Key facts
- Trade Minister Don Farrell stated the Australia-EU free trade agreement is finalized.
- The Coalition opposition has raised concerns about agricultural and climate clauses in the deal.
- The Australian red meat industry criticized the agreement for insufficient beef and sheep meat access.
- The EU's ambassador warned of a potential $10 billion annual economic loss for Australia if the pact fails.
- The agreement requires parliamentary approval in Australia's Senate, where the government lacks a majority.
Australia's Trade Minister Don Farrell has intensified pressure on the Opposition and the Greens to ratify a free trade agreement with the European Union, stating that "the deal is done" and no further negotiations will occur. The agreement, confirmed by Prime Minister Anthony Albanese and EU Commission President Ursula von der Leyen in March, faces significant opposition in Australia's parliament.
The Coalition, led by Nationals leader Matt Canavan, has voiced strong criticisms regarding agricultural quotas and climate change clauses, particularly the elevation of the Paris Agreement into a binding obligation and potential carbon border tariffs. Senator Canavan has suggested reasonable changes and a delay in releasing the text to seek improvements.
The Australian red meat industry has been particularly critical, with the Australia–EU Red Meat Market Access Taskforce chair, Andrew McDonald, calling it the "worst ever free trade agreement" for the sector. He highlighted insufficient beef and sheep meat access compared to what the EU has offered competitors like New Zealand.
Farrell has appealed for business support, warning that political populism is tempting some to oppose the deal for headlines rather than practical outcomes. He emphasized that walking away would mean "no second chance with the EU" and urged a unified, Australia-first approach to free trade, rejecting protectionism.
Senator Canavan, however, described Farrell's call as "insulting" and an "arrogant doubling down on the worst deal ever," asserting that the agreement is not reciprocal and sells out Australian farmers and interests by opening Australian markets while restricting key agricultural exports to Europe.
Lawrence Meredith, the EU's ambassador to Australia, warned that the Australian economy could suffer an annual loss of $10 billion if the pact fails to be ratified. He urged against renegotiation and highlighted the "enormous opportunity" the deal presents, while acknowledging that parties on both sides may feel the deal could have been better.