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Brussels might want to make a “higher supply” to Australia’s beef and sheep farmers if it desires to shut out a commerce cope with Canberra, the nation’s commerce minister has warned.
Don Farrell informed the Monetary Instances that regardless of improved diplomatic mood-music in Brussels across the prospects for a deal, it might must be backed by concessions on agricultural entry from Europe.
“We would like a greater supply than what we’ve had thus far. And I do know that’s laborious for the Europeans. However, , we’ve got rejected their two earlier affords. We wish to see a little bit of goodwill, and which means getting a greater supply,” he mentioned.
Talks between the 2 sides broke down in October 2023 in spectacular style after Farrell walked away from what the EU Fee believed have been to be last talks in Osaka, Japan.
Each side have talked up the possibilities of hanging a contemporary settlement after the Labor social gathering authorities of Anthony Albanese was re-elected in early Might. Reopening talks over a commerce cope with the EU was one of many priorities highlighted by Labor throughout the election marketing campaign in response to US tariffs on Australian imports, together with metal and aluminium.
Farrell was talking after a gathering with the EU’s commerce commissioner on the sidelines of the OECD convention in Paris, describing Maroš Šefčovič warmly as “a gregarious type of fellow” with whom he may do enterprise.
Šefčovič additionally struck an upbeat tone with reporters after the assembly, saying that Brussels believed “we will obtain substantial progress this yr”.
A group of Australian negotiators went on from Paris to Brussels on Wednesday evening to proceed technical talks.
Nevertheless, whereas acknowledging that the “world had modified” for international commerce since Donald Trump had returned to the White Home, Farrell mentioned that the problems round agricultural market entry remained unresolved.
“Europeans say, ‘look, , our farmers don’t like us giving entry to Australian beef and lamb producers’. However our farmers say, ‘nicely, dangle on a second, we’ve got to have better entry and the EU has given beneficiant advantages to different nations. And we wish better entry’,” he mentioned.
Previously the EU had provided an annual beef quota of 24,000 tonnes, however Australia needed about 40,000 tonnes, plus much more sheep meat. Australia presently has a assured quota of three,389 tonnes of beef that it may export to Europe yearly, on which it pays a tariff of 20 per cent.
Different delicate factors are an EU demand that Australian producers cease utilizing EU-protected names for meals merchandise, similar to feta and prosecco. Australian negotiators have urged a compromise to obviously mark such items as being made in Australia.
Albanese, talking in Rome final month when he met European Fee president Ursula von der Leyen, mentioned the EU needs to be “proud” that European migrants had travelled to Australia and achieved success with such heritage gadgets. “The concept you continue to produce feta, however you name it one thing else, it doesn’t change what it’s,” he mentioned.
Brussels additionally desires to make sure its corporations is not going to pay extra for uncooked supplies than home consumers in Australia.
Farrell mentioned there was renewed goodwill however {that a} deal would solely be reached by means of compromise on each side, which he indicated was nonetheless a way off.
“Now we have made substantial progress on plenty of the problems. However the actually, actually tough points are nonetheless excellent. I don’t wish to provide the impression that, , they’ve in any means been resolved, as a result of they haven’t,” he mentioned.
