Farrell defends $10 bn EU trade pact despite red meat quota concerns

Australia’s trade agreement with the European Union, finalized in March, removes tariffs on almost all Australian goods heading to the bloc, creating an estimated $10 bn annual benefit. However, negotiators failed to obtain the 50,000-tonne beef and lamb quotas demanded by farmers, delivering only 35,000 tonnes for beef and just under 31,000 tonnes for sheep meat. Trade Minister Don Farrell admitted the deal did not meet every expectation but argued it still delivers $2 bn of new trade for the red-meat sector and supports the broader economy.

He cautioned that a single industry's grievances should not halt the agreement’s wider advantages. The Nationals intend to block the pact when it reaches parliament, whereas the Australian Chamber of Commerce and Industry and the Australian Industry Group urge parliamentary support, citing long-term export growth. Political turbulence in France and Germany was cited by Farrell as a factor limiting renegotiation prospects, a point dismissed by Nationals leader Matt Canavan.