Don Farrell dashes to Brussels to break EU trade deal deadlock

Trade Minister Don Farrell is making a dash to Brussels in a bid to break a deadlock over a free trade deal with the European Union.

Farrell will arrive in Brussels on Monday morning for two days of talks as he tries to get the Europeans to budge on a deal that would give Australian exporters EU market access for agricultural products including beef, sugar, dairy and sheep meat.

Trade Minister Don Farrell with the European Commissioner for Trade Valdis Dombrovskis in Brussels last month.Credit: Twitter

Australia has been trying to negotiate a deal with the EU since 2018 to send products into a high-income market of 450 million consumers and a GDP of $24 trillion.

Farrell, who is holidaying with his wife, will break his leave to return to the negotiating table in Brussels.

Australia and the European Union have been at loggerheads since talks stalled last month and Farrell left Brussels empty-handed.

While the trade minister’s return to Brussels will be seen in Europe as a sign Australia is ready to negotiate, the Australian side is adamant it is the Europeans who need to improve their offer.

“Negotiations remain difficult and have reached a point where issues vital to Australia’s national interest must be improved,” Farrell said.

“The government remains strongly committed to the best possible deal for Australian businesses, farmers, workers and the broader community.”

The negotiations have been hampered by entrenched EU farm lobbies that have pushed back against moves to open up more market access to Australian products.

Unlike Britain, which came to its first post-Brexit deal with Australia in December 2021, Europe is known for its tough negotiating on free trade deals and for interest groups that push back against moves to open up more market access to agricultural imports.

A woman holds a loaf of bread during a farmers’ protest in front of the Representative Office of the European Commission in April.Credit: AP

Farrell will meet his counterpart, European Commissioner for Trade Valdis Dombrovskis, as well as the EU Commissioner for Agriculture, Janusz Wojciechowski.

Dombrovskis told reporters in Brussels this week he “would not exclude” the possibility of having a deal ready by the time of the NATO leaders’ summit on Tuesday but “as always we emphasise substance over deadlines”.

“We are making good progress with Australia but there is still certain ground to be covered,” he said.

There has been hope from both sides that a deal could be reached in the middle of this year before the EU goes into a virtually year-long parliamentary election campaign.

But Farrell said: “I am prepared to persist even if it means the negotiations extend into the second half of this year.”

In a signal to Russia and China, Farrell also said a trade agreement between like-minded partners would be an important development at a time of “mounting geopolitical uncertainty”.

Farrell’s position is supported by the National Farmers’ Federation, whose chief executive Tony Maher said negotiations with Europe “have reached a boiling point”.

“We haven’t given up hope but, as it stands, current negotiations fall far short of where they should be for Australian agriculture,” he said.

“The National Farmers’ Federation backs the federal government in walking away from the EU free trade agreement if it’s not a good deal for farmers.”

CaneGrowers chief executive Dan Galligan said Europe’s existing offer would be a “step backwards from the minuscule access ... Australia presently has”.

“It does not offer meaningful, or worthwhile access for sustainably produced Australian sugar to the EU long term,” he said.

Agriculture Minister Murray Watt said the government wouldn’t shy away from a fight to get a good deal for Australian farmers.

“Last week I made it clear to my European counterparts that the offer as it stands is well short of what we can agree to,” Watt said.

“We’ve been more than reasonable through these negotiations, now we just need the EU to do the same.”

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