EU–Australia landmark deal to scrap 99% of tariffs

The European Union and Australia have signed a trade agreement that has been under negotiation for eight years. The deal removes more than 99 per cent of tariffs on EU exports to Australia, while also eliminating tariffs on most Australian critical minerals exported to Europe.

The agreement is expected to cut tariffs for European firms by around €1 billion a year and increase exports from the bloc to Australia by a third over the next decade.

‘We couldn’t be closer in terms of how we see the world,’ said European Commission President Ursula von der Leyen. ‘These dynamic new partnerships in security and defence, as well as trade, bring us even closer together.’

Australian Prime Minister Anthony Albanese said the agreement could be worth around $7 billion a year to the country’s economy.

Both sides stressed the importance of cooperation on critical minerals to reduce dependence on a single supplier. However, some agricultural products, especially beef and sheep meat, will remain subject to quotas. At the same time, the EU will maintain protection for selected geographical indications.

Australia has also agreed to raise the luxury car tax threshold for electric vehicles from the EU to $83,600, meaning that around 75 per cent of electric cars from the bloc will be exempt from the tax.

(reuters, max)