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Highlights of the EU-Australia Trade Agreement

The EU and Australia signed a free trade agreement on Tuesday, as Europe tries to diversify its markets and extend its ties beyond traditional partners.

The following are some of the key points in the agreement:

AGRICULTURE

The tariffs on key EU exports such as wine, sparkling?wine and some fruits and vegetables will be zero from the first day. This includes preparations, fruit juices and chocolate.

In three years, the tariffs on EU Cheese will be zero.

The EU will also eliminate tariffs on the majority of Australian agricultural products, including wine, nuts and fruit and vegetables; honey, olive oils, most dairy products; wheat, barley, and seafood.

Australian beef, lamb meat, sugars, wheat glutens, rices, skimmed powdered milk, and butter will all receive either new or expanded tariff rate quotas.

PROTECTED EUROPEAN Produits

After a relatively brief phase-out period, some EU "geographical indicators" names such as Pecorino romano? or Ouzo will be protected.

Prior Australian users of some products, such as feta and gruyere can keep the right to use these terms provided that the origin is clearly labeled.

Prosecco producers in Australia can continue to produce and sell the wine on their own soil. After 10 years, exports will cease.

AUTOMOBILES

Australia will liberalise the market for all EU cars, including passenger cars, except for a few truck tariff lines, which will be removed gradually over a short time.

Australia will also raise the threshold for luxury cars tax on EU electric vehicles from A$120,000 to A$120,000 (83,600). Around 75% of the electric vehicles imported from the EU are exempted.

CRITICAL MINERALS

EU will eliminate tariffs on imports of?critical minerals from Australia and?hydrogen. Australia will open investment opportunities to Europeans in this sector.

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The agreement will make it easier to sell services in Australia for EU firms, such as in maritime transport, financial services, professional and business services. The agreement will eliminate discrimination, and increase opportunities for EU service providers and Australian investors.

INVESTMENTS

EU investors will receive the most favourable treatment of any foreign investor in Australia and, in many cases, be treated the same as Australian investors. Both EU and Australian companies will be allowed to operate freely in the other's territory. $1 = 1.4255 Australian Dollars (Reporting and editing by Praveen Manon and Christine Chen, Sydney)

(source: Reuters)