On 24 March 2026, the European Commission and the Government of Australia confirmed the conclusion of negotiations on the EU–Australia Free Trade Agreement (FTA), marking a major development in bilateral trade liberalization.
The following are the key highlights under the Free Trade Agreement:
1. Tariff elimination
- Elimination of duties on over 95 to 99 percent of tariff lines over staging periods
- Immediate duty-free access for a large portion of industrial goods
- Phased liberalisation for sensitive agricultural products with quotas and safeguards
2. Rules of origin (ROO)
- Introduction of product-specific rules aligned with modern EU FTAs
- Likely use of regional value content and change in tariff classification tests
- Self-certification mechanisms expected, increasing exporter compliance responsibility
3. Customs and trade facilitation
- Commitments on advance rulings, pre-arrival processing, and risk management systems
- Simplified procedures for Authorised Economic Operators (AEOs)
- Enhanced customs cooperation and data exchange
4. Technical barriers and Sanitary & Phytosanitary measures
- Provisions to improve transparency, equivalence recognition, and inspection efficiency
- Reduced duplication in testing and certification requirements
5. Services, investment, and digital trade
- Market access commitments across key service sectors
- Rules on cross-border data flows and prohibition of unjustified data localisation
Trade operators should begin preparing for origin qualification requirements, particularly where multi-country supply chains are involved. Tariff benefits will depend on strict adherence to ROO and documentation standards. Businesses should also assess ERP system readiness for origin tracking and supplier declarations.
The agreement will materially reduce duty exposure, but only for companies that can demonstrate full compliance with origin, customs valuation, and record-keeping requirements. Early preparation will be critical to capture benefits upon entry into force.
Official source (AU):
https://www.dfat.gov.au/trade/agreements/not-yet-in-force/aeufta