AUSVEG welcomes the securing of the Australia-European Union Free Trade Agreement (FTA), emphasising the deal can give a much-needed boost to Australia’s onion industry, while also leading to opportunities for exporters of other vegetable crops.

The peak industry body for Australia’s vegetable, potato and onion industry congratulates the Australian Government and European Commission on reaching this agreement which will provide a more competitive trading position for Australian vegetable growers exporting to Europe.

Under the agreement, tariffs on Australian onions, carrots and potatoes exported to the EU will be eliminated, while tariffs on Australian beans and fresh sweetcorn will be phased out over three years.

Providing additional market opportunities into the EU for Australian vegetable grower-exporters is some welcome good news, particularly given the ongoing severe disruptions to Australian vegetable exports to the Middle East resulting from the ongoing conflict.

The European Union has traditionally been a strong export market for Australian onions in particular, with about 10,000 tonnes, worth $11 million exported to Europe in both 2023 and 2024. However, since an EU FTA with New Zealand came into force in mid-2024 – eliminating tariffs on New Zealand onions into Europe – Australian onion exports to this large Northern Hemisphere market declined by almost half in 2025, to 5,300 tonnes worth $5.8 million.

Over the same period New Zealand onion exports to the EU climbed from 42,800 tonnes in 2024 to 46,500 tonnes in 2025, reflecting the nation’s enhanced competitiveness as a result of the NZ-EU FTA.

In welcoming the reaching of a deal, AUSVEG CEO Michael Coote said once in force the Australia-EU FTA should, at a minimum, allow Australian onion exports to Europe to begin recovering to levels seen prior to 2024.

“Australia achieving an FTA with the European Union is welcome news which will benefit Australian grower-exporters of onions, and other vegetable crops through tariff elimination and reductions.

“The Australia-EU FTA will not only provide opportunities for onion grower exporters to recover recently-lost market share, but also gain new ground through more competitive international trading terms.

“This is good news in-light of the severe upheaval and surging production costs due to the Middle East conflict that is continuing to present Australian vegetable growers with major new challenges. While the major difficulties for vegetable producers flowing from the conflict must remain an urgent priority for government to address, news of improved market opportunities into the significant European market is welcome.

“This FTA has been a long-time coming and is the result of lengthy and comprehensive negotiations between the Australian Government and the European Commission. As a long-time supporter of government trade liberalisation agendas, AUSVEG congratulates the Albanese Government, and Minister for Trade, Senator the Honourable Don Farrell on this significant achievement which stands to benefit the Australian vegetable industry.”