Australia and the European Union (EU) launched negotiations for a free trade agreement (FTA) on 18 June 2018. Negotiations concluded on 24 March 2026, as announced by Prime Minister the Hon Anthony Albanese MP and European Commission President Ursula von der Leyen.
This comprehensive, balanced and commercially meaningful agreement will deliver economy-wide benefits to Australia, including significant new opportunities for Australian exporters, producers, and skilled professionals. The EU is a massive, high-income market of around 450 million people that had a nominal GDP of US$21.1 trillion in 2025. As a bloc, it is Australia’s third largest two-way trading partner and second largest source of total foreign investment.1
The agreement is important economically and strategically, for both Australia and the EU, and will provide new opportunities in a highly significant market for Australian goods and services. It will see the elimination of EU tariffs on Australian goods and provide Australian exporters with more choices about where they do business. Australian consumers and companies stand to benefit from a wider choice of more affordable products at lower prices.
The FTA will further strengthen our economic and strategic partnership with the EU, a global power that shares our values. It builds on the longstanding ties between our economics and sends a clear signal of our mutual commitment to open and transparent rules-based trade.
More details on the outcomes and benefits of the A-EU FTA
1 Trade statistics for FY 2024-25. Investment statistics for CY 2024. EU 27 does not include UK.