The Minerals Council of Australia (MCA) has called on Parliament to back the Australia–European Union Free Trade Agreement (A-EU FTA), highlighting its potential to significantly strengthen Australia’s resources sector and drive critical mineral exports to European markets.
MCA CEO Tania Constable said parliamentary endorsement of the agreement would send a clear signal that Australia is ready to supply critical resources at more competitive prices.
The trade deal permanently eliminates all tariffs on Australian energy and resources exports heading to the EU.
This includes critical minerals currently facing tariffs up to 5.5 per cent, as well as lithium hydroxide, which currently incurs tariffs up to 5.3 per cent.
European battery manufacturers and industrial consumers have noted that removing these duties will make Australian commodities more cost-competitive, unlocking higher demand.
In addition to expanding market access, the A-EU FTA modernises investment settings to encourage capital flows in both directions.
Australia will raise its foreign investment screening threshold for private European investors, making Australian mining and processing projects more attractive to international capital.
Constable noted that the agreement reinforces the existing Australia–EU Strategic Partnership on Critical Minerals by establishing a stable, rules-based framework across the full value chain.
“Together, the FTA and the strategic partnership position Australia as a reliable, long-term supplier of the minerals essential to energy systems, defence technologies, advanced manufacturing and broader industrial resilience,” Constable said.
Following parliamentary endorsement, the MCA plans to collaborate with governments and international partners to ensure the agreement delivers tangible commercial outcomes and solidifies Australia’s reputation as a secure global supplier.
