Reviving Trade Ties: Australia and EU Pursue New Economic Agreement

Australia and the European Union have restarted discussions on a comprehensive free trade agreement. The revived talks were spearheaded by Australia's Trade Minister Don Farrell and European Commissioner for Trade Maroš Šefčovič during a meeting in Paris, coinciding with the OECD Ministerial Council Meeting.

The desire to strengthen the economic relationship comes as a Wednesday deadline approaches for international trade proposals set by the United States. Farrell also expressed Australia's stance on U.S. tariffs, urging the removal of current trade barriers. Both parties aim to finalize the deal by addressing outstanding issues, particularly in agriculture.

The potential agreement seeks to enhance economic resilience in a fluctuating global market. While Australia is open to removing its luxury car tax, it demands improved access for its beef and lamb exports to the European market, a proposition met with hesitation from some EU countries, notably France. Conversely, cooperation with the Trans-Pacific Partnership remains in the EU's interest.

(With inputs from agencies.)