Paul Budde and Ralf Vossenberg represented the Dutch Chamber of Commerce Queensland at an exclusive DFAT briefing on the recently concluded Australia–European Union Free Trade Agreement. The briefing was led by Simon Clayton and attended by only four other representatives, including the Queensland Chamber of Commerce and the German and French chambers.
Negotiations began in June 2018 and were concluded on 24 March 2026, after almost eight years. While this is not an unusual timeframe for an agreement of this complexity, the rapidly changing international trade environment helped create renewed momentum. In particular, the tariff measures and uncertainty generated by the Trump administration have encouraged Australia and the EU to strengthen relations with dependable partners that remain committed to international law and rules-based trade.
Trust is therefore becoming as important as the immediate commercial benefits. The FTA should be seen as part of a much broader strategic realignment in which Australia, the EU and other like-minded countries are seeking more secure markets, investment relationships, supply chains and technology partnerships. It sits alongside the new Australia–Netherlands Strategic Partnership, announced in September.
What the agreement will deliver
The EU represents a market of approximately 450 million people and an economy valued at around A$30 trillion. When the agreement enters into force, 97.8 per cent of the current value of Australian goods exports to the EU will receive duty-free access immediately, rising to 98 per cent after seven years. Australia will eliminate tariffs on virtually all EU goods, with steel being the principal exception.
The benefits extend well beyond tariffs. The agreement will:
- improve access for Australian agricultural, fisheries and manufactured products;
- reduce the cost of European machinery, vehicles, components and consumer products;
- open further opportunities in services, including finance, education, tourism, communications and environmental services;
- improve access to EU government procurement markets;
- provide greater certainty for digital trade and investment;
- make it easier for professionals to work across the two markets; and
- support trade in renewable-energy products, critical minerals and environmental services.
For Dutch and other European businesses operating in Queensland and Australia, the agreement should reduce some import costs and improve market access. However, taking practical advantage of it will still require businesses to understand rules of origin, customs documentation, product standards and certification requirements.
Agriculture remains politically sensitive
Agriculture was one of the most difficult parts of the negotiations and is likely to remain politically sensitive during the ratification process. Australia secured improved access for products including beef, sheep meat, dairy, sugar, grains, seafood, wine, horticulture and nuts. In several sensitive sectors, however, increased access will be phased in or managed through quotas rather than being fully liberalised immediately.
Agricultural organisations on both sides will continue to scrutinise the details. Further political debate can therefore be expected during the Australian parliamentary inquiry and the European ratification process. Nevertheless, the briefing indicated that there is sufficient political will on both sides to bring the agreement into force.
Mobility and skills
We raised mobility as an important concern, particularly given Australia’s wider debate about migration levels and possible restrictions. Businesses already face skills shortages and are concerned that tighter migration settings could make it more difficult to bring in specialised staff.
The FTA does not create unrestricted freedom of movement. It does, however, facilitate the temporary movement of skilled professionals and contains an Innovation Mobility Pathway for researchers, engineers and technicians. It should also support more streamlined recognition of professional qualifications. These provisions could be particularly valuable for companies working in advanced manufacturing, engineering, energy, infrastructure and technology.
Geographical indications
Another complex issue was the EU system of geographical indications, or GIs, which protects products closely associated with a particular region. Australia has agreed to protect 396 European GIs, although arrangements have been negotiated for several terms already used by Australian producers. Important terms such as prosecco, parmesan and kransky remain available under agreed conditions, while transition or grandfathering provisions apply in other cases.
Australia is now establishing its own broader GI framework. This will allow Australian regions and producers to seek protection for distinctive products domestically and, potentially, in overseas markets. Around 40 possible Australian GIs were mentioned during the briefing, although the eventual registrations will depend on the new framework and applications from producers.
Standards, certification and defence
Removing tariffs does not automatically remove every obstacle to trade. Differing technical standards, testing requirements and equipment-certification procedures continue to create cost and red tape on both sides. The agreement contains chapters on technical barriers to trade and conformity assessment, intended to encourage cooperation and make these processes more transparent. Businesses should nevertheless not assume that an Australian approval will automatically be accepted in Europe, or vice versa.
Defence industry cooperation also arose during the discussion. While the FTA improves access to government procurement, defence and security procurement remains subject to national-security exemptions and other restrictions. The more significant development for defence companies is the separate Australia–EU Security and Defence Partnership, which covers defence industry cooperation, cyber and emerging technologies, maritime security, space and economic security. It could create additional opportunities for Australian and European suppliers, but it should not be interpreted as automatically opening all defence contracts.
Horizon Europe
Alongside the FTA, Australia and the EU have begun formal negotiations on Australian association with Horizon Europe, the EU’s major research and innovation program. Association would allow Australian universities, researchers and businesses to participate more fully in international projects and access a much larger pool of research funding.
This is particularly relevant to Queensland’s universities and companies working in clean energy, health, critical minerals, advanced computing, supply-chain security and other emerging technologies. Australian participation is expected to become possible from early 2027, subject to completion of the separate treaty process.
What happens next
The text is now undergoing legal verification and translation into the EU’s 24 official languages. Signature is expected in late 2026 or early 2027.
Following signature, the agreement will be examined in Australia by the Joint Standing Committee on Treaties, together with any required implementing legislation. The European Parliament must also consent to ratification under the EU’s procedures. These processes are expected to take up to another year, making entry into force during late 2027 a reasonable expectation, although it is not yet guaranteed.
For our members, the message is positive but practical: the agreement offers significant new opportunities, but businesses should begin examining now how tariffs, rules of origin, mobility provisions, standards, certification, government procurement and the new GI regime may affect their operations. We will continue our dialogue with DFAT and our European chamber partners as the agreement moves through ratification.
Paul Budde
