Australia-EU Trade Deal Offers Stability in Turbulent Times -- Market Talk

Dow Jones03-25 09:34

0134 GMT - The impact of the Australia-EU trade deal is limited, from a narrow GDP lens, says Sunny Nguyen at Moody's Analytics. "Beef quotas are incremental, and cheaper German cars won't change Australia's inflation or growth trajectory." The significance lies in making trade flows more resilient to political disruptions. Securing dependable partners has become a priority as both sides manage risk, the economist says. Australia sends around a third of its exports to China, and past episodes show how exposing that can be. Europe has similar concerns as its green transition depends on lithium, rare earths and inputs dominated by China. Australia's resource base can help address that gap, Nguyen writes. Over time, the stability offered by the deal can support investment, planning and confidence, even if it doesn't boost headline growth. (fabiana.negrinochoa@wsj.com)

 

(END) Dow Jones Newswires

March 24, 2026 21:34 ET (01:34 GMT)

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