AUSTRALIA – EU TRADE NEGOTIATIONS SHOULD PERSIST FOR A BETTER DEAL
Shadow Minister for International Development and the Pacific Michael McCormack is calling for both the Australian Government and the European Union to consider the greater good in strengthening ties between the two markets and to persist with negotiations after a disappointing collapse in EU-Australian trade negotiations.
“With so much uncertainty in the world around us, Australia should be pursuing trade deals with countries that share our values,” Mr McCormack, who is the Member for Riverina, said.
“Australia shares much in common with the European Union and its member states, including our cultural values and our shared commitment to the rule of law and global order.
“It is in our mutual interests that we pursue closer ties and benefit from each other’s markets; that’s why it’s so disappointing trade negotiations have fallen through.
“In Australia’s case, diversification of our trade relations is essential to protect not only our economic interests into the future, but also to strengthen partnerships with like-minded nations.
“We really need to start looking at the long-term impacts of who we trade with and, where possible, ensure we are trading in a way that is congruent with our values.
“It is all well and good making a quick buck selling raw materials to some of our convenient neighbours, but as the economic fallout from COVID-19 demonstrated, we cannot be economically dependent on a small selection of trade partners.
“The same goes for the European Union, the War in Ukraine has proven that access to raw resources has been used as a strategic weapon.
“Australia is blessed with a variety of rare mineral resources the EU needs, so there is a lot for the EU to gain from trading with a trusted and reliable neighbour that shares their values.”
Mr McCormack believes whilst negotiations should continue, the EU needs to be more flexible with its agricultural trade policy.
“Farmers in the European Union have it pretty well off,” Mr McCormack said.
“They are protected by significant trade tariffs and benefit from generous Government subsidies.
“In contrast, Australian farmers are some of the least subsidised in the world and have had to learn to become more productive to compete with the rest of the world, whilst also often facing drought and floods.
“I acknowledge Trade Minister Don Farrell has done the right thing and backed our farmers, but I’m now calling on the EU to think of the greater good a trade deal would do, rather than holding firm on agricultural quotas.
“It is not acceptable that the EU has offered Australia quotas on agricultural products that were lower than New Zealand, Canada and South America.
“The EU has much to gain from Australian exports, so it is disappointing it has refused to give Australian farmers a fair go.”
Mr McCormack said he was proud of the work the former Liberal and Nationals Government did to diversify our trade relations and protect the interests of our farmers.
“While the Liberal and Nationals were in Government, we negotiated several monumental free trade agreements.” Mr McCormack said.
“Between 2013 and 2022, Australia’s share of exports covered by a free trade agreement went from 25 per cent to nearly 80 per cent.
“Our trade deals with countries such as the UK and India were a big win for our farmers whilst being an important step towards trade diversification.”
Mr McCormack hopes to see trade negotiations resume for the benefit of both the EU and Australia.