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Australia is on the brink of finalizing a long-anticipated free trade agreement with the European Union, spurred by the recent global trade tensions initiated by former U.S. President Donald Trump’s tariff policies. This development renews focus on negotiations that have seen many starts and stops over the years.
Trade Minister Don Farrell expressed optimism, suggesting the deal is within reach following fruitful discussions with key EU officials.
“We’re closer than we have been in 25 years to securing a free trade agreement with the Europeans,” Senator Farrell shared with Sky News on Sunday.
He added, “While we’re not quite there yet, we’ve significantly narrowed down the issues that have kept us apart.”
The negotiation meetings, which spanned over two days, were held in Brussels before Senator Farrell returned to Australia on Saturday night, hopeful for a favorable outcome.
What would the deal mean for Australians?
A free trade deal would give Australian exporters greater access to global markets of more than 450 million people, while also removing tariffs on European imports and offering a potential billion-dollar boost to the economy.
It would end tariffs on products like European cars in Australia, likely bringing more competitive prices.
Negotiations over a proposed free trade agreement have previously ended without a deal over sticking points that include greater access to European markets for Australian beef and sheep.
Australia initially pushed for more than 30,000 tonnes of beef, while Europe tried to whittle down the quota to protect domestic farmers who oppose greater competition from imports.
In turn, EU officials have pushed to end Australian producers using terms like prosecco and feta for products that aren’t sourced from specific European regions.
Despite Farrell’s bullish tone, he admitted that negotiators were still at an impasse over certain import restrictions.
“That was an issue that continued to be discussed extensively on Friday, so we haven’t resolved those yet,” Farrell said.
The deal could be struck within weeks, Farrell said, pulling Australia and the EU closer together as Trump upends global trade with unilateral tariffs.
The news comes months after EU trade commissioner Maroš Šefčovič travelled to Australia, where he revealed the final stages of negotiations could be finalised in 2026.
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