A previous [Buloke Times] editorial concluded with a possible view from the European side of a trade agreement (“FTA” – free trade agreement) with Australia.

This time, from the Australian side, we look at the principal agricultural products which our negotiators feel will give us some advantage in an agreement with the European Union (EU).

The main product which Australia will seek to have included in any agreement concerned with export is beef.

In particular, exporters feel that they see the European market as high value, and a long-term proposition.

At present, Australian access for beef to the EU is for 3,389 tonnes, country specific, to a high quality quota which carries a 20 per cent tariff, and in addition shared access to a global quota of 16,000 tonnes of grainfed beef. The latter (global) quota carries a tariff of zero per cent.

Any access above these quotas carries a tariff of 12.8 per cent, plus additional rates per kilogram, and these become commercially unviable for many beef products.

The EU market stands out from most other export markets, which are proceeding with tariff-free trade or import regime reform. Yet European consumers are demanding the high quality and clean nature of the Australian product.

In other words, negotiators on the other side of the table know that their constituents want our product.

Now that they are outside the EU, British trade officials have backed up for the longer term in their negotiations.

As to the other variety of red meat (sheep and goat meat), Australia has current access to the EU market of a 5,851 tonne quota, country specific,which has a tariff-free duty. Above this quota, tariff is 12.8 per cent plus up to Euros 3.10 per kilogram.

Thus the need for a significant quota increase is an important aspect of reaching the “free” trade deal.

As opposed to this, the recent agreement which the EU has signed with New Zealand sees exporters of sheep meat gaining a duty-free quota which grows to 38,000 tonnes over six years, in addition to their existing WTO quota of 125,769 tonnes.

Thus, New Zealand is greatly advantaged (more than ten times) compared with the treatment Australia receives on entry to the EU. And the Sheep Producers Australia points out that the NZ quota is often not fully utilised.

Australia expected that the EU would offer similar treatment to that given to agricultural countries like New Zealand and Canada, but it appears that the European offer was far below that.

In fact, the National Farmers Federation president, who has been involved in negotiations which began in 2018, said that what the EU proposed did not deliver the expected outcome for any Australian commodities. For its part, the industry organisation (the Australian Meat Industry Council) was pleased that the government, from the Prime Minister down, had recognised the importance of the red meat industry to Australia’s overall economy.

With wool, the Wool Producers Australia congratulated the government for backing Australian farmers. They would sooner the government walk away than see a perverse outcome.

It is known what the dairy and wine industries think of the EU’s insistence so far on the Australian use of titles for their products.

In agriculture, there is quite some distance to travel before the Australian government concludes an agreement with the European Union.

This article appeared in The Buloke Times, 1 August 2023.