Australia and the European Union have agreed a sweeping free trade deal after eight years of negotiations.
The deal signed in Canberra is worth about A$10bn ($7bn; £5.2bn) and was described as a mutual “win-win” by Australia’s prime minister and the visiting European Commission President Ursula von der Leyen.
She described the deal as having a focus on “collective resilience” in a world that is “deeply changing”.
As well as removing almost all tariffs on trade, the two sides agreed to increase co-operation on defence and critical minerals.
European carmakers welcomed the deal but farmers in both Europe and Australia were unhappy at export quotas agreed for Australian beef and lamb.
The amount of Australian beef allowed into the EU is set to increase more than tenfold in the next decade, but Australian farmers had wanted more, while European farmers were opposed to increases.
Tuesday’s accord in Canberra is the latest trade deal struck by Brussels as it tries to diversify its global trading relationships, given the fast changing geopolitical landscape and unpredictability of US President Donald Trump.
In January the EU and India announced a landmark trade deal after nearly two decades of on-off talks.
Another major trade deal the EU struck with the Mercosur bloc of South American countries was recently derailed in the European Parliament, amid criticism from the farming lobby.
Under the deal, almost all EU tariffs will be lifted on Australian agricultural products such as wine, fruit and vegetables, olive oil, seafood, most dairy products and wheat and barley.
This will mean a saving of about A$37m for local wine producers and exporters, the government said.
For Australian consumers, the deal will mean cheaper European wine, spirits, biscuits, chocolates and pasta.
Credit: bbc.com
