Agreement completed after almost a decade of negotiations, trade and investment will get a big boost

The long-running Free Trade Agreement (FTA) negotiations between the European Union (EU) and Australia have finally been completed. Making its official announcement, European Commission President Ursula von der Leyen called it a major achievement for both sides.

He said that this agreement has become possible after almost a decade of hard work. This agreement will further strengthen Europe’s trading network and create new opportunities in many sectors.

Ursula von der Leyen said that with this agreement Europe has expanded its free trade network to three continents. The agreements signed with Latin America, India and now Australia will strengthen Europe’s hold in global trade.

Under this agreement, European companies, farmers and exporters will get huge benefits. There will be tariff savings of approximately €1 billion and exports to Australia are expected to increase by 33 per cent over the next 10 years.

A provision for ‘Geographical Indications’ (GI) has been made in the agreement for the protection of agricultural products. This will give European farmers recognition and market strength for their products.

An important part of this agreement is cooperation regarding critical minerals. While Australia is a major producer of raw minerals, Europe is a major consumer of them. Both sides have agreed on four big projects related to minerals like rare earth, lithium and tungsten.

Both sides have also agreed to start talks to connect Australia with Europe’s leading research program ‘Horizon Europe’. This will increase cooperation in the field of science and technology.

This agreement is being considered a big step in terms of global trade, which will give a new impetus to the economy of both the regions in the coming times.