EU and Australia agree Security and Defence Partnership and free trade deal

Key Development

The EU and Australia adopted a Security and Defence Partnership and concluded negotiations on a balanced free trade agreement, while agreeing to launch formal talks on Australia’s association to Horizon Europe. The FTA text was agreed at a leaders' meeting in Canberra, and the SDP was signed virtually on 18 March 2026.

Why It Matters

The FTA removes over 99% of tariffs and is projected to increase EU exports by up to 33% over the next decade, with notable gains for dairy, motor vehicles and chemicals. The deal also secures access to critical raw materials, includes enforceable sustainability commitments and deepens security and defence cooperation across regions.

Next Step

Draft texts will be published and undergo internal EU procedures before the Commission proposes signature to the Council, after which European Parliament consent and Australia’s ratification are required for the agreement to enter into force.

Sources

Official Documents

Latest EU trade developments

From the same institution

Similar policy actions

Language