Australia and the European Union signed a comprehensive free trade agreement on Tuesday in Canberra, following 8 years of negotiations.
The two partners also agreed to strengthen their cooperation in the defense sector and improve European access to critical Australian minerals, as reported by AFP.
The agreement will come into effect after approval by the European Council.
With this trade agreement, the EU expects to increase its exports to Australia by a third in the next decade, with a 50% growth in the dairy and automotive sectors.
EU companies exported goods worth 37 billion euros to Australia last year, and services worth 31 billion euros in 2024.
Ursula von der Leyen: We send a strong signal to the rest of the world
"EU and Australia may be geographically distant, but we could not be closer in our vision of the world," said Ursula von der Leyen, the head of the European Commission, present in Canberra.
"We send a strong signal to the rest of the world: friendship and cooperation matter even more in times of turmoil," she added.
Main sticking points
The main sticking points, Australia's use of certain European geographical indications and access for Australian beef to the European market, have been resolved, enabling an agreement after eight years of negotiations.
This compromise will allow Australian wine producers to use the term "prosecco" in the domestic market, but they will have to cease using it for exports after 10 years.
Australia will also be able to continue using certain EU-protected geographical indications, such as "feta" and "gruyere," provided that producers have used these names for at least five years.
Key provisions - from machinery to beef and lamb
In turn, European car manufacturers will benefit from the increase in the Australian tax threshold for luxury electric cars, allowing three-quarters of them to be exempt from this tax.
The quota for Australian beef allowed to enter the EU will increase by over ten times in the next decade, even though it will remain below the level requested by Australian farmers.
The new quota, set at 30,600 tons of Australian beef, will include 55% duty-free grass-fed meat and 45% subject to reduced tariffs at 7.5%.
Only a third of the quota will be applied in the first five years before coming into effect.
The EU will also allow the entry of 25,000 tons of Australian sheep and goat meat from grass-fed animals, with a progressive implementation over seven years.