“We know that closing ourselves off to the world is neither good for business nor good for the global economy,” he said.

He said the deal would benefit EU businesses and citizens through new jobs, growth and investment.

Closing ourselves off to the world is neither good for business nor good for the global economy.

European Commission President Jean-Claude Juncker

He anticipated it would mean new opportunities for European businesses in the Australian market, particularly in sectors such as motor equipment, machinery, chemicals and processed foods.

EU businesses would also use Australia as an entry point into the Asia-Pacific region.

At the moment, compared to other countries Australia has signed trade deals with, EU businesses “have comparably less favourable conditions to access (Australia’s) market”, according to an EU press release.

The deal would “expand our alliance with partners committed to the same values such as human rights and similar standards on labour and environment, health and consumer protection”.

The EU is Australia’s third biggest trading partner, with around €45.5 billion a year in bilateral trade, split roughly 50-50 between goods and services.

However this number includes trade with the UK, which will no longer be an EU member by the time the trade deal comes into effect.

EU trade commissioner Cecilia Malmstrom said the deal would “safeguard high standards in key areas such as sustainable development”.

“I am looking forward to visiting Canberra and Wellington in the coming weeks to officially launch our negotiations.”

Australia was a “like-minded friend”, she said.

In a veiled swipe at the United States, she said “starting these talks between like-minded partners sends a strong signal at a time where many are taking the easy road of protectionism”.

Michael Pulch, the EU’s ambassador to Australia, said he looked forward to welcoming Malmstrom to Australia in four weeks’ time.

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Australia’s ambassador to France, Brendan Berne, said it was a “great day for the partnership” between the EU and Australia, and he looked forward to an “ambitious” agreement.

Justin Brown, Australia’s ambassador to the EU, said an FTA “has great potential to deliver economic benefits and show our shared support for (an) effective rules-based trading system”.