Australia Rejects EU Trade Deal: Australia has officially rejected the European Union’s proposed free trade agreement, signaling a potential delay in reaching a comprehensive deal for several years, according to Australian government ministers.
Australia’s main farm sector group thanked the government for defending farmers’ interests. They feel the planned accord would not have given their products enough EU market access.
Australia and the EU are negotiating since 2018. Australia’s main goal is to boost agricultural exports by removing EU tariffs and increasing quotas. In exchange, the EU would obtain access to Australia’s vital mining industry. After a weekend meeting between Australian Trade Minister Don Farrell and EU counterpart Valdis Dombrovskis in Osaka, no meaningful progress was made.
I came to Osaka to clinch a free trade agreement,” said Farrell. Unfortunately, we’ve stagnated. We will negotiate, and I hope we can get a solution that benefits Australia and our European allies.”
Australia’s Agriculture Minister, Murray Watt, pointed out that the EU’s latest proposal, presented three months ago, offered only slight modifications. He explained, “We just weren’t able to see the EU increase its offer for things like beef, sheep, dairy, sugar, enough for us to think that this deal was in Australia’s national interest.”
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The road ahead looks complex, as it may take some time before Australia and the EU can revisit negotiations due to upcoming elections in the EU. Watt noted, “The EU next year will go into its election cycle. It’s always much harder for countries and regions to negotiate these sorts of trade agreements on the eve of elections.”
Australian farm groups had been exerting pressure on the government to avoid signing a “dud deal” that could disadvantage their members in comparison to competitors in New Zealand, Canada, and South America, who enjoy broader access to EU markets.
The EU had already entered into a trade agreement with New Zealand last year, which reduced tariffs for EU exports such as clothing, chemicals, and automobiles while permitting increased imports of New Zealand beef, lamb, butter, and cheese into the EU.
National Farmers’ Federation President David Jochinke expressed disappointment that the EU didn’t put forth a more commercially substantial offer and thanked Farrell for declining the EU’s terms. The negotiation process remains a challenging journey with both sides striving for mutually beneficial terms.
Our Reader’s Queries
Does Australia have a trade deal with the EU?
The preferential trade agreement (PTA) between Australia and the European Union, which has been under negotiation for five years, is facing a major setback. Talks were suspended on 29 October 2023, and there seems to be no immediate plan to resume them.
How has the Australia United States Free Trade Agreement affects trade for both countries?
Under the Agreement, almost all U.S. manufactured goods exported to Australia will be tariff-free, which covers a whopping 93 percent of all U.S. exports to the country. This is a significant development that will benefit both nations.
What is Australia’s relationship with the EU?
Australia and the European Union share strong political, economic, and cultural bonds. Together, they strive to fulfill their global responsibilities, including promoting sustainable development, addressing climate change, and upholding international law. These shared values and goals have brought the two entities closer, fostering a mutually beneficial relationship.
When was Australia free trade agreement?
Effective January 1, 2005, the United States-Australia Free Trade Agreement (FTA) was put into action.