Australia and the European Union have revived talks for a sweeping free trade agreement as the Albanese government aims to respond to a “rapidly changing global environment” on tariffs.
Australia’s trade minister Don Farrell met with the European Commissioner for Trade Maroš Šefčovič met on the sidelines of a summit hosted by the Organisation for Economic Cooperation and Development (OECD) in Paris on Wednesday, local time.
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“Both Australia and the EU recognise that now is the time to strengthen our economic partnership, and we’re working through the remaining issues to try and finalise the deal,” Mr Farrell said.
A pact with the region was “about building economic resilience in a rapidly changing global environment,” he added.
It came as US President Donald Trump imposed 50 per cent tariffs on steel and aluminium imports on Wednesday, leaving America’s trading partners reeling from the fresh uncertainty.
Mr Sefcovic told journalists “we believe we can achieve substantial progress this year” on an EU-Australia free trade deal, after negotiations have been on ice since 2023.
Australian officials could not put a solid timeline on when a pact would be signed, but agriculture is believed to be one of the sticking points.
Australia has previously offered to put the removal of its luxury car tax on the table but wants greater access to European markets for lamb and beef exports.
However, some big meat-producing EU member countries like France have reservations about opening the bloc’s markets to potential major competitors like Australia. Such concerns are also holding up talks with South American countries.
The advantages of an EU deal include increased investment, stronger supply chain links, education ties and export opportunities, Mr Farrell said.
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Farrell meets US counterpart
Earlier on Wednesday, the United States set a deadline for countries to send their best offer in trade negotiations.
In February, Mr Trump raised steel and aluminium tariffs to a flat 25 per cent “without exceptions or exemptions”, in one of his first moves to aid the struggling domestic industries.
The tariffs would apply to millions of tonnes of steel and aluminium imports from Australia, Canada, Brazil, Mexico and other countries that had previously been able to enter the US duty-free.
President Donald Trump at US Steel Corporation. (Reuters: Leah Millis)
On Saturday, Mr Farrell, said that Australia’s messaging throughout the upheaval has been consistent and clear.
“These tariffs are unjustified and not the act of a friend,” he said.
“They are an act of economic self-harm that will only hurt consumers and businesses who rely on free and fair trade.“
Asked what leverage Australia might have to pressure Mr Trump into changing course, Mr Farrell reiterated the government’s position that it would not be in Australia’s best interests to retaliate.
“We’re going to coolly and calmly argue our case for the removal of these tariffs,” he said.
“They don’t do what President Trump claims they will do, and we believe that free and fair trade requires [their] removal.”
ABC/Reuters
