Australia Rejects EU Free Trade Deal Terms
Australia rejects EU's free trade agreement proposal, delaying any potential deal for years, government ministers announced
Canberra, Australia has declined the free trade agreement proposals put forward by the European Union. According to Australian government ministers, it is unlikely that a deal will be reached for several years. The country's biggest agricultural industry association expressed gratitude to the government for not agreeing to a deal that would have limited the access of Australian farmers' products into the EU.
Negotiations between the two parties began in 2018, with the aim of Australia increasing agricultural exports by eliminating EU tariffs and expanding quotas. On the other hand, Europe is eager to gain increased access to Australia's critical minerals industry. Following a meeting of G7 trade ministers in Osaka, Japan, Australian Trade Minister Don Farrell stated that no advancements were achieved.
"I arrived in Osaka with the objective of concluding a free trade agreement," Farrell stated.
"Regrettably, we have been unable to make any advancements," he added. "Negotiations will persist, and I remain optimistic that we will eventually reach a mutually beneficial deal for both Australia and our European counterparts."
Australia's Agriculture Minister, Murray Watt, expressed disappointment in the European Union's lack of significant changes to their proposed agreement, which was presented three months ago. He stated that the EU's offer regarding beef, sheep, dairy, and sugar did not meet Australia's expectations, leading them to conclude that the deal was not advantageous for the country's national interests.
EU trade chief Valdis Dombrovskis mentioned that the European Union has put forward a substantial agricultural market access proposal to Australia, taking into account the concerns of the European agricultural sector.
Dud deal
It will take a while for the Australian government and EU leadership to negotiate a deal due to the upcoming elections in the EU, according to Australia's Watt. Australian farm groups have urged the government not to sign a disadvantageous deal that would put their members at a competitive disadvantage compared to competitors in New Zealand, Canada, and South America, who have better access to EU markets.
Last year, the European Union (EU) and New Zealand entered into a trade agreement that resulted in reduced tariffs for EU exports such as clothing, chemicals, and cars. Additionally, the agreement allowed for increased imports of New Zealand beef, lamb, butter, and cheese into the EU. National Farmers Federation President David Jochinke expressed disappointment in the Europeans' lack of willingness to offer significant commercial benefits in the agreement.
