Trade Minister Don Farrell is preparing to engage with agricultural leaders next week in an effort to address criticism surrounding the proposed Australia-European Union free-trade agreement (FTA), as key sectors present differing views on the deal’s benefits. The agreement, which faces opposition from the Coalition and the Greens in the Senate, aims to expand market access for Australian exporters, particularly in the agricultural sector.

Farrell will meet with members of the National Farmers’ Federation (NFF) amid strong resistance from the beef and dairy industries. These groups, supported by Coalition figures such as Nationals leader Matt Canavan, argue the deal falls short of expectations. Canavan highlighted the limited beef and sheep meat quotas allocated to Australia under the agreement—35,000 tonnes for beef compared with Canada’s 50,000 tonnes, and 25,000 tonnes for sheep and goat meat versus New Zealand’s 163,000 tonnes. Concerns center on whether accepting the current terms could weaken Australia’s future negotiating positions. The NFF has echoed these reservations, emphasizing that “no deal” is preferable to an inadequate one, particularly calling for increased meat access.

In contrast, the $6 billion Australian vegetable industry is pressing for the FTA’s ratification, portraying it as a vital opportunity to support growers struggling with high input costs and disrupted trade routes. The industry is poised to benefit from the removal of EU tariffs on key horticultural exports, including onions, carrots, potatoes, pineapples, pears, and apples. AUSVEG, the peak body representing vegetable growers, described the deal as a “never-to-be-repeated” chance to revitalize the sector. CEO Michael Coote pointed to ongoing production cost pressures exacerbated by global conflicts and supply chain disturbances, noting that expanded EU market access could inject “tens of millions” into the industry.

Australian exports of several vegetables to Europe have declined significantly since the New Zealand-EU FTA took effect in mid-2024, giving New Zealand a competitive advantage. Tasmanian exporter Charlton Farm Produce, one of the largest onion exporters to Europe, has experienced a sharp downturn in business since New Zealand secured its own trade terms with the EU. Company director Tim Groom said shipments to Spain fell from 1,200 tonnes to zero, forcing a pivot to the United Kingdom market and other alternatives. Groom warned that without the Australia-EU FTA, his company might be unable to sustain its longstanding European trade, which dates back to the 1970s.

Senator Farrell maintained that while the deal did not meet the full $3 billion trade growth sought for beef and lamb, it still provided substantial gains across the broader economy. He noted that while Europe currently accounts for only 3 percent of Australia’s exports, the FTA could significantly expand this share, granting access to a market of 450 million consumers across 27 countries. Farrell emphasized the immediate elimination of tariffs on various fruits and vegetables under the agreement.

The government is promoting the deal as a gateway to increased agricultural exports, highlighting an anticipated eightfold rise in beef access and a fourfold increase for sheep meat. Still, the final decision hinges on the Senate, where opposition from key political parties means the agreement’s approval remains uncertain.