The European Union is nearing a free trade agreement with Australia, with EU leaders signaling talks are close to completion and a signing could come after a visit to Australia.

While a final deal isn’t yet sealed, negotiations are advancing at both political and technical levels, and ministers have voiced steady progress.

EU Trade Commissioner Maroš Šefčovič and Australian Trade Minister Don Farrell have held discussions, with both sides moving in a productive direction.

The renewed push fits into a broader EU strategy to accelerate trade deals to diversify partners and secure resilient supply chains.

The pact would bolster the EU’s global trade standing amid tensions with the U.S. and China, building on recent progress with India to boost two-way trade.

The agreement is envisioned as part of broader strategic cooperation, including a planned defense partnership centered on exercises and procurement rather than a formal alliance.

Strategically, both the EU and Australia aim to deepen trade ties to diversify partnerships and create standards-based, resilient trade amid tariff pressures and shifting supply chains.

Geopolitical shifts influence the push, with both sides seeking closer economic ties to shield economies from U.S. tariffs and China’s export controls on critical materials.

Sticking points include beef imports, as Australia seeks greater beef access while the EU guards its agricultural sector.

The talks revive a process that stalled in 2023 when Australia walked away near-final negotiations over beef quotas, as the EU expands trade efforts with India and a South American bloc.

Negotiators are aiming to resolve agricultural access disputes, with Australia seeking higher lamb and beef quotas and the EU seeking better access to Australia’s minerals and lower tariffs on manufactured goods.

Von der Leyen has framed the accord as a tool to diversify Europe’s partnerships, shape global standards, and strengthen supply-chain resilience.