Huge win for SA as historic EU trade deal finally signed – but no more ‘feta’
Local winemakers are celebrating an historic new ‘duty-free’ European Union and Australian Free Trade Agreement but the boss of SA’s livestock industry peak body says she is “disappointed”. Copper exports are set to boom and there’s cheaper French champagne on the way.
After eight years of negotiations, Prime Minister Anthony Albanese this morning confirmed Australia has secured a historic trade deal with the European Union that removes challenging tariffs from 98 per cent of Australian exports.
The agreement will go through domestic processes before it comes into force, with today’s news bringing years of negotiations that will benefit Australian producers to an end.
Negotiations were repeatedly interrupted over the last eight years, primarily due to disputes over Australian producers’ rights to use product names like prosecco, feta and parmesan.
Today, the Prime Minister confirmed Australians can continue to use the terms parmesan and kransky, while local winemakers can keep making and selling prosecco domestically, but the term will be phased out over 10 years for foreign exports.
But cheesemakers will have to phase out the use of terms like feta, romano and gruyere.
Almost all EU tariffs on agricultural products have been scrapped, including on wine, nuts, fruit and vegetables, honey, olive oil, most dairy products, wheat, barley and seafood.
The Australian Government expects winemakers and exporters to benefit to the tune of $37 million annually with the removal of European import tariffs.
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Angove Family Winemakers managing director Richard Angove told InDaily that the industry was relieved.
“It’s been hanging over producers heads, we’ve wanted that certainty,” he said.
“It’s a very challenging time for the Australian wine industry and to continue to have barriers removed for successful sales in Europe is certainly beneficial.”
The deal was signed with the President of the European Commission, Ursula von der Leyen, today in Canberra.
The PM said the agreement would result in 98 per cent of the current value of Australia’s exports entering the EU duty-free.
Some European products will become cheaper in Australia with import tariffs removed on wine, spirits, biscuits, chocolates and pasta from the continent – the world’s second largest economy.
For other agricultural products, new or expanded quota volumes have been secured, including for beef, sheep meat, sugar, rice, wheat gluten, skimmed milk powder and natural butter.
But Livestock SA chair Gillian Fennell told InDaily the deal fell short for her industry.
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“It’s pretty disappointing,” she said.
“We just want to sell them bulk commodities. They want to protect their own boutique markets, which is fine, but now we’re tied into this deal where we’re seeing the likes of New Zealand get greater market access than us, especially for our red meat products.
“We feel like we’ve been thrown under the bus or not supported in lieu of things like critical minerals.”
Exports of Australian-manufactured goods and mineral resources will face zero import tariffs into the EU, bolstering the nation’s growing critical minerals sector.
“After almost eight years of negotiations, my good friend President von der Leyen and I agreed to the landmark Australia–European Union Free Trade Agreement,” Prime Minister Anthony Albanese said.
“I am proud that we have been able to secure this deal, which will deliver benefits for both Australia and the European Union for generations to come.
“This deal creates major new opportunities for Australian exporters in the European Union’s massive $30 trillion economy, and will reduce costs for Australian consumers.”
Federal Minister for Trade and Tourism Don Farrell said the “hard -fought deal delivers real commercial gains for Australian exporters, farmers and producers into a market that has been difficult to enter or effectively closed for decades”.
“The removal of EU tariffs on most of Australia’s exports gives Australian exporters the opportunity to diversify trade with 27 European countries and 450 million consumers,” he said.
“This is a strategically important and economically valuable agreement at a time when Australian exporters are navigating choppy trade waters.”
South Australian Trade and Investment Minister Joe Szakacs said the deal would benefit exports sent from across South Australia.
“Under the stewardship of Federal Trade Minister and proud South Australian Don Farrell, our state has never received more support from a Commonwealth Government in opening up new markets and achieving better trading conditions,” Szakacs said.
“That collaborative government-to-government effort is helping us achieve unprecedented economic development and growth, and reach record levels of exports.”
Australia and the EU also signed a new Security and Defence Partnership to boost cooperation across defence industry, cyber, economic security, counter-terrorism, combatting all forms of hatred, and countering hybrid threats.
Further, the Australian Government will soon commence negotiations on association with Horizon Europe, which will give Australian organisations access to the world’s largest pooled research fund in 2027.
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