Cut price cheese and cars: What’s in the EU agreement

Australia and the European Union have signed a free trade agreement and defence and security partnership as both sides seek closer ties amid global instability.

TRADE

*More than 99 per cent of tariffs on EU goods coming into Australia will be cut.

*35,000 tonnes of Australian beef can be exported to the EU tariff-free per year – an eightfold increase of what was previously granted.

*The quota is 30,851 tonnes for sheep meat – a fivefold increase.

*Duty-free imports of just under 45,000 tonnes of Australian raw cane sugar.

*Europe will scrap tariffs on almost 90 per cent of dairy products, while taxes on rice, wine and tree nuts will be phased out.

*Seafood tariffs will also be scrapped.

*Australia drops tariffs on European cheeses, wine, spirits, biscuits, chocolates and canned tomatoes, making them cheaper at the checkout.

*Australian producers can continue using terms like prosecco, kransky, kalamata olives, and parmigiano domestically.

*Australia will introduce a new category for the luxury car tax, which will allow zero-emissions vehicles under $120,000 to enter without facing the 33 per cent levy applied to cars worth over $80,500, or $91,000 for fuel-efficient vehicles.

*A separate five per cent tariff on imported cars has also been cut.

*European tariffs on Australian critical minerals will also be removed.

SECURITY AND DEFENCE

*Increase information sharing

*Strong collaboration to combat online radicalisation and terrorism financing

*Space security dialogue established

RESEARCH AND INNOVATION

*Australia to begin treaty negotiations to enter Horizon Europe, a $155 billion pool of research and innovation funding.

*Research projects include critical technologies, advanced computing, climate and clean energy, health and critical minerals.

*Australian organisations are expected to be able to apply for Horizon grants from early 2027 following the treaty process.

Dominic Giannini
(Australian Associated Press)