A month ago, we reported that Australia was set to commence trade talks with the European Union. Now the Department of Foreign Affairs and Trade (DFAT)) has issued a media release confirming the Australian Government has officially launched negotiations on a Free Trade Agreement with the EU.
The statement, issued jointly by the Prime Minister and DFAT, says, “We are seeking an ambitious and comprehensive trade agreement to drive Australian exports, economic growth and create new Australian jobs.â€
Australian exporters are currently at a disadvantage to many of our biggest competitors because Australia lacks preferential access into the EU. An FTA with the EU has the potential to open up a market for Australian goods and services of half a billion people and a GDP of US$17.3 trillion. As a bloc, the EU is Australia’s second largest trading partner, third largest export destination, and second largest services market. The EU was Australia’s largest source of foreign investment in 2017.
Key benefits
– Significantly improved market access for Australian exports
– Guaranteed access for Australian services providers
– Expansion of two-way investment flows
– A more predictable and seamless business environment
– Rules to support the digital economy and innovation
– Reduced costs and red tape, particularly for small and medium-sized enterprises
– Greater consumer choice
– High standards, including on sustainable development
The first round of negotiations will be held in Brussels in early July.
