Resuming FTA negotiations with the EU, preparing for dialogue with Chinese partners

Australia and the EU began negotiating an FTA in 2018 but failed to sign due to disagreements over expanding access for Australian agricultural products.

Bộ trưởng Thương mại Australia, Don Farrell và Ủy viên Thương mại EU, Valdis Dombrovskis. (Nguồn: EU)

The online discussion between Australian Trade Minister Don Farrell (right) and EU Trade Commissioner Valdis Dombrovskis achieved positive results on the prospects of FTA negotiations. (Source: EU)

According to Reuters news agency, Australia and the European Union (EU) will resume negotiations on a Free Trade Agreement (FTA) through an online discussion on August 31 between Australian Trade Minister Don Farrell and EU Trade Commissioner Valdis Dombrovskis.

The EU and Australia launched FTA negotiations five years ago, but have been stuck on the level of access to European markets for Australian agricultural exports such as beef, dairy and sugar. Canberra wants better access to the EU market for its dairy products, beef, lamb and wine, most of which are subject to tariffs and quotas.

The impasse in negotiations has dashed hopes that the two sides would reach a bilateral deal by the middle of this year.

Both sides are now looking to diversify their trade partners, as the EU's supply is affected by the conflict in Ukraine and Australia's exports decline as China stops importing a series of agricultural products from this country in 2020.

Trade in goods between the EU and Australia reached 56.4 billion euros ($62.1 billion) last year.

In December 2021, Australia and the UK officially signed a bilateral FTA, opening a new era of trade between the two countries. This is the first FTA that the UK has signed with another country, after officially leaving the EU.

Meanwhile, according to a statement on September 2 by Australian Foreign Minister Penny Wong, a delegation from the country will travel to Beijing for dialogue with Chinese partners on September 7, after a 3-year hiatus.

Held annually since 2014, the Australia-China summit, which does not include government ministers , has become a platform for senior representatives from industry, government, academia and more to discuss issues ranging from trade and investment to regional and international security.

At next week's meeting, former Labor trade minister Craig Emerson will co-chair the Australian delegation while former foreign minister Li Zhaoxing will lead the Chinese delegation.

The first dialogue since early 2020 "represents another step forward in strengthening bilateral cooperation and stabilizing our relationship with China," Australia's top diplomat said in a statement.

Ms. Penny Wong also affirmed that “the resumption of the Dialogue is one of the outcomes of my meeting with Chinese State Councilor and Foreign Minister Wang Yi in Beijing in December.”

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