European Commission President Ursula von der Leyen was given a warm welcome to Parliament House by Prime Minister Anthony Albanese. Photo: Chris Johnson.
Australia and the European Union have agreed to the terms of an international free-trade agreement.
Signed by Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen on Tuesday (24 March) in Canberra, the statement signalled the conclusion of negotiations on the Australia-European Union Free Trade Agreement (A-EU FTA) after nearly eight years of effort.
The draft agreement will now be taken back to Federal Cabinet and the EU Parliament for ratification before it can come into force. Modelling suggests that, once ratified, it could increase Australia’s real GDP by up to $7.8 billion by 2030.
In a joint statement, the two leaders said the agreement would ”strengthen bilateral trade and investment, support economic growth, and reinforce the shared commitment of Australia and the European Union to open and rules-based trade”.
They emphasised that Australia and the EU are trusted friends working together to address economic resilience, security, climate change and environmental challenges.
In parallel with the FTA signing, the Australia-European Union Security and Defence Partnership was also signed, as was an intent for Australia to join Horizon Europe, which is described as “the EU flagship research and innovation program”.
The security and defence partnership will provide a framework for enhanced cooperation on shared security challenges, including defence industry cooperation, cyber and economic security, and counterterrorism.
“The partnership will strengthen shared resilience and deepen practical collaboration, building on existing ties between Australian and European industries and institutions,” the statement reads, while the Horizon Europe opportunity could see joint “collaboration on shared priorities, including critical and emerging technologies, and climate and energy research”.
Once ratified, the FTA will lower trade and investment barriers between Australia and the EU, the details of which have been thrashed out in recent years by Minister for Trade and Tourism Senator Don Farrell and EU Commissioner for Trade and Economic Security Maroš Šefčovič.
“The deal will strengthen our economic and strategic partnership; demonstrate our mutual commitment to open and rules-based trade; and diversify our trade — bolstering Australia’s competitiveness, growth and resilience in an increasingly uncertain global trade environment,” a statement reads.
“The trade agreement will result in 98 per cent of the current value of Australia’s exports entering the European Union duty-free.
“Australian farmers and producers will benefit from the elimination of almost all European Union tariffs on agricultural products.
“This includes wine, nuts, fruit and vegetables, honey, olive oil, most dairy products, wheat and barley, and seafood.”
The FTA still needs to be ratified by Federal Cabinet and the EU Parliament. Photo: Anthony Albanese.
Sticking points in settling the deal included the ability for Australian producers to sell brands traditionally associated with European regions, such as Prosecco, Romano, Gruyere, and other region-specific products that have been closely protected in the EU.
While some of these will now be allowed to be sold within the EU tariff-free, others will be required to be phased out.
Australian manufactured goods and mineral resources will also have zero tariffs, while Australian companies will have greater access to bid for EU Government contracts, such as rail and construction. In addition, Australian service providers such as financial services, education, tourism and communications companies will have greater access to the European market.
Mr Albanese said Australia’s relationship with the EU continued to go from strength to strength.
“After almost eight years of negotiations, my good friend, President von der Leyen, and I agreed to the landmark Australia-European Union Free Trade Agreement,” he said.
“I am proud that we have been able to secure this deal, which will deliver benefits for both Australia and the European Union for generations to come.”
Senator Farrell added: “This hard-fought deal delivers real commercial gains for Australian exporters, farmers and producers into a market that has been difficult to enter or effectively closed for decades.
“The removal of EU tariffs on most of Australia’s exports gives Australian exporters the opportunity to diversify trade with 27 European countries and 450 million consumers.”
President von der Leyen described Australia as a like-minded partner and a trusted friend.
“Good friends have to stand by each other to get closer, and that’s what we’re doing today,” she said.
“The three fields on which we are progressing — the field of trade, where we will bring the free-trade agreement over the finish line; the Security and Defence Partnership means to work together in case of the many events or threats that we’re seeing worldwide.
“But Horizon Europe also, the negotiations now for Australia to be an associated member of Horizon Europe is fantastic because it brings the brightest minds together.”
Ms von der Leyen also had the distinction of being invited to address a joint sitting of both Houses of the Australian Parliament, the first female foreign leader to do so.
Original Article published by Andrew McLaughlin on PS News.
