Ursula von der Leyen is in Sydney and Canberra this week. She is there to finalise a free trade agreement between the European Union and Australia, negotiated since 2018, buried in 2023, and resurrected last year under the pressure of US tariffs. Trade Commissioner Maroš Šefčovič is accompanying her. Both parties are talking about a 'final stretch'.
For French companies looking at Australia, and particularly Western Australia, this is not an abstract diplomatic event. It is a concrete change in framework.
EU-Australia Trade Agreement: critical minerals for agricultural access
The architecture is a market exchange: Australia is opening access to its critical minerals (lithium, cobalt, rare earths, hydrogen), and the EU is opening additional agricultural quotas, particularly for Australian beef and lamb. It was on agriculture that negotiations failed in 2023: the EU proposed 30,000 tonnes of beef, while Canberra was asking for 40,000.
But beyond meat and minerals, the agreement should also reduce tariff barriers on European manufactured goods, facilitate access to public markets, and harmonise certain regulatory standards. For a French company exporting to Australia or considering establishing itself there, each of these elements matters.
Investing in Perth: lithium, hydrogen, and rare earths are in Western Australia
I have been living in Perth for nearly ten years. What I observe is that most of the issues at the heart of this agreement are physically located here.
Australian lithium mainly comes from WA. Greenbushes, the largest lithium deposit in the world, is three hours south of Perth. Hydrogen projects are concentrated in the Pilbara and the Mid-West. Rare earths are found in the Goldfields. When the EU signs a memorandum of understanding on critical minerals with Australia, as it recently did, it is effectively about Western Australia.
Last year, 24 ambassadors from EU member countries travelled together to WA for a joint visit to the mining sector. This is the largest European diplomatic delegation to this state in years. It is not a coincidence.
And yet, von der Leyen is not coming to WA this week. Sydney and Canberra, not Perth. There is a disconnect between the stated priorities of the agreement and the geography of diplomatic engagement. This is also a space to be occupied by French companies that understand the landscape.
Customs duties, critical minerals, geographical indications: what is changing for French exporters
In practical terms, several things.
The reduction of customs duties on manufactured products directly benefits French exporters to Australia. The EU has a trade surplus of 26.5 billion euros with Australia. This imbalance will not decrease if market access improves for European products.
Access to critical minerals within a structured bilateral framework is a game changer for French industries engaged in the energy transition. Today, the supply of lithium and rare earths largely goes through China. The EU-Australia agreement offers an alternative, with a democratic partner, in a predictable legal framework. For French companies in the battery, electric vehicle, or defence sectors, this is a supply chain that needs to be secured. And WA is the source.
The issue of geographical indications is more complex. The EU is pushing for the protection of hundreds of names: Prosecco, Feta, Parmesan, among others. For French wine and cheese producers, this is a direct issue. If the agreement includes enhanced protections for European GIs in Australia, it means that Australian producers will no longer be able to use certain names for local products. This is a protection for French exporters, but it is also a politically sensitive issue here, particularly in the wine sector. Australian Prosecco alone represents a market of 205 million dollars.
French wine in Australia would also benefit from a tariff reduction. The existing agreement between the EU and Australia on wine (updated in 2010) does not cover customs duties. Australian exporters currently pay entry duties on the European market, which puts them at a disadvantage compared to Chile or South Africa, which benefit from free trade agreements. A complete FTA would rebalance the conditions in both directions.
France-Australia trade: the geopolitical context behind the agreement
This agreement must be read in its context. The United States has imposed broad tariffs on its trading partners. China remains Australia's largest trading partner, but the relationship has been under strain since 2020. The EU is looking to diversify its partnerships. It has recently concluded agreements with India, Mercosur, Mexico, Switzerland, and Indonesia in just a few months.
Australia, for its part, needs alternatives. The agreement with the EU is not just commercial: it is a strategic anchor in a world where traditional alliances are being reconfigured.
This is what I call the "diagonal partnership": the idea that mid-sized democracies like Australia, France, and Canada have an interest in strengthening their direct ties, outside the Washington-Beijing axis. These three countries share compatible legal systems, complementary economies, and a common vision of multilateralism. The EU-Australia agreement fits into this logic. It does not replace relations with major powers, but it creates a network between countries that think about trade, governance, and sovereignty in a similar way. For French companies, this is an underestimated asset: investing in Australia is not going to the other side of the world, it is working with a partner that thinks similarly. An increasingly common regulatory framework, reducing barriers, and a strong political signal from both sides.
Establishing a presence in Western Australia: what I see from Perth
I have been working at the intersection of these two worlds for ten years. What I can tell French companies considering the Australian market is that WA is not Sydney. The market is smaller, more concentrated, and more technical. But this is where the resources that Europe wants to secure are located, and it is a market where a well-prepared French company can position itself quickly, provided it understands the local codes.
The EU-Australia agreement will change the conditions of market access. French companies that are already familiar with the Australian landscape will be the first to benefit. Others should get started now.
Establishing in Australia: Confluence Pacific supports you in Perth
Confluence Pacific assists French and European companies that want to establish themselves in Western Australia or develop their activities there. Market research, connecting with local players, regulatory framework, entry strategy: we do the ground work that you cannot do from Paris.
Based in Perth, Franco-Australian, we know both sides of the table. If this agreement concerns you, let's talk about it before your competitors do.