BOLSTERING Australian competitiveness and diversifying market access is how a trade deal with the EU has been described by the federal government.
The deal was announced this week during a visit to Sydney and Canberra by President of the European Commission, Ursula von der Leyen.
But while some Australians may be looking forward to cheaper cognac, a key farmers’ group says the deal is “extremely disappointing” in terms of access to EU markets.
Prime Minister Anthony Albanese said the agreement was the culmination of almost eight years of negotiations.
“I am proud that we have been able to secure this deal, which will deliver benefits for both Australia and the European Union for generations to come.
“This deal creates major new opportunities for Australian exporters in the European Union’s massive $30 trillion economy and will reduce costs for Australian consumers.”
Trade minister Don Farrell said the removal of EU tariffs on “most of Australia’s exports” gave Australian exporters the opportunity to diversify trade with 450 million consumers.
“This is a strategically important and economically valuable agreement at a time when Australian exporters are navigating choppy trade waters,” Senator Farrell said.
“More trade, with more trading partners means more supply chain security, more well-paying jobs, cheaper prices, and more national income to build things like urgent care clinics and improve government services.”
According to the government, Australian farmers and producers will benefit from the elimination of almost all European Union tariffs on agricultural products.
This includes wine, nuts, fruit and vegetables, honey, olive oil, most dairy products, wheat and barley, and seafood.
“For other important agricultural products, the agreement delivers commercially meaningful access through new or expanded tariff rate quota volumes, including for beef, sheep meat, sugar, rice, wheat gluten, skimmed milk powder and natural butter,” the government stated.
“The removal of most Australian tariffs on imports from the EU will make things like European wine, spirits, biscuits, chocolates and pasta cheaper at Aussie checkouts.”
Farmers and businesses are also tipped to benefit from cheaper motor vehicles and machinery.
Meanwhile the National Farmers Federation has issued a statement saying it was “extremely disappointed” negotiations for a free trade deal had concluded “without commercially meaningful agricultural market access gains”.
“What the Australian government has accepted appears to offer no material change for key agricultural commodities as what the government rightly rejected in October 2023,” said NFF chief executive Hamish McIntyre.
“The NFF acknowledges the efforts made by Australian negotiating officials against a tough counterparty.
“While we acknowledge some progress on issues such as geographical indicators, preserving the use of names like prosecco and parmesan, farmers will rightly be concerned this deal hasn’t delivered commercially meaningful access for Australian agricultural exports,” Mr McIntyre said.
“They will now pay the price for this subpar EU deal for decades to come.”
Sugar producers from Australia's north, famously squeezed out of the US free trade deal two decades ago, also are unhappy.
“This is a horrendous outcome for Australia’s cane growers,” said CANEGROWERS chief executive Dan Galligan.
"The deal delivers no growth, no pathway to expand access and effectively locks growers into a bad deal for the next generation. It’s a capitulation to protectionist European sugar interests, plain and simple.”
However, the Victorian Automotive Chamber of Commerce welcomed the agreement, saying it would deliver greater choice for drivers.
VACC chief executive Peter Jones said the agreement was a positive step for the automotive sector, particularly for local dealers and the communities they support.
“This deal is good news for drivers, it means more choice and more accessible vehicle options across the market,” Mr Jones said.
Check out the DCN website tomorrow for detailed analysis of the Australia-EU deal by trade lawyer Andrew Hudson.