Overview
- The partners concluded a free trade agreement and signed a Security and Defence Partnership in Canberra on Tuesday, March 24, 2026, with the security pact now in effect and the trade deal moving to Australian and EU approval steps.
- The security framework expands work on defence industry links, cyber resilience, counter‑terrorism, hybrid‑threats, maritime and space security, and it sets up information‑sharing, joint exercises and new procurement openings for businesses on both sides.
- EU officials said the trade deal could add almost $8 billion to Australia’s GDP, remove EU tariffs on Australian industrial goods, and save EU exporters about €1 billion in duties, while Australia will scrap a 5% tariff on many European imports including cars.
- Leaders also backed four new critical‑minerals projects spanning rare earths, lithium and tungsten, and they agreed to start talks for Australia to join the EU’s Horizon Europe research program with a goal of association from 2027.
- Officials framed the twin deals as a response to Russia’s war in Ukraine and rising Chinese pressure, stressing international law and freedom of navigation, while some Australian meat exporters criticized the market access they expect under the trade deal.