Tariff Elimination and Market Access

The most immediate benefit is the elimination of customs duties on industrial exports:

• Machinery and capital goods: Tariffs currently up to 5% will be eliminated.
• Electrical and electronic equipment: Will benefit from the general elimination of tariffs for almost 100% of EU exports of goods at the end of the transition periods.

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97.6% of EU industrial goods exports will be tariff-free from day one, while for the rest they will be eliminated over a transition period of up to 5 years.

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Technical Barriers Simplification (TBT)

The agreement introduces measures so that companies do not have to adapt their designs or repeat costly tests for the Australian market:

• Supplier’s Declaration of Conformity (SDoC): Australia will accept that the manufacturer itself certifies that its products comply with standards in critical areas such as machinery safety (except for high-risk machinery), electrical and electronic equipment safety or energy efficiency and eco-design requirements.
• Certification at origin: For those industrial products that are not covered by the Supplier’s Declaration of Conformity, companies may have their conformity assessments carried out by recognized bodies within the EU to demonstrate compliance with Australian technical regulations, including those of their States and Territories.
• Use of international standards: Both parties commit to using international standards (such as ISO or IEC) as the basis for their regulations, which avoids divergent technical requirements that act as hidden trade barriers.

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After Sales Service and Operations Facilities

For the capital goods industry, maintenance is a crucial part of the business:

• Repaired Goods: No duties will be applied to goods re-entering the territory after having been temporarily exported for repair, nor to goods temporarily imported for repair in Australia.
• Temporary Admission of Tools: Total exemption from customs duties is granted for the temporary importation of professional equipment, hand tools, measuring and control devices, and molds or dies necessary for manufacturing processes or specific tasks.

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Public Procurement and Professional Mobility

• Access to tenders: EU industrial companies will be able to bid on government contracts on an equal footing with local ones, gaining access to some 60 new entities at the federal and state level in Australia.
• Engineers and technicians: To facilitate the installation and maintenance of complex machinery, the agreement establishes entry quotas of 1,000 trainee engineers per year for EU citizens.

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Next steps for entry into force

After conclusion, the agreement must follow a series of legal procedures before it becomes fully effective: publication of texts, approval by the Council, formal signature, consent of the European Parliament and ratification by the Council and Australia.