A Timely Agreement
Recent tariff tensions driven by the Trump administration, combined with geopolitical instability stemming from tensions in the Middle East and China’s strategic repositioning, have reshaped the global trade landscape. For European companies, relying on a limited number of markets or fragile supply chains is no longer a viable option.
In this context, the free trade agreement between the European Union and Australia, signed on March 24, 2026 in Canberra after eight years of negotiations, arrives at the right moment. It forms part of what is already being referred to as Europe’s “trade trilogy”: in less than two months, the EU has finalized agreements with Mercosur, India, and Australia, adding nearly 2 billion people to its free trade network.
This agreement is not just a diplomatic milestone. According to official data from the European Commission, the EU and Australia already trade goods and services worth over €89.2 billion annually, supporting 460,000 jobs across the Union. The FTA is set to strengthen and protect this relationship.
Much More Than Tariff Savings
The agreement eliminates more than 99% of tariffs on European products, with estimated annual savings of €1 billion. In addition, exports are expected to grow by up to 33% over the next decade.
The impact will be particularly significant in key sectors: vehicles (+52%), dairy products (+48%), and chemicals (+20%). The agreement will also protect 165 European geographical indications for agri-food products and 231 for alcoholic beverages, representing a major win for producers of olive oil, wine, and Spanish preserves.
This is complemented by access to public procurement opportunities in Australia, particularly in infrastructure, transport, and energy transition projects.
Australia: More Than Just a Market
Australia is not only a stable economy with 26 million high-income consumers; it is also a strategic partner in the evolving global landscape.
The country holds some of the world’s largest reserves of lithium, aluminum, cobalt, and manganese—critical resources for industries such as electric vehicles, battery production, and advanced technology. At a time when Europe seeks to reduce its dependence on China for strategic raw materials, this agreement carries geopolitical significance beyond its economic impact.
Alongside the FTA, the EU and Australia signed a Security and Defence Partnership, including cooperation mechanisms for crisis management. On March 31, 2026—just one week after the agreement—formal negotiations began for Australia’s association with the Horizon Europe program.
With a budget of €95.5 billion for the 2021–2027 period, Horizon Europe is the world’s largest research and innovation program. Australia already participates in over 200 projects as a partner prior to formal association. Full access to its funding calls, expected by early 2027, will open the door to R&D collaborations for technology companies, universities, and research centers.
The Time to Prepare Is Now
The FTA is expected to come into force in 2027. Companies that begin engaging with this market in 2026—by identifying partners, understanding regulations, and building a presence—will be best positioned when the agreement takes effect.
At Gedeth Network, we have spent over 20 years supporting Spanish companies in their international expansion, with direct experience in Australia across sectors such as food, technology, and energy. We are also members of the Australia Spain Business Association (ANZSBA). If you would like to assess whether your company is well-positioned for this market, contact us at global@gedeth.com or visit www.gedeth.com.
Is Your Company a Fit for the Australian Market?
If you want to evaluate concrete opportunities for your sector before the agreement comes into force, we can help. Get in touch or visit our website to learn more about our experience in Australia.