EU-Australia Agreement: 97% of Bilateral Trade Duty-Free

Key Points to Know

The EU-Australia free trade agreement, published in early April 2026, provides for the exemption of customs duties on over 97% of bilateral trade in goods. This agreement brings EU trade policy in line with those concluded with partners such as Japan or Canada, while also incorporating significant sectoral specificities.

Highlights

• 97% of EU-Australia goods trade will be duty-free once the agreement enters into force.
• The chapters on rules of origin, tariff quotas (notably 30,600 tonnes for Australian beef), and the protection of geographical indications structure market access.
• Customs declarants and freight forwarders will manage new quotas, exclusions (steel), and tolerance thresholds for low-value consignments (€500 per parcel, €1,200 per passenger’s luggage), requiring increased monitoring of customs and documentation procedures.

Context and Key Issues

The agreement, modeled on the EU-New Zealand and EU-Canada conventions, aims to liberalize trade while protecting certain sensitive sectors (steel, agriculture). The section on geographical indications introduces a specific regime with transitional periods and grandfathering for certain products. The exclusion of steel products from tariff dismantling addresses EU industrial protection policy, supported by current EU regulations. New duty-free thresholds for small consignments and baggage reflect the regulatory evolution of the UCC and e-commerce trade policies.

Impact on the Profession

Customs declarants and importers/exporters will need to address quota management for beef, dairy, sugar, gluten, and ethanol, with strict application of rules of origin and private certification requirements for some volumes, such as raw sugar. Freight forwarders will manage the immediate removal of duties for non-truck industrial goods, adjustments for the classification of steel products, and the phased-out use of certain protected terms (e.g., prosecco). Compliance officers will monitor proper use of geographical labeling and correct threshold declarations for low-value consignments.

Next Steps

• Ratification by the European Parliament and the Australian Federal Chamber is expected before summer 2026.
• Publication of annexes (including tariff schedules and final rules of origin) will be announced in the Official Journal of the EU in the following weeks.
• Key transition periods: 10 years for the end of the term "prosecco" exports, and gradual phase-out of derogations for geographical indications.

Plus de 97% du commerce de marchandises UE-Australie sera exonéré de droits de douane dès l'entrée en vigueur de l'accord en 2026.
(Over 97% of EU-Australia goods trade will be exempt from customs duties as soon as the agreement enters into force in 2026.)

Source: Borderlex, EU-Australia agreement texts published early April 2026