After a hiatus since 2023, Australia and the European Union resumed negotiations on a comprehensive Free Trade Agreement (FTA) in May 2025, responding to evolving global trade dynamics and mutual strategic interests.

The renewed talks were catalysed by rising global trade tensions, notably the imposition of tariffs by former U.S. President Donald Trump. These developments underscored the urgency for both Australia and the EU to diversify their trade relationships and reinforce economic cooperation.
Australian Trade Minister Don Farrell emphasised the need to resolve sticking points, particularly the EU's strict rules on geographical indicators for products like "feta" and "prosecco."

During a high-level meeting in Rome, Italy, Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen reaffirmed their commitment to deeper bilateral ties. Von der Leyen also proposed a broader strategic partnership with Australia, similar to EU agreements with Japan and South Korea, including potential defence cooperation.

While major challenges remain, particularly on agricultural market access and naming rights, the revival of negotiations signals a mutual willingness to compromise. Both sides recognise the significant economic and geopolitical benefits a deal could bring.

As negotiations continue, stakeholders across sectors such as agriculture and manufacturing are watching closely, hopeful for a balanced and mutually beneficial agreement.

As a bloc, the EU was Australia’s third-largest two-way trading partner in 2022/2023. It is also the sixth-largest export destination and the third-largest services export market. Two-way trade is valued at around $110 billion.
 
Source: https://www.reuters.com/  | https://www.theguardian.com/
Author: CzechTrade Australia