Published in News
Beef Battle: Australia and EU Clash Over Trade Deal
Talks between Australia and the European Union have restarted, but a dispute over beef import quotas is threatening to derail the agreement.
Martina Osmak
Director of Marketing
Trade Talks Back on the Table
Australia and the European Union (EU) have resumed negotiations for a free trade agreement. The talks had stopped in 2023 because both sides could not agree on important issues.
The main problem is market access — especially how much Australian beef and lamb can enter the EU without paying high tariffs.
This week, Australian Trade Minister Don Farrell is expected to meet EU Trade Commissioner Maroš Šefčovič and Agriculture Commissioner Christophe Hansen. Both sides hope to make progress, but tensions remain high.
Why Beef Is the Big Issue
The biggest disagreement is about beef import quotas.
The EU wants to allow 30,000 tonnes of Australian beef per year without tariffs.
Australia wants the quota to be 40,000 tonnes per year.
The difference may seem small, but for farmers it is very important.
Australian cattle producers say that accepting a lower quota would limit their long-term growth in Europe.
Farmers Warn: “No Deal Is Better Than a Bad Deal”
The National Farmers’ Federation (NFF) in Australia has urged the government to stay firm.
Its leadership says farmers will not accept a trade deal that mainly benefits Europe. According to them, a weak agreement could damage Australian agriculture for many years.
Farmers are also worried about:
Chinese tariffs on Australian beef
Uncertainty in U.S. trade policy
Rising production and export costs at home
Because global trade is unstable, they believe this is not the right time to accept poor conditions.
Accusations of Protectionism
Australian farm groups accuse the EU of protecting its own farmers too much.
They point out that the EU provides large agricultural subsidies — reportedly close to 80 billion dollars in support programs. At the same time, the EU limits imports from other countries.
Australian producers say this creates unfair competition. They argue that it is difficult to compete with heavily subsidized European farmers unless trade agreements give real and meaningful access to the EU market.
Does Australia Have Stronger Leverage?
Some analysts believe Australia may now have a stronger negotiating position.
The EU is currently trying to secure new trade partnerships. Global trade tensions and past U.S. tariff policies have pushed Europe to look for reliable partners. Recently, the EU has accelerated trade agreements with India, Indonesia, and Mercosur countries.
Another important factor is natural resources. The EU wants to reduce its dependence on China for critical raw materials. Australia has large reserves of rare earth minerals, which makes it an attractive partner.
What Happens Next?
Australian Trade Minister Don Farrell has made it clear:
If the EU does not improve its offer, Australia is prepared to walk away from the talks.
This means the negotiations could still end without a deal.
For now, both sides are under pressure. The EU wants stronger global partnerships. Australia wants fair access for its farmers.
Whether they can find a compromise remains uncertain.