The global trade situation is under pressure. Australia and the EU have finalized a trade agreement

On Tuesday (March 24th), Australia and the EU signed a trade agreement that took eight years to reach. It eliminated tariffs on almost all European goods and almost all key mineral exports from Australia.

According to Reuters, after the Trump administration in the US significantly raised tariffs on countries around the world, Australia and the EU intensified their trade negotiations and finally reached this agreement.

The two sides also signed an agreement aimed at strengthening security and defense ties.

European Commission President Frans Timmermans said in a statement: "Although the EU and Australia may be geographically distant, our worldviews are very similar." "Through these dynamic new partnerships in security, defense, and trade, we are becoming closer."

She also said that eliminating tariffs on key mineral imports from Australia is crucial for breaking away from reliance on China and achieving diversified supply chains.

The agreement will eliminate over 99% of tariffs on EU exports to Australia, reducing tariffs for businesses by 1 billion euros (approximately 1.48 billion Singapore dollars) annually. It is expected that EU exports to Australia will increase by up to 33% over the next ten years.

Australian Prime Minister Albanese said at a press conference that the Australia-EU agreement will bring about 10 billion Australian dollars to the Australian economy each year. He also said that the EU's elimination of tariffs on almost all Australian key minerals will help stabilize global supply chains.