The Australian European Free Trade Agreement (A-EFTA) is an agreement between Australia and the European Free Trade Association (EFTA) that was signed on 13 August 2021. The four countries that make up EFTA are Norway, Switzerland, Iceland, and Liechtenstein. A-EFTA is a significant milestone in the relationship between Australia and Europe, as it will strengthen ties between the two regions and facilitate trade and investment.

The agreement is expected to provide Australian exporters with significant new market access opportunities in EFTA countries. This is particularly relevant for Australian agricultural producers, who will see tariffs removed on exports such as beef, sheep meat, dairy, sugar, and wine. The agreement is also expected to create new opportunities for Australian services providers in EFTA countries, including in professional, financial, and transport services.

The agreement is also expected to provide Australian businesses with greater certainty and predictability when exporting to EFTA countries. The agreement contains modern provisions that reflect contemporary trade policy approaches, including commitments on regulatory coherence, e-commerce, and sustainable development.

One of the benefits of the A-EFTA agreement is that it will help to diversify Australia`s trade relationships, reducing reliance on traditional partners such as China and the United States. This is particularly important in the current global environment, where geopolitical tensions are high, and protectionist measures are on the rise.

In addition to the benefits for Australian businesses, the A-EFTA agreement has positive implications for consumers in both Australia and EFTA countries. The removal of tariffs on goods such as Swiss chocolates, Norwegian salmon, Icelandic skyr, and Liechtenstein ceramics will make these products more affordable and accessible for Australian consumers. The agreement is also expected to contribute to the growth of small and medium-sized enterprises in both Australia and EFTA countries, which will benefit consumers through increased competition and innovation.

In conclusion, the Australian European Free Trade Agreement is an important milestone in the relationship between Australia and Europe. The agreement will provide significant new market access opportunities for Australian businesses in EFTA countries and help to diversify Australia`s trade relationships. The agreement also has positive implications for consumers in both Australia and EFTA countries, with the removal of tariffs on a range of goods expected to make these products more affordable and accessible. Overall, the A-EFTA agreement is expected to have a positive impact on the Australian economy and the relationship between Australia and Europe.