Press conference - Parliament House, Canberra

ANTHONY ALBANESE, PRIME MINISTER OF AUSTRALIA: It is an absolute pleasure to welcome my friend, the President of the European Commission, Ursula von der Leyen, to Australia on her first visit as president. We are so pleased that you will address our parliament today - a historic occasion. There have been 20 leaders address joint sittings of the Australian Parliament, but you will be, Madam President, the first woman to do so.

Today marks a defining moment in the relationship between Australia and the European Union. Today we can announce that after eight years of negotiations, Australia and the European Union have signed a landmark trade deal. This is a significant moment for our nation as we secure an agreement with the world's second largest economy. The Australia-European Free Trade Agreement will lower trade and investment barriers between Australia and the EU - a market of around 450 million people. This agreement is worth $10 billion to the Australian economy on an annual basis. Our relationship with Europe is grounded in our shared belief in democratic values, in human rights, and in inclusive societies. However, the regions that we call home, the Indo-Pacific and Europe, are less predictable, but they're more interconnected than ever before. The best way of navigating this reality is for us to do more together, and that is why last year I committed to stepping up our cooperation with the EU. This is a comprehensive, balanced, and commercially meaningful agreement that will reduce costs for Australian consumers and open new markets to Australian producers. It is a win-win. It eliminates tariffs on key Australian exports, including wine, seafood and horticulture. And it means our high quality Australian produce, including beef, sheep meat, dairy, rice and sugar, will have access to consumers in the European market. This benefits Australian consumers and companies too, with greater choice in goods and services at lower prices, including important inputs for our manufacturing and primary industry sectors. This agreement will grow our relationship further.

And further today we're pleased to announce the signing of a new Australia-EU Security and Defence Partnership. The Partnership provides a framework to strengthen cooperation between Australia and our European friends so that we can best respond to pressing global challenges. It will bolster our collaboration on defence industry, maritime security, cybersecurity, countering terrorism and combating hybrid threats such as disinformation. And it shows our shared commitment to global peace and security, including reaffirming our steadfast support for Ukraine in the face of Russia's illegal full scale invasion.

Finally, I'm pleased to announce that we will commence negotiations on association to Horizon Europe for 2027. Once associated, Australian organisations can access the current round of Horizon Europe funding to lead and participate in research projects with the brightest minds on some of the most complex problems. To be clear, this is the largest research organisation in the world, bar none. So, indeed this is a big day in the deepening of our partnership between Australia and the European Union. Our new commitments reflect our shared commitment to security and prosperity and our shared understanding that each depends on the other. I'll now hand to President von der Leyen and then we will take questions. But I also want to welcome, obviously, the Minister for Trade and also the European Commissioner for Trade and Economic Security, who did such a fantastic job in finalising the negotiations that myself and the President have participated in very directly as well.

URSULA VON DER LEYEN, PRESIDENT OF THE EUROPEAN COMMISSION: Yes, thank you very much, Prime Minister, thank you for the very warm welcome to Canberra. And allow me at the beginning, a word on the situation in the Middle East. I am deeply concerned about the conflict. Iran has to cease, immediately, its threats, laying of mines, drones and missile attacks and other attempts to block the Strait to commercial shipping. The recent attacks by Iran on unarmed commercial vessels in the Gulf, attacks on civilian infrastructure, including oil and gas installations, and the de facto closure of the Strait of Hormuz by Iranian forces is unacceptable and must be condemned. I also want to emphasise that freedom of navigation is a fundamental principle of international law. We will come back to these issues and their structural consequences at the Parliament this afternoon.

