Australia and the European Union have agreed on a sweeping free trade deal after eight years of negotiations.
The deal signed in Canberra is worth about A$10 billion ($7 billion; £5.2 billion) and was described as a mutual 'win-win' by Australia's Prime Minister and the visiting European Commission President Ursula von der Leyen.
Von der Leyen emphasized the agreement's focus on 'collective resilience' in a rapidly changing world.
The pact removes nearly all tariffs on trade and facilitates enhanced cooperation on defense and critical minerals.
While European car manufacturers have welcomed the deal, agricultural producers in both regions expressed concerns regarding the agreed export quotas for Australian beef and lamb. Moreover, the amount of Australian beef permitted into the EU is set to increase more than tenfold over the next decade, with mixed reactions from Australian farmers.
The agreement showcases the EU's strategy to diversify its trade relationships in light of shifting geopolitical dynamics, highlighted by von der Leyen's remarks on the vulnerabilities of global supply chains.
The deal not only facilitates smoother trade in agricultural products but also sets the stage for greater collaboration on defense, critical minerals like lithium, and counter-terrorism initiatives. This partnership is a significant step towards navigating the future landscape of international trade and cooperation.
