29.04.2026

Free Trade Agreement with Australia Strengthens Trade and Investment Ties

Medium-term Gains for the EU Amount to Around 7 Billion € Per Year – Around 150 Million € for Austria

"The trade agreement between Australia and the EU is comprehensive and far-reaching. Analyses by WIFO show that the medium-term gains for the EU amount to around 7 billion € per year (0.05 percent of GDP) and for Austria to around 150 million €", said WIFO Director Gabriel Felbermayr on 28 April 2026 at a joint event organised by the Australian Embassy in Vienna, the Austrian National Bank (OeNB), the Federal Ministry for Economy, Energy and Tourism (BMWET), the European Commission, the Austrian Institute of Economic Research (WIFO) and the Austrian Economic Chamber (WKO).

"Logically, the gains relative to GDP are greater in the smaller Australian economy than in the EU. In the long term, the gains will be even significantly higher. In addition to the economic benefits, the agreement also promotes cooperation in areas where Australia and the EU are already closely aligned, such as labour and environmental policy", said Felbermayr.

Negotiations on the Free Trade Agreement between Australia and the EU (A-EU FTA) were concluded on 24 March 2026 in Canberra. The A-EU FTA is a comprehensive, balanced and economically significant agreement designed to strengthen bilateral trade and investment relations, promote economic growth and consolidate the shared commitment of Australia and the EU to open and rules-based trade.

OeNB Governor Prof. Martin Kocher and Australia's Ambassador to Austria, Ian Biggs, opened the event at the OeNB. The keynote speakers were Dr. Severin Gruber (Secretary General of the BMWET), Patrick Lobis (Head of the European Commission Representation in Austria), Gabriel Felbermayr (WIFO Director), and Lachlan Crews (Australian negotiating team for the Free Trade Agreement). Representatives from the BMWET, the Austrian Chamber of Agriculture, the Australian Embassy in Brussels, the European Commission Representation in Austria and the WKO took part in an expert discussion moderated by Felbermayr.