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Australia and the European Union have failed to resolve five-year-long negotiations on a planned free trade agreement worth almost $100 billion.
Key points:
- Australia's trade minister travelled to Brussels this week in an attempt to break the deadlock
- The EU wants to restrict Australia from using names including prosecco and feta
- Australia wants the deal "to achieve meaningful agricultural access to European markets"
Australia's Trade Minister Don Farrell travelled to Brussels this week in an attempt to break the deadlock.
After two days of negotiations, both sides failed to reach a compromise and will now need to reconvene next month.
Australia wants greater trade access for beef, lamb, sugar, cheese and rice exports into a market with almost 250 million people.
The EU has been threatening the right of Australian producers to use names including prosecco, mozzarella, feta and parmesan, restricting the use of those names to products originating from specific regions.
Australia has argued that Europeans have immigrated to Australia, bringing their cultures with them, and should be able to continue using the names.
The trade minister said while he's disappointed the two sides could not come to an agreement, Australia was not offered a deal it could accept.
"We've made it very clear right from the start that we won't simply accept any agreement," Senator Farrell said.
"The agreement from the Australian point of view, has to achieve meaningful agricultural access to European markets, and that's what we're continuing to pursue in these negotiations."
Ahead of his trip, Senator Farrell flagged he was prepared to extend negotiations on the deal into the second half of the year if needed.
He said he remains optimistic but said it will take more work.
"My job is to get the best result for Australia. We weren't able to achieve that on this occasion. I believe we will achieve it, but it's going to require further negotiations," he said.
The National Farmers Federation (NFF) said it supports the Australian government's decision to continue working on the deal.
NFF chief executive Tony Mahar said he applauds Senator Farrell and the negotiating team for "rejecting a sub-standard deal".
"We're hopeful that with some grit and goodwill from both sides we can get this thing done in a way that benefits everyone, including Aussie farmers," Mr Mahar said.
"Australia should not have to accept a deal which is inferior to that of other countries."
'The right deal for us'
Federal Treasurer Jim Chalmers said the agreement is a huge opportunity for Australia.
"The negotiations have been difficult but there has been some progress made, there's more work to do," Mr Chalmers said.
"I really want to assure our farmers, our workers, our employers, our exporters that we are trying to get the best possible deal for Australia, if that takes a little bit longer then that is fine by us."
Nationals leader David Littleproud said he was not disappointed Australia did not reach a deal.
"It's got to be the right deal for us ... and we're also very concerned about this push by the EU to impose their production systems on Australia.
"We're in a different continent and they want to remove much of our herbicides and pesticides and fertilisers, and think they have better animal welfare standards than ours.
"It's important the government holds firm and gets the best deal for Australian agriculture, and if it's not there they should walk away."