The European Union and Australia on Tuesday agreed on the final text of a free trade agreement, two years after negotiations broke down over Australian demands for more red meat market access and complaints about Australian products labeled with traditionally European names such as prosecco.
European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese signed the agreement at the Australian Parliament House after protracted negotiations that began in 2018.
The breakthrough comes as both the EU and Australia seek to diversify their trading networks and reduce their economic reliance on China and exposure to uncertain U.S. tariffs.
“Today marks a defining moment in the relationship between Australia and the European Union,” Albanese told reporters.
“After eight years of negotiations, Australia and the European Union have signed a landmark trade deal,” he added.
The leaders also announced a new defense partnership that will bring closer military cooperation and the start of negotiations toward Australia becoming an associate of the research and innovation funding program Horizon Europe.
Under the trade deal, Australian producers of prosecco, traditionally a sparkling wine from northern Italy, will be banned from using the name on exports 10 years after the pact takes effect.
The EU will open two tariff rate quotas of a total of 30,600 metric tons (33,731 U.S. tons) for Australian red meat, with 55% of that duty free.
The pact will secure the EU’s supply of critical raw materials.
