Failure to agree quotas for Australian beef and lamb to the EU market caused trade talks to break down at the final hurdle on Sunday.

Australia’s Trade Minister, Don Farrell, and his EU counterpart Valdis Dombrovskis, were expected to wrap up the deal in the margins of the weekend’s G7 meeting of trade ministers in Japan.

The problem in concluding the deal remains the same as it was in July this year; Australia wanted greater access to the EU market for beef and lamb than the EU is prepared to give.

Last week, ahead of negotiations, there was a strong lobby from representatives of Australia’s beef and sheep farmers and industry warning against signing what the president of the National Farmers Federation described as a "dud deal" and described the current offer as being “being asked to sit at the table and watch the EU have its cake and eat it too”.

The EU side of the story was given by Agriculture Commissioner Janusz Wojciechowski, who expressed regret at a deal not being concluded, but added “to move forward, we need more realistic expectations and a balanced approach that fully respects the viability of our farmers and the sustainability of our food system”.

Where now?

After failing to get over the line in July, and again this weekend, it is difficult to see what can change to bridge the obvious between Australian expectation and the extent to which the EU is prepared to give access for the sensitive beef and lamb products.

There is a feeling that unless something now moves very quickly, a deal could be off the table for a while. The EU will move into election mode in 2024 and a new Commission will be put in place at the end of next year. That means that it would be 2025 when the opportunity comes round again for a deal.

The Australian trade minister alluded to this in his comments, referring to “negotiations will continue and I am hopeful that one day we will sign a deal that benefits both Australia and our European friends”.

South Korea

For the EU team, it is on to South Korea and the push to get that market open for Irish and French beef. This access has been stalled for two years in the national parliament, despite having been agreed by the government. The EU team is hopeful that there will be good news to announce in the next day or two, but after the weekend, there will be caution until the South Koreans name a date when business can start.

Read more

Aussies eye Canada-type deal