EU deal must deliver ‘substantial access’ for Australia

Don Farrell has warned that Australia will only sign a free-trade deal with the EU that delivers ‘substantial new market access’ for Australian agricultural exports.

French Trade Minister Olivier Becht. Picture: AFP

Trade Minister Don Farrell has warned visiting European counterparts that Australia will only sign a free-trade deal with the EU that delivers “substantial new market access” for Australian agricultural exports.

Senator Farrell met on Monday in Canberra with French Trade Minister Olivier Becht and members of the European ­Parliament’s committee on international trade.

He said the Albanese government was committed to finalising the Australia-EU free-trade agreement currently being negotiated, but added that Australia was not interested in an agreement for its own sake.

“I emphasised that Australia could only agree to a trade deal that involves substantial new market access for our key agricultural products such as beef, sheep meat, dairy, sugar, rice and grains,” he said. “This would mean the EU ­delivering outcomes that go significantly ­beyond Australia’s modest access under World Trade Organisation arrangements.”

Mr Becht said securing the deal was an important economic and strategic goal for France.

“Of course, we should find some compromise about agriculture topics and I’m quite sure we’ll find the good decisions,” he said.

Mr Becht said France and Australia shared the same values and vision for a free and open Indo-Pacific. While China was one of France’s major trading partners, it was also a “systemic rival”.

His visit is the first by a French government minister since Australia’s cancellation of the French-designed Attack-class submarines, and is set to be followed by a state visit by French President Emmanuel Macron in November.

Two-and-a-half months after Prime Minister Anthony Albanese and Mr Macron reset the countries’ relationship at a meeting in Paris, Mr Becht said the tensions between the countries over the failed submarine deal were now “over”.

He said the countries needed now to “write new pages” in the relationship, by strengthening trade in key sectors.

Mr Becht said Australia could play an important role in France’s renewable energy future through the export of lithium and critical minerals to the country, while French expertise in public transport offered potential benefits for Australia.

Australian and EU trade negotiators are due to commence a new round of negotiations in ­October, with Australia hoping to seal a final trade agreement ­before the middle of next year.

The EU is demanding Australia axe the $880m-a-year luxury car tax to secure a free-trade agreement with the 27-nation bloc as a key condition for a deal.

The EU has roughly 400 food products with geographical names it wants protected under the final agreement. Australia is set to cede the ­argument over many of the “geographical indications”, or require producers to label products such as “Australian brie” as being locally produced.