Overview
- EU leaders and Australia’s prime minister signed the agreement Tuesday in Canberra, pairing the trade deal with a new security and defense partnership.
- It removes more than 99% of tariffs on EU goods sold in Australia, with the European Commission projecting roughly €1 billion in annual savings and export growth of up to 33%.
- The text strengthens Europe’s supply chains by easing access to Australian lithium and other critical minerals and by barring arbitrary export limits or dual pricing that would disadvantage EU buyers.
- Sensitive farm goods face tight safeguards, with limited quotas for beef, sheep and goat meat, sugar and certain dairy; reported beef quota figures vary across outlets, and a compromise on protected names lets Australian producers use Prosecco at home but not for export.
- The deal now moves to legal review before ratification on both sides, with European farm groups warning of competition and German conservatives urging a quick EU vote as Green lawmakers signal openness.