Principles
The Parties recognise the importance of promoting free and undistorted competition and economic efficiency in markets. The Parties acknowledge that anti-competitive business practices have the potential to distort the proper functioning of markets and can undermine the benefits of trade and investment.
Definitions
For the purposes of this Chapter, the following definitions apply:
"anti-competitive practices" means business conduct or transactions that adversely affect competition, such as:
anti-competitive horizontal arrangements and concerted practices between economic entities;
misuse of market power and abuse of a dominant position;
anti-competitive vertical arrangements and concerted practices between economic entities; and
anti-competitive concentrations;
"competition authority" means:
for Australia, the Australian Competition and Consumer Commission, or its successor; and
for the Union, the European Commission;
"competition law" means any law which addresses and proscribes anti-competitive practices:
for Australia, at the central level of government; and
for the Union, at the Union level;
"economic entities" means entities, whether private or public, that are:
for Australia, engaged in trade or commerce; and
for the Union, undertakings engaged in economic activities.
Legislative framework
Each Party shall adopt or maintain competition law that applies in all sectors of the economy and to all economic entities.1
Notwithstanding paragraph 1, a Party may provide for exemptions and exceptions in or pursuant to its competition law. Such exemptions and exceptions shall be transparent and necessary on grounds of clearly established public policy or public interest objectives, as determined by that Party.
Implementation
Each Party shall establish or maintain an operationally independent competition authority, with the appropriate powers, financial and human resources to effectively enforce its competition law.
Each Party shall apply its competition law in a transparent manner, respecting the principles of procedural fairness, including by providing reasonable opportunities for the economic entities concerned to exercise their right of defence, in particular the right to be heard, and seek review or appeal by a judicial body.
Cooperation
The Parties recognise the importance of cooperation between their respective competition authorities with regard to competition policy and enforcement of competition law.
1 For greater certainty, pursuant to Article 42 TFEU, Union rules on competition apply to the Union EU Union agricultural sector in accordance with Regulation (EU) No 1308/2013 of the European Parliament and of the Council establishing a common organisation of the markets in agricultural products and repealing Council Regulations (EEC) No 922/72, (EEC) No 234/79, (EC) No 1037/2001 and (EC) No 1234/2007 (OJ EU L 347, 20.12.2013, p. 671)].
To facilitate such cooperation, the competition authorities of the Parties may exchange information, to the extent permitted by each Party's laws and regulations, including those related to confidentiality.
The Parties shall ensure their competition authorities endeavour to coordinate, if possible and appropriate, their enforcement activities under their respective competition laws relating to the same or related conduct or transactions.
The Parties may consider entering into a separate cooperation agreement that sets out mutually agreed terms for implementing cooperation and coordination, including inter alia, frameworks for exchanging information between the competition authorities of the Parties.
Non-application of dispute settlement Chapter 24 (Dispute settlement) does not apply to this Chapter.
Chapter 15. SUBSIDIES
Article ARTICLE X.1
Principles
The Parties acknowledge that subsidies have the potential to distort the proper functioning of markets and can undermine the benefits of trade and investment. In principle, subsidies should not be granted by a Party when they negatively affect, or are likely to negatively affect, competition or trade.
The Parties recognise that certain subsidies have potentially harmful trade-distorting effects and share the objective of working to develop enhanced multilateral disciplines and rules on subsidies.
Definition and scope
For the purposes of this Chapter;
a "subsidy" means a measure, which fulfils mutatis mutandis the conditions set out in paragraph 1.1 of Article 1 of the SCM Agreement irrespective of whether the recipient of the subsidy supplies goods or services.1 For greater certainty and for the purposes of this chapter, all references to goods in Article 1.1 of the SCM Agreement are to be understood as covering also services.
"specific subsidy" means a subsidy which is determined to be specific in accordance with Article 2 of the SCM Agreement. Any subsidy falling under the provisions of Article X.6 is deemed to be specific.
"economic activities" means activities pertaining to the offering of goods or services in a market
This Chapter applies only to specific subsidies provided to enterprises, public or private, in relation to economic activities.
