Source : the age
Trade Minister Don Farrell has raised the stakes for Australia and the European Union to break a seven-year deadlock on a free trade pact, arguing a successful agreement will set an example for the world to reject Trump-style tariffs in favour of unrestricted trade.
Farrell said he would speak to his counterpart, European trade commissioner Maros Sefcovic, on Tuesday and would invite him to travel to Australia at the earliest opportunity to restart negotiations that began in 2018 before collapsing in 2023.
Prime Minister Anthony Albanese meets European Commission President Ursula von der Leyen in Rome.Credit: Alex Ellinghausen
While keen to strike an agreement, Farrell said Australia would not accept a second-rate deal and would demand significantly enhanced access to the European market for Australian exports.
European Commission President Ursula von der Leyen used a meeting with Prime Minister Anthony Albanese in Rome on Sunday to float the prospect of a new defence and security partnership, but the federal government’s priority is striking a long-sought-after free trade deal with the EU.
“Europe and Australia are in a position to set an example for other countries, so the message gets out that protectionism is not the way to go,” Farrell said in an interview with this masthead.
“Protectionism will lead to higher inflation, higher unemployment, a reduction in living standards and, as we have seen in recent days, a reduction in credit ratings for countries that go down that path … Europe and Australia talk about the importance of the rules-based order, and we have to demonstrate to the world that free and fair trade is good for prosperity.”
Albanese told reporters he was open about the prospect of closer defence ties with Europe, but expressed caution about any commitment.
“We said that we were certainly interested in any further engagement of support, but it’s very early stages at this point,” he said.
Ratings agency Moody’s stripped the United States of its final AAA credit rating last week over the country’s economic trajectory.
Farrell said Australia would continue to lobby the Trump administration to remove tariffs on Australian goods, but added: “We’re not going to wait for that to happen to try to find new markets.”
Trade Minister Don Farrell.Credit: Alex Ellinghausen
Australia would not do a deal at any cost, Farrell said, and was willing to again walk away from negotiations unless the EU granted Australian beef, lamb, sugar and dairy producers improved access to the bloc’s 445 million consumers.
“We are not desperate. We have got to get a better offer from them on agriculture,” Farrell said.
“They have offered other countries better deals than what we received last time. We are willing to negotiate, but it has to be a better offer than we have had in the past.”
The EU imposes strict quotas and high tariffs on Australian agricultural imports, which negotiators have been trying to remove or at least significantly reduce.
European farmers have recently organised a wave of heated protests against cheap imports, including Czech farmers dumping manure in front of the government’s office and French farmers driving tractors through Paris.
“They face pressure from their farmers, but so do we,” said Farrell.
He said he would make a passionate argument that Australian producers should be able to continue to use traditional European product names such as prosecco, feta, halloumi and parmesan.
“My message to them is that after World War II, we accepted huge numbers of migrants from Europe. They brought their culture, their families, and their food and wine,” he said.
“It’s a way for them to maintain their connection to the old country and we shouldn’t take that away from them.”
In an interview with this masthead, EU ambassador to Australia Gabriele Visentin signalled Europe was open to compromise on the vexed issue of naming rights, predicting a free trade pact would produce an “incredible boost” for economic relations between the EU and Australia.
In her meeting with Albanese, von der Leyen said the EU was seeking a defence pact with Australia to deepen military co-operation, following on from recent agreements with Japan and South Korea.
“We do not only see you as a trading partner, but we see you as a strategic partner, and we would very much like to broaden this strategic partnership,” she said.
Albanese expressed caution about the idea, saying: “We said that we were certainly interested in any further engagement of support, but it’s very early stages at this point.”
The move came as Albanese met Ukrainian President Volodymyr Zelensky and pledged continued Australian support against Russia, including the delivery of Abrams tanks promised last October.
Albanese and Ukrainian President Volodymyr Zelensky in Rome.Credit: Alex Ellinghausen
Zelensky told Albanese that Ukraine wanted tougher sanctions on Russia, but he also thanked Australia for the sanctions it had already imposed, along with the delivery of military support and humanitarian aid worth $1.5 billion.
