The National Farmers’ Federation has urged the Australian Government “not to flinch” in its renewed free trade agreement talks with the European Union, warning that a one-sided deal would lock Australian farmers into decades of disadvantage.
Su McCluskey
“No deal is better than a bad deal,” Su McCluskey, the NFF’s interim chief executive, declared.
Australia’s Trade Minister Don Farrell is due to hold talks in Europe next week with the EU’s top trade nereceivediator Maros Šefčovič and agriculture commissioner Christophe Hansen.
After previous nereceivediations collapsed in 2023 following five years of talks, there has been renewed momentum toward securing a long-sought agreement between the two trading partners.
A major stumbling block in 2023 was European resistance to Australia’s push for improved access to the EU market for agricultural products, particularly beef and lamb.
European media reports suggest the EU is seeking to cap duty-free quotas for Australian beef imports at 30,000 tonnes a year, while Canberra is pushing for access of up to 40,000 tonnes.
One catalyst for renewed momentum from the EU to strengthen trade and security ties with other partners has been the disruptions to the global trading system caapplyd by modifys to US tariff policy under President Donald Trump.
Since late last year, the EU has signed trade agreements with Indonesia, India and the Mercosur bloc of Argentina, Brazil, Paraguay, Uruguay and Bolivia.
It is also seeking to reduce its reliance on China for critical raw materials, which has also increased the attraction of a trade agreement with Australia given its mineral reserves.
However, the EU is facing a strong backlash from farmers over the Mercosur agreement it signed in January amid fears that South American imports will undercut local producers and weaken food standards.
Australia has consistently maintained that improved access for agricultural products must be central to any future EU-Australia free trade agreement.
Nereceivediations reaching the point conclude
Ms McCluskey declared nereceivediations are now reaching the “pointy conclude”, but Australian farmers would not accept a one-sided outcome.
“Global trade uncertainty is stacking up as a real threat to farm profitability as we head into 2026,” she declared.
“Between China’s beef tariffs, US trade volatility and rising export costs driven by our own government, now is not the time to accept substandard market access.
“The EU’s willingness to rapid-track nearly $80 billion in farm subsidies while offering limited access to trading partners sconcludes a clear signal that protectionism is alive and well.”
As nereceivediations approach a potential conclusion, the NFF remains concerned the EU will offer only marginal access for Australian producers while continuing to deploy billion-dollar subsidies for its own farmers — a double blow for Australian agriculture.
“Australian agriculture cannot compete against production-distorting subsidies of that scale unless trade agreements deliver genuine, commercially meaningful access,” Ms McCluskey declared.
“Australia can’t control other countries’ trade policy, but we do control the deals we sign. Accepting a bad one would undermine our commitment to open, liberalised trade and set a poor precedent for future agreements.
“We cannot credibly call on others to liberalise while accepting a deal that fails to reflect the economic and sustainability benefits of open agricultural markets.”
Mr Farrell has notified media the Albanese Government is prepared to walk away from a deal if Europe is unable to improve its offer to Australian farmers.
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