Australia and EU Narrow Differences Over Beef and Food Imports as Free Trade Agreement Nears Finalisation
Brussels and Canberra edge closer to sealing a long-delayed trade pact, but agricultural quotas and protected food names remain sticking points in negotiations.
Australia and the European Union are locked in intensive negotiations over food import terms as they seek to conclude a comprehensive free trade agreement that has been in the works since 2018. Talks between Canberra and Brussels have intensified ahead of a potential signing in February 2026, but disagreements remain most acute over the volume of Australian beef and sheep meat that could enter the EU without tariffs and the protection of European geographical food names such as prosecco and feta.
The EU has offered access for around twenty-four thousand tonnes of Australian beef and twenty-thousand tonnes of sheep meat annually, about half of the figure Canberra wants, with the gap reflecting deep concerns among some member states about the impact of increased meat imports on domestic farmers.
These agricultural issues have repeatedly derailed negotiations in the past, including a collapse of talks in 2023 after the Australian trade minister abruptly withdrew from a concluding meeting.
Brussels is hopeful that current geopolitical and economic shifts will help bridge differences, including the EU’s desire to diversify supply chains and secure access to Australian critical minerals and rare earths, and Canberra’s interest in expanding market access amid broader trade tensions with China.
Total trade between the EU and Australia was valued at around A$109.7 billion in 2024, and modelling suggests a pact could add an estimated A$7.4 billion to Australian gross domestic product by 2030. While France and other agricultural exporters remain cautious, EU negotiators believe sufficient member-state support exists to conclude a deal, particularly if political leaders can reconcile domestic sensitivities with broader strategic gains.
Other outstanding issues in the negotiations include the continued use of protected European food names in Australia and the precise terms of quota and tariff reductions across a range of agricultural and manufactured products.
Both sides have stressed a commitment to reaching agreement, with recent talks described as constructive and focused on resolving the most challenging chapters of the pact, which supporters argue would strengthen economic ties, deepen cooperation across services and investment, and enhance resilience amid global trade uncertainties.
The EU has offered access for around twenty-four thousand tonnes of Australian beef and twenty-thousand tonnes of sheep meat annually, about half of the figure Canberra wants, with the gap reflecting deep concerns among some member states about the impact of increased meat imports on domestic farmers.
These agricultural issues have repeatedly derailed negotiations in the past, including a collapse of talks in 2023 after the Australian trade minister abruptly withdrew from a concluding meeting.
Brussels is hopeful that current geopolitical and economic shifts will help bridge differences, including the EU’s desire to diversify supply chains and secure access to Australian critical minerals and rare earths, and Canberra’s interest in expanding market access amid broader trade tensions with China.
Total trade between the EU and Australia was valued at around A$109.7 billion in 2024, and modelling suggests a pact could add an estimated A$7.4 billion to Australian gross domestic product by 2030. While France and other agricultural exporters remain cautious, EU negotiators believe sufficient member-state support exists to conclude a deal, particularly if political leaders can reconcile domestic sensitivities with broader strategic gains.
Other outstanding issues in the negotiations include the continued use of protected European food names in Australia and the precise terms of quota and tariff reductions across a range of agricultural and manufactured products.
Both sides have stressed a commitment to reaching agreement, with recent talks described as constructive and focused on resolving the most challenging chapters of the pact, which supporters argue would strengthen economic ties, deepen cooperation across services and investment, and enhance resilience amid global trade uncertainties.
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