Australia and the European Union have concluded negotiations on a landmark Free Trade Agreement, opening a new chapter in the economic relationship between Australia and Europe.

Announced on 24 March 2026 by Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen, the agreement has been years in the making and is expected to strengthen trade, investment and business cooperation between Australia and the EU.

“The EU and Australia may be geographically far apart, but we couldn’t be closer in terms of how we see the world.”
— Ursula von der Leyen, President of the European Commission

Once fully implemented, around 98 per cent of the current value of Australian goods exports to the EU will enter duty-free. The agreement will also remove more than 99 per cent of tariffs on EU exports to Australia, improving market access for European companies and creating new opportunities for businesses on both sides.

For Australian companies, the agreement provides improved access to a market of more than 450 million consumers, as well as broader opportunities in services, investment and public procurement. For European companies, the agreement is expected to make Australia an even more attractive base for long-term growth in the Indo-Pacific.

The agreement is especially relevant in sectors where Australian and European expertise already intersect, including logistics, infrastructure, agriculture and food, water, energy, technology, advanced manufacturing, professional services and the circular economy. It also supports closer cooperation in areas such as critical minerals, clean energy, digital trade and resilient supply chains.

Beyond tariffs, the agreement creates a stronger framework for partnerships, investment, market entry and collaboration between Australia and Europe. It may also strengthen the role of European trade and logistics hubs in connecting Australian businesses with European markets, while supporting European companies looking to grow in Australia.