On 24 March, spurred by growing geopolitical tensions, Australia and the European Union closed a free trade agreement that was eight years in the making. Once ratified, this FTA will slash tariffs on farm produce and other goods between the two economic powerhouses.
Australia and the EU have been negotiating this deal since 2018. Differences over farm produce triggered a collapse in 2023, but in 2025, US President Trump’s tariffs added geopolitical urgency to the talks, creating more room for compromise. EU Commission President Von der Leyen shook hands on the agreement with Prime Minister Anthony Albanese this Tuesday, with signing and mutual ratification still to follow.
Economic and strategic impact
The FTA’s economic impact will be significant, given that the EU is Australia’s third-largest two-way trading partner and second-largest source of foreign investment. The agreement is expected to add about A$10 billion ($7 billion) annually to Australian GDP. Strategically, the FTA offers both parties diversification towards trading partners with a strong commitment to rules-based free trade. For the EU, a key bonus is improved access to critical resources like aluminium, lithium and manganese mined in Australia.
Focus on farm produce
Much of the agreement revolves around farm produce. The EU will drop tariffs on most Australian agricultural products, including wine, nuts, fruit and vegetables, honey, olive oil and most dairy products. Meanwhile, new or more generous quotas have been agreed for Australian beef and sheep meat. Over the next ten years, for example, the quota of Australian beef allowed into the EU will increase to more than ten times the current level.
What’s in a name?
An intensively negotiated element of the FTA is the protection of EU product names. Australia will fully protect 165 EU “geographical indications” (GIs) for products like Comte cheese and 231 spirits GIs such as Irish whiskey. For some other products, such as feta or gruyere, Australian producers having used the name continuously for at least five years can retain the right to use it, as long as the product’s origin is clearly labelled.
The Netherlands: ideal EU entry point
Australian companies seeking to sell goods in the EU will find the Netherlands is their ideal entry point. The country has world-class logistics infrastructure, including the port of Rotterdam. Moreover, its so-called Article 23 regime allows for a net-zero VAT impact on imports. Meanwhile, to help navigate the complexity of EU regulations – such as product name protection rules – specialist service providers are on hand. They offer all-round support with VAT deferment, VAT administration, compliance with EU legislation and any practical or logistical issues.
The Australian connection
Cableroad, a Netherlands-based fiscal agent serving importers into the EU since 2014, is especially well placed to support Australian companies with EU imports, as it has its own representative office in Australia. Hester Koch runs the firm’s Asia-Pacific hub from Brisbane. “We’re here to help Australian companies benefit from the great opportunities opening up for them in Europe,” says Hester. “And we’re easy to contact, in the client’s own time zone. With plenty of experience handling bulk goods, Cableroad has the expertise and connections in both Australia and the Netherlands to guarantee clients a seamless import experience.”
Pay net zero VAT
As a Dutch-licensed Fiscal Representative, Cableroad arranges VAT deferment, so that no up-front VAT payment on entry of goods is necessary. By offsetting the VAT payment against the VAT return filing, the result is a significant cash-flow benefit: zero cash out on import. Being a licensed Importer of Record as well, Cableroad can take care of the client’s customs clearing and compliance with all the relevant EU regulations.
Extended offering
Clients with more demanding requirements can count on Cableroad’s extended offering, including One-Stop Shop (OSS) services, VAT and excise warehousing and even corporate tax advice and structuring. “Whatever you’re bringing to the EU market,” Hester says, “we have the services that match your needs.”
Learn more
Curious how Cableroad can help you fast-track your EU imports? Let’s talk about your business! Just give Hester a call (+ 61 (0) 437 689 158) or message her at hester@cableroad.nl.