EU trade deal inches closer amid minerals talks
Top diplomats from Australia and Germany hinted at progress on a long-stalled free trade agreement with Europe, while also agreeing to closer cooperation on critical minerals, energy, cybersecurity and climate change.
During talks in Canberra, foreign ministers from both countries agreed to work more closely together to support critical mineral supply chains currently dominated by China.
Germany is a major user of rare earth elements (elements found in abundance in Australia) such as lithium, which are used in car manufacturing, defense technologies and renewable energy.
“The main topic of the talks here is closer and more important cooperation in the field of critical raw materials such as rare earth elements. This is also a matter of economic security,” German foreign minister Johann Wadephul told reporters in Canberra. he said.
“We must diversify our supply chains and collaborate as closely as possible,” he said.
Foreign Minister Penny Wong said so-called “middle powers” such as Australia and Germany needed to work together amid global uncertainty.
“As middle powers, we want to contribute to a world where no country dominates and no country is dominated,” he said, speaking alongside Dr Wadephul.
“Middle powers are active. Middle powers are ambitious.”
Both leaders also discussed negotiations over the Australia-EU free trade agreement, which have been going on for years and appear to be making progress.
Plans are afoot for Trade Minister Don Farrell to meet his European counterpart ahead of European Commission President Ursula von der Leyen’s trip to Australia in the coming weeks.
Dr Wadephul said his country would be “constructive and positive” in the negotiations.
“These negotiations now need to be held, especially in the agricultural sector. They are challenging, which is not surprising,” he said.
Australia has been trying to strike a free trade agreement with Europe for much of the last decade, but disagreements over naming rules for products such as feta and prosecco have posed major obstacles.
These disagreements caused the talks to collapse in 2023, but have now resumed.
“It is important to do another trial and I think we will be successful,” Dr Wadephul said.
Senator Farrell, who is leading negotiations on the Australian side, said good progress was being made on the agreement.
“We are much closer,” he told reporters in a brief statement on Tuesday.
