Photo: EPA
Australia is seeking higher quotas for duty-free beef imports, while Brussels remains cautious about potential backlash from European farmers.
The European Union is reportedly in the final stages of negotiations on a free trade agreement with Australia. The deal aims to protect both economies from U.S. tariffs under President Donald Trump and restrictions imposed by China on critical mineral exports.
According to Ursula von der Leyen, President of the European Commission, the agreement will help set global standards and ensure resilient supply chains, adding that it marks another step in diversifying Europe’s international partnerships. Bloomberg sources report that von der Leyen is preparing to travel for the signing later this week, although final details are still being negotiated.
Maros Sefcovic, head of the EU trade department, spoke on Monday with Australian Trade Minister Don Farrell, noting that both sides are “moving in the right direction.”
Bloomberg notes that the EU and Australia are accelerating economic ties to shield their economies from U.S. tariffs and China’s recent export restrictions. The EU recently signed trade agreements with India and the South American Mercosur bloc.
However, the deal has been delayed over beef import quotas, with Australia pushing for larger duty-free limits. EU officials are wary of undermining domestic agriculture, and European farmers have protested other recent free trade deals.
Earlier negotiations broke down in 2023, when Australia rejected a near-final agreement, claiming the EU’s proposed duty-free beef quota was too low. The deal reflects broader geopolitical tensions, including challenges for the U.S. under Trump’s trade policies, which left the U.S. in a constrained position with limited leverage against China and uncertain prospects in upcoming elections.
