WA businesses are set to gain expanded access to one of the world’s largest markets, following the signing of a long-awaited free trade agreement between Australia and the European Union.
“This deal creates major new opportunities for Australian exporters in the European Union’s massive $30 trillion economy, and will reduce costs for Australian consumers,” said Prime Minister Anthony Albanese.
“This agreement is worth $10 billion to the Australian economy on an annual basis.”
The EU as a bloc is Australia’s second largest source of foreign investment and third-largest trading partner, accounting for 7.2% of service exports and 3.3% of goods exports.
GUIDE: How free trade agreements benefit WA businesses
How the FTA benefits WA exporters
CCIWA Chief Economist Dr Daniel Kiely said WA’s export-driven economy stood to gain significantly from improved access to a high-value market.
“This FTA will give WA exporters greater access to the world’s second largest economy – a market with about 450 million people,” he said.
“This deal comes at an opportune time to give exporters more options to diversify their markets, as they are increasingly facing more uncertainty.”
The agreement will provide significant advantages to exporters by removing tariffs or introducing duty-free annual tariff rate quotas on a wide range of Australian goods.
EU foreign investment will also be boosted, with Australia raising screening thresholds for private investment.
Making the most of the agreement
CCIWA Head of International Trade Services Michael Carter said understanding the technical aspects of the agreement – particularly rules of origin and export documentation – would be critical.
“Realising the benefits starts with understanding whether your product qualifies for preferential treatment under the agreement and ensuring your documentation is in order,” he said.
Carter encouraged businesses to seek advice early to navigate the complexities and identify opportunities.
CCIWA can assist exporters and importers in navigating the intricacies of doing business across the 27 EU member markets that form the EU bloc: Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic,Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
GUIDE: How to navigate export rules, certificates of origin and documentation
Next steps
While the agreement has been signed, it could take up to two years to be enforced.
It will now undergo final legal checks, approvals, and parliamentary and ratification processes.
If you are looking for support or advice in business, trade or investment – including on free trade agreements and rules of origin – contact our experienced International Trade Services team at [email protected].
