Trade and security

Von der Leyen in Australia from Monday, agreement closer

Cautious optimism even if knots such as meat imports remain to be unravelled. Canberra asks for more margins in agriculture, the EU less tariffs especially on cars

from our correspondent Beda Romano

La presidente della Commissione europea Ursula von der Leyen EPA

3' min read

Translated by AI
Versione italiana

3' min read

Translated by AI
Versione italiana

BRUSSELS - Positive signs are multiplying over the possibility of a trade agreement with Australia, which has been the subject of heated negotiations between Brussels and Canberra for years. The President of the European Commission Ursula von der Leyen will visit the country from 23 to 25 March, in the hope of closing the chapters still open, and sign a new agreement in response to the prevailing protectionism ridden by American and Chinese choices.

The announcement of the trip came yesterday morning from an EU spokesman. According to the communiqué, the aim of the visit is to 'strengthen the European Union's ties with a reliable and like-minded partner in the Indo-Pacific region, which is of vital strategic importance'. Three understandings are at stake: the first commercial, the second security, and the third related to the exploitation of raw materials. Among other things, Australia is the world's leading producer of lithium.

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Here in Brussels there is cautious optimism that the trip will enable Mrs von der Leyen to conclude the deal. Some knots still need to be untied, however. The caution is dictated by the fact that no one at the European Commission has forgotten what happened in 2023, when the negotiations broke down abruptly - by choice of Canberra, according to Brussels. Today, as yesterday, among the sensitive topics are quotas for meat imported from Australia.

In these negotiations, Canberra is asking for more leeway in agriculture. The EU, on the other hand, has insisted on lower tariffs on manufacturing products, particularly cars, and better access to Australia's strategic minerals in order to reduce dependence on China. The two sides started negotiations in 2018. During the visit, President von der Leyen will also meet with Premier Anthony Albanese.

Speaking to SkyNews on Tuesday, Australian Trade Minister Don Farrell explained: 'I think there are ways to overcome the outstanding issues and I am confident that, if there is goodwill on our part and also on the part of the Europeans, we will be able to announce an agreement with the European Union in the near future. In the event, he said, we can already say that the understanding 'has been difficult to achieve'. Trade Commissioner Maros Sefcovic will also be present in Canberra next week.

In 2025, trade in goods between the European Union and Australia amounted to EUR 47 billion, with a surplus of EUR 26.7 billion in favour of the Twenty-Seven. In services, trade in 2024 reached a total value of €42 billion, with a surplus of around €20 billion in favour of the EU. The EU is currently Australia's third largest partner, while the large Asia-Pacific country is Europe's 20th largest partner.

According to the Sydney Morning Herald newspaper, Canberra is ready to eliminate tariffs on European car imports in order to gain advantages on the agricultural front. As said, the EU objective is as much economic as political. There is certainly a desire to diversify trade relations against a backdrop of increasing protectionism by both the United States and China. At the same time, the agreement with Australia would serve to promote the value of multilateralism, at a time of growing geopolitical tensions and the World Trade Organisation crisis.

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