On Tuesday, European Commission President Ursula von der Leyen signed a free-trade agreement with Australian Prime Minister Anthony Albanese that will reduce tariffs on most EU goods and farm exports. The agreement is another victory for Brussels as it seeks to expand commercial relations and secure critical partners amid escalating global tensions.
The agreement will save the EU €1 billion in duties each year, according to the Commission, with exports expected to increase by up to 33% over the following decade. Farming became a flashpoint, with EU farmers already opposing the Mercosur trade agreement and MEPs’ legal challenge threatening approval. Tariffs will be gradually eliminated on products such as cheese (after 3 years), wine, some fruits and vegetables, chocolate, and processed foods.
Regarding the most difficult problems, beef and sheep, which derailed talks in 2023, Australia agreed to quotas of 30,600 and 25,000 tons per year, respectively. A safeguard mechanism will allow the EU to protect vulnerable sectors if an increase in Australian imports hurts the bloc’s market. Besides agriculture, the deal provides access to Australia’s essential raw minerals, such as aluminum, lithium, and minerals.
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