Key Takeaways
- The Australian government is restarting free trade talks with the EU to reject protectionism and promote economic growth.
- Protectionism would lead to severe economic consequences, including higher inflation and higher unemployment.
- Australia and the EU aim to set an example for other countries by promoting free and fair trade and rejecting protectionism.
Canberra: A free trade deal between Australia and the European Union (EU) would “set an example” for other countries to reject protectionism, says a senior Australian Minister.
Don Farrell, Australia’s Minister for Trade and Tourism, said in an interview with Nine Entertainment newspaper that he would on Tuesday speak with his EU counterpart, Commissioner for Trade Maros Sefcovic, and invite him to Australia at the earliest opportunity to restart free trade talks.
“Europe and Australia are in a position to set an example for other countries, so the message gets out that protectionism is not the way to go,” Farrell said.
Australia and the EU began negotiations on a landmark free trade agreement in 2018 before talks broke down in 2023 when the two sides could not reach a deal on access to the EU market for Australian agricultural exports.
Prime Minister Anthony Albanese’s government moved to restart talks with the EU in April and Albanese on Sunday met with European Commission President Ursula von der Leyen in Rome.
Farrell emphasized that protectionism would have severe economic consequences, including higher inflation and higher unemployment.”countries that go down that path”.
“Europe and Australia talk about the importance of the rules-based order, and we have to demonstrate to the world that free and fair trade is good for prosperity,” he said.
Speaking at a press conference in Canberra on Monday, Farrell said that access for Australian beef and lamb into European markets had been a “difficult issue” in previous talks but that both sides have “goodwill” to get a deal done.
