With the European elections and the formation of a new European Commission upcoming, an EU-Australia trade agreement is not expected before 2025. It may even be necessary to wait for the Australian parliamentary elections in 2025. The agricultural lobby is an influential factor within Australian politics.
Australian Trade Minister Don Farrell stated that EU Commissioners Dombrovskis (Trade), Sinkevicius (Environment), and Wojciechowski (Agriculture) did not sufficiently accommodate Australian requests to relax a large number of tariffs and quotas. An Australian agricultural association agreed that Minister Farrell was right to hold firm on Australian demands for greater access to EU markets.
For over five years, the European Commission and Australia have been discussing a free trade agreement. They largely agree on most aspects, except for some agricultural issues. The Australians want to export much more additional beef and lamb to Europe. According to Canberra, the quotas and tariffs proposed by the EU stick too closely to the current situation.
European agricultural umbrella organizations have repeatedly urged Brussels not to concede too much to the Australians. Moreover, Australian imports should comply with the latest environmental and climate regulations that the EU imposes on its own European farmers.
Australia only wants to accept EU rules that Brussels has already agreed upon in other free trade agreements, such as those with New Zealand or South America. Those trade blocs are allowed to export more beef, lamb, butter, and cheese to the EU. Australia wants at least the same rules.
Australian Minister of Agriculture Murray Watt said that the EU – one of the largest markets in the world – had only slightly adjusted the proposal it put on the table three months ago.
EU Trade Chief Valdis Dombrovskis said the bloc "had presented Australia with a commercially meaningful offer of access to the agricultural market, while at the same time being mindful of the interests of the European agricultural sector."