European Commission President Ursula von der Leyen arrives in Australia on Monday aiming to revive long-running trade talks and strengthen ties with key partners in an uncertain global economy.
Von der Leyen’s three-day visit, from 23 to 25 March, includes talks with Prime Minister Anthony Albanese in Canberra, alongside EU Trade Commissioner Maros Sefcovic.
At the centre of the visit is a proposed free trade agreement that both sides now appear ready to finalise.
The timing reflects wider global pressures. The European Union is adjusting its trade strategy after new tariffs imposed by US President Donald Trump, and is seeking closer links with stable partners such as Australia.
EU and Australia revive stalled trade talks over agriculture, raw materials
Trade deal push
Albanese struck a positive tone ahead of the talks, saying Europe and Australia are “friends and partners” working together to boost economic growth.
Australia expects strong economic gains if a deal is reached. Trade Minister Don Farrell said it could bring an extra AUD$10 billion (€6 billion) in trade within its first year.
But key disagreements remain. Australia wants greater access for its agricultural exports, especially beef and lamb, to the EU market. European negotiators are pushing for stronger protections on geographical indications and better conditions for industrial goods.
There are signs both sides are willing to compromise. Australia has suggested it could remove its luxury car tax on European vehicles in exchange for improved agricultural access.
Global tensions have added urgency. Australia has been trying to diversify its export markets after a 2020 dispute with China disrupted trade. The EU, already Australia’s third-largest trading partner and second-largest source of foreign investment, is seen as a stable alternative.
At the same time, the EU is expanding its network of trade deals to strengthen its economy in the face of rising protectionism.
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Global trade strategy
Von der Leyen’s visit is part of a broader EU push to secure trade agreements across the world.
In South America, progress has been made on the EU-Mercosur agreement after Paraguay became the final country in the bloc to ratify it. The deal, negotiated over 25 years, would create a vast free trade zone covering more than 700 million people and around 30 percent of global GDP.
It is expected to remove tariffs on more than 90 percent of goods, increasing trade in products such as European cars, wine and cheese and South American agricultural goods.
The agreement has faced opposition in parts of Europe, especially from farmers worried about competition, but it shows the EU’s commitment to opening new markets.
The EU is also stepping up negotiations with India. Both sides have described a possible deal as the “mother of all trade deals”, which could reshape global trade links.
(with newswires)
