- The EU and Australia may be geographically far apart, but we couldn't agree more when it comes to our worldview.
This was what the President of the European Commission, Ursula von der Leyen, said when she signed a trade agreement with Australia. In doing so, von der Leyen indirectly emphasized that the EU is not only chasing profits, but also close friends in a world where China has set its sights on critical raw materials, while the US under Trump has imposed additional tariffs on goods from the EU.
This has led the EU to work to become more independent of the two economic giants outside Europe. This is emphasized by the new agreement. It also ensures the EU increased access to critical raw materials from Australia.
Materials such as lithium and aluminum are necessary for green technologies such as wind turbines and batteries for electric cars. But today, a large part of Australia's exports of raw materials go to China. This enables China to pressure Europe by limiting European companies' access to the important materials.
- For both Europe and Australia, the relationship with China is of strategic importance. We must not become too dependent on a single supplier of such important raw materials. That is precisely why we need each other, said von der Leyen.
With a population of 27 million, Australia can rejoice that there will now be increased access to the large EU market with 450 million inhabitants.
The agreement is thus expected to give an economic boost to Australia, which will also become an increasingly close defense partner for both the EU and NATO.
With the agreement, the EU is really gaining a foothold in the region, said a senior EU official, speaking on condition of anonymity.
- This is the eighth free trade agreement we have concluded in that region. This is a big step in relation to the EU's desire for open and rules-based trade, the official said.
The EU has concluded several agreements
The agreement comes in the wake of the EU recently concluding agreements with India and Indonesia. At the same time, the EU already has agreements with Japan, South Korea, Vietnam, Singapore and New Zealand in the Indo-Pacific region.
It is an expression that the EU is now closing the gaps in the world map when it comes to trade. This is according to Andreas Geertsen, head of EU & European policy at Dansk Erhverv.
- The next countries on the list should be Thailand, the Philippines and Malaysia. They have been negotiated for a long time, now we need to have the agreements completely in place. The three Southeast Asian countries are important growth economies, but they are difficult for European companies to gain a foothold in without trade agreements, says Andreas Geertsen.
He assesses that Danish companies will have good opportunities to benefit from the agreement with Australia. The agreement comes immediately after the Danish royal couple's state visit to Australia last week. A visit that led to a number of agreements between Danish and Australian companies.
The agreement between the EU Commission and Australia must now be approved by the EU countries and the EU Parliament, as well as by Australia, before it can be ratified. In addition to the agreement with Australia, the EU is also in the process of ratifying an agreement with the South American Mercosur countries.
/ritzau/
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