The EU and Australia are significantly strengthening their cooperation: in addition to a new security and defence partnership, a comprehensive Free Trade Agreement was also concluded on 24 March 2026. The aim is to work more closely together in times of geopolitical uncertainty and to expand economic opportunities for both sides.
Focus on security and cooperation
The partnership creates a structured framework for security cooperation. Plans include, amongst other things:
- Regular dialogue to coordinate strategic objectives
- Joint crisis management and military cooperation
- Closer cooperation on cyber security, maritime transport and hybrid threats
- consultations on new technologies such as artificial intelligence, as well as in the fields of space security, non-proliferation and disarmament
This move reflects both sides’ response to the growing importance of the Indo-Pacific region and global security challenges.
Australia: Free Trade Agreement with significant economic potential
The Agreement opens up access for the EU to a dynamically growing market. According to forecasts, EU exports to Australia could rise by up to 33% over the next 10 years. Sectors expected to benefit particularly include:
- Dairy products (+48%)
- Motor vehicles (+52%)
- Chemicals (+20%)
Further EU investment in Australia made possible
Over 99% of tariffs on EU exports to Australia are eliminated, enabling businesses to save billions annually. At the same time, services markets are being opened up, access to public procurement is being facilitated, and digital trade rules are being modernised.
Opportunities for SMEs and skilled workers
EU companies gain better market access and benefit from a more stable regulatory environment, particularly regarding critical raw materials. There are also targeted support measures for small and medium-sized enterprises.
Furthermore, the Agreement facilitates the labour mobility of skilled workers, for example by simplifying opportunities for engineers and researchers.
Agriculture: Growth with Safeguards
In the agricultural sector, tariffs on numerous EU products are being abolished, including wine, cheese, fruit and vegetables and their preparations, meat products, chocolate and confectionery. At the same time, the EU protects its own sensitive sectors through:
- Limited tariff quotas for imports of certain foodstuffs (e.g. beef, sheep and goat meat, sugar, certain dairy products and rice)
- A bilateral safeguard mechanism in the event of market disruption caused by drastic increases in imports.
Securing critical raw materials and sustainability
Australia is regarded as a supplier of valuable raw materials, such as lithium, manganese and aluminium. The Agreement improves access to these and thus enhances security of supply for the EU.
At the same time, the trade pact contains binding provisions on environmental, climate and labour standards. Trade in environmentally friendly technologies and goods is specifically promoted. A dispute settlement mechanism included in the Agreement provides additional certainty for businesses on both sides.
Next steps
Before the Agreement enters into force, the agreed texts must still go through the EU’s internal procedures and the ratification processes of both partners.
Source: European Commission
