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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.
- Increased 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.
Key facts about trade with Australia
- Australia has a GDP of €1.7 trillion, making it the 14th largest economy in the world.
- Czech exports: €797 million (goods: €684 million, 2025 data; services: €113 million, 2024 data).
- Total investment between Czechia and Australia: €74 million (2024).
- Czech jobs supported by Czech and EU exports to Australia: 11,567 (2023).
New opportunities for Czech businesses big and small
Small and medium-sized enterprises represent the vast majority of EU exporters, and they are expected to be among the key beneficiaries of this agreement.
- 883 companies from Czechia currently export to Australia – and this is poised to increase, thanks to this deal and to the new opportunities it creates.
- By eliminating tariffs on most goods, it will reduce export costs and improve the competitiveness of businesses.
- Simplified customs procedures and clearer rules of origin will help reduce administrative burdens, which often weigh more heavily on smaller companies.
- EU investment flows into Australia are also expected to increase by over 87%.
- The free trade agreement will facilitate the movement of highly skilled professionals in entering the other party to supply services and set up and run investments. This is particularly important as services represent a large share of EU exports.
Lower tariffs, more exports- Czechia already exports €684 million per year in goods, including industrial products. Removing current Australian tariffs will enable EU businesses to save around €1 bn in customs duties per year.
- This will boost Czech and EU exports, leading to a potential increase in EU goods exported to Australia of up to 33%.
Czechia's main exports of industrial goods to Australia will benefit from the elimination of tariffs on virtually all products.
| MOST EXPORTED PRODUCTS | Export value |
|---|---|
| Machinery and mechanical appliances | €239 million |
| Vehicles | €170 million |
| Electrical machinery and equipment | €72 million |
More agri-food exports while supporting Czech farmers
- Czechia already exports €277 million per year in agri-food products.
- The deal will create new export opportunities for Czech agri-food products by eliminating tariffs and protecting EU Geographical Indications (GIs).
| MOST EXPORTED PRODUCTS | Export values |
|---|---|
| Preparations of cereals | €6 million |
| Edible preparations | €4 million |
| Sugars and confectionery | €2 million |
- It will protect the full list of 231 EU spirits, and 165 of the most renowned EU food GIs. In addition, under the modernised Wine Agreement, all the EU wine GIs (representing over 1,600 names) will be protected, including around 50 new ones.
- The FTA includes the protection of authentic and high-quality Czech products:
- Budějovické pivo
- Budějovický měšťanský var
- České pivo
- Českobudějovické pivo
- Žatecký chmel
Protecting Czech farmers in case of market disturbances
While it opens new opportunities, the agreement also protects Europe’s farmers:
- It limits the amount of sensitive agri-food products (such as beef, sugar and dairy) that Australia can export to the EU with lower tariffs, subjecting some of them to sustainability conditions.
- The EU can impose reinforced safeguard measures in case of a surge in imports, including for the most sensitive agri-food products imported 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.
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 of 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 the EU’s 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.
Ambitious sustainability commitments
- Binding commitments to the Paris Climate Agreement and core labour standards.
- Dedicated trade and gender equality provisions.
- Dedicated article on trade and fossil fuel subsidies reform.
- Liberalising trade on an indicative list of green goods and services at entry into force (e.g. related to renewable energy, including wind turbine towers, solar panel elements and energy-efficient products).
- All sustainability commitments will be enforceable via the agreement’s general dispute settlement mechanism.