Stepping away from EU deal, the right call

CANEGROWERS has congratulated Federal Trade Minister Don Farrell on taking the courageous decision to step away from free trade negotiations with the European Union rather than sign a bad deal for Australia’s farmers.

Minister Farrell was in Japan over the weekend for the G7 summit in Osaka, where it was expected a free trade deal might be done on the sidelines.

However, following a national campaign by the National Farmers’ Federation, CANEGROWERS and other ag bodies, Minister Farrell decided the terms on offer from the EU were a poor deal for Aussie agriculture.

“These negotiations have been ongoing since 2018 and during all that time the EU has consistently failed to offer meaningful access for Australian agricultural produce, including sugar” said CANEGROWERS CEO Dan Galligan, who was in Japan consulting with top government officials on the sidelines of the G7 meeting.

“The Europeans want this deal more than Australia needs it. We’ve been telling the Minister for months that no deal would be better than signing a bad deal.

“I thank him for listening to farmers and taking their concerns on board. It’s no small decision to walk away from a free trade agreement with one of the world’s largest trading blocs at the 11th hour. It takes some courage and I congratulate Minister Farrell for making the tough decision; I know the nation’s farmers will appreciate him taking a stand on their behalf.”

Mr Galligan said a blueprint for acceptable free trade terms was already in place, with the recently signed A-UK FTA providing significant access for Australian produce, while benefiting both nations.

“The Australian Government was successful in negotiating a deal with the UK that provided tariff free access for 80,000 tonnes of sugar in the first year, increasing by 20,000 tonnes per year for eight years, at which time all quotas and tariffs on Australian sugar would be lifted,” Mr Galligan said.

“The bottom line is the EU needs sugar. They regularly import two million tonnes of raw sugar per year to meet their domestic demand. And European sugar refiners are crying out for access to the type of high quality, sustainably produced sugar we produce here in Australia.

“While distance may mean that Europe may never be a major market, it most definitely could be a premium market for Australian sugar, with our high-quality and reliable supply justifying a premium price.

Mr Galligan said there was still an opportunity to negotiate a free trade agreement that would benefit both sides.

“This decision will certainly have pushed back any agreement, possibly for years, but it’s much better to keep negotiating than sign a bad deal for the sake of expediency.

“CANEGROWERS will continue to work with the government on this issue, as we have done for the past five years.”