After 8 years of negotiations, Australia has secured a landmark trade deal with the European Union, the world’s second largest economy.

The Australia–European Union Free Trade Agreement will lower trade and investment barriers between Australia and the European Union – a market of around 450 million people.

Prime Minister Anthony Albanese and President of the European Commission, Ursula von der Leyen, together with the Minister for Trade and Tourism Senator the Hon Don Farrell and European Commissioner for Trade and Economic Security, Mr Maroš Šefčovič announced the conclusion of negotiations for a free trade agreement today which, together with the Australia-EU Security and Defence partnership, is a key aspect of our growing strategic relationship.

The deal will strengthen our economic and strategic partnership; demonstrate our mutual commitment to open and rules-based trade; and diversify our trade – bolstering Australia’s competitiveness, growth and resilience in an increasingly uncertain global trade environment.

The trade agreement will result in 98 per cent of the current value of Australia’s exports entering the European Union duty free.

Australian farmers and producers will benefit from the elimination of almost all European Union tariffs on agricultural products. This includes wine, nuts, fruit and vegetables, honey, olive oil, most dairy products, wheat and barley, and seafood.

For example, Australian wine producers and exporters will benefit to the tune of around $37 million annually with the removal of European Union import tariffs.

For other important agricultural products, the agreement delivers commercially meaningful access through new or expanded tariff rate quota volumes, including for beef, sheep meat, sugar, rice, wheat gluten, skimmed milk powder and natural butter.

The removal of most Australian tariffs on imports from the EU will make things like European wine, spirits, biscuits, chocolates and pasta cheaper at Aussie checkouts. Farmers and businesses will also benefit from cheaper motor vehicles and machinery.

The rights of Australians have been protected to continue using well known terms such as parmesan, and kransky. And the right for Australian winemakers to keep making and selling Prosecco domestically. Grandfathering and lengthy phase-out periods have been secured for a limited number of terms such as Feta, Romano and Gruyere.

Almost all Australian exports of manufactured goods and mineral resources will face zero import tariffs into the European Union. For example, the elimination of European Union tariffs on Australian critical minerals and hydrogen will support our ambition to become a renewable energy superpower and help stabilise supply chains.

The trade agreement will support investment in both directions. The European Union was Australia’s second largest source of foreign investment in 2024, with total investment stock worth $869.3 billion.

Australian companies, including small and medium-sized enterprises, will have better access to bid for lucrative European government contracts, worth around $845 billion annually, including for rail and construction.

Australian service providers will have greater market access to the European Union, including in financial services, education, tourism and communications. Australian professionals will be able to travel to the European Union more easily and will benefit from streamlined recognition of their Australian qualifications.

The Agreement will enter into force when both Australia and the European Union have completed their domestic processes.