EU President Ursula von der Leyen heads to Australia, raising expectations for finally inking a trade deal

European Commission President Ursula von der Leyen will travel to Canberra next week for what both sides hope is the inking of a long-running trade deal.

Heightening expectations for an agreement, she’s bringing EU trade commissioner Maroš Šefčovič, who held further talks on the deal with Australian Trade Minister Don Farrell on Monday night.

An EU trade agreement is worth $10 billion to Australian exporters in the first year, opening up access to 450 million more customers, and would slash thousands from the price of European cars and other imports.

Prime Minister Anthony Albanese said he looked forward to welcoming Ms von der Leyen and continuing discussions about expanding cooperation with the EU.

She will be in Sydney and Canberra from Monday to Wednesday, with the key meeting taking place on Tuesday.

“Australia and Europe are friends and partners, working together to advance peace, security and economic prosperity,” he said.

“The visit to Australia by President von der Leyen is an important opportunity to continue that work.”

The European Commission said the trip offered an important chance for the President to streghten Euope’s ties with “a trusted, like-minded partner in the strategically vital Indo-Pacific region”.

It will be Ms von der Leyen’s first visit to Australia, although she and Mr Albanese have met multiple times at various international events.

The EU’s Ambassador to Australia Gabriele Visentin said he was delighted the visit would be going ahead next week.

“This is a historic step forward for the already excellent relations between the European Union and Australia,” he said.

“As Prime Minister Albanese noted, this visit is an important step in our continued work together in advancing peace, security and economic prosperity globally.”

A trip slated for earlier in March was pushed back pending further trade talks at ministerial level.

Senator Farrell spent two days in Brussels in February in negotiations with Mr Šefčovič, after which he said he was confident a deal could be finalised.

After Monday’s follow-up talks, Senator Farrell said: “I’m confident that if there’s goodwill on our part and also the Europeans, that in the very near future we will be able to announce a free trade agreement with the Europeans.”

The minister surprised the Europeans when he walked away from years of talks they believed were all but a done deal in late 2023, declaring that the offer on the table wasn’t good enough for Australia.

But talks have resumed with more urgency against the backdrop of Donald Trump’s tariffs upending global trade.

Australia wants a guarantee its farmers will be able to export at least 30,000 tonnes of beef, mainly fresh meat, to the continent each year under the deal.

The French have been one of the main opponents to allowing more Australian beef in to Europe.

Sheep meat quotas are also under discussion but are less contentious.

From the European side, sticking points included the long-standing issue of geographic indicators – products named for the places they originated, particularly prosecco, feta, parmesan and pecorino – Australia’s luxury car tax, and preferential access to critical minerals.

The EU is already Australia’s third-largest trading partner, even without an agreement in place, with two-way trade worth $109.7 billion in 2024-25.