German Chancellor Freidrich Merz asks Anthony Albanese whether he can help speed up Australia-EU free trade agreement

Australia could be on the verge of cementing a free trade deal with multiple major countries, with both parties acknowledging the symbolic significance of the pact.

After Anthony Albanese’s G7 run was up-ended by Donald Trump’s swift exit, a new trade deal with the European Union could bolster Australia’s international trade presence, with EU leaders backing a potential agreement that could be inked within months.

The Prime Minister’s chance to negotiate a tariff exemption with the US President was stymied when he returned to the US to contend with escalating attacks between Israel and Iran.

But Australia could expand its international trade presence through a free trade agreement with the EU.

Prior to a trilateral with European Commission president Ursula von der Leyen and European Council President António Costa on Wednesday morning, Ms von der Leyen said a new deal with Australia would be a “very strong signal to the world today”.

“We have been getting closer and I think, at this time, it would send a very important signal about the importance of free and fair trade,” he said.

Later speaking to reporters, Mr Albanese said he was “hopeful” of a deal being sorted when Ms von der Leyen visited Australia over the coming months, but wanted to be realistic, given negotiations had previously come to a standstill.

“I’m hopeful, but we were close last time and didn’t quite get there. So unless the deal is in Australia’s national interest, then we won’t agree to it,” Mr Albanese said.

Anthony Albanese met the heads of the European Union and European Council on Wednesday morning (AEST). Picture: NewsWire/ Gaye Gerard

He added that two or three issues which had previously up-ended the deal had been resolved satisfactorily.

This included rules preventing importers from selling products associated with a geographical location, such as feta, prosecco, and parmesan, which the European Union has appeared to concede on, and export quantities which were still being worked through.

“We’ll continue to put forward our view of an increase in the offer which is there for our sheep meat. Now, beef will continue to engage constructively, and I am hopeful that we’ll get a deal done,” he said.

Earlier on Wednesday, German Chancellor Freidrich Merz also indicated his desire to secure a deal as quickly as possible during his bilateral with Mr Albanese.

During brief remarks prior to their meeting, Mr Albanese thanked Mr Merz for his support of Australia securing a free trade agreement with the EU, to which the German leader interjected and said: “Is there anything what we can do, what I can do to speed it up a little bit”.

Mr Albanese said in response: “We’re very keen on getting it done very quickly”.

The success of a deal would require the EU to waver on its strict rules on product names. Picture: NewsWire/ Nikki Short

Speaking about the agreement on Monday (AEST), Mr Albanese said he would “only sign up to an agreement that is in Australia’s national interest”.

“I think that the fact that during the last term we had negotiations and then we walked away is important, because what that does is confirm that we are prepared to walk away,” he said.

“And if you’re trying to advance your national interest, then you need to be serious about that and show that you are.

“And so, whether it’s this or any other agreement for that matter, my job is to represent Australia’s national interest. We will do that.”

Originally published as German Chancellor Freidrich Merz asks Anthony Albanese whether he can help speed up Australia-EU free trade agreement