Europe could improve access to critical raw materials.
Since the summer of 2018, the EU and Australia have been negotiating a free trade agreement. On Tuesday, both sides announced the conclusion of the talks, which means the next steps toward implementation can now proceed. In practice, the agreement will give Australia significantly easier access to the European market. Europe, in turn, expects better security of supply chains for critical raw materials such as lithium, manganese, and aluminium. Australia is also home to the rare earth producer Lynas. In addition, the agreement includes provisions on sustainable trade, labour standards, and climate protection.
As a next step, the final treaty texts will be published and reviewed through the EU’s internal procedures before approval by the Council of the European Union and the European Parliament is required. In parallel, Australia must ratify the agreement at the national level. Only after these procedures have been completed on both sides can the free trade agreement officially enter into force.
Photo: iStock / Oleksii Liskonih