EU and Australia Sign Trade, Defense Pacts

The European Union and Australia have finalized and signed a free trade agreement and announced a new defense partnership. The trade deal, which concluded after negotiations that began in 2018 and broke down in October 2023, aims to diversify trading networks and reduce economic reliance on China and exposure to uncertain United States tariffs. Key provisions include the removal of tariffs on Australian exports like wine, seafood, and horticulture, and the European Union opening tariff rate quotas for Australian red meat. Australian producers will be banned from using the name 'prosecco' on exports after 10 years. The pact also secures the European Union's supply of critical raw materials such as lithium and tungsten. The defense partnership will foster closer military cooperation, focusing on areas like defense industries, maritime security, and cybersecurity, and reaffirms support for Ukraine against Russia's invasion. Australia will also begin negotiations to become an associate of Horizon Europe.