EU-Australia Free Trade Deal Collapses, Revival Could Take Years

Image Source: France 24

 

A free trade deal between the European Union and Australia has unraveled despite initial hope, with Canberra saying on Monday that it could be years before talks can resume.

Since 2018, hard-fought talks have picked up everything from chemicals to cosmetics, but there has been repeated disagreement over market access for Australian products such as beef and lamb.

Australian Agriculture Minister Murray Watt said EU negotiators had refused to budge during the latest round of talks on the sidelines of the Group of Seven summit in Japan.

"Unfortunately we didn't get the impetus we needed from the European Union," he told national broadcaster ABC on Monday.

Watt said negotiations were unlikely to resume during "this current term of Parliament" – indicating the Australian government may not return to the negotiating table until after the 2025 general election.

Watt added, "I think it's going to take a long time for the Australian government or any EU leadership to negotiate a deal. And that's a bit of a shame."

A European Commission spokesman said it was hopeful of a deal in Osaka but Australia had "represented agricultural demands that do not reflect recent negotiations".

The European Commission is ready to continue negotiations, the Commission said in a statement.

French Trade Minister Olivier Bechet flagged "many positive developments" late last week, raising hopes that a deal could be reached.

The two sides clashed over how far Europe should open its markets to Australian exports of sheep meat, beef and sugar.

At the same time, Europe wants better access to Australia's rich reserves of "key minerals", reducing its reliance on Russia and China for clean energy products such as wind turbines and electric car batteries.

In July, the two sides failed to reach an agreement during talks in Brussels, with Australia saying it was not guaranteed "significant" access to the European market for its agricultural products.

(Courtesy: France 24)