The Tamesis
Australian Trade Minister Don Farrell will meet European Trade Minister Maros Sefcovic in Brussels next week in a bid to finalize a free trade agreement between the two blocs.
Australia is expected to allow more foreign investment and lower prices for European-made cars in a comprehensive deal that could also reduce tariffs for agricultural exporters.
Australia’s trade talks with the EU are among a series of deals hammered out by leaders from Europe, Canada, India and other countries as the Trump administration raised tariffs with trading partners last April.
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The EU is Australia’s third largest trading partner; total bilateral transactions in 2024 were just under US$77 billion (A$110 billion).
Recent negotiations are said to have resolved differences over naming rights for European products such as prosecco and feta cheese, and will allow Australian producers to use the names.
Australia has also reportedly agreed to eliminate a 5% tariff on European cars, similar tariffs on Japanese, Korean, Chinese, Thai, American and British cars have also been cut, while luxury car taxes on premium European models may also be relaxed.
But the final outcome will depend on whether EU negotiators accept Australia’s calls for greater market access for beef and lamb – an issue on which some of the 27-member bloc’s 27 member states have so far refused to budge.
If the issue can be resolved quickly, European Commission President Ursula von der Leyen may fly to Australia later this month to “unveil an agreement that strengthens the strategic alliance between the two sides”. sydney morning herald reported on Friday.
Farrell told Sky News last week: “We’re not that far off. Some of the big issues, particularly the amount of Australian meat going into the EU and the conditions under which beef is going into Europe, remain unresolved. They are big issues.”
The EU has signed trade agreements with many countries
India on Tuesday finalized a massive trade deal with the European Union, its largest trading partner.
The agreement will significantly increase trade between the two countries’ two billion people, whose economies account for about a quarter of global business.
EU-India Agreement After nearly 20 years of on-and-off negotiations since 2007, total trade between India and the EU reached $136.5 billion in the fiscal year ending March 2025.
It is the fifth agreement signed by the EU in the past year, following similar agreements with Mercosur, Switzerland, Indonesia and Mexico.
India also signed trade deals with the UK, New Zealand and Oman last year, driven by US President Donald Trump Trump decides to impose 50% tariff Goods and products from India.
Tariffs have since been reduced to 18% Trump announces deal with Delhi Three days ago. Officials on both sides are believed to be still picking up the pieces before full details are revealed to the public.
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