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EU and Australia Seal Trade Deal Cutting Tariffs, Setting Meat Quotas

The accord signals a push to diversify trade links to trusted partners during a volatile global market.

Overview

  • European Commission President Ursula von der Leyen and Prime Minister Anthony Albanese signed the pact in Canberra on Tuesday after eight years of talks.
  • The deal removes over 99% of tariffs on EU goods entering Australia and allows up to 98% of Australian exports to enter the bloc duty‑free, with some cuts phased in over several years.
  • Agriculture access expands through tariff‑rate quotas, including 30,600 tonnes of Australian beef a year with 55% duty‑free and a 25,000‑tonne sheep and goat meat quota phased in over seven years.
  • Geographic‑indication rules strike a compromise, allowing some long‑used names at home while requiring a 10‑year phase‑out of the ‘prosecco’ label on exports by Australian winemakers.
  • The package adds a security and defense partnership, a fast‑track toward Horizon Europe research ties, stronger critical minerals arrangements, and a higher A$120,000 luxury car tax threshold, though ratification steps remain and farm groups have voiced strong opposition.