(Feb 11): Australia’s trade minister is headed to Brussels for talks with European counterparts in an attempt to successfully conclude long-running talks on a trade deal, with both sides keen to sign an agreement and tighten ties in an increasingly unpredictable global environment.
Don Farrell will meet with European Union Commissioner for Trade and Economic Security Maros Sefcovic and EU Commissioner for Agriculture and Food Christophe Hansen on Thursday for formal talks.
“Australia is ready to do a deal, but we don’t do deals for deals sake,” Farrell said in a statement before departing. “Any deal must be in Australia’s interests and include new, commercially meaningful market access for Australian agriculture.”
Both Australia and the EU are racing to shore up economic links with like-minded partners, anxious to insulate their economies from US President Donald Trump’s barrage of tariffs and China’s recent restrictions on critical mineral supplies. The EU recently struck trade accords with India and a bloc of South American countries, revitalising negotiations with both partners after years of delays.
The EU’s talks with Australia broke down in 2023, when Farrell walked away from a near-finalised deal, arguing the EU’s desired duty-free beef quota was too low. Since then, beef and other agricultural exports have remained the negotiations’ key sticking point, Farrell said last month.
Australia’s tax on imported luxury cars and whether the nation’s producers can continue to use European geographically specific brand names for some foods are also outstanding issues.
See also: BYD joins wave of firms challenging Trump’s tariffs in US court
Australian farmers are grappling with Trump’s tariff regime in addition to China’s new, unexpectedly low quotas on Australian beef. They say Europe should welcome more tariff-free Australian beef now that it has offered greater access to competitors like Argentina and Brazil.
Business associations urged the Australian government not to miss the emerging possibility of a deal.
“We remain optimistic that a deal can be done and can be done quickly,” said Jason Collins, head of the European Australia Business Council. “There’s an opportunity that must be taken from both sides to arrive at a compromise on agriculture.”
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