SYDNEY, March 24 (Reuters) – European Commission President Ursula von der Leyen will meet Australian Prime Minister Anthony Albanese in Canberra on Tuesday as both sides seek to clinch a long-delayed free trade deal following negotiations launched in 2018.
The push to revive the deal comes amid conflict in the Middle East and heightened global trade tension as the EU looks to strengthen its position vis-a-vis the United States and China, following a deal struck with India in January.
The talks collapsed in 2023 largely over disagreements on EU quotas for meat imports and protections for the agricultural sector. But recent signals suggest renewed momentum, fuelling hopes that a deal could be finalised during the visit.
“We look forward to welcoming President von der Leyen tomorrow,” Albanese told parliament on Monday, adding that a free trade deal with the EU would further strengthen the Australian economy and boost jobs.
“I’m sure it will be a great success.”
Von der Leyen is set to address parliament on Tuesday.
This month Trade Minister Don Farrell said he was confident an agreement could be reached in the national interest, while EU trade chief Maros Sefcovic said talks had been moving in the right direction.
Australia wants bigger quotas on meat exports to Europe, while the EU is pushing for lower tariffs on manufactured goods, particularly cars, and better access to Australia’s critical minerals to reduce dependence on China.
Australian media say the pact would scrap the current import tariff of 5% on European cars, potentially lowering the prices of offerings from BMW and Mercedes in Australia.
Trade between the two is substantial, with total goods trade of 47.2 billion euros ($54.5 billion) in 2025, and a surplus of 26.5 billion euros for the EU.
Services trade was 38.1 billion euros in 2023, with a surplus of 17.9 billion euros also in favour of the bloc.
($1=0.8662 euros)
(Reporting by Renju Jose in Sydney; Editing by Clarence Fernandez)
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