Finance
Factbox-Highlights of EU-Australia Trade Agreement
Published by Global Banking & Finance Review®
Posted on March 24, 2026
3 min readLast updated: March 24, 2026
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The EU–Australia free trade agreement removes tariffs on most agricultural and industrial goods, protects select GI names, expands auto access and services, and deepens cooperation in critical minerals, services, and investment.
Key Highlights of the EU-Australia Trade Agreement and Market Impact
Main Provisions and Sectoral Impacts of the EU-Australia Trade Deal
SYDNEY, March 24 (Reuters) - The EU and Australia finalised a long-awaited free trade deal on Tuesday as Europe seeks to diversify its export markets and expand ties beyond its traditional partners.
Here are the highlights of the agreement:
Agriculture
Tariff Reductions for EU Exports
Tariffs will go down to zero from day one for key EU export products such as wine and sparkling wine, some fruit and vegetables, including preparations and fruit juices, chocolate, sugar, confectionery and ice cream and many processed agricultural products.
Tariffs on EU cheese will go down to zero over three years.
Tariff Reductions for Australian Exports
The EU will also remove tariffs on most Australian agricultural products including wine, nuts, fruit and vegetables, honey, olive oil, most dairy products, wheat, barley and seafood.
Australian beef, sheep meat, sugar, rice, wheat gluten, skimmed milk powder and natural butter will get either new or expanded tariff rate quota volumes.
Protected European Products
Geographical Indications
Under the agreement some EU 'geographical indications' names for products such as Pecorino Romano or Ouzo, will be fully protected after a relatively short phasing-out period.
Special Provisions for Certain Products
For some other products such as feta or gruyere, prior Australian users having used the term in a continuous manner for at least five years can retain the right to use the terms assuming that the origin of the product will be clearly labelled.
Producers who make and sell Prosecco wine in Australia will be allowed to continue doing so domestically. Exports will be stopped after 10 years.
Automobiles
Liberalisation of Market Access
Australia to fully liberalise market access for all EU passenger cars and other vehicles, with the exception of a few tariff lines on trucks, for which duties will be gradually removed over a short period.
Luxury Car Tax for Electric Vehicles
Australia will also increase the luxury car tax threshold for EU electric vehicles to A$120,000 ($83,600). Approximately 75% of electric vehicles from the EU will be exempted from paying the luxury car tax.
Critical Minerals
Tariff Elimination and Investment Opportunities
EU to eliminate tariffs on imports of Australian critical minerals and hydrogen. Australia to open up investment opportunities in this sector to Europeans.
Services
Market Access for EU Firms
The deal will make it easier for EU firms to sell services in Australia, including in professional and business services, maritime transport, and financial services. The agreement will reduce and eliminate discrimination and expand opportunities for EU and Australian service providers and investors.
Investments
Treatment of EU and Australian Investors
EU investors to receive the most favourable treatment accorded to any foreign investor in Australia, and in most cases to be treated in the same way as Australian investors. Both EU and Australian investors will be able to establish their companies and operate them freely, in each other's territories.
($1 = 1.4255 Australian dollars)
(Reporting by Praveen Menon and Christine Chen in Sydney; Editing by Edwina Gibbs)
Key Takeaways
- •Agricultural tariffs eliminated or phased out on major EU exports—cheese within three years—and EU will lift duties on many Australian farm and seafood products.
- •Protected EU product names (geographical indications) like Pecorino Romano and Ouzo fully protected; terms like feta and gruyère allowed with conditions; Prosecco can be used domestically in Australia for 10 more years, banned on exports thereafter.
- •Australia fully opens its vehicle market to EU vehicles, increases luxury car tax threshold to A$120,000 to exempt most EU EVs; EU removes tariffs on Australian critical minerals and hydrogen and opens investment access; mutual easing of services and investment barriers.
Frequently Asked Questions about Factbox-Highlights of EU-Australia trade agreement
1What are the main features of the EU-Australia trade agreement?
The agreement includes tariff eliminations on key agricultural goods, enhanced market access for vehicles and critical minerals, and new protections for geographical indications.
2How does the trade deal impact EU agricultural exports to Australia?
Tariffs will be reduced to zero from day one for many EU agricultural products, with phased elimination for EU cheese.
3What is the significance for EU automobile exports to Australia?
Australia will fully liberalise market access for most EU vehicles and raise the luxury car tax threshold for EU electric vehicles.
4Are European product names protected in Australia under the agreement?
The agreement protects several EU product names, with specific rules for products like feta and Prosecco.
5What investment opportunities does the agreement create?
EU and Australian investors can freely establish and operate companies in each other's territories, with most-favoured-nation treatment.