The Bilbao Chamber is analysing the impact of the free trade agreement between the EU and Australia, which will eliminate tariffs on 97.6% of European exports and open up Australian public procurement.
The conclusion of negotiations for the EU-Australia Free Trade Agreement on 24 March 2026 marks a new commercial phase for companies in Bizkaia. According to camarabilbao.com, the agreement, pending adoption and ratification, will eliminate tariffs on 97.6% of EU exports from its entry into force and will liberalise another 2% within a period of up to five years, in addition to facilitating access to Australian public procurement.
The agreement is expected to yield an estimated savings of over €1 billion annually in customs duties and will particularly benefit sectors such as machinery, chemicals, vehicles and components, plastics, and steelmaking. Australia, the fourteenth largest economy in the world with a GDP of €1.7 trillion, represents a significant market for the EU, which exported goods worth €37 billion to the country in 2025.
For Bizkaia companies, the interest in the agreement is better understood by analysing the Australian economic structure. The country has a strong mining sector, which accounted for approximately 9.6% of its GDP in 2025 and has more than 350 operational mines. Australia is one of the world's leading producers of lithium, iron ore, bauxite, rare earths, zinc, and other strategic minerals.
This mining strength creates opportunities for Basque companies in machinery and mining equipment, engineering, automation, industrial maintenance, environmental technologies, and solutions for energy efficiency and decarbonisation.
Australia needs to import a significant portion of its machinery and equipment, and the agreement removes barriers that previously made these products more expensive. Basque companies will be able to compete on equal terms in a market that demands advanced technology for its mining operations.
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