Australia and the European Union have signed a long-awaited trade agreement aimed at strengthening economic ties and securing supply chains, particularly for critical minerals.
The deal, finalized after eight years of negotiations, eliminates tariffs on more than 99% of European exports to Australia and removes import duties on nearly all Australian critical minerals entering the EU. Leaders on both sides framed the agreement as a strategic plan to reduce reliance on China for key resources such as rare earths.
Australian Prime Minister Anthony Albanese and President of the European Commission Ursula von der Leyen shake hands during a press conference at Parliament House in Canberra, Australia, March 24, 2026. Lukas Coch/AAP/via REUTERS ATTENTION EDITORS – THIS IMAGE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVE. AUSTRALIA OUT. NEW ZEALAND OUT. NO COMMERCIAL OR EDITORIAL SALES IN NEW ZEALAND. NO COMMERCIAL OR EDITORIAL SALES IN AUSTRALIA.
European Commission President Ursula von der Leyen said the partnership reflects shared global priorities, highlighting the importance of diversifying supply chains. Australian Prime Minister Anthony Albanese added that the agreement could contribute around A$10 billion annually to Australia’s economy while helping stabilize global mineral supplies.
Beyond trade, the two sides also signed a pact to enhance security and defense cooperation, underlining Europe’s growing engagement in the Indo-Pacific region.
The agreement is expected to significantly boost trade flows, with EU exports to Australia projected to rise by up to 33% over the next decade. European goods such as wine, fruit, vegetables and chocolate will see tariffs drop to zero immediately, while duties on cheeses will be phased out over three years.
President of the European Commission Ursula von der Leyen and Australian Prime Minister Anthony Albanese pose with a signed a joint statement during a ceremony at Parliament House in Canberra, Australia, March 24, 2026. Lukas Coch/AAP/via REUTERS ATTENTION EDITORS – THIS IMAGE WAS PROVIDED BY A THIRD PARTY. NO RESALES. NO ARCHIVE. AUSTRALIA OUT. NEW ZEALAND OUT. NO COMMERCIAL OR EDITORIAL SALES IN NEW ZEALAND. NO COMMERCIAL OR EDITORIAL SALES IN AUSTRALIA.
However, the deal has drawn criticism from Australia’s agricultural sector. Key exports such as beef and sheep meat will remain subject to quotas, limiting market access. The National Farmers Federation described the outcome as falling short of meaningful gains for producers.
