Australia's Trade Minister warns Coalition may derail $10bn EU free-trade pact
Trade Minister Don Farrell warned that the Coalition’s move to block the EU free-trade agreement could cost Australia a $10 billion-a-year opportunity.
Speaking at an Australian Industry Group event, Trade Minister Don Farrell warned that the Coalition’s effort to block the EU free-trade agreement would deprive Australia of a $10 billion-a-year boost, stressing that global competitiveness demands open markets and diversified partners. He pointed to a $300 billion surge in bilateral trade since 2022 and the deal’s promise to eliminate tariffs on 98 percent of Australian goods.
Opposition Nationals leader Matt Canavan, serving as the coalition’s trade spokesman, announced plans to thwart the pact, branding it the “worst trade deal ever” and objecting to binding Paris-Agreement obligations and perceived tariff imbalances. Industry representatives, including Innes Willox of the Australian Industry Group and Jeff Connolly of Thales, defended the agreement, noting its potential to open access to 450 million EU consumers and to reinforce Australia’s defence industry through a Security and Defence Partnership. The confrontation could make the EU deal the first free-trade agreement rejected by the Australian parliament.
Why it matters
Blocking the EU deal would forfeit a major trade boost and reshape Australia's global economic strategy.
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