Australia and the European Union (EU) recently announced the finalization of negotiations for a free trade agreement (FTA) between the two trading partners. This agreement will boost trade and economic growth, and it is expected to create jobs and improve living standards on both sides.

The FTA negotiations have been ongoing since 2018, and they finally came to an end in June 2021. This deal will eliminate tariffs and reduce barriers to trade in goods and services between Australia and the EU. It will also establish new rules for investment and provide greater access to government procurement contracts.

For Australian exporters, this FTA is a significant win as it provides improved access to the EU market. The EU is already Australia`s second-largest trading partner after China, with two-way trade worth about AUD $100 billion in 2019. The FTA will enhance this trade relationship by reducing tariffs and other barriers to trade in goods and services.

Furthermore, the agreement will provide Australian businesses with new opportunities in the EU market, particularly in areas such as agriculture, food, and beverages. It will also allow Australian businesses to access EU procurement markets, including government contracts, which were previously off-limits.

The FTA is also expected to benefit the EU by improving its access to the Australian market. This will include sectors such as automotive, pharmaceutical, and chemical products, among others. The agreement will also provide EU businesses with greater access to Australian procurement markets, particularly in infrastructure and public works.

The FTA will also provide a framework for addressing non-tariff barriers, such as regulatory barriers, technical standards, and intellectual property rights. This will help to improve regulatory coherence and transparency, making it easier for businesses to trade between the two regions.

Finally, the FTA has the potential to set a precedent for other trade agreements currently under negotiation by the EU, such as with the UK, Canada, and New Zealand. It also reinforces the importance of free trade and a rules-based international trading system.

In conclusion, the Australia-EU FTA is a significant achievement for both sides and will provide benefits for businesses, consumers, and the economy as a whole. It is expected to create new opportunities for trade and investment, improve access to markets, and enhance regulatory cooperation. The agreement is a testament to the importance of free trade and the benefits it can bring to all parties involved.