Trade Minister Don Farrell confident in negotiations to finalise European Union free trade deal

Sky News AU

5 hours ago

Trade Minister Don Farrell has confirmed momentum is building for a free trade agreement with the European Union, more than 18 months after negotiations collapsed, with sticking points like beef exports and luxury car taxes still on the table.
The Albanese government has expressed confidence it will strike a long-awaited free trade agreement with the European Union.
Trade Minister Don Farrell told Sky News Sunday Agenda there was 'a lot of goodwill in the air' following revived negotiations with the EU.
Mr Farrell met with European counterparts on Wednesday, the first face-to-face talks since free trade negotiations collapsed in October 2023.
He acknowledged several sticking points remain unresolved, including Australia's luxury car tax and EU demands for exclusive naming rights for prosciutto and parmesan
'We haven't yet got an agreement, but there was a lot of goodwill in the air in Paris last week,' Mr Farrell said.
'I'm confident that if that goodwill continues, that we can secure a new free trade agreement with the European Union.'
The comments follow Mr Farrell's meeting with European Trade Commissioner Maros Sefcovic on the sidelines of an OECD summit in Paris.
A visit by European Commission President Ursula von der Leyen to Australia is also expected in July or August.
Mr Farrell said both sides now recognise the urgency of finalising an agreement in a 'rapidly changing global environment', amid US President Donald Trump's tariffs.
'Those countries that believe in free and fair trade have to work together,' Mr Farrell said.
'I'm very confident that with a little bit of time, a little bit of hard work on our part… we can get there and we can strike an agreement.' — Anthony Albanese (@AlboMP) May 18, 2025
Australian officials have said that agriculture remains the biggest sticking point, which was a major cause of the failed negotiations in 2023.
The government has signalled a willingness to consider abolishing the luxury car tax—an irritant to EU exporters—in exchange for greater access to lamb and beef markets.
The issue of geographical indications—terms like feta, prosecco, parmesan, and prosciutto—also continues to be a flashpoint.
Some European nations want to reserve these product names for EU-based producers only, a move resisted by Australian farmers and manufacturers.
The EU is Australia's third-largest trading partner, representing a market of 450 million people and a GDP of about AUD$20 trillion.
Mr Farrell said a trade agreement would unlock benefits across investment, education, supply chains and export growth.
'We've got lots of things that we can sell to the Europeans. I believe now that there's an appetite to reach an agreement on both sides,' he said.
The renewed push comes amid heightened global uncertainty, with US President Donald Trump announcing plans to double steel tariffs to 50 per cent.
Prime Minister Anthony Albanese and President Trump will likely meet for the first time in Kananaskis, Canada, between June 15 and 17.