The free trade agreement would open the European market to Australian agricultural products, while Australia would in turn gain access to the European market for industrial and service sectors.
Australian Trade Minister Don Farrell was determined to strike a deal beneficial for Australian farmers. He sought additional concessions to increase exports of Australian meat and dairy products to Europe. However, the EU was unwilling to go beyond the initial offer.
This is not the first time negotiations have stalled. A few years ago, the Australians were also dissatisfied with the EU’s offer, which led to a failure. This time, Australian farmers pressured their government to only agree to a favorable trade agreement. "Better no deal than a bad deal," they said.
Promotion
While the EU and Australia are still negotiating, New Zealand last week did sign a trade agreement with the EU. The deal between the EU and New Zealand is significant as it will facilitate mutual trade and reduce import tariffs. This has raised concerns among Australian farmers as it could weaken their competitive position.
With the current stalemate between the EU and Australia and the successful trade agreement between the EU and New Zealand, the coming weeks will be crucial for the future trade relations between these countries. It is clear that much work remains to be done to reach an agreement favorable to both parties.