Australian meat exports are still blocking a free trade deal with Europe even as the EU secured protective exemptions in its new deal with India.
And Federal Trade Minister Don Farrell says Australia remains keen to reverse falling trade with Saudi Arabia.
He made the comment during an interview with Sky News while in the United Arab Emirates, where he is leading an Australia delegation to the Gulfood food trade show, the largest in the world.
“I had hoped that we would have made more progress on the EU Free Trade Agreement (FTA),” Farrell says.
“I think in the next month, negotiations will be renewed.
“We’re not far away … but some of the big issues, particularly the volume of Australian meat into the EU and the conditions surrounding beef going into Europe still remain unresolved,” he says.
“They’re the big issues.”
The minister remains optimistic that a deal can be signed with the EU’s new trade minister, Maros Sefcovic.
On Saudi Arabia trade, Farrell says that kingdom’s push away from fossil fuels to renewable energy can work in Australia’s favour.
“We should be there helping them make that transition to the renewable future; in the process, there are so many opportunities for Australian companies,” he says.
“We want to do more trade, and we can trade more with Saudi Arabia.”
Farrell says there are free trade opportunities to be found and points to the “record amount” of trade deals done in just the first day at the food trade show.
EU DEAL PROTECTS MEAT EXPORTS
Meanwhile, the EU-India FTA creates a free trade zone of two billion people with tariffs expected to fall or disappear by at least 95% over the next decade, European officials say.
European exports to India, already worth $136.5 billion, are expected to double as a result, the European Commission (EC) says.
The deal is expected to save the EU about A$6.8 billion in duties every year
EC President Ursula von der Leyen says that “we have sent a signal to the world that rules-based co-operation still delivers great outcomes”.
“Best of all, this is only the start. We will build on this success
and grow our relationship to be even stronger.”
Under the FTA, India will give the EU tariff reductions that none of its other trading partners receive; for example, tariffs of up to 22% on chemicals and 11% on pharmaceuticals will be mostly eliminated.
The FTA removes or reduces prohibitive tariffs (over 36% on average) on EU agri-food exports to India — the Asian sub-continent’s tariffs on wines will fall from 150% to 75% when the FTA takes effect and down to as low as 20%, tariffs on olive oil will fall from 45% to 0% over five years and processed agricultural products such as bread and confectionary will see tariffs of up to 50% eliminated.
But European meat producers will be spared.
Sensitive European agricultural sectors will be fully protected such as meat (beef, chicken), rice and sugar which will not be liberalised under the terms of the FTA.
The EU is home to about 450 million people, it says, while India is the most populated country on Earth with more than 1.45 billion.
Australia has an FTA with India, who is this country’s sixth largest trading partner and fourth largest export market.
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