Australia and EU seal trade deal, seek to cut reliance on China for critical minerals

The EU was Australia's third-largest two-way trading partner in 2024. Read more at straitstimes.com.

SYDNEY - Australia and the European Union signed a trade deal on March 24 that was eight years in the making, removing tariffs for almost all European goods and for nearly all exports of Australian critical minerals.

But some Australian agricultural products like beef and sheep meat, for example, will be subject to export quotas, and Australian farmers sharply criticised the pact for delivering “subpar” access to the bloc.

The agreement comes after both sides stepped up talks in the wake of significantly higher US tariffs under the Trump administration and more angst in the West over China’s dominant position in the supply of rare earths and other critical minerals.

The two sides also signed an agreement to boost security and defence ties.

“The EU and Australia may be geographically far apart but we couldn’t be closer in terms of how we see the world,” European Commission President Ursula von der Leyen said in a statement.

“With these dynamic new partnerships on security and defence, as well as trade, we are moving even closer together.”