Debate has erupted over a free-trade agreement with the European Union that is yet to be ratified by parliament.
WHAT IS THE DEAL?
* The EU-Australia Free Trade Agreement was finalised between Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen in March after eight years of negotiations
* It will lock in in European food, wine, cars and clothes, but some meat farmers say they’re no better off while politicians have labelled the new agreement worse than the status quo
* Australia would remove a five per cent tariff on imports of European products, which hits car makers such as BMW and Mercedes, along with goods such as fashion products, food and drinks
* Europe would drop or phase out all tariffs on Australian seafood, wine, critical minerals, wheat, honey, olive oil, onions, potatoes, carrots and manufactured products excluding steel, with more market access for beef, mutton, lamb and some rice
* The EU is Australia’s third-largest two-way trading partner and second-largest foreign investment source – the free trade agreement could be worth up to $30 billion in trade
WHAT ARE THE ISSUES?
* Primary producers immediately sounded alarm bells over what they described as lacklustre access to the trading bloc compared to generously subsidised European farmers
* The deal would let Australia sell 35,000 tonnes of beef and 30,851 tonnes of mutton and lamb to the EU, and phase in more of both over the next seven to 10 years.
* 50 per cent tariffs on Australian steel bound for Europe will remain, which has proven a sticking point for the coalition
* Nationals leader Matt Canavan vowed the coalition would block the deal during a parliamentary vote to ratify it, kickstarting days of confusion over the federal opposition’s official position
* Liberal treasury spokesman Tim Wilson on Monday clarified the coalition was tentatively opposed, but stressed it had not seen the final wording of the legislation to be sent through parliament
* Trade Minister Don Farrell said backing away from the agreement would be an act of economic self-harm and urged the Liberals not to get beaten around by their junior coalition partner
WHAT HAPPENS NOW?
* Without the coalition, Labor will need to ram the agreement through the Senate with the support of the Greens, who are yet to guarantee their backing
* If it fails, it will be the first free trade agreement Australia has ever failed to ratify
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