The European Union has sealed a new free trade agreement with Australia, aiming to strengthen supply‑chain security and reduce dependence on China amid rising geopolitical tensions and shifting US tariff policies.

After eight years of negotiations, the pact eliminates nearly all tariffs and expands access to critical raw materials such as lithium, cobalt, hydrogen and rare earths — essential for Europe's battery production, renewable energy technology and AI infrastructure.

The deal also opens opportunities in agriculture and industrial exports, with Brussels expecting trade in goods and services to grow significantly once the agreement is ratified.

Leaders on both sides frame the move as a strategic partnership built on stability and rules‑based trade.

This video summary was created by AI from the original DW script. It was edited by a journalist before publication.