EU-Australia free-trade agreement inches closer to completion: Report

The European Union is closing in on a long-awaited free-trade agreement with Australia, marking a potential breakthrough in negotiations that have stretched for years and faced repeated setbacks, Bloomberg News reported on Tuesday.

European Commission President Ursula von der Leyen told EU leaders that talks are now in their “final stretch”, signalling growing confidence that a deal could soon be sealed, the report said.

“This will mark yet another milestone in diversifying Europe’s international partnerships,” von der Leyen said, adding that the agreement would strengthen the bloc’s ability to shape global standards and build more resilient supply chains.

High-level push to close deal

According to the report, von der Leyen could travel to Australia as early as this weekend to finalise and sign the agreement, although discussions remain ongoing and no final decision has been announced.

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Momentum picked up after EU trade chief Maros Sefcovic held talks with Australian Trade Minister Don Farrell, with both sides indicating progress and describing negotiations as moving “in the right direction”, the report said.

Strategic urgency amid global trade tensions

The push to clinch the deal comes as both sides seek to deepen ties with like-minded partners amid rising global trade frictions. The return of aggressive tariff measures under Donald Trump and tightening export controls by China on critical minerals have added urgency to diversify supply chains and reduce strategic vulnerabilities.

For Brussels, the agreement with Australia would complement a broader push to expand its trade network. The EU has recently revived or concluded trade negotiations with key partners, including India and the Mercosur grouping.

Sticking points remain

Despite the optimism, key differences persist — particularly over agricultural access. Australia has been pressing for greater access to European markets for its beef exports under preferential terms, while the EU has remained cautious, citing the need to protect its domestic farming sector.

Agriculture remains politically sensitive within the bloc, especially amid farmer protests against recent trade agreements, including the Mercosur deal.

The impasse over beef quotas was a major factor behind the collapse of earlier negotiations in 2023, when Australia walked away from a near-finalised pact, arguing that the EU’s offer on tariff-free imports fell short.