A “FAIR DEAL”

Von der Leyen told Australian lawmakers that Tuesday’s agreement on trade was a “fair deal, and one that delivers for your businesses and one that delivers for our businesses”.

Under the deal, the EU said it expected exports to Australia to grow by a third over a decade.

The quota of Australian beef allowed into the bloc will increase more than 10 times the current level over the next decade, although that falls short of what Australian farmers had been seeking.

Australia’s National Farmers’ Federation said it was “extremely disappointed” by the outcome of the deal.

“What the Australian government has accepted today appears to offer no material change for key agricultural commodities as what the government rightly rejected in October 2023,” president Hamish McIntyre said.

EU firms exported €37 billion (US$42.9 billion) of goods to Australia last year, and €31 billion of services in 2024.

And Australia said the deal could add A$7.8 billion (US$5.4 billion) to its gross domestic product by 2030.

Australia’s largest export market is China, and the United States is its largest source of investment.

However, Canberra has redoubled efforts to diversify export markets for farmers since a 2020 dispute with Beijing saw agriculture shipments blocked for several years, and the global imposition of US tariffs last year.

Likewise, the EU is on a drive to strike new partnerships in the face of US levies and Chinese export controls.

Von der Leyen’s visit was overshadowed by the war in the Middle East, which has sent oil prices soaring.

The EU chief said this month the conflict had served as a “stark reminder” of Europe’s vulnerabilities.

And on Tuesday she called for an immediate end to hostilities in the face of a “critical” situation for energy supply chains globally.

Australia – which is heavily reliant on fuel from abroad – has also felt the pressure from the global energy squeeze.