According to those involved, the negotiations are in their final stage, with only a few outstanding issues remaining. Both parties speak of clear progress and expect to finalize the agreement soon.
Commission President Ursula von der Leyen will travel to Australia next week. It is expected that she will be able to conclude the deal that EU Trade Commissioner Sefcovic and his Australian counterpart Farrell prepared last week in Brussels.
Agriculture
Agriculture and livestock farming remain the main sticking point. Especially the access of Australian beef and lamb to the European market continues to cause tensions between the two parties. At the same time, the agreement goes much further than just agriculture. Industry, tariffs, and broader economic cooperation are also part of the negotiations.
Promotion
The European-Australian trade deal therefore bears many similarities to the recently concluded European trade agreement with the South American Mercosur countries. European farmers also had many objections to that deal, as it enabled the influx of competitors into their markets. Nevertheless, the European Commission decided to proceed with implementing that agreement.
An important additional element is the cooperation regarding the availability of Australian raw materials such as lithium, cobalt, and rare earth metals. These play a role in strengthening economic and industrial supply chains.
Global Trade
The negotiations gain extra urgency due to changing global trade conditions. New US import tariffs and growing international tensions pressure both parties to deepen their cooperation. Both are also seeking new trading partners to reduce their dependence on trade with the United States.
This gives the potential agreement a clear strategic significance as well. It is seen as a way to stand stronger against other major economic powers. The main goal is to strengthen the economic position of both the EU and Australia and to make their supply chains more resilient in an uncertain global environment.