This Chapter shall apply to subsidies to enterprises performing public service tasks2 insofar as its application does not impede the performance, in law or in fact, of the public service tasks that are assigned to these enterprises. Public service tasks shall be determined in a transparent manner. Any limitation to or deviation from the application of the rules in this Chapter shall not go beyond what is necessary to perform the assigned public service tasks.
This Chapter shall not apply to subsidies granted to benefit any Australian First Nations organisation or peoples.
1 This Article does not prejudice the outcome of any future discussions in the WTO on the definition of subsidies for services. Depending on the progress of those discussions at the WTO level, the Parties may update this Agreement in this respect.
2 The term "public service tasks" includes services provided in the public interest such as primary, secondary, tertiary education, vocational training, aged care, child care, healthcare, public social and community housing.
Article Article X.5 and Article X.6 Shall Not Apply to Subsidies Provided for a Period Not Exceeding 24 Months by a Party to:
compensate for damage caused by natural disasters or other non-economic exceptional occurrences; and
respond to a national or global health or economic emergency, provided that any such subsidies shall be targeted and proportionate, having regard to the harm caused by or arising from the emergency.
Article Article X.5 and Article X.6 Does Not Apply to Audio-visual and Broadcasting Sectors.
Relationship with the WTO
Nothing in this Chapter shall affect the rights and obligations of either Party under the SCM Agreement, the Agreement on Agriculture, Article XVI of GATT 1994 and Article XV of GATS.
Transparency
Each Party shall make transparent the following with respect to a subsidy granted or maintained within its territory:
the legal basis and purpose of the subsidy;
the form of the subsidy;
the amount of the subsidy or the amount budgeted for the subsidy; and
if possible, the name of the recipient of the subsidy.
A Party is deemed to have met the requirement set out in paragraph 1 through:
notification under Article 25 of the SCM Agreement, which is provided at least every two years;
notification under Article 18 of the Agreement on Agriculture; or,
publication by the Party or on its behalf on a publicly accessible website3 no later than 31 December of the calendar year subsequent to the year in which the subsidy was granted or maintained.
Consultations
If a Party considers that a subsidy granted or maintained by the other Party is negatively affecting or is likely to negatively affect its trade or investment interests, it may express its concern in writing to the other Party and request further information on the matter.
The request shall include an explanation of how the subsidy is negatively affecting or is likely to negatively affect the requesting Party's interests. The requesting Party may seek the following information about the subsidy:
the legal basis and policy objective or purpose of the subsidy;
the form of the subsidy;
the dates and duration of the subsidy and any other time limits attached to it;
3 For greater certainty, Article X.11.2 (c) does not require publication on a single website, nor in a particular format.
the eligibility requirements of the subsidy;
the total amount or the annual amount budgeted for the subsidy;
if possible, name of the recipient(s) of the subsidy; and
other relevant information permitting an assessment of the effects of the subsidy.
The requested information shall be provided in writing no later than 90 days after the date of receipt of the request. In the event that any requested information is not provided by the requested Party, that Party shall explain the absence of such information in its written response.
After having received the requested information, the requesting Party may request consultations on the matter. Such request shall be in writing. Consultations between the Parties to discuss the concerns raised shall be held within 60 days of the request for consultations and may be conducted by electronic means.
Such consultations shall be aimed at establishing and clarifying the facts of the matter and attempt to arrive at a mutually satisfactory resolution of the matter.
In the case of subsidies granted in relation to goods covered by Annex 1 to the Agreement on Agriculture, taking into account the relevant provisions of that Agreement, the responding Party shall accord sympathetic consideration to addressing the concerns of the requesting Party with due respect to Article X.3 (Relation to the WTO Agreement).
Treatment of certain subsidies
The Parties shall not provide subsidies whereby a government guarantees debts or liabilities of an enterprise without any limitation as to the amount of those debts and liabilities or the duration of such guarantees.
