The Australia-European Union Free Trade Agreement unlocks a massive consumer market of 450 million people for Australian exporters, with nearly 98% of goods entering duty-free once implemented. 

RF Report

The Australia-European Union Free Trade Agreement (A-EU FTA) creates substantial new export opportunities for Australian businesses in a market of 450 million consumers. Once implemented, 97.8% of Australian goods will enter the EU duty-free, with economic modelling estimating the agreement could boost Australia’s real GDP by up to AUD 7.8 billion by 2030.

Major wins for agricultural exports

Australian farmers gain unprecedented access to previously restricted EU markets:

  • Beef and sheep meat: Preferential beef access increases nearly eight-fold to 35,000 tonnes annually (including 30,600 tonnes of new access). Sheep meat access expands over five-fold to 30,851 tonnes yearly, with 25,000 tonnes of new market entry.
  • Dairy products: The EU eliminates tariffs on 87.3% of dairy items. Australian producers receive duty-free access for cheese, milk powder, yoghurt, ice cream and other products. Additional quotas include 5,000 tonnes of natural butter, 8,000 tonnes of skimmed milk powder, and 2,000 tonnes of high protein whey annually.
  • Horticulture: EU tariffs on vegetables (potatoes, onions, carrots), fruits (apples, pears), and tree nuts (almonds, walnuts, macadamias) are completely eliminated.
  • Other products: Sugar access reaches 44,925 tonnes duty-free (35,000 tonnes new), while tariffs disappear immediately on wine, seafood, and honey (eliminated over three years at 17.3%).

Benefits for manufacturers and consumers

The EU removes all tariffs on manufactured goods except steel, covering machinery, electrical equipment (up to 14%), auto parts (up to 4.5%), and textiles (up to 12%). This makes European vehicles more affordable, with a new luxury car tax threshold of $120,000 for zero-emission vehicles.

Australian consumers benefit from cheaper European products, including champagne, wine, chocolates, and pasta. Businesses access reduced costs for equipment and machinery.

Critical minerals

The EU eliminates existing duties on Australian critical minerals and hydrogen imports. Both parties commit to banning export restrictions, creating balanced access to Australia’s key resources, including aluminium, lithium, and manganese, while opening European investment pathways in these sectors.

Services, investment and professional mobility

Australian companies gain improved access to EU government contracts worth over AUD 845 billion annually. Service providers find new opportunities in financial services, education, tourism, and communications sectors. A dedicated labour pathway enhances mobility for Australian researchers, engineers, and technicians working in the EU.

The agreement includes Australia’s most progressive trade commitments on environment, climate change, gender equality, and workers’ rights. Importantly, Australia secured protections allowing continued use of terms like prosecco, kransky, and parmesan while safeguarding First Nations trade interests in art, intellectual property, and sustainable agriculture.

Earlier, on 24 March 2026, Australia signed a trade deal with the European Union.