The Australian Meat Industry Council (AMIC) says it is more important to get the free trade agreement (FTA) with the EU right, rather than right now. It has called on the government to only sign up to the FTA if it delivers “meaningful access” for Australian red meat processors and exporters without built-in barriers to trade.
AMIC said Australian meat quota holders and exporters to the EU have invested heavily over decades to build customer relationships in Europe, but the existing trade conditions are outdated and inequitable with restrictive quotas and high tariffs.
AMIC CEO Patrick Hutchinson said the EU FTA negotiations were Australia’s “one shot to correct a uniquely unfair system” and that the new agreement must improve tariff and quota access and not include new restrictions and barriers to trade.
“The government must make sure that it does not agree to a deal which locks in restricted access that effectively sends us backwards and doesn’t allow for future growth,” Hutchinson said.
In February, the Australian Food & Grocery Council (AFGC) raised its concerns about the FTA particularly related to EU demands for Geographical Indications (GIs).
GIs are names used on products that come from a specific geographical area, have qualities attributable to that location, and highlight regional expertise and know-how.
The EU has asked Australia to protect 234 spirit names and 166 agricultural and other foodstuff names, saying it would ban Australian companies from importing if they were using GI protected product names like parmesan, balsamic, feta, and kransky.
The AFGC said these are common terms for food products and manufacturers in Australia.
AFGC CEO Tanya Barden said local manufacturers support free trade but not at the cost of forfeiting product names that have been used for generations.
“The federal government must ensure the future of the Australian food manufacturing industry is not crippled by allowing the EU to claim ownership over these widely used terms and the precedent it sets for other FTA negotiations,” Barden said.
The wine industry also expressed its concern regarding the EU wanting protection for 50 new wine GIs as well as prosecco and urged Australian wine makers and grape growers to make their voices heard.
Australian Grape & Wine CEO Lee McLean said maintaining the ability to use grape variety names was an essential element of rules-based trade and investment in the sector.
“It’s absolutely critical that Australian grape growers and winemakers submit their views to government through this public objection process. Prosecco is a grape variety just like shiraz or chardonnay,” said McLean.
Hutchinson said, “Australia’s negotiators have worked hard for years to get to this point on the promise that ‘sensitive’ products such as meat will be negotiated in good faith at the 11th hour. Now we are there, this is a once in a generation opportunity that is too important to get wrong.
“The EU look set to get almost all their asks outlined at the start of the FTA, but it’s hard to see what’s being offered to Australia in return is fair, particularly for agriculture,” Hutchinson said.
He said a sub-par deal would help the EU restrict imports through “a regulatory death by a thousand cuts” as well as contradicting the spirit of an FTA.
“Our industry has been at the coal face for decades developing this market and if this deal falls short, it will put Australia’s red meat sector at a massive disadvantage for years to come.
“We don’t just want any deal; we want the best deal,” he said.
