Von der Leyen clinches Australia trade deal

Published on 24/03/2026 - 1:25 GMT+1

European Commission President Ursula von der Leyen connected Tuesday sealed a free-trade statement with Australian Prime Minister Anthony Albanese, slashing tariffs connected astir EU goods and workplace exports.

The woody marks different triumph for Brussels arsenic it races to diversify commercialized ties and fastener successful strategical partners amid rising planetary tensions.

The pact volition prevention the EU €1 cardinal a twelvemonth successful duties, the Commission said, with exports projected to ascent arsenic overmuch arsenic 33% implicit the adjacent decade.

Agriculture proved a flashpoint, with EU farmers already pushing backmost against the Mercosur commercialized statement and a ineligible challenge from MEPs threatening ratification.

Tariffs volition yet autumn to zero connected products including food (over 3 years), wine, immoderate effect and vegetables, cocoa and processed foods.

On the toughest issues — beef and sheep, which sank talks successful 2023 — Australia agreed to quotas of 30,600 and 25,000 tonnes a year, respectively.

A safeguard mechanics volition let the EU to shield delicate sectors if a surge successful Australian imports harms the bloc’s market.

Beyond agriculture, the statement opens entree to Australia’s captious earthy materials, including aluminium, lithium and manganese.

Brussels besides failed to scrap Australia’s luxury car tax. Instead, 75% of EU electrical vehicles volition beryllium exempt.

The woody is simply a geostrategic push

The Commission expects beardown export gains successful cardinal sectors, including dairy (up to 48%), centrifugal vehicles (52%) and chemicals (20%).

Brussels has prioritized the woody arsenic it builds partnerships successful the Indo-Pacific, wherever China’s power has go central. A information and defence concern with Canberra was besides announced Tuesday.

“The EU and Australia whitethorn beryllium geographically acold isolated but we couldn't beryllium person successful presumption of however we spot the world,” von der Leyen said, adding: “With these dynamic caller partnerships connected information and defence, arsenic good arsenic trade, we are moving adjacent person together.”

Since Donald Trump returned to powerfulness successful 2025, commercialized agreements person taken connected sharper geostrategic value for the EU arsenic it seeks caller markets.

In 2025, Brussels struck deals with Mexico, Switzerland and Indonesia. The Mercosur pact was besides signed earlier this twelvemonth and volition beryllium provisionally applied from 1 May contempt a European Parliament ineligible challenge.

More could follow. Talks are ongoing with the Philippines, Thailand, Malaysia, the United Arab Emirates, and countries successful Eastern and Southern Africa, von der Leyen told EU ambassadors connected 9 March.