A trade agreement between the EU and Australia was signed on Tuesday by European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese.
"We are working hard to broaden our trade relations in an increasingly uncertain world. In less than two months, we have added almost two billion people to our free trade market with agreements on three continents. It is a true trade trilogy," von der Leyen said at a press conference in Canberra.
Among other things, the EU points out that 99 percent of all tariffs on EU goods will disappear when - and if - the agreement enters into force.
Third agreement
Sweden's Minister for Foreign Trade, Benjamin Dousa (M), is satisfied.
"An agreement with Australia could create up to 6,000 new jobs in Sweden alone, increase EU exports by over 30 percent by 2030 and give Swedish companies better access to the Australian market," Dousa said in a statement.
The agreement means that the EU has concluded three long-running trade negotiations in a short period of time. For Australia and India - agreements signed in January - final processing is now underway before EU member states and the European Parliament decide whether to approve them.
For the Mercosur countries Brazil, Argentina, Paraguay and Uruguay, provisional application is expected as early as May 1.
Exemption for prosecco
However, not everyone is happy. On the agricultural side, there have already been strong protests against the Mercosur agreement, with concerns about increased imports of meat and other goods from South America.
The same applies to Australia, although the new agreement contains continued quotas and restrictions.
Meanwhile, Australia will be allowed to continue calling domestic cheese "Parmesan" or "feta," at least for manufacturers who have been in business for at least five years. Australia’s own "prosecco" designation will also be allowed to remain - although exports must be phased out within ten years.
According to the European Commission, the trade agreement negotiated between the EU and Australia is expected to increase EU exports to Australia by 33 percent over the next ten years, from a 2025 value of 37 billion euros in goods and 31 billion euros in services.
The agreement includes name protection for a wide range of EU food, wine and spirits and quotas for imports of, among other things, Australian beef and dairy products.
In parallel, the EU and Australia have signed increased security and defense cooperation and an agreement on critical raw materials.
Source: European Commission
