Failure to ratify the EU trade deal would cost Australia far more than beef
The Coalition wants to block the free-trade agreement. The Australian economy would suffer as a result.
Australia and the European Union signed a comprehensive free-trade agreement (FTA) in March following nearly eight years of negotiations. The agreement eliminates almost all bilateral tariffs and covers 98% of Australian goods exports, broadening the export base during a time of high US tariffs. The government signed the treaty, but parliament must now pass the required laws to give it effect.
Passage through the lower house is certain, but in the Senate, Labor holds 30 of 76 seats and needs nine extra votes from a mix of Coalition, Greens, One Nation, and cross-bench senators. The Coalition is split, with the Nationals opposing the deal due to insufficient gains in beef, lamb, and dairy. However, the Liberals quickly contradicted this, though some share concerns about climate and labor rights commitments.
If the Coalition leader Angus Taylor sides with the Nationals, Labor would need the Greens' ten senators, but the Greens may seek to negotiate harder under their new leader. The alternative of all four One Nation and five independent senators seems unlikely. Some have suggested renegotiating the deal for greater market access, but European Commission spokesperson Olof Gill stated that once negotiations are done, they are done.
The beef trade minister Don Farrell noted that the industry wanted A$3 billion in new trade and received A$2 billion, arguing that the rest of the economy should not be penalized. The deal increases Australia's dedicated quota for beef from 4,400 tonnes to 35,000 tonnes, scrapping the current 20% tariff. Despite the focus on agricultural exports, the deal also supports critical minerals development, with Australia having substantial resources but lacking buyers and lenders.
The FTA gives European businesses greater confidence in Australian mining projects, with projects like Arafura's Nolans rare earths project illustrating opportunities. The deal unlocks more mining sector opportunities for Australia. With Europe's window for ratification closing soon due to upcoming national elections, failure to ratify now could leave Australia without a strong rules-based partner.
Written by urgent.news from The Conversation AU's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
