Negotiations between the EU and Australia, which were scheduled to take place on Monday 30 October and culminate in the finalisation of the free trade deal, collapsed less than 24 hours before the official meeting. This came as a surprise, even a shock, according to a senior European official, who was adamant that the EU was not expecting such an announcement from Australia.
Despite the optimism displayed a few days earlier (see EUROPE 13280/7), the two parties failed to find common ground, with the same sticking points still insurmountable: access for Australian agricultural products to the European market and the sensitive issue of the protection of geographical indications.
The resumption of negotiations and agreeing a deal are now likely to take several years, according to the Australian Minister for Agriculture, Murray Watt, who suggested in an interview with the Australian public television channel ABC that the Australian government might not return to the negotiating table before the 2025 general election.
A setback for both parties
Negotiators on both sides are blaming each other for the breakdown in talks - talks that did not take place in any case, according to a senior European official, who claimed that the position taken by the Australian Minister for Agriculture on Sunday 29 October had made negotiations impossible.
The Australian Minister for Trade, Don Farrell, who is responsible for the negotiations, issued a brief statement on Monday 30 October, declaring that “we have not been able to make progress”.
From Canberra’s point of view, Europe’s inaction is to blame, particularly on the issue of agricultural products. Murray Watt denounced the “protectionism” and lack of “concessions”, stating that the Europeans had presented “essentially the same offer with a few adjustments”.
However, the European negotiators are presenting this offer as resolutely significant, and economically and politically viable. A source close to the matter believes that the Australian negotiators arrived in Osaka with demands on the subject of agriculture that did not reflect the recent negotiations and made it impossible to continue the negotiations.
The European Commissioner for Trade, Valdis Dombrovskis, stated that “the European Commission remains open to continuing negotiations”. However, according to several European sources, the deadline for agreeing this deal was tight and the opportunity should have been seized this weekend.
The uncertainty now created by this setback could have an impact on future opportunities for Europe to access the Australian market for critical minerals, which the EU needs in order to reduce its dependence on the Chinese market. (Original version in French by Isalia Stieffatre)