The early morning announcement of the conclusion of the EU-Australia Free Trade Agreement in Canberra by European Commission President von der Leyen and Australian Prime Minister Albanese raises multiple and strong concerns for European agriculture, which is clearly and once again the bargaining chip of the EU strategy to secure broader trade and political objectives. A vision that responds to the emergencies of the moment, but whose medium-term consequences will be unsustainable for many sensitive farming sectors.
The significant concessions on highly sensitive agricultural sectors-particularly beef (30,600 t TRQ), sheep meat (25, 000 t TRQ – with only 27% frozen,) sugar (35,000 t TRQ) and rice (8,500 t TRQ) have long drawn strong opposition and concern from the farming community. In a post-Mercosur context, the cumulative impact of successive trade agreements makes these concessions unacceptable. Even for a traditionally more offensive sector like wine, the potential benefits of this agreement remain elusive, with Australian exporters likely to see more benefits due to the elimination of duties.
In fact, this new agreement cannot be separated from the very complex market context which affects European agriculture. Farmers across the EU are facing increases on all input costs, persistent inflationary pressures, prices that don’t keep up, and increasing uncertainty linked to the developments in Iran and all the broader geopolitical context. Further openings of these sensitive sectors to free trade agreements would only worsen existing vulnerabilities and push many EU family farms to the breaking point.
The absence of a comprehensive approach to managing the cumulative impact of these agreements continues to raise fundamental questions about the coherence and sustainability of EU trade policy. European farmers cannot continue to absorb the cost of bilateral trade liberalisation without adequate and truly effective safeguards. For now, such mechanisms proposed by the Commission remain more like communication tools to promote hardly acceptable agreements than truly effective mechanisms that can be activated in the event of a crisis.
European producers remain committed to delivering high-quality, sustainable products in line with some of the world’s most stringent standards. It is therefore essential that trade agreements do not erode these efforts. We now await the full details of the agreement, especially on the outcome of GI protection and TRQ management, to assess its precise implications and impact.
Fonte: Copa Cogeca
