The European Union and Australia announced the adoption of a groundbreaking partnership on security and defense. They also concluded negotiations for an ambitious and balanced free trade agreement (FTA) and agreed to launch formal negotiations for Australia's association with Horizon Europe, the world's largest funding program for research and innovation.

The final text of the FTA was agreed during a leaders' meeting in Canberra between European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese .

"The EU and Australia may be geographically distant, but we couldn't be closer in terms of our worldview," said President von der Leyen . "With these dynamic new partnerships on security and defense, as well as trade, we are bringing us even closer. These agreements put in place lasting, trust-based frameworks to support peace and security through strength; drive prosperity through rules-based trade; and work together to support global institutions."

By concluding negotiations for an ambitious and balanced Free Trade Agreement (FTA), the EU aims to open up the market to one of the world's fastest-growing developed economies, thereby offering new economic opportunities to European businesses, consumers and farmers.

EU exports are expected to grow by up to 33% over the next decade, with export values reaching €17.7 billion annually. Key sectors with strong growth potential include dairy products (expected to increase by up to 48%), motor vehicles (52%), and chemicals (20%). EU investment in Australia has the potential to grow by over 87%.

With this agreement, the EU also strengthens its strategic interests in critical raw materials, making EU supply chains stronger and more resilient to geopolitical shocks. The FTA also includes strong sustainability commitments, which will contribute to greener and fairer trade, and ensures that EU imports are more closely aligned with EU production standards regarding climate, the environment, and animal welfare.

"Following the recently concluded agreements with Indonesia and India, this agreement further diversifies the EU's network of trading partners in the strategically important Indo-Pacific region and strengthens Europe's position on the global stage," the Commission said in a statement.

1/Continued