The European Union and Australia have concluded negotiations on a comprehensive free trade agreement (FTA) and adopted a Security and Defence Partnership (SDP), while agreeing to start formal talks on Australia’s association with Horizon Europe, the EU’s flagship research and innovation programme.
The SDP formalises strategic cooperation on maritime security, cyber threats, crisis management, and emerging technologies, enhancing multilateral coordination and shared security priorities.
The FTA is set to open Australian markets to EU companies, with expected export growth of up to 33% over the next decade and significant gains in dairy (48%), motor vehicles (52%), and chemicals (20%). Tariff removals, improved services access, and broader trade provisions will not only expand market opportunities but also strengthen EU supply chains and sustainability standards.
A key component of this resilience is access to critical raw materials (CRMs) such as aluminium, lithium, and manganese. The agreement also aims to ensure trade is predictable and sustainable, while also embedding commitments on labour rights, climate action aligned with the Paris Agreement, and a dedicated chapter on sustainable food systems, reinforcing the EU’s economic and environmental priorities.
Negotiations for the EU-Australia FTA began in July 2018, with the 15th and final formal round held in April 2023. Subsequent technical and political discussions paved the way for the agreement’s conclusion on 24 March 2026.
This deal further strengthens the EU’s presence in the strategically important Indo-Pacific region, following recent agreements with Indonesia in September 2025 and India in January 2026, marking a significant step in Europe’s long-term trade and strategic engagement in the region.
ℹ️ EC AV Portal, European Commission
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