‘Adults in the room’: Australia and EU take charge in trade talks as Trump tariffs loom
European Commission President Ursula von der Leyen is planning a visit to Australia in the coming months, signalling renewed determination from both sides to clinch a free trade deal as a safeguard against US President Donald Trump’s escalating tariff war.
Trade Minister Don Farrell, currently in Paris for OECD trade talks, described the urgency to The Australian Financial Review: “The world has changed since we last met. Australia and Europe have to be the adults in the room.” He confirmed von der Leyen’s visit is tentatively set for late July or early August, should a deal be ready to sign by then.
Mr Farrell is meeting with European Commissioner for Trade and Economic Security Maros Sefcovic to break the impasse that halted negotiations in October 2023, mainly over agricultural market access. “He told her we’re determined to get this done,” Mr Farrell said, referencing Prime Minister Anthony Albanese’s recent meeting with von der Leyen in Rome.
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By continuing you agree to our Terms and Privacy Policy.Previous talks faltered over European resistance, mainly from France and Ireland, to allow more Australian beef and lamb into the EU.
In return for greater market access, Europe could see the luxury car tax scrapped and tighter rules on Australian use of geographic indicators like parmesan and prosecco. Mr Farrell said, “The issue of geographic indicators are capable of being resolved if we can get a better deal on agriculture.”
Business and industry groups are urging the government not to let perfect be the enemy of good. “It’s time to get this done,” said European Australian Business Council chairman Duncan Lewis. “Australia can play a role here too, but getting a fit for purpose framework around the economic relationship is a necessary first step to unlock these opportunities for Australian industry and researchers.”
Prime Minister Anthony Albanese, meanwhile, criticised Mr Trump’s latest tariff hikes: “This is an act of economic self-harm, and it’s not the act of a friend. And this just pushes up prices for American purchasers and consumers.”
He reaffirmed Australia’s commitment to “free and fair trade,” adding, “We continually remind our American friends that America enjoys the benefit of a trade surplus with Australia, which is why it makes no sense to undermine trade between Australia and the United States.”