Subject to paragraph 3, subsidies to insolvent or ailing enterprises to support restructuring are allowed on the condition that:
a credible restructuring plan has been prepared based on realistic assumptions, and with a view to ensure the return to long-term viability of the insolvent or ailing enterprise within a reasonable time period; and
the enterprise (other than small and medium sized enterprises) contributes to the costs of restructuring.
The conditions set out in paragraph 2 do not apply to:
subsidies provided to enterprises as temporary liquidity support during the period which is necessary to prepare a restructuring plan. Such temporary liquidity support shall be limited to the amount needed to keep the enterprise in business; and
subsidies granted to ensure the orderly market exit of a company.
5. This Article does not apply to subsidies, the cumulative amounts or budgets of which are less than 250 000 SDR per enterprise over a period of three consecutive years.
Use of subsidies
Each Party shall ensure that enterprises use subsidies only for the policy objective for which the subsidies were granted.
Dispute Settlement
Article Article X.5 (Consultations) Shall Not Be Subject to Chapter X (Dispute Settlement).
DISCLAIMER: The Commission and Australia are publishing the texts of the Agreement following the announcement of conclusion of the negotiations on 24 March 2026. The texts are published in view of the public interest in the Agreement, for information purposes only and they may undergo further minor modifications, including as a result of the process of legal and linguistic revision. These texts are without prejudice to the final outcome of the Agreement between the EU and Australia. The texts will be final upon signature. The Agreement will become binding on the Parties under international law only after completion by each Party of its applicable legal requirements and procedures necessary for the entry into force of the Agreement.
Chapter 16. STATE-OWNED ENTERPRISES
Article ARTICLE 16.1
Scope
This Chapter applies to state-owned enterprises, designated oligopolies and designated monopolies at central and regional levels of government engaged in a commercial activity. Where such state-owned enterprises, designated monopolies or designated oligopolies engage both in commercial and non-commercial activities, this Chapter only applies with respect to their commercial activities.
This Chapter does not apply to:
the procurement by a Party of a good or service purchased for governmental purposes and not with a view to commercial resale or with a view to use in the production of a good or a supply of service for commercial sale, whether or not that procurement is a covered procurement within the meaning of Chapter 13 (Government procurement);
the matters referred to in points (a) to (c) and (e)1 of Article 9.1(2) (Scope); and
a state-owned enterprise or designated monopoly if, in any one of the three previous
1 For greater certainty, this includes activities performed in the exercise of governmental authority by state-owned enterprises.
consecutive fiscal years, the annual revenue derived from the commercial activities of the state-owned enterprise or designated monopoly was less than 150 000 000 SDR.
Article 16.5 (Non-discriminatory Treatment and Commercial Considerations) Does Not Apply to the Supply of Financial Services by a State-owned Enterprise Pursuant to a Government Mandate, If That Supply of Financial Services:
supports exports or imports, provided that those financial services are:
not intended to displace commercial financing; or
offered on terms no more favourable than terms that could be obtained for comparable financial services in the commercial market;
supports private investment outside the territory of the Party, provided that those financial services are:
not intended to displace commercial financing; or
offered on terms no more favourable than terms that could be obtained for comparable financial services in the commercial market; or
is offered on terms consistent with the Arrangement defined in point (a) of Article 16.2 (Definitions), provided that it falls within the scope of that Arrangement.
Article 16.5 (Non-discriminatory Treatment and Commercial Considerations) Does Not Apply to the Extent That a State-owned Enterprise, Designated Monopoly or Designated Oligopoly of a Party Makes a Purchase or Sale of a Good or a Service Pursuant to:
any existing non-conforming measure that the Party maintains, continues, renews or amends in accordance with Article 9.10 (Non-conforming measures and exceptions) or Article 9.17 (Non-conforming measures), as set out in its respective Schedule in Annex 9-A (Existing measures); or
any non-conforming measure that the Party adopts or maintains with respect to sectors, subsectors, or activities in accordance with Article 9.10 (Non-conforming measures and exceptions) or Article 9.17 (Non-conforming measures), as set out in its respective Schedule in Annex 9-B (Future measures).
