EU-Australia Free Trade Agreement — Tariff Changes, Coverage & Status
The EU-Australia Free Trade Agreement was concluded on 24 March 2026, after talks that began in July 2018. It is not signed and not in force: Australia expects it to apply from late 2027. From that day Australian wine, grains and seafood enter the EU duty-free, beef gets a new quota, and Australia removes its duties on EU machinery, cars and chemicals.
Key Tariff Changes Under EU-Australia FTA
| Flow | Category | Current | After FTA | Timeline |
|---|---|---|---|---|
| Australia → EU | Wine | Specific duty per hectolitre | 0% | At entry into force |
| Australia → EU | Nuts, fruit and vegetables, honey, olive oil | Varies | 0% | At entry into force |
| Australia → EU | Wheat and barley | Varies | 0% | At entry into force |
| Australia → EU | Seafood | Varies | 0% | At entry into force |
| Australia → EU | Most dairy products | Varies | 0% | At entry into force |
| Australia → EU | Beef | Full duty outside the quota | 30,600 t quota: 16,830 t grass-fed at 0%, 13,770 t at 7.5% | Phased in over 10 years |
| Australia → EU | Sheep and goat meat, sugar, rice, some dairy | Full duty outside the quota | Limited quotas at zero or reduced duty | Phased |
| Australia → EU | Aluminium, lithium, manganese | Low | Reduced or eliminated | Per the tariff schedule |
| EU → Australia | Machinery, motor vehicles, chemicals | Up to 5% | 0% | From day one |
| EU → Australia | Cheese, wine, chocolate, biscuits and breads | Varies | 0% | Per the tariff schedule |
Figures from the European Commission and the Australian government. t = tonnes, carcass weight for beef. Nothing changes until the agreement enters into force.
EU-Australia FTA — Frequently Asked Questions
Is the EU-Australia Free Trade Agreement in force?
No. Negotiations concluded on 24 March 2026, after talks that began in July 2018, but the agreement is not signed. The text is in legal review and translation. Signature is expected at the end of 2026 or in early 2027, followed by the European Parliament's consent, a Council decision and ratification in Australia. Australia's government expects entry into force in late 2027. Until then, today's tariffs apply in both directions.
What does the EU-Australia FTA cover?
Tariffs on goods, services, public procurement, critical raw materials and sustainable development. It protects 165 EU food and farm names and 231 spirit names in Australia, and an updated wine agreement covers more than 1,600 EU wine names. The European Commission expects EU exports to Australia to grow by a third over ten years and puts the duties saved by EU exporters at up to €1 billion a year.
Which EU tariffs on Australian goods will be removed?
On the day the agreement enters into force the EU removes its duties on Australian wine, nuts, fruit and vegetables, honey, olive oil, most dairy products, wheat, barley and seafood. Beef gets two quotas that add up to 30,600 tonnes: 16,830 tonnes of grass-fed beef duty-free and 13,770 tonnes at a 7.5% duty, phased in over ten years. Sheep and goat meat, sugar, rice and some dairy products get limited quotas. Duties on aluminium, lithium and manganese are reduced or eliminated.
Which Australian tariffs on EU goods will be removed?
Australia will remove more than 99% of its tariffs on EU exports. Duties on machinery, motor vehicles and chemicals, which are 5% at most today, go to zero from day one. Duties on cheese, wine, chocolate, biscuits and breads are removed as well.
Is Australian wine duty-free in the EU now?
Not yet. The EU duty on Australian wine goes to zero on the day the agreement enters into force, which Australia expects in late 2027. Until then the normal EU duty applies. Australia's government puts the benefit to its wine exporters at about 37 million Australian dollars a year.
Does the EU-Australia FTA affect US importers?
Not directly. US duties on Australian goods do not change. Goods that qualify under the US-Australia Free Trade Agreement enter at a zero regular duty, but the 12.5% forced-labor Section 301 tariff applies to most Australian goods, and Section 232 applies to steel, aluminum and the other products it covers.
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