Australia and the European Union have been unable to finalize the details of a free trade agreement (FTA), with “agricultural access” being the main point of contention, according to reports.
In their most recent round of discussions, which marked the eleventh round since 2018, both parties disagreed on the quotas for Australian beef, lamb, sugar, wine, and dairy that should be permitted for trade in the EU.
Australia’s trade minister Don Farrell stated that both sides will aim to reconvene in August, emphasizing the need for meaningful agricultural access to European markets.
The European Union recently signed an FTA with Australia’s neighboring country, New Zealand, eliminating tariffs on exports such as pig meat, chocolate, confectionery, biscuits, and wine. The agreement also encompasses extensive protection of geographical indications of food and beverages for both parties.
The proposed deal with Australia also seeks to safeguard “distinctive regional EU food and drink products from imitations in Australia.” This move follows Australian producers’ criticism of the EU’s protectionism of the name Prosecco earlier this year.
While progress has been made, the EU’s delegation to Australia regrets that talks with Australia have not concluded this week. Further work is required to address key outstanding issues, and both teams will continue their efforts to bridge remaining gaps. The EU hopes for a balanced agreement that aligns with mutual strategic interests and protects the stakeholders’ interests. The EU remains open and relies on cooperation from its Australian partners to reach an agreement soon.
The EU is the third largest two-way trading partner for Australia, trailing only China and Japan, and is the second-largest source of foreign investment. Furthermore, Australia signed an FTA with the UK last year. Should an agreement be reached, the EU estimates that trade in goods between Australia and the EU could grow by up to 33% and services trade by up to 8%, contributing €3.9bn ($4.3bn) to the EU’s GDP by 2030.
The EU’s primary trading partners for goods are China, the US, and the UK. Additionally, the EU has ongoing FTA negotiations with Indonesia, Tunisia, and the Philippines.