The road to the European Union-Australia free trade deal was paved with eight years of intransigence, diverging interests and diplomatic friction. Yet its signing this week represents a sensible step towards trade diversification; it cements a sturdier foundation with a like-minded partner and provides an important hedge against an increasingly weaponised global trade landscape.
On a practical level, the agreement delivers some tangible benefits by eliminating almost all tariffs on exports and significantly increasing tariff-free quotas for local red meat exports. The threshold on the luxury car tax on European electric vehicles has been raised in a modest gain for Australian consumers, while European firms secure a “level playing field” for access to Australia’s critical minerals by avoiding a dual price structure.