Australia and EU Agree on Free Trade Deal, Strengthen Security Cooperation

Istanbul (ANTARA) - Australia and the European Union, on Tuesday, signed a free trade agreement worth A$10 billion (approximately Rp120 trillion) as well as a security and defence partnership.

The FTA, negotiated over eight years, will give Australian exporters broader access to a global market with a population of more than 450 million people.

According to a statement from the Albanese office, European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese signed the agreement during a meeting in Canberra.

Following the meeting, Albanese said the relationship between the two parties is crucial amid a global environment that is “increasingly unpredictable”.

“This is mutually beneficial,” he said, highlighting the elimination of export tariffs on items such as wine, seafood, beef, and dairy products.

“Today we also launched a new Security and Defence Partnership,” von der Leyen said via the X platform.

She added that cooperation will be expanded from joint maritime exercises to the space sector, defence industry, and countering hybrid threats.

Under the FTA, Australia will eliminate a five per cent tariff on imports of European products, including cars from manufacturers such as BMW and Mercedes-Benz, as well as fashion goods, food, and beverages.

In return, the European Union will open up greater import access for Australian products, including beef and lamb.

Shortly after the signing of the FTA, meat exporters criticised the agreement for failing to deliver the market access promised during the lengthy negotiations.

Regarding the security partnership, the European Union stated that a strong institutional framework will be established to enhance effectiveness in addressing current geopolitical challenges.

In her speech to the Australian parliament, von der Leyen said that Europe and Australia need to strengthen defences and pursue decarbonisation to reduce economic and energy dependencies on China and Russia.

She warned that China’s massive exports are undermining Europe’s economic model and driving deindustrialisation, and urged Australia to support efforts to rebalance global trade.

“Threats to supply chains and shocks to our industrial bases require an urgent response,” she said.