After eight years of negotiations, Australia and the European Union have signed a free trade deal. The signing of the deal in Canberra has been described as a win-win situation and a collective resilience.
The free trade deal is worth A$10 billion, removing nearly all tariffs on trade, critical minerals, and increasing cooperation on defense.
The trade deal is the latest by Brussels as the EU seeks diversified global trading relationships amid an unpredictable geopolitical landscape. According to Ursula von der Leyen, President of the European Union, the deal will change a world where tariffs are used as leverage and supply chains are exploitable vulnerabilities.
All EU tariffs on Australian agricultural products will be lifted, offering savings of more than A$37 million for wine producers and exporters. Other products enjoying tariff-free entry into the EU are fruit and vegetables, seafood, olive oil, wheat, barley, and most dairy products.
Australian consumers will benefit from cheaper European goods, such as wines, pasta, chocolates, spirits, and biscuits.
Food naming rights had been brought to the fore in the negotiations. The trade deal will bring an end to the Prosecco name for Australian sparkling wine exports over the next ten years. Prosecco can still be sold domestically. The use of Parmesan will continue, but feta will be subject to grandfathering and lengthy phase-out periods.
Notwithstanding, the deal has faced huge pressure from the European Agriculture lobby group and Meat and Livestock Australia over different concessions and missed opportunities.