Australia and the EU seal a major trade agreement
After eight years of negotiations, the parties overcame sticking points over Australia's use of European geographical product designations and access for Australian beef to Europe.
European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese.
(AFP) Australia and the European Union (EU) on Tuesday sealed a major trade deal after years of negotiations, in line with Brussels' recent agreements with Mercosur and India to diversify their trade.
At a ceremony in Canberra, EU chief Ursula von der Leyen and Australian Prime Minister Anthony Albanese signed the pact, in the context of trade rivalry with the United States and China and in the midst of an energy crisis provoked by the Middle East war.
The agreement is the latest signed by Brussels in an attempt to diversify its trade exchanges.
In this regard, the EU announced Monday that the trade agreement with the Latin American Mercosur countries will be provisionally applied as of May 1, despite the European Parliament's request that the judiciary verify its legality.
And in January, Brussels formalized a historic trade agreement with India after two decades of negotiations, which will create a free trade zone of 2 billion people.
World
The EU and Mercosur will provisionally apply their free trade agreement as of May 1
Diane Hernández
Eight years of negotiations and several sticking points
"The EU and Australia may be geographically far apart, but we couldn't be closer in terms of our worldview," von der Leyen said in Canberra.
Albanese for his part highlighted the alliance as "a significant moment for our nation as we secure an agreement with the world's second largest economy."
After eight years of negotiations, the parties overcame sticking points over Australia's use of geographical designations for European products and access for Australian beef to Europe.
A compromise will allow Australian wine producers to use the term "prosecco" domestically, but they must stop using it for exports after ten years.
Australia will also be able to continue using some designations, such as "feta" and "gruyere," where producers have used the name for at least five years.
In the same package: cooperation on defense, maritime security and cybersecurity
The quota of Australian beef allowed into the EU will rise more than 10-fold from the current level over the next 10 years, although it falls short of the level that Australian cattle farmers were seeking.
In addition to the trade deal, the EU and Australia also signed a pact to step up cooperation on defense, maritime security and cybersecurity, as well as on raw materials considered key, especially rare minerals.
EU companies exported some $42.9 billion in goods to Australia last year, and some $35.9 billion in services in 2024.
Australia's largest export market is China, and the United States is its largest source of investment.
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