Parliament’s support for the Australia-European Union Free Trade Agreement (A-EU FTA) would send a clear message that Australia wants to supply more minerals – especially critical minerals – at more competitive prices to growth markets in Europe.
This important agreement concludes many years of work to advance Australia’s trade interests.
It also reinforces the Australia-EU Strategic Partnership on Critical Minerals by establishing a clear, rules‑based framework that underpins market access, strategic partnerships and long‑term cooperation across the full minerals value chain.
The A-EU FTA will permanently remove all tariffs on Australian energy and resources exports to the EU – including critical minerals – which can face tariffs of up to 5.5 per cent and lithium hydroxide, which can face a tariff of up to 5.3 per cent.
EU companies, including battery manufacturers, have indicated that removing tariffs on critical minerals will make Australian exports more competitive in the EU and increase demand.
In addition, attracting foreign investment is critical to the continued growth of our resources sector and modern investment rules agreed under the A-EU FTA will provide certainty for investment in both directions.
Australia will also raise its foreign investment screening threshold for private EU investors, adding to the attractiveness of investing in Australian resources projects.
Removing all tariffs on resources and critical minerals strengthens Australia’s competitiveness and supports predictable, open trade with a key strategic partner.
Together, the FTA and the strategic partnership position Australia as a reliable, long‑term supplier of the minerals essential to energy systems, defence technologies, advanced manufacturing and broader industrial resilience.
Following the endorsement of the A-EU FTA by Parliament, the MCA will continue working with governments and international partners to ensure the agreement delivers practical outcomes for the resources sector and reinforces Australia’s reputation as a trusted partner and secure supplier.
