The EU and Australia Sign a New Trade Agreement 0 19

European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese have concluded negotiations on an agreement that has been discussed for eight years.

Von der Leyen and European Commissioner for Trade Valdis Dombrovskis visited Australia at a time when the 27-member bloc and import-dependent Australia are threatened by an energy crisis caused by the war in the Middle East.

This is another trade agreement by the EU aimed at diversifying trade amid challenges from the US and China.

Australia and the EU also signed agreements to enhance cooperation in defense and critical raw materials.

"The EU and Australia may be far apart geographically, but we could not be closer in how we see the world," von der Leyen stated.

"We are sending a strong signal to the rest of the world that friendship and cooperation are paramount in times of upheaval," she added.

"This is a significant moment for our country as we enter into an agreement with the second-largest economy in the world," Albanese said.

The EU expects that under the agreement, exports to Australia will increase by a third over the next ten years. The largest growth is anticipated in dairy products and cars — by about 50%.

Australian beef exports to the EU will increase more than tenfold over the next ten years.

Last year, EU companies exported goods worth 37 billion euros to Australia, while in 2024, service exports amounted to 31 billion euros.