Right now, let us focus on the bilateral relationship. There is something unique about the partnership between Europe and Australia. It has matured over time, steadily and consistently, building on individual stories and a shared view of the world, even when worlds apart. So, I'm glad to be here and to demonstrate in person that this is a relationship built for the long term. And today, I'm so grateful to say that after almost a decade of work, of patience, of persistence, we have concluded the EU-Australia Free Trade Agreement, and let me look at four different components. My first point is simple - this is an agreement that is a win on both sides. So, congratulations to you, and to Australia, and congratulations to Minister Don Farrell and Commissioner Maro Sefcovic. This agreement is set to add almost $8 billion to your GDP. It will become easier for Australia to export to the European Union based on high standards. All Australian industrial goods exports to the European Union will become tariff free, and Australian citizens will have more opportunities to provide their high quality services to the European Union. On the EU side, our Free Trade Agreement network continues to grow steadily. We work hard to diversify our trade relations in an increasingly uncertain world, and in less than two months, Europe added nearly 2 billion people to our free trade market. With agreements spanning three continents, from Latin America to India and now Australia - it is a true trade trilogy. For European Union businesses this agreement will deliver immediate, tangible benefits. EU exporters, producers and farmers will save €1 billion in tariffs, our exports of goods to Australia expect to grow by 33 per cent over the next decade, and our farmers will benefit from greater export opportunities combined as usual with strong safeguard, with the protection of geographical indications, for example. So, it's a perfect balance. My second point is on collective resilience. Today we are telling an important story to a world that is deeply changing. A world where great powers are using tariffs as a leverage and supply chains as vulnerabilities to be exploited. In our story, open, rules based trade delivers positive sum outcomes. Trust matters more than transactions. It is the story of building strength at home and diversifying abroad through a reliable network of agreements that we respect and uphold. And this is what collective resilience is - this is our common story. And this leads me to my third point. Nowhere is the need for collective resilience more evident than in critical raw materials. The European Union and Australia need reliable supply chains for these crucial inputs. Australia is one of the world's most important producers, in contrast, Europe is one of the world's major users, and this is why I'm very happy that today we agreed to step up our cooperation with four major projects. They cover production of rare earth, lithium and tungsten, and we are building on our work with allies towards a buyers club and we are building on the critical raw materials partnerships we launched two years ago. And we will apply the same logic to security, and this is my fourth and final point - the launch of our security and defence partnership. Europe and Australia share a responsibility beyond our borders. We know that Europe's security and Indo-Pacific stability are not separate conversations. A crisis in the Indo-Pacific would crippled global trade, directly hitting European industries and growth. So, we have resolutely decided to step up cooperation on defence industry, counterterrorism, space and maritime security, and we are joining forces to fight back against hybrid threats to our democracies because we are both confronted with disinformation and wide attempts to erode public trust. Here too, we must build the collective resilience of our societies. So, I'm very much looking forward in deepening our cooperation. And finally, the European Union and Australia have cooperated in the research space for many decades, but there is potential for so much more. And that's why the decision to begin negotiations for Australia's association to Horizon Europe is such excellent news. Having Australia on board the EU's flagship program for research and innovation will benefit both sides. And it will link our brightest minds with long term, well-funded programs so that they can be working together to generate the ideas and the products our society needs. So, Anthony, if you zoom out on the map, the distance between us stands out. If you zoom in what unites us, the distance disappears. We are like minded in so many aspects - our commitment to democracy and international law, our shared goal of climate neutrality by 2050 with your co-chairing of the next COP, our concern for affordable health care and housing, and even the protection of our children. Where Europe is learning from Australia's trailblazing approach to social media. And this is what our partnership cooperation by conviction, shaping together a new, fairer and stronger world order. Thank you very much.

PRIME MINISTER OF AUSTRALIA: Thank you very much.

PRESIDENT VON DER LEYEN: Thank you.

PRIME MINISTER OF AUSTRALIA: We have four questions. Australia first.

JOURNALIST: Thanks, Prime Minister, President von der Leyen, welcome to Australia. You mentioned your three deals, the trilogy of trade. All three negotiations were long and drawn out, but have been wrapped up in the space of a few months. You also mentioned uncertainty in tariffs. Can you just be clear, has Donald Trump's tariff regime forced Europe to compromise in ways that it wouldn't previously? And Prime Minister, you also spoke about Europe and Australia being steadfast on Ukraine. What's your reaction to the US lifting sanctions on Russian oil in recent weeks?

PRESIDENT VON DER LEYEN: So, what I have seen with a growing unpredictability and uncertainty worldwide is that countries are longing for stability and predictability, and this is what the European Union is offering. And therefore it was basically an open door on both sides where we started our negotiations knowing that we want a situation where a free trade agreement leads to a win-win situation for both sides. And this is what we are showing here. You can have a free trade agreement and both sides are winning. It's complementary, it's enhancing the business sectors on both sides, and it benefits the people on both sides. And this is the reason why we concluded many free trade agreements in the last months. Indeed, this shows that we can together prove that a rules based trade is the right way to go.

PRIME MINISTER OF AUSTRALIA: Thanks. Certainly Australia on that issue as well, we stand for free and fair trade. And at a time where that is under some pressure globally as well, I think this agreement sends a message as well to the world that it is possible to stick to the rules, to engage in a way that benefits both of our nations. And similarly, Australia determines our own position as well when it comes to the rule of law globally. And the reason why we oppose the Russian invasion of Ukraine is that it's an attack on national sovereignty of a sovereign state, of a democratic state. And the fact there's been a land war in Europe is something that wasn't anticipated. And when the Russian illegal and immoral invasion occurred, people thought it would not last for that long. It, of course, has lasted for many years now, and we've continued to provide support for Ukraine, and we'll continue to do so. We'll continue to engage with our European partners. So, for example, our E7 aircraft have operated from both Germany and Poland in providing assistance for Ukraine. Australia has provided some $1.7 billion of support, which, given our distance from the Ukraine, is a substantial investment. We'll continue to do so. Other countries, it's up to them to determine their position. But our position is very clear and it remains unequivocal standing with the people of Ukraine. A question from the EU.

