European Commission President Ursula von der Leyen and Australian Prime Minister Anthony Albanese shake hands after an agreement on the final text of a free trade deal at Parliament House in Canberra, March 24, 2026. LUKAS COCH / AP
EU chief Ursula von der Leyen and Australian Prime Minister Anthony Albanese struck a long-awaited free trade deal in Canberra on Tuesday, March 24, compromising to boost exports in the face of global uncertainty over trade. A defense and security partnership to boost maritime and cyber security cooperation was also agreed.
"The EU and Australia may be geographically far apart but we couldn't be closer in terms of how we see the world," said von der Leyen. "We are sending a strong signal to the rest of the world that friendship and cooperation is what matters most in times of turbulence," she added. "This is a significant moment for our nation as we secure an agreement with the world's second-largest economy," Albanese said.
Key sticking points on Australian use of European geographical names and access for Australian beef to Europe were overcome to reach a deal after eight years of negotiations. A compromise will see Australian winemakers allowed to use the term prosecco domestically, but stop using it for exports after 10 years.
