Australian Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen announced the conclusion of an eight-year free trade negotiation on Tuesday, sealing a landmark pact that eliminates nearly all tariffs between Australia and the European Union.

The leaders signed the agreement at Parliament House in Canberra during von der Leyen's visit, marking a revival after talks collapsed in 2023 over disputes on agricultural access and geographical indications for products like prosecco. Negotiations had begun in June 2018, spanning three Australian prime ministers amid tensions on red meat exports and EU-protected food names.

The deal removes tariffs on 98 percent of the current value of Australian exports to the EU, a market of 450 million people and a $30 trillion economy. Australian wine, nuts, fruits, vegetables, honey, olive oil, most dairy, wheat, barley, and seafood will enter duty-free, saving wine exporters around $37 million annually. New tariff rate quotas totaling 30,600 metric tons for red meat, with 55 percent duty-free, address long-sought beef and sheep meat access. Critical minerals and hydrogen exports also gain tariff-free entry, supporting Australia's renewable energy goals.

Australia protected domestic use of terms like parmesan, kransky, and prosecco, with phase-outs for a few others, such as feta. In return, most Australian tariffs on EU goods drop, lowering prices for European wine, spirits, chocolates, vehicles, and machinery for consumers and farmers.

The EU anticipates exports to Australia rising 33 percent over the next decade, saving companies 1 billion euros yearly, while securing raw materials like lithium. Australian firms gain better access to 845 billion euros in EU government procurement and expanded services markets in finance, education, and tourism.

Albanese hailed the pact as delivering 'major new opportunities for Australian exporters' and reducing costs for consumers. Von der Leyen emphasized open trade amid global tariff threats: 'Trust matters more than transactions.' Trade Minister Don Farrell called it a 'hard-fought deal' for diversification in 'choppy trade waters.'

The agreement coincides with a new Australia-EU Security and Defence Partnership, enhancing strategic ties. Both sides aim to reduce reliance on China and buffer U.S. tariffs under President Trump.

Australian meat exporters criticized the quotas as insufficient, with Meat & Livestock Australia labeling it the 'worst ever free trade agreement.'

The pact now awaits ratification through domestic processes in Australia and the EU before entering into force.