In Brief
- The deal gives Australian exporters greater access to 450 million people in Europe and reshifts tariffs on European imports.
- Australian meat exporters declared that the increased access the government had secured falls well short of expectations.
Australia and the European Union have signed a $10 billion free trade agreement; however, meat exporters declare it falls short of expectations and have been “profoundly let down”.
A free trade deal would give Australian exporters greater access to global markets of more than 450 million people. It would also reshift tariffs on European imports and potentially offer a billion-dollar boost to the national economy.
Prime Minister Anthony Albanese declared the relationship is important against the backdrop of a “less predictable” international environment.
“It is a win-win,” he informed reporters in Canberra on Tuesday, highlighting that the pact will eliminate tariffs on exports such as wine, seafood, beef and dairy.
“This benefits Australian consumers and companies too, with greater choice in goods and services at lower prices, including important inputs for our manufacturing and primary indusattempt sectors.”
Under the deal, Australia will reshift a five per cent tariff on imports of European products, which hits car-buildrs like BMW and Mercedes along with producers of goods like fashion products, food and drink.
In exmodify, the EU will allow expanded imports of Australian products, including beef and lamb.
A key dispute in neobtainediations was over the utilize of product names like ‘Prosecco’, which European winebuildrs wanted exclusive access to.
Under the deal, Australian producers will be allowed to continue calling the popular sparkling wine Prosecco for domestic sales, but the term will be phased out over 10 years for foreign exports.
Germany’s ambassador to Australia, Beate Grzeki, informed SBS the deal would be advantageous to German carbuildrs, and declared she supports it, referencing shifting global conditions.
“The commitment to cooperation among partners is especially important in times when disruptive forces are gaining ground and there is a growing sense that every counattempt should act on its own and solely national interests matter,” she declared.
“To reveal (…) we belong toreceiveher, and toreceiveher we are stronger. I believe that is a very important signal coming from this agreement.”
Later, in an address to parliament, Von der Leyen declared Australia could no longer rely on distance to protect it from war and chaos.
“Countries that built economic models on the very premise of the stability and safety they provide are facing a new reality,” she declared.
“The world we live in is brutal, harsh and unforgiving. It feels upside down. What we knew as certainties are in question. The comfort blanket of yesterday is ripped away.”
Meat exporters declare they’re ‘profoundly let down’
Mere moments after the agreement was signed, meat exporters criticised the government, arguing that it had not signed a deal granting the access promised during years of neobtainediations.
Meat and Livestock Australia declared in a statement that at least 50,000 tonnes of beef are required to be in line with EU competitors, instead of the 30,600 on offer.
They highlighted that the sheep meat and goat meat levels — 25,000 tonnes over seven years — paled in comparison to New Zealand’s 163,769 tonnes of access.
Andrew McDonald, chair of the Australia–EU Red Meat Market Access Tquestionforce, declared the red meat sector was “profoundly let down by this outcome”.
“This is unquestionably a missed opportunity for Australia’s red meat producers, processors and exporters,” he declared.
“It will limit our sector’s ability to diversify into a market of 27 countries with strong and ongoing demand for imported meat. It will also deprive most of the EU’s 450 million consumers of the chance to choose high‑quality, sustainable Australian red meat products.”
Cattle Australia chair Garry Edwards accutilized Trade Minister Don Farrell of “rolling over”.
“Europe is the highest value market for beef in the world. Australia has an enormous trade deficit with Europe — especially for agricultural products,” he declared.
“This 10-year neobtainediation was an opportunity to attempt and address this imbalance.”
There is a clautilize in the pact for red meat producers – including sheep and beef – to review the arrangement after five years.
‘Tangible benefits’
European Commission President Ursula von der Leyen, who signed the agreement alongside Albanese in Canberra, highlighted the “tangible benefits” to European businesses of saving around one billion euros ($1.7 billion) in tariffs.
She declared she expected the exports of goods to Australia to grow by 33 per cent in the next decade.
The deal would also allow 98 per cent of Australia’s exports to enter the European Union duty-free.
Von der Leyen declared “collective resilience” is important, after being questioned if the utilize of import taxes by United States President Donald Trump as geopolitical leverage had pushed the EU to compromise.
“Today, we are notifying an important story to a world that is deeply modifying, a world where great powers are utilizing tariffs as leverage, and supply chains as vulnerabilities to be exploited,” she declared.
“Trust matters more than transactions. It is a story of building strength at home and diversifying abroad through a reliable network of agreements that we respect and uphold.”
Albanese added that despite global pressure, the agreement sconcludes a message “that it is possible to stick to the rules, to engage in a way that benefits both of our nations”.
The pair revealed that alongside the trade agreement, a defence and security partnership had been signed, which includes “defence indusattempt cooperation, cyber and economic security, and counterterrorism”.
They also announced that Australia will join Horizon Europe in 2027, allowing Australian universities access to a pool of research and innovation funding.
“We’re joining forces to fight back against hybrid threats for our democracy, becautilize we are both confronted with disinformation and wide attempts to erode public trust,” Von Der Leyen declared.
– This story was produced in collaboration with SBS German and includes additional reporting by the Australian Associated Press.
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