Back FTA or damage Australia: Farrell

By the Editorial Team · Monday, November 2, 2026

Trade Minister Don Farrell has called on the opposition Coalition to support the European Union free-trade agreement, warning that political opposition could damage Australia’s global standing and emphasizing the deal’s benefits for critical minerals exports and investment. Despite Farrell’s outreach, Coalition members continue to raise concerns over climate-related provisions in the agreement, making Senate approval uncertain and dependent on negotiations and crossbench support.

Trade Minister Don Farrell has urged the opposition Coalition to engage constructively on the European Union free-trade agreement (FTA), warning that rejecting the deal for political reasons could harm Australia’s international reputation. In a letter addressed last week to opposition foreign affairs spokesman Ted O’Brien, Senator Farrell called for a focus on national interests rather than political point scoring.

The minister emphasized the potential economic benefits of the FTA, highlighting increased European investment, particularly in critical minerals. He pointed to rare earths developer Arafura Resources, which received an $84 million equity injection from a German government fund earlier this year, as an example of the potential boost from the agreement. Farrell said the deal would eliminate tariffs on Australian critical minerals, opening new export opportunities and supporting thousands of jobs in the resources sector.

Despite Farrell’s call for dialogue, Ted O’Brien responded that the Trade Minister’s letter did not address proposals he had made regarding climate change provisions in the agreement. O’Brien has suggested a side letter to ensure Australian companies would not face penalties under the FTA for failing to meet the Albanese government’s climate targets. Furthermore, O’Brien sought assurances that future Australian governments would not breach the agreement by implementing domestic policies that alter emissions profiles. He maintained his willingness to engage constructively on the issue.

Coalition senator Matt Canavan also expressed openness to talks with Farrell, although previous efforts to arrange meetings have been unsuccessful. Canavan and other Coalition members have raised concerns about the climate provisions in chapter 18 of the FTA, which commit parties to implementing the Paris Agreement and pursuing net-zero emissions targets. Canavan additionally criticized the government for securing additional market access for agriculture compared to a deal rejected by Farrell in 2023. Farrell refuted the claim, stating Australia achieved a better agricultural outcome in the current agreement.

The political dynamics surrounding the FTA remain fluid. Over the weekend, it was reported that Liberal senator Andrew McLachlan has committed to crossing the floor in favor of ratifying the deal. Senators Richard Colbeck and Paul Scarr are also reportedly considering supporting the agreement. The Albanese government still requires at least nine additional Senate votes to pass the legislation, with crossbench support from One Nation, United Australia Party senator Ralph Babet, and potential dissent from the Greens playing a critical role. While the Greens back the deal, their position is not guaranteed, prompting Farrell to seek a stable majority.

Labor has stressed the importance of bipartisan support to ensure the agreement’s longevity beyond the current government. However, the Coalition’s objections remain primarily focused on the climate commitments embedded in the FTA. The outcome in the Senate will depend on ongoing negotiations and potential shifts in party positions as the approval process continues.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.