Export Finance Australia (EFA) has hailed the conclusion of a landmark Free Trade Agreement (FTA) between Australia and the European Union, labelling it a significant milestone that will open doors to a 450-million-consumer market.
The agreement is set to deliver economy‑wide benefits for Australian businesses by removing the vast majority of EU tariffs and supporting more than US$109 billion (AU$158 billion) in two-way trade.
For local exporters, the deal provides a streamlined gateway into one of the world’s most affluent and sophisticated economies.
A central pillar of the new agreement is a commitment to enhanced cooperation on critical minerals, a sector where Australia is already a global leader.
EFA, the nation’s export credit agency, has already approved approximately AU$3.9 billion for critical minerals projects, including a major €120 million injection for Vulcan Energy’s Phase One Lionheart project in Germany.
Francis Wedin, Executive Chair of Vulcan Energy, noted that the FTA would be a game-changer for the lithium industry.
“After jointly leading the $3.9 billion financing of Vulcan Energy’s lithium production facilities, the signing of this FTA by the governments of Australia and the EU is a significant milestone,” he said.
EFA’s Managing Director and CEO, John Hopkins, emphasised that the agency stands ready to provide the financial backing necessary for Australian firms to scale up and meet this new European demand.
“This agreement is an important step in strengthening Australia’s trade relationship with Europe and clearly signals our mutual commitment to finding new opportunities for exporters and advancing collaboration on common strategic interests,” Hopkins said.
“Whether through specialist finance, or guarantees to build confidence in export relationships, Export Finance Australia is here to support exporters looking to take advantage of the significant opportunities this agreement presents, providing greater certainty and confidence for Australian businesses to scale globally.”
EFA provides commercial finance for export trade and overseas investment and infrastructure development. EFA’s finance supports Australia’s economic security and regional resilience.
