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The European Commission said Wednesday its president Ursula von der Leyen will travel to Australia next week as negotiators in Brussels and Canberra enter the final stretch of talks on a hard-fought free-trade agreement.
Agriculture has been a key sticking point between the two sides. Talks collapsed in 2023 after Canberra accused Brussels of failing to offer sufficient market access for its meat exports. But mounting global trade tensions revived negotiations last year after the US rolled out sweeping tariffs on partners worldwide.
Von der Leyen will visit Sydney and Canberra from March 23 to 25 “to strengthen EU ties with a trusted, like-minded partner in the strategically vital Indo-Pacific region,” the Commission said.
Meat vs. minerals
Since Washington’s trade shift, the EU has been racing to diversify partners, with the Commission noting that 83% of EU trade takes place with countries beyond the US.
A major free-trade deal was clinched with India in January, aimed at deepening both economic and strategic ties.
An agreement with Australia would also carry geopolitical weight in a region where rivalry with China is intensifying.
“We are in the final stretch towards concluding a new EU-Australia Free Trade Agreement,” von der Leyen wrote in a letter sent Monday to EU leaders ahead of an EU summit, adding it will “strengthen Europe’s presence in one of the world’s most dynamic economic regions.”
Talks broke down in 2023 when the EU offered quotas of 30,000 tonnes for beef, short of Canberra’s request for 40,000 tonnes.
Following the contentious conclusion of the Mercosur trade agreement, the Commission has remained cautious on agriculture. Still, an EU official said the bloc could further open its market to Australian meat in exchange for better access to critical raw materials.
In her letter, von der Leyen said that “removing trade barriers” would facilitate access “to critical raw materials – such as lithium, cobalt, rare earth elements, and hydrogen,” in Australia.
The deal would mark another win for the EU after agreements in recent months with India, Mexico, Switzerland and Indonesia.
“The world wants to trade with Europe,” von der Leyen said in a speech to EU ambassadors on March 9, “our trade network has never expanded so fast.”
She also pointed to ongoing negotiations with the Philippines, Thailand, Malaysia, the United Arab Emirates and five countries in Eastern and Southern Africa.
