Agriculture key in EU–Australia trade agreement

Shortly after the handling of the Mercosur treaty earlier this year, the European Union has concluded another trade agreement, with Australia. This was announced by European Commission President Ursula von der Leyen during a visit to Canberra. The treaty still needs to be approved by the European Parliament. Agriculture plays an important role in the trade agreement. The sector has mixed reactions. According to von der Leyen, the agreement is necessary to protect Europe against geopolitical shocks. As a result of the decision, 99% of the trade barriers between the blocks will be removed. A total of €1 billion in tariffs will be eliminated. The EU expects that exports to Australia could increase by up to 33% in the coming ten years to €17.7 billion. According to agricultural commissioner Christophe Hansen, the Commission has included robust safeguard measures for the agri-food sector, including limited tariff quotas, specific conditionalities for sensitive products and close monitoring of markets to act fast in the unlikely case of market disturbance. The main interest for the European Union is access to Australian mining to reduce dependence on China. Additionally, taxes on luxury cars within the new agreement will only be levied from AU $120,000. Under the previous agreement, this tax applied from AU $80,000. Agriculture is also an important part of the agreement. Eucolait reacts enthusiasticallyThe European Union has a surplus in the trade balance regarding agriculture of €2.3 billion. The mutual import tariffs for cheese will be reduced over the next three years. The expectation is that the European Union will particularly benefit from this. The European Union expects a growth in dairy exports of up to 48%. According to the European industry organization for the dairy sector, Eucolait, Australia is already an important destination for dairy exports with an export value of almost €400 million in 2025. The treaty is therefore welcomed by the industry organization. For butter and whey protein, import tariffs will still remain. Australia will also take over the regional protection of 165 European food products and 237 drinks. Australian meat sector is disappointedLess favorable is the trade agreement for the beef sector. More Australian meat will be allowed on the European market. According to the agreement, Australian farmers may export 30,600 tonnes of beef to the European market each year, a significant increase compared to the current 3,389 tonnes. Brussels rejected Australian requests to raise the quota above 30,000 tonnes during negotiations in recent weeks. With the implementation of the treaty, a quota of 25,000 tonnes will be introduced for lamb imports. However, the Australian meat sector is far from satisfied with the outcome. Various Australian agricultural interest groups have reacted with disappointment. The sector lobbied for a quota of 50,000 tonnes of beef and 67,000 tonnes of lamb. The chairman of the interest association for the livestock sector, Garry Edwards, issued strong criticism of the agreement and accused the government of conducting 'a seemingly misleading trade negotiation.' According to him, the agreed export volumes are far too low and the quantities mentioned in the agreement will only be reached in ten years. At the same time, Edwards states, Australia is flooded with large amounts of European meat and dairy that enter the country without import duties.