LATIKA M BOURKE: ‘Strike while the iron is hot’ Australia and EU negotiators revive trade talks

Australian and European Union trade negotiators will spend two days thrashing out the details of a potential new agreement after a breakthrough meeting between Australia’s Trade Minister and his EU counterpart in Paris.

The trade talks collapsed in 2023 over the EU’s refusal to allow more Australian beef into the single market.

But as a result of US President Donald Trump imposing tariffs on the EU and Australia, and most recently increasing duties on steel to 50 per cent, both sides want to see if they can try again.

The Nightly revealed that during the election campaign, Senator Farrell held a virtual call with his new EU counterpart, the Trade and Economic Security Commissioner Maroš Šefčovič, for a preliminary meeting. That meeting made progress.

Their meeting lasted one hour, and the pair struck up a warm rapport.

And in a positive sign, both sides cleared their diaries for their top trade negotiators to meet in Brussels as soon as this week for two days.

Senator Farrell told The Nightly that Mr Secovic was “warm and engaging”.

“We had a good meeting and discussed how we can strike while the iron is hot,” he said in an interview by phone from Paris.

“And to show that we can do deals as friends. And that free trade is still possible.”

A spokesman for the EU said the meeting was “productive.”

“Both sides reviewed shared objectives for a strong and reformed rules-based trading system and took stock of EU-Australia FTA negotiations,” the Commission spokesman said.

“Technical teams will now compare notes on outstanding issues.

Commissioner Šefčovič and Minister Farrell also discussed how to take forward, under Australian chairmanship, a CPTPP-EU dialogue.

“The EU looks forward to cooperation on this issue.”

Prime Minister Anthony Albanese and EU Commission President Ursula von der Leyen raised trade talks during their first meeting since both were re-elected.

Their bilateral meeting took place in Rome on the sidelines of Pope Leo XIV’s inaugural mass at the Vatican in mid-May.

“The context of global trade is perhaps what is new,” the Prime Minister told reporters in Melbourne.

“The context of global trade which has been the subject of disruption.

“Now Labor, my Government and the Australian Government on a bipartisan position, it must be said, have supported free and fair trade, as have the Europeans.”

Speaking ahead of the meeting, former spy boss Duncan Lewis – who also served as former Ambassador to the EU, Secretary of Defence and National Security Adviser – and is now chair of the European Australian Business Council, said it was time for both sides to get the job done.

“Global shocks are rapidly reshaping Europe’s priorities, including in defence and security with a massive €800 billion (AUD$1.4tr) on the table to re-arm European defence capabilities,” he said.

“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.”

“It’s time to get this done.”

The Council estimates that as Australia’s third largest trading partner after China and Japan, a trade deal with the EU could deliver between up to $7.4 billion dollars extra to Australia’s GDP by 2030.

Tim Yeend, former DFAT Associate Secretary who led the EU negotiations when they broke down in 2023 said the economic and strategic case for concluding an FTA was more compelling than ever.

“Agriculture will be the tough nut to crack but there is a pathway through if Europe can lift its offer to deliver commercially meaningful access, while Australia keeps its requests to something that Europe might reasonably be able to deliver,” he said.

“That means some tough calls from both sides.

“But it can be done given the new political momentum.

“And the reality is that the rest of the deal is already negotiated so it can be a quick and important win for both Australia and the EU.”

Australia’s economy grew by just 0.2 per cent in the first three months of 2025, according to date released this week by the Australian Bureau of Statistics. The figure was below expectations.

More than a dozen organisations representing different sectors of Australia urged the political leaders to take the deal across the line.

They include the Australian Institute of Company Directors, Australian Industry Group, Australian Services Roundtable, Business Council of Australia, Export Council of Australia, Federal Chamber of Automotive Industries, the Group of Eight, Medicines Australia, Minerals Council of Australia, Property Council of Australia, Super Members Council, and Tourism and Transport Forum.