared the Australian Prime Minister in un communiqué (in English) after signing the agreement.
Both sides will seek to take advantage of the billions of euros worth of goods that were already moving between Australia and the EU even before the deal came into force.
In 2025, the EU exported €36.9 billion worth of goods to Australia, while imports amounted to €10.2 billion.
According to the latest data from Eurostat, the European Union therefore recorded a trade surplus of 26.7 billion euros.
Exports and imports decreased slightly compared to 2024, by 4.9% and 4.8% respectively.
However, in the long term, trade has increased significantly. Since 2015, exports have increased by almost 40% and imports by almost 50%.
The EU’s main exports to Australia are medicines and pharmaceutical products (13.1%), followed by road vehicles (11.1%) and industrial machinery (9.5%).
On the import side, coal, coke and briquettes dominated, accounting for 29% of all imports. Next come oleaginous seeds and fruits (15.3%) and gold (7.2%).
What will exchanges look like in the future?
Trade between the EU and Australia is expected to grow by 33% over the next decade, with the value of exports expected to reach €17.7 billion a year, according to the European Commission.
“The EU opens its market to one of the world’s fastest growing developed economies, providing significant economic opportunities for European businesses, consumers and farmers“, indicates a press release from the Commission.
Key sectors for the EU include dairy products (expected to increase by 48%), motor vehicles (52%) and chemicals (20%).
In addition, the agreement provides for the elimination of more than 99% of customs duties on EU exports to Australia, which will save companies around one billion euros per year.
The EU is also strengthening its strategic interests in critical raw materials, with Australia a major producer of raw materials including aluminum, lithium and manganese, which are vital for security overall economic and competitiveness of the EU.
