EU Chief Arrives in Australia Amid Hopes for Finalizing Trade Deal

Kathmandu. European Union chief Ursula von der Leyen arrived in Australia on Monday, where hopes are high that the long-running free trade agreement negotiations will be concluded.

This is von der Leyen's first trip to Australia, and it comes against the backdrop of energy insecurity caused by the war in West Asia. She arrived in Sydney on Monday to meet with the Australian head of state and participate in a traditional welcome ceremony, after which she is expected to travel to Canberra to meet with the Prime Minister and address Parliament.

She is accompanied by the EU Trade Commissioner, which has fueled speculation that the long-awaited free trade agreement could finally be signed.

Australia had previously indicated it might remove luxury taxes imposed on European vehicles. China is Australia's largest export market, while the US is the largest source of investment.

However, due to disputes with Beijing in 2020 and US trade tariffs last year, Canberra has emphasized diversifying export markets for its farmers.

The European Union is Australia's third-largest bilateral trade partner and the second-largest source of foreign investment. Trade Minister Don Farrell stated last week that the agreement with the EU would add A$10 billion (Australian Dollars) to Australia's trade in the first year.

"If we succeed in concluding this agreement, they could potentially become our second-largest trading partner," he said. The Middle East conflict, which has driven up oil prices, will also be a key issue in the meetings. In Canberra, International Energy Agency chief Fatih Birol stated on Monday that if the conflict is not resolved, the world could face an energy crisis not seen in decades.

Australia, heavily reliant on foreign fuel, has also felt the pressure of the global energy crisis. Energy Minister Chris Bowen stated on Monday that although some petrol stations have run out of fuel, the country is not currently at the limit of distribution.