Australia is in free trade talks with the EU after its governing council gave its official authorisation this week. The Australian trade minister has said we would aim for a high-quality, comprehensive free trade deal with the European Union in as quick a time as possible but would not sacrifice the quality of a trade deal for speed. The prime minister said the EU deal would create more jobs in Australia and also create more jobs in Europe.
Australia’s free trade deal talks will push for expanded access to Europe’s agricultural markets – a good-quality agreement must include enhanced agricultural access for our exporters. Australia exported $3.6bn of agricultural products to the EU and imported $4.9bn – and that needs to change. Europe has already signalled that it will want to include protection for its agricultural producers in the deal, particularly by ensuring that the names of traditional European food and drink products (such as wine and cheese) are not used by Australian producers selling into Europe.
But agriculture is only one aspect of a trade deal. The Australian government will also seek better access for Australian services exporters, the expansion of two-way investment flows and delivery of a more seamless business environment.
It will mean new opportunities for European businesses in the Australian market, particularly in sectors such as motor equipment, machinery, chemicals and processed foods. EU businesses would also use Australia as an entry point into the Asia-Pacific region.
The EU is Australia’s third biggest trading partner, with around €45.5 billion a year in bilateral trade, split roughly 50-50 between goods and services. However, this number includes trade with the UK, which will no longer be an EU member by the time the trade deal comes into effect.
