EU and Australia sign free trade pact and announce a new defense partnership

EU and Australia sign free trade pact and announce a new defense partnership The European Union and Australia have agreed on the final text of a free trade agreement some two years after negotiations broke down over Australian demands for more red meat market access and complaints about Australian products labeled with traditio... By ROD MCGUIRK ASSOCIATRED PRESS Associated Press March 23, 2026, 8:48 PM MELBOURNE, Australia -- The European Union and Australia on Tuesday agreed on the final text of a free trade agreement, some two years after negotiations broke down over Australian demands for more red meat market access and complaints about Australian products labeled with traditionally European names such as prosecco . The breakthrough comes as both the EU and Australia seek to diversify their trading networks and reduce their economic reliance on China and exposure to uncertain U.S. tariffs . European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese signed the agreement at the Australian Parliament House after protracted negotiations that began in 2018. The leaders said the pact demonstrated that both sides benefitted from rules-based trade. “Today we are telling an important story to a world that is deeply changing. A world where great powers are using tariffs as a leverage and supply chains as vulnerabilities to be exploited," von der Leyen told reporters. "In our story, open rules based trade delivers positive some outcomes. Trust matters more than transactions,” she added. Albanese said the context in which the agreement was reached was an important factor in allowing negotiations that collapsed in October 2023 to restart. “This is both the European Union and Australia asserting that we believe in free and fair trade, that we understand that trade advances the prosperity of both trading entities who are involved, that it is in our interest to get this done,” Albanese said. The leaders also announced a new defense partner...