Finance
Australia, EU Push to Seal Trade Deal as Von Der Leyen Visits
Published by Global Banking & Finance Review®
Posted on March 23, 2026
2 min readLast updated: March 23, 2026
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European Commission President von der Leyen visits Canberra on March 24 as Australia and the EU push to revive a long-stalled free trade deal, aiming to resolve meat quotas and boost strategic and economic ties.
Australia and EU Accelerate Efforts to Finalize Historic Trade Agreement
Key Developments in Australia-EU Free Trade Negotiations
High-Level Meetings and Renewed Momentum
SYDNEY, March 24 (Reuters) - European Commission President Ursula von der Leyen will meet Australian Prime Minister Anthony Albanese in Canberra on Tuesday as both sides seek to clinch a long-delayed free trade deal following negotiations launched in 2018.
The push to revive the deal comes amid conflict in the Middle East and heightened global trade tension as the EU looks to strengthen its position vis-a-vis the United States and China, following a deal struck with India in January.
Previous Stalemate and Recent Progress
The talks collapsed in 2023 largely over disagreements on EU quotas for meat imports and protections for the agricultural sector. But recent signals suggest renewed momentum, fuelling hopes that a deal could be finalised during the visit.
"We look forward to welcoming President von der Leyen tomorrow," Albanese told parliament on Monday, adding that a free trade deal with the EU would further strengthen the Australian economy and boost jobs.
"I'm sure it will be a great success."
Von der Leyen is set to address parliament on Tuesday.
Negotiation Focus: Agriculture, Manufacturing, and Critical Minerals
Australian and EU Priorities
This month Trade Minister Don Farrell said he was confident an agreement could be reached in the national interest, while EU trade chief Maros Sefcovic said talks had been moving in the right direction.
Australia wants bigger quotas on meat exports to Europe, while the EU is pushing for lower tariffs on manufactured goods, particularly cars, and better access to Australia's critical minerals to reduce dependence on China.
Potential Impact on Tariffs and Industry
Australian media say the pact would scrap the current import tariff of 5% on European cars, potentially lowering the prices of offerings from BMW and Mercedes in Australia.
Trade Figures and Economic Impact
Current Trade Volumes
Trade between the two is substantial, with total goods trade of 47.2 billion euros ($54.5 billion) in 2025, and a surplus of 26.5 billion euros for the EU.
Services trade was 38.1 billion euros in 2023, with a surplus of 17.9 billion euros also in favour of the bloc.
($1=0.8662 euros)
(Reporting by Renju Jose in Sydney; Editing by Clarence Fernandez)
Key Takeaways
- •Trade talks between Australia and the EU launched in 2018 but collapsed in 2023 over agricultural disagreements, particularly meat quotas; renewed progress ahead of von der Leyen’s visit signals potential breakthrough
- •Australia seeks expanded meat export quotas and critical mineral access while the EU wants lower tariffs on manufactured goods like cars; a deal could benefit European GDP by €4 billion by 2030
- •This initiative aligns with broader EU strategy strengthening ties in the Indo‑Pacific following the January India–EU deal and provisional implementation of the Mercosur agreement, as Brussels diversifies trade partners
Frequently Asked Questions about Australia, EU push to seal trade deal as Von der Leyen visits
1Why did Australia-EU free trade talks collapse in 2023?
The talks fell through due to disagreements over EU quotas for meat imports and protections for the European agricultural sector.
2What are Australia and the EU hoping to achieve with the trade deal?
Australia wants bigger quotas for meat exports to Europe, while the EU seeks lower tariffs on manufactured goods, especially cars, and better access to Australia's critical minerals.
3How important is trade between Australia and the EU?
Trade is substantial, with goods trade reaching 47.2 billion euros in 2025 and services trade totaling 38.1 billion euros in 2023.
4What impact could the free trade agreement have on Australian car prices?
The deal could scrap the current 5% import tariff on European cars, potentially lowering the prices of European brands like BMW and Mercedes.
5Who is visiting Australia to discuss the trade deal?
European Commission President Ursula von der Leyen is visiting Canberra to meet with Prime Minister Anthony Albanese and push for the agreement.