EU and Australia agree FTA and Security and Defence Partnership
Key Development
The EU and Australia adopted a Security and Defence Partnership, signed virtually by High Representative/Vice‑President Kaja Kallas and Australian ministers on 18 March 2026, and leaders agreed the final text of an ambitious free trade agreement during a meeting in Canberra between Commission President Ursula von der Leyen and Prime Minister Anthony Albanese. They also agreed to launch formal negotiations for Australia’s association to Horizon Europe.
Why It Matters
The FTA is expected to increase EU exports by up to 33% over the next decade, reaching up to €17.7 billion annually, with strong growth potential in dairy (up to 48%), motor vehicles (52%) and chemicals (20%), while removing over 99% of tariffs and cutting about €1 billion a year in duties. The deal also strengthens EU access to critical raw materials, includes binding sustainability commitments and protects 165 agricultural and food GIs and 231 spirit drink GIs while adding 50 wine GIs.
Next Step
The negotiated draft texts will be published shortly and must complete EU internal procedures before the Commission proposes signature and conclusion, after which European Parliament consent, Council decisions and Australia’s ratification are required for entry into force.
Sources
Official Documents
- EU and Australia strengthen relations with Security and Defence Partnership and Trade Agreement The EU and Australia announced the adoption of a Security and Defence Partnership and concluded negotiations for an ambitious FTA, while agreeing to launch formal negotiations for Australia’s association to Horizon Europe, expanding security, trade and research collaboration.
Latest EU trade developments
-
EU and Australia agree Security and Defence Partnership and free trade deal
The European Commission announced that the EU and Australia have adopted a Security and Defence Partnership, concluded negotiations on a balanced free trade agreement, and agreed to launch talks on Australia’s association to Horizon Europe.
Read more -
EU envoy briefs delegation after Canada mission
Joost Korte, EU Envoy for the EU–Canada partnership, briefed the European Parliament delegation after a two‑week mission to Canada and outlined priorities ahead of a tentative autumn 2026 summit.
Read more -
83rd TLD IPM in Washington urges de-escalation in trade tensions
MEPs and new US TLD leadership met in Washington for the 83rd Transatlantic Legislators' Dialogue and agreed a Joint Statement calling for de-escalation in transatlantic trade tensions.
Read more
From the same institution
-
EU and Australia agree Security and Defence Partnership and free trade deal
The European Commission announced that the EU and Australia have adopted a Security and Defence Partnership, concluded negotiations on a balanced free trade agreement, and agreed to launch talks on Australia’s association to Horizon Europe.
Read more -
Commission acts against dumped imports of phosphorous acid from China
EU importers of phosphorous acid from China face a 122.8% anti-dumping duty after the Commission adopted definitive measures, although the investigation concluded the duty will have little impact on EU importers or users.
Read more -
Colombia lifts anti-dumping duties on EU frozen fries
EU exporters of frozen fries from Belgium, Germany and the Netherlands regain full market access after Colombia revoked anti-dumping duties, removing duties that had affected roughly 85% of EU frozen fries exports and around €19.3 million in annual trade; importers and compliance teams no longer face those duties.
Read more
Similar policy actions
-
EU and Australia agree Security and Defence Partnership and free trade deal
The European Commission announced that the EU and Australia have adopted a Security and Defence Partnership, concluded negotiations on a balanced free trade agreement, and agreed to launch talks on Australia’s association to Horizon Europe.
Read more -
Colombia lifts anti-dumping duties on EU frozen fries
EU exporters of frozen fries from Belgium, Germany and the Netherlands regain full market access after Colombia revoked anti-dumping duties, removing duties that had affected roughly 85% of EU frozen fries exports and around €19.3 million in annual trade; importers and compliance teams no longer face those duties.
Read more -
Driving shared prosperity: Boosting EU–Canada trade through CETA
EU and Canadian ministers co-chaired the fifth CETA Joint Committee, adopted measures to clarify investment rules and improve SME access to arbitration, and formally launched negotiations on an EU‑Canada Digital Trade Agreement.
Read more