Australia’s push to lock in a long-awaited free trade agreement with the European Union aims to expand export opportunities and modernise long-standing trade rules, but the effort to secure better access for farm products and ease car taxes looks like it could reshape everything from supermarket shelves to new car prices.
Right now, Australian producers appear on track to keep using familiar labels such as prosecco, parmesan and feta even though the EU has long argued these are geographic names tied to specific regions and traditions. Talks first kicked off in 2018 and stalled several times as both sides dug in over these protections, but ongoing behind the scenes discussions, including a fresh round of meetings in Brussels this month, suggest the two partners are edging closer to a compromise that keeps trade talks alive while calming local industry fears.
The emerging deal seems to let Australian farmers and winemakers continue using these popular product names, softening EU demands around geographic indications while preserving the way many local brands have marketed their products for generations. However, the most difficult piece now appears to be agriculture quotas, with European, especially French, farmers wary about how much Australian beef and lamb can enter their market. On top of that, there is growing pressure from Europe to revisit Australia’s luxury car tax, a 33% levy on the value of vehicles above roughly $80,000 to $90,000 that raises about $1.2 billion a year but falls heavily on European brands and makes them less competitive against cheaper imports, particularly from Chinese electric vehicle makers.
Beyond tariffs and labels, the broader agreement looks set to include easier short term mobility for highly skilled workers and investors, allowing specialists to move more smoothly between Australia and EU member states without creating full freedom of movement. If the deal comes together it seems likely to strengthen supply chain links, diversify export markets and signal support for a more stable trading system at a time when global tensions and past trade wars have rattled confidence, but the final outcome still depends on how both sides balance domestic political pressure with the economic gains they stand to make.
