Australia’s dairy industry has backed Trade Minister Don Farrell in walking away from a trade deal with the European Union (EU) that would have hurt the Australian dairy industry.
Australian Dairy Industry Council (ADIC) chair Rick Gladigau and deputy chair John Williams are in Osaka, Japan, representing dairy’s interests during the talks.
Mr Gladigau said the industry has consistently reinforced that a free trade agreement (FTA) with the EU was never going to deliver a positive outcome for dairy.
“Australian dairy welcomes the Minister’s decision not to conclude a deal and walk away.
“Despite the best efforts of the Australian Government, the EU has continued to make unreasonable demands by insisting Australia adopt an anti-competitive Geographical Indications (GI) regime while at the same time resisting to provide equitable market access into the EU dairy market.”
Already, 70,000 tonnes of European dairy products are imported to Australia each year, compared to just 500 tonnes of Australian exports to the EU.
ADIC deputy chair John Williams said an FTA with the EU offered no gains for Aussie dairy, just costs and burdens. For dairy, no deal was better than an inequitable deal.
“We thank Minister Farrell for not blinking at the 11th hour and having the fortitude to walk away in the face of the EU maintaining its unreasonable position.
“This is especially important as the industry battles increasing cost of production, a flood of cheap imports and the lowest milk pool in 30 years.”
Says Mr Gladigau; “ADIC truly recognises the efforts made by the Minister and the negotiation teams at the Department of Foreign Affairs and Trade and Department of Agriculture, Fisheries and Forestry over the five years of negotiations.
“The complexities being faced by dairy in these negotiations have been well recognised as an enormous challenge and ADIC has appreciated the Government’s regular communication and consultation on the critical issues associated with the A-EUFTA.”
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