EU trade talks stall as Australia holds out for farmers

Paul Osborne and Tess Ikonomou | July 12, 2023

Australia remains committed to striking a free trade deal with the European Union, despite hurdles in talks over access for farm exports.

Prime Minister Anthony Albanese has been holding talks with European leaders including French President Emmanuel Macron on the sidelines of the NATO summit in Lithuania.

He is expected to meet with European Commission president Ursula von der Leyen on Wednesday as he wraps up his visit.

An EC representative said in a statement progress had been made on the free trade agreement but “more work is required to address key outstanding issues”.

“We regret it was not possible to conclude our talks with Australia this week,” it read.

Dr Chalmers said the deal was a huge opportunity for Australia.

“We are committed to doing what we can to get a deal done,” he told reporters in Melbourne on Wednesday.

“This is a big market for our exporters, our farmers and workers. We want a good deal here but it cannot be a deal at any cost.

“If it takes a bit longer to strike a deal which is in Australia’s national interest, then so be it.”

Trade Minister Don Farrell, who is in Brussels for talks, said he was optimistic.

“With some goodwill, some hard work, some perseverance, we’re going to get there.”

Mr Albanese also discussed the trade deal with Portuguese leader Antonio Costa, who the prime minister said had been a strong supporter of the agreement.

National Farmers’ Federation chief executive Tony Mahar, who is also in Brussels, backed the government’s strong line on negotiations while remaining optimistic an agreement could be struck.

“We applaud minister Farrell and the negotiating team for rejecting a sub-standard deal,” he said.

“A lesser minister might have folded in what continues to be a tough negotiation.

“We’re hopeful that with some grit and goodwill from both sides we can get this thing done in a way that benefits everyone, including Aussie farmers.”

One sticking point in the trade talks is the EU’s objection to Australian food producers using terms such as feta and prosecco.

Australian negotiators argue it is reasonable for farmers to use the terms to represent varieties rather than European regions.

Negotiations were launched in 2018 to seal an agreement which could especially benefit Australian exports of beef, sheep meat, sugar, cheese and rice, which are significantly constrained by EU tariff quotas.

Australia is arguing for full tariff liberalisation of agriculture in the agreement.

with Reuters