‘No second chance’: Trade chief’s call to arms amid fears for EU FTA

Australia’s trade chief is calling on farmers and businesses alike to tell the Coalition what the $10bn-a-year free trade deal with the EU “means to you” amid concerns the opposition may try to sink it in parliament.

Canberra and Brussels finalised terms for the Australia-EU free trade agreement (FTA) in March, with European Commission President Ursula von der Leyen navigating airspaces shuttered by conflict to formally close almost a decade of talks.

The deal, which parliament must ratify, will slash levies on 97.8 per cent of Australian exports to the EU.

But Trade Minister Don Farrell on Wednesday warned “it has become clear that the passage of this new deal through the parliament is not guaranteed”.

“In recent weeks, as politics in our country has shifted to entertain and reward populism, some in our parliament have been tempted to signal that they will oppose this agreement – choosing to chase headlines rather than practical outcomes,” he will tell an Australian Chamber of Commerce and Industry event, according to advanced extracts of his speech.

“Sadly, some of those who are indicating that they will try to block this agreement are the same members and senators who claim to represent the hardworking businesses in this very room.”

Australian producers will be able to export 35,000 tonnes of beef tariff free – an eightfold increase on current levels.

Despite both quotas increasing, they still fell short of what industry were demanding, prompting Nationals leader Matt Canavan to brand it “the worst deal ever”.

Senator Canavan, who is also opposition trade spokesman, a few weeks later gave a major speech outlining his protectionist vision for an “economic revolution”.

In a world rocked by wars and tariffs, Senator Farrell will make the case for “more trade, not less”, pointing to Australia’s record $1.3 trillion in trade last year.

“The world is currently falling into two groups – those putting up barriers, blocking markets, and imposing taxes and tariffs, and those continuing to build connection, strengthen trading relationships, and find new markets,” he will say.

“This government chooses to be the latter. We will not be tempted into the error, into the fallacy or into the lie that locking ourselves away from the world will help Australian business or consumers.

“We will not send a message to the world that we are not open for business, that we are not interested in winning foreign investment, and that years of hard-fought negotiations can be sacrificed on the altar of someone’s political ambition.”

Speaking to the EU FTA, he will warn “there is no second chance with the EU if we choose to walk away from this deal”.