Factsheet - EU-Australia Free Trade Agreement: Main benefits

A deal for economic security, resilience and diversification

• New opportunities for companies, consumers and farmers in one of the world’s fastest-growing developed economies.
• Better resilience against economic shocks and cementing ties with a like-minded ally at a time of intense geopolitical stress.
• Stronger supply chains, especially for critical raw materials.
• Deeper relations with the Indo-Pacific and a stronger European position in the world. 

EU-Australia trade: In numbers

• The EU is Australia’s 3^rd biggest trading partner.
• Australia has a GDP of €1.7 trillion, making it the 14^th largest economy in the world.
• EU goods exports: €37 bn (2025).
• EU services exports: €31 bn (2024).
• EU Investment stocks in Australia: €120 bn (2024).
• Australia investment stocks in the EU: €35 bn (2024).
• EU jobs supported by EU exports to Australia: 460,000.

Top 10 European exports to Australia (2025)

New business opportunities for businesses big and small

• EU goods exports are expected to increase by up to 33%.
• Tariff dismantling to save EU businesses around €1 bn in duties per year.
• Potential increase of EU investment flows of over 87% into Australia. 

More diverse sources of critical raw materials

• Critical raw materials (CRMs) are indispensable for a wide set of strategic sectors including the net zero and digital industries, with demand for CRMs in these sectors expected to increase exponentially.
• Europe relies heavily on imports for CRMs, and thus there is a pressing need for the EU to make deals with reliable suppliers of these materials.
• Australia is a major supplier of these CRMs, including aluminium, lithium and manganese.
• The deal will lower or eliminate entirely bilateral tariffs on both critical raw materials themselves and products made from them, thus securing EU access to Australian CRMs.
• Under the Free Trade Agreement, Australia and the EU have agreed to enhance cooperation on critical raw materials, including through the possibility of jointly financing projects.  

More EU agri-food exports and supporting EU farmers

• More opportunities to export EU agri-food produce through tariff elimination, protecting EU Geographical Indications and tackling non-tariff barriers.  

• The deal will protect the full list of 231 EU wine and spirit GIs, such as Polish Vodka, Irish Whiskey, Cognac or Grappa.
• In addition, 165 of the most renowned EU food GIs, such as Parmigiano Reggiano, Asiago, Comté or Queso Manchego cheeses, Istarski pršut ham, Lübecker Marzipan, and Elia Kalamatas olives will be protected in Australia.
• A modernised Wine Agreement will continue to protect the full list of over 1,600 EU wine GIs (including Porto, Champagne, Rioja or Tokaji), while adding around 50 new EU wine GIs, including Prosecco.
• At the same time, the agreement protects Europe’s farmers:  
  • It limits the volume of sensitive agri-food products (such as beef, sheep and goat meat, sugar, rice, and dairy products) that Australia can export to the EU with lower tariffs, with sustainability conditionalities.
  • The EU can impose reinforced safeguard measures in the unlikely event of a surge in EU agri-food imports from Australia.
  • No agri-food products from Australia can enter the EU if they do not respect all the EU’s high health and safety standards.

Ambitious sustainability commitments

• Binding commitments to the Paris Climate Agreement and core labour standards.
• Dedicated trade and gender equality provision.
• Dedicated article on trade and fossil fuel subsidies reform.
• Liberalising trade on an indicative list of green goods and services at entry into force.
• All sustainability commitments will be enforceable via the agreement’s general dispute settlement mechanism.