Coming just two months after the EU signed a deal with the Latin-American Mercosur bloc — also a major beef producer — the Australian agreement is meant to deliver benefits for farmers, Šefčovič said.
“I believe that we are bringing very good news to our farmers,” he said, arguing that wine, sparkling wine, chocolate, sugar, confectionery, ice cream, some fruits and vegetables and many processed agricultural products will all “go down to zero from Day 1.”
Cheeses, which are more sensitive for the Australians, will see tariffs phased out in three years. The trade chief also underlined EU agrifood exports to Australia already enjoy a surplus of €2.3 billion.
EU exports to Australia totalled €37 billion in goods and €28 billion in services in 2024, with the deal set to eliminate tariffs on almost all EU goods and many services. The agreement could boost that by one third in 10 years, the Commission estimates.
A major win for the EU will be easier access to Australia’s natural resource wealth and incentives for European investments for Australian mining and refining. “Australia has almost all the critical minerals we need,” Šefčovič said.
Speaking of the EU’s need for critical minerals, von der Leyen told lawmakers that a new partnership with Australia would be “crucial” to the EU, which ran the risk of becoming over-dependent on Chinese supplies. “That is precisely why we need each other,” she said.
Brussels also won a pledge from Australia to raise the threshold for its luxury car tax by almost 50 percent. Canberra currently charges a 33 percent levy on foreign-made cars above A$80,000 (or A$92,000 for a fuel-efficient one). Šefčovič said that will rise to A$120,000.
Koen Verhelst reported from Brussels; James Panichi reported from Melbourne.