Positive signs of progress on elusive trade agreement
Australia’s Trade Minister is confident a long-delayed deal can be reached following high-level talks with counterparts in the European Union.
Trade Minister Don Farrell held constructive and positive talks with EU trade commissioner Maros Sefcovic and agriculture commissioner Christophe Hansen in Brussels on Friday.
Negotiations on the proposed free trade agreement began in 2018 but fell twice at the final hurdle as Australia pushed for greater access to European markets for domestic beef producers.
EU negotiators have so far refused to budge on the core demand.
Good progress has been made in narrowing gaps on a small number of key issues, trade ministers said in a joint statement on Friday.
“The participation at the ministerial level was constructive and positive and allowed the two sides to come closer on various issues,” the statement said.
“Managers will now report to their leaders.”
Despite years of difficult negotiations, agriculture remains the agreement’s main sticking point.
Australia initially pushed for more than 30,000 tonnes of beef, while Europe sought to reduce the quota to protect domestic farmers who opposed putting more meat on the market and depleting their income.
But negotiators are still deadlocked on some import restrictions.
Although other free trade agreements signed by Europe, such as those with Canada and New Zealand, were allocated tens of thousands of tonnes of tariff-free meat, they were unable to use the vast majority of it due to Europe’s strict import controls.
The free trade agreement will give Australian exporters greater access to global markets of more than 450 million people.
After two days of talks, Senator Farrell said he was pleased with the progress made during his short trip.
“As I have said repeatedly, any agreement must be in Australia’s national interest and deliver real benefits to Australian businesses, manufacturers, exporters and workers,” he said.
“I am confident that both Australia and the European Union will reach an agreement that will benefit both our economies.”
This came months after Mr Sefcovic traveled to Australia, where he announced the final stages of negotiations could be completed in 2026.
“This can be achieved,” he said in November.
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