Australia-EU trade deal faces uncertainty amid tariff and access disputes

A free trade agreement between Australia and the European Union, finalized in March after eight years of negotiations, is at risk of not being ratified by the Australian parliament, naroomanewsonline.com.au reported. The deal was agreed upon by Australian Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen.

The agreement would remove a 5% tariff on European imports such as cars, fashion products, food, and drinks, while Europe would drop or phase out tariffs on Australian seafood, wine, critical minerals, wheat, honey, olive oil, onions, potatoes, carrots, and manufactured products excluding steel, naroomanewsonline.com.au detailed. It would also increase market access for Australian beef, mutton, lamb, and some rice.

Despite these provisions, some Australian meat farmers have expressed concerns that they are no better off under the deal, and politicians have criticized the agreement as worse than the current situation, according to naroomanewsonline.com.au. Primary producers have raised alarms about limited access to the European market compared to European farmers who receive subsidies.

The deal would allow Australia to export 35,000 tonnes of beef and 30,851 tonnes of mutton and lamb to the EU, with phased increases over the next seven to ten years. However, a sticking point remains as 50% tariffs on Australian steel exports to Europe will stay in place, a matter that has drawn criticism from the coalition parties, naroomanewsonline.com.au reported.

The European Union is Australia's third-largest two-way trading partner and the second-largest source of foreign investment, with the agreement potentially worth up to $30 billion in trade, according to naroomanewsonline.com.au. Nationals leader Matt Canavan has vowed to oppose the deal due to these unresolved issues.