The Business Council of Australia welcomes the landmark Australia-European Union Free Trade Agreement as a major win for Australians, supporting jobs, lowering costs for households and creating new opportunities for businesses to grow and compete globally.
Business Council Chief Executive Bran Black said at a time of heightened global uncertainty and disrupted supply chains, agreements like this are more important than ever.
“This free trade agreement gives Australian companies better access to one of the world’s largest markets and puts them on a more level playing field with global competitors,” Mr Black said.
“With one in four Australian jobs dependent on trade, continuing to build on that success is critical to driving growth, investment and better living standards for all Australians.”
The European Union is already one of Australia’s most significant economic partners, our third largest trading partner and second largest source of foreign investment. In 2024 alone, two-way trade was worth $110 billion, while total EU investment in Australia reached $869 billion.
As one of the world’s largest economies and trading blocs, the EU represents a critical market for Australian businesses looking to grow and diversify.
“This has been a long and complex negotiation, but this agreement delivers meaningful gains for Australian businesses and households, while also strengthening collaboration with Europe on research, innovation and new technologies,” Mr Black said.
“For Australian businesses of all sizes, this means fewer barriers, lower costs and more customers – making it easier to export, invest, scale and partner in global supply chains.”
“Removing tariffs will strengthen supply chains and support growth in key sectors including critical minerals, clean energy and advanced manufacturing, while making a wide range of goods cheaper for Australian businesses and consumers.”
It will also give Australian companies access to EU government procurement opportunities worth around $845 billion annually, opening the door to major infrastructure, energy and transport projects across Europe.
Mr Black said the European Union, a market of more than 450 million people, presents a major opportunity for Australian businesses, including exporters, service providers and small businesses looking to expand into new markets that have historically been difficult to enter.
Trade remains one of Australia’s strongest competitive advantages, with the Business Council’s Global Investment Competitiveness Index ranking Australia second in the world for trade openness.
The ranking reflects years of deliberate reform – lowering tariffs, expanding trade agreements and reducing barriers at the border.
The Index shows Australia ranked 21st out of 42 countries for overall investment competitiveness in 2025, highlighting the need to strengthen our attractiveness for global investment in areas such as regulation and tax.