The ACT Government is calling on the Territory’s Federal representatives to support the Australia-European Union Free Trade Agreement (A-EU FTA) when it comes before the Federal Parliament.
The A-EU FTA is a huge economic opportunity for our region: supporting investment and jobs, connecting Canberra with a market of 450 million consumers and a $30 trillion economy.
On entry into force of the A-EU FTA, the vast majority of EU tariffs will be eliminated, or duty-free access will be locked-in, for ACT goods. This includes preferential treatment for ACT exports like wine, machinery and electrical goods, beef, sheep meat and dairy products.
The ACT market will also benefit from new opportunities in services sectors. For example, the A-EU FTA locks in and expands opportunities for Australian higher education providers in the EU. The ACT exported $1.4 billion in education-related travel in 2024-25. ACT universities, research institutions and individual researchers will benefit from a new Innovation Mobility Pathway. The pathway will support research collaboration and skills development between Australian and EU institutions and businesses.
The agreement will strengthen European investment into Australia and create new opportunities for ACT businesses, where the ACT aligns with European priorities. Sectors such as renewable energy, health technology, clean technology, defence innovation, advanced manufacturing, cyber security and space are particularly well positioned to benefit from stronger investment links with Europe.
Local companies will also gain improved access to European government procurement markets worth more than $845 billion annually.
“The Australia-EU Free Trade Agreement is one of the most important economic agreements for our region in a generation. The agreement gives our businesses access to a market of 450 million people and one of the largest economies in the world,” the Chief Minister said.
“Don’t think of this new agreement as just one new agreement, think of it as twenty-seven new agreements. Under this deal twenty-seven new doors have opened for ACT businesses.
“For our economy, this deal means more exports, more investment, more innovation and more high-value jobs.
“For local businesses, it means cheaper machinery, equipment and technology that can improve productivity and competitiveness.
“For consumers, it means lower prices at the checkout, and greater choice across a range of European products.
“In short, this is a very good deal for Canberra and our economy. I am calling on every member of the ACT’s Federal Parliamentary delegation to support this agreement when it comes before the Parliament. This is a vote for jobs, investment, innovation and economic growth in Canberra.”
For Canberra’s small and medium businesses, this means cheaper imported equipment and machinery and less red tape. The removal of tariffs on a wide range of European imports will make business equipment, industrial technology, advanced manufacturing inputs, renewable energy systems and specialist technical equipment more affordable.
The agreement will also deliver tangible benefits for households. Australia will remove tariffs on more than 99 per cent of EU goods, improving access to more affordable products and greater consumer choice. ACT consumers can expect lower prices for products including European electric vehicles, batteries, renewable energy technologies, automotive parts and a wide range of household goods. Tariff reductions will also lower the cost of many popular European food and beverage products, including wine, champagne, spirits, chocolates, biscuits, pasta and specialty food products.
The Chief Minister said the agreement demonstrates why Australia must continue to strengthen economic ties with trusted international partners.
“At a time of increasing global uncertainty, Australia should be deepening its engagement with democratic partners that share our commitment to innovation, open markets and the rule of law. The ACT’s prosperity has always depended on attracting talent, investment, ideas and opportunity from around the world. This agreement will help local businesses sell into new markets, help attract new investment into our economy and help create the next generation of high-value jobs.
“That is why I believe the Federal Parliament should move swiftly to ratify this agreement,” the Chief Minister said.
The ACT Government will continue to advocate for stronger international economic engagement and looks forward to working with businesses, universities and research institutions to maximise the opportunities arising from the A-EU FTA.
