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EU tells Australia to take trade deal or walk away

The Coalition has threatened to block the agreement in the Senate, putting promised duty-free access for Australian exporters at risk.

3 min read
Trade Minister Don Farrell speaks at a press conference in front of flags
Trade Minister Don Farrell. Digitally illustrated image.
By Bushletter Newsroom ·

TLDR

The European Commission will not renegotiate the Australia-EU free trade agreement concluded in March, forcing Canberra to ratify or reject a deal covering 97.8 per cent duty-free goods access. Trade Minister Don Farrell says the deal is overwhelmingly in Australia's interest, but the Coalition has threatened to block it in parliament.

Brussels holds the line

The European Commission said on Tuesday 20 October that it will not reopen the Australia-EU free trade agreement finalised in March, delivering a blunt message to Canberra: accept the text as written or walk away.[1] "Once negotiations are done, they are done," Commission trade spokesperson Olof Gill told Politico.[1]

Negotiations concluded on 24 March 2026.[2]

What the deal puts on the table

Once in force, 97.8 per cent of Australia's goods exports to the EU will enter duty-free, rising to 98 per cent upon full implementation.[3] The EU is a market of 450 million consumers, and the agreement opens it to Australian agricultural exports including beef, sheep meat, sugar, grains and wine.

The deal guarantees preferential access of 35,000 tonnes of beef and 30,851 tonnes of sheep meat per year on full implementation.[4] EU modelling estimates the agreement could increase Australia's real GDP by up to $7.8 billion by 2030.[4]

Farrell makes the case

Trade Minister Don Farrell has urged parliament to ratify the agreement. "We've been going for 10 years, and at a certain point, Sally, you have to say, look, we've got to either accept or reject this offer," Farrell said. "I say that it's overwhelmingly in the interest of the Australian people to accept this offer."[5]

Opposition threatens a parliamentary block

The Coalition opposition has threatened to block the deal in the Senate, though shadow treasurer Tim Wilson said: "We haven't committed to opposing it in a formal sense."[1] Farrell rejected demands from some farmers to walk away from the deal.[6]

With Brussels refusing to reopen talks, the agreement now needs the approval of the Australian Parliament.

KEY TAKEAWAYS

01The European Commission confirmed it will not renegotiate any part of the March 2026 agreement text.
0297.8 per cent of Australian goods exports will enter the EU duty-free once the agreement takes effect.
03Beef and sheep meat exporters gain guaranteed annual quotas of 35,000 tonnes and 30,851 tonnes respectively.
04EU modelling estimates the deal could lift Australia's real GDP by up to $7.8 billion by 2030.
05The Coalition has threatened to block the deal in the Senate but has not formally opposed it.

FREQUENTLY ASKED QUESTIONS

What proportion of Australian goods will enter the EU duty-free under the deal?
97.8 per cent of Australian goods exports will enter the EU duty-free upon the agreement taking effect, rising to 98 per cent on full implementation.
Why won't the European Commission renegotiate?
Commission trade spokesperson Olof Gill said on 20 October 2026: "Once negotiations are done, they are done."
What happens next in Australia?
The agreement needs the approval of the Australian Parliament, where the Coalition has threatened to block it in the Senate.
Related topics
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