BRUSSELS: Despite early optimism, a free trade agreement between the European Union and Australia has crumbled, and negotiations are unlikely to resume for several years, according to Canberra on Monday.
Since 2018, painstaking discussions have delved into a wide array of subjects, ranging from chemicals to cosmetics. However, the primary sticking point has been market access for Australian goods, particularly beef and sheep meat.
Australian Agriculture Minister Murray Watt expressed frustration with EU negotiators who remained inflexible during the latest round of talks, held during a Group of Seven (G7) meeting in Japan. He conveyed his disappointment, stating, “Unfortunately, we just didn’t see the necessary flexibility from the EU side.”
Watt went on to suggest that talks may not resume during the current parliamentary term, indicating that the Australian government might not return to the negotiation table until after the 2025 general election. He added, “I believe it will be quite some time before any Australian government or EU leadership can strike a deal, which is regrettable.”
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A spokesperson for the European Commission conveyed their initial optimism about reaching an agreement in Osaka but noted that Australia reintroduced agricultural demands that did not align with recent negotiations. Despite this setback, the European Commission remains open to continuing negotiations.
French Trade Minister Olivier Becht had raised hopes for a positive outcome with a number of very positive advances in the negotiations just last week. However, the core issues revolve around the extent to which Europe should open its markets to Australian sheep meat, beef, and sugar exports. Simultaneously, Europe seeks improved access to Australia’s abundant reserves of “critical minerals” to reduce reliance on Russia and China for essential components in clean-energy products, such as wind turbines and electric car batteries.
In a previous attempt in July, both parties failed to reach an agreement during talks in Brussels, with Australia expressing dissatisfaction over the lack of “significant” access to the European market for its agricultural products.
