Credits: Christophe Licoppe / European Commission
The European Union concluded negotiations on Tuesday, 23 March, for an agreement with Australia on free trade and defense.
Context After the conclusion of negotiations in the first part of the EU-Mercosur agreement and a new free trade agreement with India, the Union is now turning to Australia to diversify its partnerships. Negotiations for this agreement began in 2018 and concluded 8 years later.
The Free Trade Agreement This new free trade agreement with Australia eliminates 99% of tariffs in both directions. It is expected to increase exports by 33% between the two countries.
For the European Union, this means access to critical raw materials (lithium, cobalt, nickel, rare earths), reducing dependence on countries like China. The agreement also includes the export of cheese, wines, fruits and vegetables, chocolate, and processed products. The automotive sector will also be liberalized, with the exception of trucks and luxury cars. Both digital trade and the services market are expected to see new opportunities.
For France, this agreement will benefit sectors such as aviation, transportation, industrial equipment, chemistry, services, energy, and quality agri-food industries.
Security measures have been introduced for European producers: tariff quotas are set for sensitive agricultural sectors (beef, lamb, sugar, dairy products, rice), some steel products are excluded, and a safeguard clause is included to protect against a significant increase in imports that could harm the market. Additionally, 231 geographical indications (GI) for spirits and 165 European agricultural and food GIs will be protected. European sanitary standards will apply to all imported products.
The agreement also includes a chapter on trade and sustainable development with commitments on labor, environment, climate, gender equality, human rights, and democracy.
Security and Defense Partnership Simultaneously, a security and defense partnership will open a dialogue, strengthen cooperation in crisis management, combat against hybrid threats, and foreign information manipulation. This partnership will also involve coordination on disruptive technologies. It is an opportunity for the Union to enhance its partnerships in the strategic Indo-Pacific region.
For more information: Press release from the Commission
