Australia's red meat industry has issued its clearest message yet on the pending endgame of the Australia-European Union Free Trade Agreement (A-EU FTA) negotiations.
Improved market access is essential, and the FTA is the way to achieve it.
With the EU only allocating quota increases to its trading partners, rather than genuinely liberalising its import regime, Australian negotiators must remain firm.
Andrew McDonald, Chair of the Australia–EU Red Meat Market Access Taskforce, said Australia cannot afford to fall further behind other global suppliers.
"A successful deal must correct the disproportionately low quota volumes currently applied to Australian beef, sheepmeat and goatmeat entering the EU, and secure the maximum possible additional, useable access under an FTA," Mr McDonald said.
"Our competitors have significantly strengthened their position in the EU through bilateral negotiations. With strong support from the Australian Government, we aim to achieve the same," Mr McDonald said.
"As a likeminded partner with a strong value proposition, particularly in product quality and sustainability, it is reasonable that Australia secures at least a minimum of 50,000 tonnes carcase weight (cwt) of beef access in line with what the EU has offered our competitors."
Australia's current country specific beef quota sits at just 3,389 tonnes shipped weight (swt). This compares starkly with:
- 49,500 tonnes cwt secured by Brazil (assuming 50% of Mercosur's 99,000 tonne outcome); and
- 50,000 tonnes cwt secured via the EU–Canada agreemen
"The situation for Australian sheepmeat and goatmeat is similarly inequitable," Mr McDonald said.
"New Zealand enjoys 125,769 tonnes of WTO access plus 38,000 tonnes under its FTA. By contrast, Australia is limited to just 5,851 tonnes.
"A genuinely trade enhancing FTA must go a long way toward addressing this imbalance by securing at least a minimum of 67,000 tonnes.
"With Australia's red meat access to the EU effectively being unchanged for nearly 50 years and then diminishing as a result of Brexit and a redistribution of quotas, this FTA represents the only realistic opportunity to remedy the competitive disadvantage we face, albeit still through restrictive perpetual quota and high tariff arrangements.
"Settling for a sub optimal outcome at a time of growing global trade uncertainty would weaken Australia's trade resilience and apply a handbrake to diversification into a market of 27 countries and 450 million consumers.
"Our preference is that the EU genuinely engages in free and fair trade. It is not a good deal for Australia if the Government agrees with the EU to continue punitive restrictions on Australian red meat.
"We are counting on Trade Minister Don Farrell and the Government to maintain their resolve and secure an outcome our industry can support."
"These necessary access improvements will also help address current skewed trade flows, with the balance of trade, both in its totality and specifically in relation to agricultural goods, firmly in the EU's favour.
"Australia already provides the EU with quota and tariff free access for meat products and hence the EU import regime is a long way from a 'level playing field.'
"Such a rebalance would clearly be in Australia's national interest.
As Prime Minister Albanese has emphasised, "no one held back, no one left behind." Australia's red meat sector cannot afford to be held back, or left behind, in these critical negotiations."
MLA serves as Secretariat to the Australia–EU Red Meat Market Access Taskforce, supporting industry coordination and insights throughout the negotiation process.
