The European Union and Australia have signed a major trade agreement after years of negotiations, set to eliminate most tariffs on European goods. The deal also strengthens cooperation in defense and strategic resources, coming at a time of growing global uncertainty.
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Near-Zero Tariffs and New Trade Opportunities
According to the European Commission, the agreement will remove up to 99% of tariffs on EU exports to Australia, saving exporters around €1 billion annually. Australia will fully eliminate tariffs on European wine, fruits, vegetables, and chocolate, while duties on cheese will be phased out within three years.
The deal comes as exporters on both sides face challenges from US trade policies and increasing uncertainty around critical supply chains. European Commission President Ursula von der Leyen emphasized that strong partnerships are more important than ever in today’s turbulent environment.
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Strategic Resources and Investment in the Future
The agreement also includes cooperation on four major projects focused on critical raw materials, including lithium and tungsten. Australia, a key global supplier of these resources, complements Europe’s position as a major consumer, strengthening mutual economic ties.
Both sides have also agreed to begin negotiations on Australia’s participation in the Horizon Europe program, which supports research and innovation. The deal is expected to boost trade volumes by up to one-third over the next decade, although some sectors such as Australian agriculture remain critical due to export quotas.
Source: ČTK
