Australia-EU Free Trade Agreement faces calls for parliamentary support

Industry groups are urging the Australian Parliament to pass the Australia-European Union Free Trade Agreement (A-EU FTA) to bolster various export sectors.

The Minerals Council of Australia (MCA) stated that the agreement would permanently remove all tariffs on Australian energy and resource exports to the EU, including critical minerals. This includes the removal of tariffs on lithium hydroxide, which can currently reach up to 5.3 per cent. The MCA noted that the agreement would also raise the foreign investment screening threshold for private EU investors, providing greater certainty for resource projects.

Similarly, the vegetable industry body Ausveg has backed calls for the agreement's passage. Ausveg highlighted that the elimination of tariffs would benefit Australian growers, particularly onion producers who have lost market share following the New Zealand-European Union Free Trade Agreement. The industry body emphasized that the FTA is critical for regaining competitiveness in the European market amid challenging operating conditions.