The Free Trade Agreement (FTA) between the European Union and Australia, concluded after eight years of negotiations, marks a milestone in the commercial relations between both regions. Signed on March 24, 2026, in Canberra, this agreement strengthens European presence in the Indo-Pacific, joining recent treaties with Indonesia and India.
Removal of Tariff Barriers and Economic Benefits
The FTA will eliminate more than 99% of tariffs on EU exports, which translates into an estimated annual savings of 1 billion euros for EU companies. Exports to Australia are projected to increase by 33% over the next decade, reaching an annual value of 17.7 billion euros. A specific chapter of the agreement is dedicated to small and medium-sized enterprises, ensuring that they also benefit from the treaty.
Growth Opportunities in Key Sectors
The agreement highlights sectors with high growth potential, such as motor vehicles, dairy products, and chemicals, with projected increases of 52%, 48%, and 20% respectively. Additionally, direct investments from the EU in Australia are expected to increase by more than 87%.
Impact on the Agro-Food Sector and Raw Materials
The FTA eliminates tariffs on products such as cheese, wine, and chocolate, while protecting sensitive sectors through tariff quotas. A bilateral safeguard mechanism will allow the EU to respond to harmful increases in imports. Furthermore, the agreement protects numerous European geographical indications. Australia, a key producer of critical raw materials such as lithium and aluminum, commits to a more predictable and sustainable market, which is vital for renewable technologies.
In Aragón, exports to Australia reached 33.551 billion euros in 2025, highlighting durable consumer goods and equipment. Although Australia represents a small percentage of the total volume of Aragonese exports, the FTA will enhance the competitiveness of companies in the region.
The agreement still needs to be approved by the EU Council, the European Parliament, and ratified by Australia, a process that could extend over several years.
