Failed negotiations for a free trade agreement between the European Union and Australia

Negotiations between the European Union and Australia failed to lead to a free trade agreement this week, despite hopes for a quick conclusion, Brussels and Canberra said, and an Australian minister estimated on Monday that it will take several years before talks resume.

Australian Agriculture Minister Murray Watt said EU negotiators had not changed their position during the latest round of negotiations, held on the sidelines of a G7 meeting in Japan.

“Unfortunately we haven’t gotten the move we wanted from the EU,” he told Australian public broadcaster ABC on Monday.

Negotiations are unlikely to resume in “the current legislature”, he added, suggesting the Australian government may not return to the negotiating table before the 2025 general election.

“It’s a real shame”

“I think it will be some time before an Australian government or an EU leader can negotiate a deal. And that’s a real shame,” Watt added.

The European Union had been optimistic about concluding an agreement at the G7 in Osaka, but Australia “presented agricultural demands that do not reflect recent negotiations,” said a European Commission spokesperson.

“The European Commission is ready to continue negotiations,” the commission said in a statement. French Trade Minister Olivier Becht late last week welcomed “a series of very positive developments”, raising hopes that a deal would be quickly reached.

Negotiations between the EU and Australia on a free trade agreement have been ongoing since 2018.

The two sides are particularly struggling to reach an agreement on opening the European market to Australian exports of sheepmeat, beef and sugar.

The issue of access to European agricultural products and protected European designations of origin (cheese, wine, meat, etc.) has also complicated the situation.

Through this agreement, Europe hopes for better access to Australia’s rich deposits of “critical minerals”, in order to reduce its dependence on Russia and China for these key components that enable the manufacture of wind turbines and electric car batteries.