The European Union and Australia concluded negotiations for an ambitious and balanced free trade agreement on March 24, 2026, marking a significant step towards deepening economic cooperation.
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The agreement will strengthen trade flows and create new opportunities for exporters on both sides. The conclusion of negotiations reflects a shared commitment to open, rules-based international trade.
Australia is the largest economy in Oceania and an important partner in the Indo-Pacific region. It has strong preferential trade links in the Asia-Pacific area.
EU companies exported 37 billion euros worth of goods to Australia (in 2025) and 31 billion euros worth of services (in 2024).
Opening business opportunities for European and Slovenian companies
The agreement will deepen trade and investment relations and provide new opportunities:
- elimination of tariffs on 99 percent of EU goods exports to Australia and over 1 billion euros in annual savings for businesses due to the removal of tariffs,
- facilitated access to the services market,
- non-discriminatory treatment of EU investors,
- entry quotas for EU researchers and for the work of trainee engineers, which will facilitate mobility in innovative fields,
- improved access to public procurement for goods, services, construction, and concessions,
- equal participation of EU and Australian companies in public procurement,
- specific provisions for small and medium-sized enterprises,
- easier demonstration of compliance with Australian technical regulations,
- recognition of EU type-approval certificates for various vehicle categories,
- cooperation in the field of standardization at bilateral, regional, and international levels,
- protection and enforcement of intellectual property rights,
- mechanisms to address unfair trade practices and protection in case of market disruptions,
- strengthening supply chains for critical raw materials and promoting their sustainable extraction,
- provisions on sustainable trade (Paris Agreement, labor standards, gender equality, environment).
Trade in goods
The agreement will eliminate duties on almost all EU exports of goods to Australia. Upon entry into force, 97.6 percent of EU exports will be exempt from customs duties, with the remainder to be liberalized over a transition period of up to five years.
Australia will eliminate duties on EU industrial products, such as cars, trucks and motor vehicle parts, machinery, chemicals, textiles, clothing and footwear, plastics, and wood and furniture.
Promoting EU agri-food exports and protecting EU sensitivities
The agreement creates significant opportunities for European farmers and food producers while maintaining protection for sensitive sectors.
Upon entry into force, duties on EU food and beverage exports will be eliminated for all products except for cheeses, which are subject to a transition period. This includes products such as wine, sparkling wine and spirits, chocolate, sugar confectionery and biscuits, pasta, and grain-based foods and canned vegetables.
Imports of agri-food products from Australia into the EU market will not be fully liberalized. Limited, carefully defined tariff quotas will apply to sensitive sectors such as beef, sheep and goat meat, sugar, certain dairy products, and rice.
All imported products must meet the EU’s high sanitary and phytosanitary standards, which remain unchanged regardless of trade agreements. The agreement enforces the precautionary principle.
The agreement also includes a bilateral safeguard mechanism in the event of sudden market disruptions.
Ensuring access to critical raw materials
Australia possesses significant reserves of critical raw materials such as lithium, manganese, titanium, bauxite, and cobalt. The agreement will contribute to the diversification of supply and increase the security and resilience of supply chains in the EU.
It also includes provisions for the sustainable, socially responsible, and safe extraction of these resources.
Trade in services and investment
The agreement will facilitate EU companies’ access to the Australian market through increased transparency and predictability of the regulatory environment, as well as by opening up new investment opportunities.
It covers a wide range of service sectors and includes provisions on the temporary mobility of professionals for business purposes.
The goal is to encourage investment and ensure equal treatment for EU investors. The agreement does not include specific investment protection provisions.
Ambitions commitments regarding sustainable development
The agreement includes high standards in the area of trade and sustainable development, including commitments regarding workers’ rights, gender equality, and environmental and climate protection.
Commitments are enforceable through a dispute resolution mechanism. The agreement also includes a reference to the Paris Agreement and promotes trade in green products and services.
Next steps regarding the free trade agreement
The text of the draft agreement, on which negotiations have concluded, will soon be published on the European Commission website (in English). After internal procedures are completed, the European Commission will submit to the EU Council a proposal for a decision on the signing of the agreement and a proposal for a decision on the conclusion of the agreement. Once the Council approves the decision to sign the agreement, the EU and Australia will be able to sign it. After signing, approval by the European Parliament and adoption of a decision on its conclusion by the EU Council are required for the agreement to enter into force. Once Australia also ratifies the agreement, the agreement can enter into force.
More information
The European Commission pages below are in English. By clicking on the “Translate to Slovenian” link above, you have the option to translate them into Slovenian as well.
Page about the EU-Australia Free Trade Agreement (in English)
Questions and answers (in English)
Factsheet – Key benefits of the EU-Australia agreement (in English)
Factsheet – Trade and sustainable development (in English)
Factsheet – Critical raw materials (in English)
Factsheet – Agri-food sector (in English)
Summaries of individual chapters of the EU-Australia agreement (in English)
Trade relations between the EU and Australia (in English)
Source: Ministry of the Economy, Tourism and Sport