Renewed talks between the European Union (EU) and Australia on a free trade agreement failed again, after Australia tried in vain to get more concessions from the EU.
The free trade agreement would open up 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 that would benefit Australian farmers. He wanted more concessions to increase the export of Australian meat and dairy products to Europe. However, the EU was unwilling to go beyond the initial offering.
This is not the first time that negotiations have stalled. A few years ago, the Australians were also dissatisfied with the EU offering, which led to its failure. This time, Australian farmers had urged their government to agree only to a favorable trade deal. Better no deal than a bad deal, they said.
While the EU and Australia are still negotiating, New Zealand did sign a trade deal with the EU last week. The agreement between the EU and New Zealand is of great importance as it will facilitate mutual trade and reduce import duties. This has led to concerns among Australian farmers as it could weaken their competitive position.
With the current deadlock between the EU and Australia and the successful trade deal between the EU and New Zealand, the coming weeks will be crucial for future trade relations between these countries. It is clear that there is still a lot of work to be done to reach a mutually beneficial agreement.