The Commission president aims to resolve the stalemate on a deal that has been on hold since 2023.

European Commission President Ursula von der Leyen is expected to travel to Australia later this month in an effort to finalize a long-postponed trade agreement, according to sources familiar with the situation who spoke to Euronews.

Successful conclusion of this agreement would represent another trade achievement for the Commission, following recent pacts with the Mercosur bloc in Latin America and India, amidst escalating geopolitical tensions involving the US and China.

One insider mentioned von der Leyen might visit Canberra soon after the Munich Security Conference ends on 15 February.

Confirmation of this trip will be contingent upon the advancement of negotiations, which are being overseen by EU Trade Commissioner Maroš Šefčovič, scheduled to meet Australian Trade Minister Don Farrell in Brussels next week.

“As usual, forward movement in this delicate negotiation phase depends on substantive issues,” Commission deputy chief spokesperson Olof Gill told Euronews.

Discussions over a EU-Australia free-trade pact broke down in 2023 when Canberra criticized Brussels for not providing sufficient market access in sectors such as beef, sheep, dairy, and sugar.

Agricultural products remain a recurring source of tension in EU trade talks. The Mercosur agreement has already provoked strong resistance from European farmers wary of increased imports from Latin America presenting unfair competition.

Nevertheless, Australia is regarded in Brussels as a strategic, like-minded ally as the EU works to diversify its trade partnerships, broaden access to international markets, and minimize reliance on a contracting US market and China’s more assertive trade directives.