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The European Union and Australia have finalised and signed a long-delayed free trade agreement in Canberra after roughly eight years of negotiations, alongside a new security and defence partnership.
The deal was announced on March 24 by European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese, who framed the pact as a response to rising global trade tensions, U.S. tariff pressure and the need to diversify away from reliance on China.
The agreement removes more than 99% of tariffs on EU goods entering Australia, with the European Commission saying it could save EU exporters about ā¬1 billion a year in duties and lift EU sales to Australia by as much as one-third over the next decade.
Australian tariffs on wine, sparkling wine, fruit, vegetables, chocolates and many other products will fall to zero immediately or over time, while beef and sheep-meat access to the EU will be expanded through tariff-rate quotas.
Australia will also keep using some product names such as prosecco domestically, while phasing them out for exports over 10 years.
The EU and Australia said the package also covers critical minerals, services, investment, cyber and maritime security, and could open the way for Australiaās participation in Horizon Europe.
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Key takeaways: the agreement appears to balance EU geographical indication protections with Australian domestic naming rights by using a transition period for export labelling, while tariff removal is EU-level policy though parts of the pact still need member-state approval. Misunderstandings persist about Schengen and work rights and about which treaty components require national ratification.







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