Pathway emerges for elusive EU-Australia trade deal
A difficult EU-Australia free trade deal could be finalized soon and possible farming concessions could pave the way for the stalled deal to get over the line.
Negotiations have twice failed at the final hurdle, with Australia demanding greater access to European agricultural markets.
Australian sheep and beef exports have been sticking points, with European farmers concerned about unfair competition from cheaper imports.
However, EU parliamentarian Sean Kelly said production in Europe was either peaking or declining.
The head of Australia and New Zealand’s delegation said a phased approach, which is not unusual for trade deals, could close the gap, along with a review mechanism and possible compensation for European farmers.
The Irishman told AAP that failure to reach a deal for a third time would delay negotiations by five to 10 years.
“I come from an agricultural background, I would not vote for anything that I think would harm agricultural interests,” he said.
“But my experience has always been that expressed fears never actually come true because people were able to adapt, and that had a lot of benefits.”
Mr Kelly said Europe had agreed to provide guarantees and protection to farmers while monitoring the impact of the Mercosur agreement with South American countries on the sector.
This includes action if prices in the European market fall.
“There will be what we call a sunset clause in there that will follow how things are going,” Mr. Kelly said of the Mercosur deal.
A sunset clause is a provision that puts an end date on a contract and allows the parties to exit the contract if certain provisions are not met.
“But actually the current trend in Europe is not an increase in production, but a decrease in production,” Mr Kelly said.
“So even if Australia gains greater access to the European market, there may be very little disruption.
“The point is to guarantee that the process will be monitored as it continues.”
He stated that Europe has an unfilled quota with Canada.
The delegation met with Trade Minister Don Farrell during their visit to Canberra.
Mr Kelly said it was more important to secure a trade deal given US tariffs and China being an “unreliable” partner.
“The answer to tariffs is free trade,” he said.
Mr Kelly said defense cooperation, including reliable supplies of critical minerals key to military technology, would also be supported by the trade agreement as it would strengthen Europe’s supply chains.
“Australia is absolutely crucial to the geopolitical situation, but also the credibility and expertise they bring to the table is very important,” he said of the defense industry.
The European Commission’s trade chief, Maros Sefcovic, will visit Australia at the end of November in line with a meeting of members of the Trans-Atlantic free trade agreement that the bloc is interested in.
Australia will chair the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, known as the CPTPP, in 2025, and Senator Farrell will host his counterparts in Melbourne in November.
Europe is looking for partnership opportunities with the trans-Atlantic bloc.
