Australia, EU Reach New Trade Pact Boosting Exports Growth

European Union chief Ursula von der Leyen visited Australia amid global trade uncertainty. The bloc and the import-reliant nation agreed on a free-trade deal after eight years of negotiations.

The accord also includes defense cooperation and access to rare-earth minerals, as Europe faces challenges from the US and China. A key compromise allows Australian winemakers to use “prosecco” domestically but not for exports for ten years.

Australia will retain some geographical names like feta and gruyere if used for at least five years. European carmakers benefit from Australia raising luxury electric vehicle tax exemption to three-quarters.

Von der Leyen emphasized the need to avoid over-reliance on suppliers like China for rare-earth minerals, stating that “our security is your security.” Beijing urged the EU to refrain from protectionist measures and view China’s development objectively.