Australia and the European Union have agreed a sweeping free trade deal after eight years of negotiations.
The deal signed in Canberra is worth about A$10bn ($7bn; £5.2bn) and was described as a mutual 'win-win' by Australia's prime minister and the visiting European Commission President Ursula von der Leyen.
She described the deal as having a focus on 'collective resilience' in a world that is 'deeply changing'.
As well as removing almost all tariffs on trade, the two sides agreed to increase co-operation on defence and critical minerals.
European carmakers welcomed the deal, but farmers in both Europe and Australia were unhappy at export quotas agreed for Australian beef and lamb.
The amount of Australian beef allowed into the EU is set to increase more than tenfold in the next decade, but Australian farmers had wanted more, while European farmers were opposed to increases.
Tuesday's accord in Canberra is the latest trade deal struck by Brussels as it tries to diversify its global trading relationships. Von der Leyen highlighted the changing geopolitical landscape, particularly referencing the unpredictability of US President Donald Trump's policies.
The trade agreement includes lifting almost all EU tariffs on Australian agricultural products such as wine, fruits, and vegetables, which will save local wine producers approximately A$37m. It also notes that Australian consumers can expect cheaper European goods, from wines to chocolates.
However, concerns linger over the quotas assigned to meat exports, which many see as not enough to satisfy Australian farmers' needs. The deal also denotes a new partnership for greater defense cooperation between Australia and the EU, enhancing ties in defense industries and critical mineral projects.
The deal signed in Canberra is worth about A$10bn ($7bn; £5.2bn) and was described as a mutual 'win-win' by Australia's prime minister and the visiting European Commission President Ursula von der Leyen.
She described the deal as having a focus on 'collective resilience' in a world that is 'deeply changing'.
As well as removing almost all tariffs on trade, the two sides agreed to increase co-operation on defence and critical minerals.
European carmakers welcomed the deal, but farmers in both Europe and Australia were unhappy at export quotas agreed for Australian beef and lamb.
The amount of Australian beef allowed into the EU is set to increase more than tenfold in the next decade, but Australian farmers had wanted more, while European farmers were opposed to increases.
Tuesday's accord in Canberra is the latest trade deal struck by Brussels as it tries to diversify its global trading relationships. Von der Leyen highlighted the changing geopolitical landscape, particularly referencing the unpredictability of US President Donald Trump's policies.
The trade agreement includes lifting almost all EU tariffs on Australian agricultural products such as wine, fruits, and vegetables, which will save local wine producers approximately A$37m. It also notes that Australian consumers can expect cheaper European goods, from wines to chocolates.
However, concerns linger over the quotas assigned to meat exports, which many see as not enough to satisfy Australian farmers' needs. The deal also denotes a new partnership for greater defense cooperation between Australia and the EU, enhancing ties in defense industries and critical mineral projects.
