Authors: Daniel Rae, Jake Callaghan and Seb Law | 3-minute read
Unlocking Europe: Australia and EU Free Trade Deal
Australia and the EU have finalised a landmark Free Trade Agreement, slashing tariffs and opening significant new opportunities for exporters, importers and investors.
The announcement follows 8 years of negotiations, as detailed by Daniel Rae, Jake Callaghan and Seb Law.
What you need to know
Key benefits for Australian businesses
Under the A‑EU FTA, the EU will eliminate tariffs on 98% of Australian exports, significantly improving competitiveness for Australia’s agricultural, resources and manufactured goods sectors. Key beneficiaries include producers of wine, nuts, horticultural products, olive oil, dairy, wheat, barley and seafood, in addition to exporters making use of expanded quotas for sensitive agricultural goods. The FTA provides new Tariff Rate Quotas (TRQs), including an additional 30,600 tonnes of beef, 25,000 tonnes of sheep meat, 35,000 tonnes of sugar, and new annual quotas for wheat gluten, rice and key dairy products, strengthening Australia’s capacity to expand exports into the EU.
Australia will remove tariffs on over 99% of EU goods, reducing costs for imports such as EU‑made vehicles, industrial machinery, specialty food products and a broad range of retail goods. These reductions are expected to deliver measurable benefits to Australian consumers and businesses.
The FTA also opens access to government procurement markets, enabling Australian businesses to bid for EU government contracts and vice versa. EU government procurement markets are valued at approximately $845 billion annually, representing a significant new commercial opportunity.
Import and export considerations
As the A‑EU FTA approaches entry into force, Australian importers and exporters should begin planning now to ensure they can fully leverage the Agreement from day one. Although the FTA substantially reduces tariff barriers, businesses must still meet specific compliance, origin and classification requirements to access preferential duty rates.
Key preparation steps include:
- Tariff Classification: ensure product classifications are accurate as this may impact rules of origin and preferential duty rates.
- Rules of Origin Compliance: confirm goods meet relevant rules of origin. Where uncertainty exists, consider seeking specialist advice.
- Certificates and Declarations of Origin: establish processes for compliant origin documentation and evidence of preference entitlements.
- Supply Chain Verification: engage suppliers early to verify origin‑qualifying inputs and ensure supporting evidence can be provided.
Next steps
Get in touch
If you require further information on anything in this article or wish to discuss matters further, please contact us. We will continue to provide updates as they become available.
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