The European Union and Australia agreed on the final test of a long-delayed free trade agreement, eliminating tariffs on most goods and expanding Australian agricultural access to European markets and European industrial and manufactured goods access to Australia, alongside provisions to facilitate critical minerals trade, AP reported on March 24. The two sides also announced a new security and defense partnership covering maritime security, cyber cooperation, counterterrorism and joint responses to hybrid threats.

The deal follows the collapse of negotiations in October 2023 over disputes on agricultural quotas and geographical labeling, with talks revived as both sides respond to rising protectionism — particularly U.S. tariff pressure — and increasing concern over supply chain vulnerabilities, now made even more acute by the Iran war. Meanwhile, both sides are seeking to reduce exposure to China's dominance in processing and refining critical minerals — particularly rare earths — while building more secure bilateral supply chains in energy transition sectors.