On Tuesday (24 March), the European Commission signed its free trade agreement (FTA) with Australia, concluding eight years of negotiations and eliminating tariffs on more than 99% of EU goods exports. On Thursday (26 March), the European Parliament agreed to start negotiations with the Council of Ministers to finalise the EU-US Trade and Tariff Deal. And the EU-Mercosur FTA will start provisionally applying from 1 May.
Since the start of the year, the European Union has expanded its internal market by 2 billion people, Commission President Ursula von der Leyen said proudly in Canberra. Faced with geopolitical tensions, supply-chain vulnerabilities and rising protectionism, the European Union is accelerating efforts to diversify its commercial ties.
From Australia…
The agreement with Australia will remove tariffs on almost all EU exports, saving European firms an estimated €1 billion a year in duties and potentially boosting exports by roughly a third over the next decade. Australian tariffs will disappear immediately for many European goods, including wine, fruit, chocolate and confectionery. Duties on cheeses will be phased out within three years.
In return, the EU will liberalise access for most Australian agricultural products, though politically sensitive sectors remain partly shielded. Imports of Australian beef and sheep meat will be subject to tariff-rate quotas that expand gradually over time. Both sides will retain safeguard mechanisms in case imports surge.
Strategic considerations also loom large. The agreement gives European firms improved access to Australia’s reserves of critical minerals such as lithium, manganese and aluminium. Export restrictions on such resources will be banned, reflecting Western efforts to reduce dependence on China in supply chains linked to batteries, electronics and clean-energy technologies.
… across the Pacific Ocean to South America …
At the same time, the EU is preparing to activate another long-negotiated agreement. The trade pillar of the EU-Mercosur deal will begin provisional application on 1 May, once ratification procedures are completed by the participating South American countries. Argentina, Brazil and Uruguay have already notified the EU, while Paraguay is expected to follow shortly.
Provisional application allows the core commercial provisions to take effect while the broader agreement continues through national ratification procedures. Tariffs on a wide range of products will fall immediately, providing exporters with predictable rules and opening new opportunities for trade and investment. The European Commission also emphasises provisions covering labour rights, environmental standards and cooperation on supply chains, including those for critical raw materials.
… and up north to the US
Across the Atlantic, the EU is also advancing, albeit cautiously. The European Parliament voted by 417 to 154 to move forward with legislation implementing the EU side of a transatlantic trade arrangement struck last year in Turnberry, Scotland. The vote enables negotiations between Parliament and EU governments on the final text, with a concluding vote expected later in the year.
Lawmakers inserted safeguards reflecting persistent concerns over Washington’s trade policy. These include clauses allowing the EU to suspend tariff concessions if the United States fails to honour the deal or if American imports rise sharply. Some members also insist that the United States remove recently imposed duties on steel and aluminium content in certain products.
