Brussels and Canberra have resumed trade negotiations following Donald Trump’s return to the White House last year. Previously stalled at the end of 2023 due to conflicts over beef and lamb quotas, the talks’ revival is part of the EU’s strategy to strengthen ties with the Pacific-centered CPTPP trade bloc via Australia.
In a statement to EU leaders on Monday, von der Leyen mentioned that the EU and Australia are nearing the finalization of their trade agreement.
“This agreement will eliminate trade barriers and also improve access to essential raw materials — such as lithium, cobalt, rare earth elements, and hydrogen — thereby reinforcing Europe’s role in one of the world’s most vibrant economic areas,” she noted, referencing the Commission’s initiatives to enhance competitiveness.
Negotiators had struggled to bridge gaps concerning Australian beef and lamb access to European markets, EU protections for specialty foods, critical minerals, and an Australian luxury car tax.
Additionally, Canberra and Brussels are pursuing a security and defense partnership that is already finalized.
EU’s chief diplomat Kaja Kallas, who is to sign the Security and Defense Partnership, is not expected to participate in the trip. This move follows similar agreements with the U.K., Canada, and more recently, India.
At the annual External Action Service meeting, Kallas announced, “The deal is forthcoming,” and she indicated that “later this week, I will sign the tenth [SDP] with Australia, and upcoming ones with Iceland and Ghana soon after.”
James Panichi, Zoya Sheftalovich, Sebastian Starcevic, and Nette Nöstlinger contributed to the reporting.
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