Points (a) and (b) of Article 16.5(1) (Non-discriminatory treatment and commercial considerations) do not apply with respect to measures adopted or maintained by a regional government of a Party2 to ensure that purchases of goods and services by state-owned enterprises, designated monopolies or designated oligopolies:
support economic development in its territory, including for the benefit of SMEs;
promote social inclusion in its territory; or
support environmentally sustainable business practices.
Without prejudice to Article 12.16 (Rebalancing), point (c) of Article 16.5(1) (Non-discriminatory treatment and commercial considerations) does not apply with respect to designated monopolies and designated oligopolies3 that have been designated by a regional government of a Party.
Definitions
For the purposes of this Chapter, the following definitions apply:
"Arrangement" means the Arrangement on Officially Supported Export Credits, developed within the framework of the OECD or a successor undertaking, whether developed within or
2 For Australia, such measures shall respect the principles of value for money, including the efficient and effective use of resources, to the extent provided for in its laws and regulations, and policies. For the Union, such measures shall respect the principles of efficiency, transparency and non-discrimination in accordance with Union law.
3 This is without prejudice to Article 2.11 (Import and export monopolies).
outside of the OECD framework, that has been adopted by at least 12 original WTO Members that were Participants to the Arrangement as of 1 January 1979;
"commercial activity" means an activity which an enterprise undertakes, the end result of which is the production of a good or supply of a service, which will be sold in the relevant market in quantities and at prices determined by that enterprise4, and which is undertaken with an orientation towards profit-making5;
"commercial considerations" means price, quality, availability, marketability, transportation and other terms and conditions of purchase or sale, or other factors that would normally be taken into account in the commercial decisions of a privately owned enterprise operating according to market economy principles in the relevant business or industry;
"designate" means to establish, appoint or authorise a monopoly or oligopoly, or to expand the scope of a monopoly or oligopoly to cover an additional good or service;
"designated monopoly" means an entity, including a consortium or a government agency, that in a relevant market in the territory of a Party is designated as the sole supplier or purchaser of a good or service, but it does not include an entity that has been granted an exclusive intellectual property right solely by reason of such grant;
"designated oligopoly" means two or more public or private enterprises designated by a Party, in law or in fact, as the only suppliers or purchasers of a particular good or service in a relevant market in the territory of that Party, other than enterprises that are designated according to objective, transparent and non-discriminatory criteria;
4 For greater certainty, measures of general application to the relevant market shall not be construed as the determination by a Party of pricing, production, or supply decisions of an enterprise.
5 For greater certainty, an activity undertaken by an enterprise that operates on a non-profit
basis or a cost-recovery basis is not a commercial activity.
"public service mandate" means a government mandate pursuant to which a state-owned enterprise or designated monopoly makes a service available, directly or indirectly, to the general public in the territory of a Party;6 and
"state-owned enterprise" means an enterprise engaged in commercial activities in which a Party:
directly owns more than 50% of the share capital;
is in a position to cast, or control the casting of, more than 50% of the voting rights;
holds the power to appoint a majority of the members of the board of directors or any other equivalent management body; or
has the power to direct the actions of the enterprise or otherwise exercises an equivalent degree of control in accordance with the law of that Party.
Relation to the WTO Agreement
The Parties affirm their rights and obligations under Article XVII of GATT 1994, the Understanding on the Interpretation of Article XVII of GATT 1994 and paragraphs 1, 2 and 5 of Article VIII of GATS.
General provisions
6 For greater certainty, the phrase “making a service available to the general public” includes the distribution of goods and the supply of general infrastructure services.
Without prejudice to the rights and obligations of each Party under this Chapter, nothing in this Chapter prevents a Party from establishing or maintaining state-owned enterprises, or from designating or maintaining monopolies or oligopolies.
A Party shall not require or encourage a state-owned enterprise, designated monopoly or designated oligopoly to act in a manner inconsistent with Article 16.5 (Non-discriminatory treatment and commercial considerations).