JOURNALIST: President von der Leyen, will the European Union expand its existing maritime security operations to the Strait of Hormuz? If so, how soon would we see European ships contributing there? What are the conditions? And, Prime Minister, would Australia consider contributing to such a maritime operation?

PRESIDENT VON DER LEYEN: So, the leaders in the European Union have been very clear that when the hostilities end, they could envisage an operation, a mission. But of course, it is not for me to judge on their decision to provide the necessary capabilities in the Strait of Hormuz.

PRIME MINISTER OF AUSTRALIA: We've continued to condemn the Iranian regime for their actions that it's taken in the Strait of Hormuz. This is having an impact on the global economy. And the targeting of civilian ships is against the UN Convention of the Law of the Sea, which allows for freedom of navigation. It is very important. What Australia has provided is an E7 aircraft, a Wedgetail, to the region. That's providing support, particularly for the UAE after their request. And of course, the UAE is on the northern part of the Strait of Hormuz. And in addition to that, we're providing AMRAAMs to the UAE to provide that support. That is the request that we've had up to this point in time.

JOURNALIST: President von der Leyen, just to build on that last answer, do you think Donald Trump started a war that he can't finish? And do you think that notwithstanding what you just said, that at some point, European countries and nations further afield, like Australia may have to become involved in some sort of operation to reopen the Strait of Hormuz?

PRESIDENT VON DER LEYEN: So, what I've said at the beginning of the press statement already, we think that it is time to go to the negotiation table and to end the hostilities. The situation is critical for the energy supply worldwide. We all feel the knock-on effects on gas and oil prices, our businesses and our societies. But it is of utmost importance that we come to a solution that is negotiated and this puts an end to the hostilities that we see in the Middle East.

JOURNALIST: Question for both of you, if I may. On the Free Trade Agreement, the negotiations had pretty much failed in 2023. Now, what has changed, of course, as has been mentioned, is President Donald Trump is back in the White House and the international environment has changed. But on the substance of the Free Trade Agreement, agricultural issues were thorny on both sides when things failed in 2023. What has changed to enable you today to conclude the agreement?

PRIME MINISTER OF AUSTRALIA: I think this is a good agreement that's a win-win, win for Australia and a win for the European Union. The context of the agreement is important as well. This is both the European Union and Australia asserting that we believe in free and fair trade, that we understand that trade advances the prosperity of both trading entities who are involved. That it is in our interest to get this done. I must say as well that the personal relationships matter. The President and I have had a number of discussions very directly. That matters. I've had personal discussions with everyone from Chancellor Merz to President Macron to the head of all of the nations in Europe, including of course Ireland as well, about why the this is in both the interests of Europe and in the interests of Australia. And this is a good outcome. And in many ways, we have two points I would make as well. One, when it comes to some of the issues that were there, some of the geographical names, for example, one of the things about Australia is that with the exception of First Nations people, we're all either migrants or descendants of migrants. And many of those have come from Europe. That's why, whether it's Greeks coming here and creating feta, or Italians coming and doing Parmesan, or people from Eastern Europe doing Kransky sausages, those things, it's a connection with Europe. Part of our strength is our people-to-people relations as well. I think all of that understanding and engagement has assisted.

In addition to that, Australia has things such as critical minerals that are needed. And as the President has said, we're a big producer, they're a big user. That's complementarity. That is a win-win. That's growth and prosperity in both Europe and Australia. And that's the thing about trade. Trade is what has lifted people out of poverty around the world. And that complementarity is a message to the world. My government unequivocally believes in free and fair trade. We've engaged European nations, of course, and through the European Union. The European project is so important for the world and for peace and prosperity for the world as well. And I think that relationship, making sure that we got with these two tough negotiators here, that they were able also to nut it out. And it helps the re-election of both of us to our respective positions. Means that you don't have a revolving door. I don't know how many trade ministers the former government had here. But when you got different people coming through the door all the time and that turnover, it becomes very difficult because you start again. What we haven't done is start again. What we've had is a consistent government in Australia with one trade minister, one Prime Minister, and in the European Union under the leadership of the President. You've also had a capacity to make sure that we deliver.

PRESIDENT VON DER LEYEN: Thank you. What can I add? As the Prime Minister said, personal relationship matters. And indeed, the two of us decided, I think it was one and a half year ago, it cannot be that we cannot bring this free trade agreement that is so close to be finished over the finish line. And it needed the political push, but it also needed, indeed, the skilful steer of our chief negotiators here to bring it over the finish line. And indeed, we have found a balanced, as you can see, from both sides, and fair agreement. And it's beneficial for both sides, Both sides, businesses and people. And therefore, I'm very grateful and very proud at the same time that we made it.

PRIME MINISTER OF AUSTRALIA: It's a great day.

PRESIDENT VON DER LEYEN: Thank you.