LATIKA M BOURKE: Andrew Robb says Coalition should pass trade deal to show Donald Trump his tariffs are wrong

Former Liberal trade minister Andrew Robb dared the Coalition to pass the EU trade deal to show Donald Trump that his tariffs are wrong.

But there’s a catch — Australia must not be shackled to net zero, Mr Robb warned.

Meanwhile, the European Commission poured cold water on the idea of the negotiations being reopened, something the Nationals are demanding but the Federal Government has rejected.

On Monday, after days of confusion, Liberal treasury spokesman Tim Wilson confirmed the Coalition was against the proposed legislation but stressed he had not seen the final wording to be sent through Parliament.

Mr Robb served as Trade Minister between 2013 and 2016 before retiring from politics. He secured trade deals with Japan, China and Korea.

Nationals Leader Matt Canavan claimed the deal would “weaken Australia’s sovereignty on climate change policy and fails provide meaningful access for Australian goods to European markets.’

Speaking to The Nightly, Mr Robb, also a former President of the National Farmers Federation, said he shared their concerns.

But he said that in light of the swinging trade tariffs that the US President had imposed on partners and allies, including on Australia, it was important to send a message to the US President.

But he said clarity from the Europeans about the extent of the climate provisions over Australia’s future climate policy settings was essential.

“Unless I’m convinced that this agreement does not lock us into net zero, I oppose it,” Mr Robb said.

“I’m not unsympathetic to an agreement which is seen to be as ambitious as you would normally expect, because the rest of the west has got to send a message to Trump that he’s heading in the wrong direction.

“He can do what he likes, but the rest of the world is not going to follow him. He’s no longer the leader of the world.”

The EU and Australia trade talks broke down in 2023. But on Mr Trump’s so-called ‘Liberation Day,’ in which he imposed tariffs on countries including Australia, the EU and Australian trade ministers reopened talks.

The deal was struck this year, when EU Commission President Ursula von der Leyen flew to Australia to sign the agreement, and became the first woman foreign leader to ever address Australia’s Parliament.

The deal was met with widespread support, except from farming bodies, who complained they did not secure enough access to Europe’s protectionist market.

Nevertheless, the quotas struck, especially for beef, required a huge political concession from French President Emmanuel Macron, who regularly faces protests from his influential farming lobby.

Despite Senator Canavan’s statement, the Coalition shadow cabinet has not formally made its decision on whether or not to support the free trade deal. While the deal is opposed by farming lobbies, it is overwhelmingly backed by organisations representing the rest of the economy, including business groups.

The Nationals fear the deal could leave Australia open to sanctions if it fails to hit climate targets under the 2016 Paris Agreement – an accord former prime minister Tony Abbott committed Canberra to.

Senator Canavan has told Trade Minister Don Farrell to reopen the negotiations, which were concluded this year after eight years of talks.

But that is unlikely. “The EU has the world’s largest network of free trade agreements.,” Olof Gill, spokesman for the EU Commission, told The Nightly. “We invest years in getting these deals right, ensuring they are balanced, ambitious and offer benefits for both us and our partners. Once negotiations are done, they are done.”

Mr Farrell said the agreement would not lock Australia into net zero.

“This agreement simply reiterates both sides existing obligations under the Paris Agreement, which is still the Coalition’s public policy,” he said.

“The Coalition included environmental commitments in free trade agreements under John Howard with the United States, under Malcolm Turnbull with the CPTPP, and under Scott) Morrison with the United Kingdom.”

The Opposition is no longer promising to reach net-zero emissions by 2050, but Coalition Leader Angus Taylor has dismissed the idea of withdrawing from the Paris Agreement.

The Paris Agreement does not set Australia’s climate targets. These are set in legislation by the Australian Government as part of what is called Australia’s Nationally Determined Contributions.

In Brussels, the trade and sustainable development provisions are largely viewed as a tick-the-box exercise to deny protectionist members of the European Parliament from using climate change as a reason to refuse to ratify trade deals.

In the event the EU was to try to enforce the provisions, the procedure would be long and complicated and likely result in retaliatory action from Australia.

A first step would be dialogue and could result in suspension of favourable trade preferences. But the EU has never exercised these provisions in any trade deal, and European sources played down the prospect enforcing them.

The Greens Party has previously signalled that they would be willing to use their numbers in the Senate to pass the deal.