Australian Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen at the Australian Parliament in Canberra on Tuesday after addressing a joint session of both houses. Photo by Lukas Coch/EPA
March 24 (UPI) -- The European Union finalized a landmark $9 billion free trade agreement with Australia on Tuesday after eight years of negotiations, together with a defense pact on maritime and cybersecurity, hybrid threats and "foreign information manipulation and interference."
The deal drastically cuts, or phases out altogether, tariffs on most goods and farm exports -- although Australian beef and lamb entering the EU will be subject to quotas -- and regularizes EU access to critical Australian resources such as aluminium, lithium and manganese, the European Commission said in a news release.
EU export sectors seen as having the greatest growth potential in Australia in the coming decade include dairy products, autos and chemicals, while investment by EU economies into the country could almost double.
However, the EU was unable to get Canberra to lift a 33% tax on luxury imported cars that bring in $767 million for the government, but 75% of EU electric vehicle imports will be exempted by raising the "luxury" threshold for EVs from $63,733 to $83,688.
