The European Union and Australia reached preliminary agreements on Tuesday covering trade and defense, in a move aimed at boosting exports and strengthening cooperation amid global trade uncertainty.

European Commission President Ursula von der Leyen said in a statement to reporters in Canberra that she and Australian Prime Minister Anthony Albanese had agreed on a free trade deal between the two sides, alongside a defense and security partnership to enhance cooperation in maritime and cyber security, according to AFP.

Von der Leyen said, “I and Australian PM, Anthony Albanese, had reached an agreement on defense and security partnership to enhance cooperation in the field of maritime and cyber security.”

She added, “we are delivering a strong message to the rest of the world that friendship and cooperation are paramount in times of turmoil.”

Albanese described the deal as “a significant moment” for Australia, noting that the country has secured an agreement with “the world’s second largest economy.”

The trade agreement is expected to increase European exports to Australia by one third over the next decade, with strong growth anticipated in dairy and automotive sectors of about 50 percent. It will also expand quotas for Australian beef exports to the European Union by more than tenfold compared to current levels over the same period.

The agreement is expected to be formally signed after approval by the European Council.

European Union companies exported goods worth 37 billion euros (42.9 billion dollars) to Australia last year, alongside 31 billion euros in services in 2024.