The European Union (EU) and Australia are currently in talks to negotiate a comprehensive free trade agreement (FTA). The two sides began negotiations in 2018, and both have expressed their commitment to reaching a mutually beneficial agreement. The proposed EU-Australia FTA aims to further deepen the economic ties between Europe and Australia, which are already strong.

The EU is Australia`s second-largest trading partner after China, with bilateral trade in goods and services worth more than €60 billion in 2019. The EU is also the largest foreign investor in Australia, accounting for around a quarter of all foreign direct investment (FDI) in the country. Likewise, Australia is an important trading partner for the EU, and an FTA with Australia would provide European businesses with greater access to the Australian market.

The EU-Australia FTA negotiations cover a wide range of issues, including tariff reductions, investment, services, and public procurement. The two sides are also discussing regulatory cooperation, intellectual property, and sustainable development. The FTA negotiations are part of the EU`s broader trade agenda, which seeks to promote sustainable and inclusive growth, and to ensure a level playing field for European businesses.

The proposed FTA aims to remove tariffs on goods traded between the EU and Australia, making it easier and cheaper for businesses to trade across borders. This would particularly benefit sectors such as agriculture, food and drink, and automotive industries. For example, the EU currently imposes tariffs on imports of Australian beef, while Australia applies tariffs on EU cheese. An FTA would remove these barriers and create new opportunities for businesses in both markets.

The FTA negotiations also cover non-tariff barriers, such as regulatory divergences and technical standards. By aligning regulatory frameworks and standards, the EU and Australia can increase the compatibility of their respective markets, making it easier for businesses to trade and invest. This would save businesses time and money, and reduce the costs of compliance.

The EU-Australia FTA negotiations are expected to conclude soon, and a comprehensive agreement could be reached in the near future. The FTA would create new opportunities for businesses in both markets, and help to deepen the economic ties between the EU and Australia. The agreement would also demonstrate the commitment of both sides to free and fair trade, and to promoting sustainable and inclusive growth.