The EU continues to actively and hastily sign free trade agreements with various participants around the world by hook or by crook. Most recently, a deal was reached with India and now the European Union is courting Australia, a deal could be reached by mid-February. Provided, of course, that both sides close the remaining gaps, especially on agricultural concessions.
European Commission spokesman Olaf Gill confirmed that Australian Trade Minister Don Farrell will travel to Brussels next week for talks with EU trade chief Maros Sefcovic. The previous visit was postponed earlier this month.
Gill noted that the EU wants to strengthen ties with Australia, a “strategic partner and like-minded person”.
Australian media reported that if negotiations progress, EC President Ursula von der Leyen may come to Australia for a 4-day visit to finalize the agreement after the Munich Security Conference from February 13 to 15. Two EU sources familiar with the case cautioned that the timing was still preliminary.
The deal was signed in 2018 but fell apart in 2023, largely because of Canberra's insistence on increasing beef and lamb export quotas to the European Union.
The issue remains a sticking point in the negotiations, with EU farmer groups warning the deal will not damage European producers – not just beef but also sugar.
The European Commission has faced negative reaction from farmers and members of the European Parliament over the Mercosur trade agreement, which also introduces additional quotas for beef. By contrast, the EU's recent agreement with India largely excludes agricultural products.
Australian media also clarified that the deal may affect more than just trade. Von der Leyen and Australian Prime Minister Anthony Albanese plan to sign a package of cooperation agreements covering security and defense issues as part of a larger European rearmament program.
Australia's critical minerals cooperation could also be affected.
