The EU-Australia Free Trade Agreement (FTA) brings a "positive outlook" for the dairy sector, according to European dairy trade association, Eucolait.

Following almost a decade of negotiations, the final text of the deal was agreed during a meeting in Canberra between European Commission President Ursula von der Leyen and Prime Minister of Australia Anthony Albanese.

Eucolait said "this agreement represents a significant and positive step in the EU’s ongoing efforts to strengthen strategic partnerships and diversify both supply sources and export markets".

"It will help bolster the competitiveness and resilience of European industries, including the dairy sector.

"European dairy companies can look forward to improved access to the Australian market," the organisation added.

Dairy

Exports of EU dairy products to Australia reached nearly €400 million in 2025.

Cheese accounts for the largest share of these exports, followed by butter, milk powders, and infant formula.

Eucolait said it particularly welcomes the elimination of tariffs on cheese under the new agreement, combined with the protection of geographical indications (GIs).

"While Australian tariffs on most other dairy products are already set at zero, it remains crucial to ensure that EU exports are safeguarded against any potential future increases in Most Favoured Nation (MFN) tariff rates," it said.

As part of the deal, Australian products will benefit from duty-free access for most dairy categories, however skim milk powder (SMP), butter, and high-protein whey will be subject to tariff rate quotas.

"While these quotas create additional trade opportunities, overall imports from Australia are expected to remain modest," Eucolait said.

The organisation also welcomed the inclusion of a chapter on sustainable food systems and animal welfare in the deal, which establishes a framework for ongoing cooperation and dialogue in these areas.

Eucolait said it "now looks forward to a swift approval process and the timely entry into force of this agreement".