EU and Australia Sign Landmark Free Trade Deal, Launch Defence Partnership

The European Union and Australia on Tuesday signed a long‑awaited free trade agreement (FTA) , ending nearly eight years of negotiations that had stalled over Australian access to EU red meat markets and the use of traditionally European product names such as prosecco . The agreement was formally signed by European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese at the Australian Parliament House , marking a “ landmark trade deal ” and a defining moment in EU–Australia relations, according to Albanese. Prosecco is a type of sparkling wine that originates from northern Italy, primarily the Veneto and Friuli Venezia Giulia regions. It is made mainly from the Glera grape and is known for being light, fruity, and bubbly, often enjoyed as an aperitif or in cocktails such as the Bellini .

The pact will gradually eliminate tariffs on most goods traded between the two partners. Australia is expected to gain tariff‑free access for 98 % of its exports to the EU, including wine, seafood, and horticultural products, while EU exporters will benefit from reduced duties on goods such as wine, chocolate, and machinery. EU businesses are projected to save around €1 billion annually in tariff costs, while the agreement could add approximately A$10 billion per year to the Australian economy.

A major agricultural feature of the deal is the establishment of tariff‑rate quotas totaling 30,600 metric tonnes for Australian red meat exports, with 55 % entering the EU duty‑free. The agreement also addresses concerns over European product names: Australian producers will be prohibited from using certain names, including prosecco , on exports to the EU after a 10‑year transition period . In total, 396 European geographical indications for foods and spirits are recognised and protected under the pact.

Alongside the trade agreement, both sides announced a new defence partnership to enhance military cooperation and begin discussions for Australia to become an associate member of the Horizon Europe research and innovation programme. The deal also includes provisions to secure the EU’s supply of critical raw materials , strengthen investment and services access, and support collaboration on innovation. The agreement comes as both the EU and Australia aim to diversify trade, reduce reliance on China, and limit exposure to uncertain US tariffs.