The European Union and Australia have finalized a long-awaited trade agreement aimed at boosting economic ties and reducing dependence on China for critical minerals.
The deal, negotiated over eight years, will eliminate more than 99% of tariffs on European exports to Australia, while also removing import tariffs on nearly all Australian critical minerals, key components for energy, technology, and defense industries.
Ursula von der Leyen highlighted the strategic importance of the agreement, stressing the need to diversify supply chains and avoid overreliance on a single supplier. Australian Prime Minister Anthony Albanese said the deal could add around A$10 billion annually to Australia's economy.
The agreement is also part of Europe's broader push to strengthen ties in the Indo-Pacific, following recent trade deals with countries like Indonesia and India.
However, the pact has drawn criticism from Australian farmers, particularly over limited access to EU agricultural markets. Products such as beef and sheep meat will remain subject to export quotas, a key sticking point in previous negotiations.
While industrial and mineral sectors stand to benefit significantly, the mixed reception highlights ongoing tensions between trade liberalization and domestic economic interests on both sides.