EU and Australia agree free trade and defence agreements

Published: Tue 24 Mar 2026, 4:20 PM

The European Union and Australia have agreed on a Free Trade Agreement, as well as a Security and Defence Partnership, the European Commission has announced.

The two sides also agreed to launch negotiations for the association of Australia to Horizon Europe, which will be the world’s largest funding programme for research and innovation.

The Free Trade Agreement was agreed at a meeting in Canberra between European Commission President Ursula von der Leyen and Prime Minister Anthony Albanese.

The FTA is expected to bring significant opportunities to both the EU and Australia’s companies, farmers and consumers.

This will give European exporters access to the Australian market, including the removal of 99% of tariffs on EU goods to Australia.

Along with this, the agreement will make it easier for EU professionals to work in Australia.

The FTA has been in process for nearly eight years, with negotiations beginning in July 2018.

When it comes to the Security and Defence Partnership, the EU and Australia have been allies, and they have sought to deepen their cooperation in recent years.

Through this partnership, both the EU and Australia aim to strengthen their cooperation on crisis management, as well as security and defence policy operations, including exercises, training and education.

President Ursula von der Leyen said: “The EU and Australia may be geographically far apart, but we couldn't be closer in terms of how we see the world.

“With these dynamic new partnerships on security and defence, as well as trade, we are moving even closer together. These agreements put in place lasting, trust-based structures to support peace and security through strength, driving prosperity through rules-based trade, and working together to uphold global institutions.

“We are committed to building a cleaner, more digital future for our citizens, workers and businesses. And we are sending a strong signal to the rest of the world that friendship and cooperation are what matter most in times of turbulence.”