EU says it’s nearing a free-trade agreement with Australia
Both sides are racing to shore up economic links with like-minded partners
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[BRUSSELS/LONDON] The European Union said that it’s close to finalising a trade deal with Australia after years of negotiations.
European Commission President Ursula von der Leyen said in a letter to EU leaders that talks were “in the final stretch”.
“This will mark yet another milestone in diversifying Europe’s international partnerships,” she said, adding that the accord would enhance “Europe’s ability to shape global standards and ensure resilient supply chains.”
Von der Leyen may travel to Australia as soon as this weekend to sign the deal, according to sources familiar with the plans, who spoke on the condition of anonymity. Nothing has been finalised yet and talks are still ongoing.
EU trade chief Maros Sefcovic spoke with Australian Trade Minister Don Farrell on Monday, saying on X that the two sides were “moving in the right direction”.
Both Australia and the EU are racing to shore up economic links with like-minded partners, rushing to insulate their economies from US President Donald Trump’s barrage of tariffs and China’s recent restrictions on critical mineral supplies. The EU recently struck trade accords with India and a bloc of South American countries, revitalising negotiations with both partners after years of delays.
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A spokesperson for the European Commission declined to comment.
The EU and Australia have been on the cusp of sealing a trade pact for weeks now, but the agreement has been hung up over issues such as meat imports.
Australia has been pushing the EU to raise the amount of beef that can enter the bloc under preferential terms. But agricultural imports are a sensitive issue for the EU, which does not want to undermine its own sector.
European farmers have also been protesting other recent free-trade deals, such as the Mercosur pact with South American countries.
Trade talks between Australia and the EU previously broke down in 2023, when Australia walked away from a near-finalised deal, arguing the EU’s desired duty-free beef quota was too low. BLOOMBERG
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