Potential impact on sensitive sectors like beef and sheep meat

European farmers have expressed significant concerns regarding the ongoing negotiations for a free trade agreement between the European Union and Australia. The agricultural sector fears that the deal could impose an unfair burden on them, particularly in sensitive areas such as beef, sheep meat, sugar, and rice.

Background

Copa and Cogeca, the leading representatives of European farmers and agricultural cooperatives, have voiced their apprehensions about the potential outcomes of the EU-Australia Free Trade Agreement. They represent a vast network of over 22 million farmers and 22,000 cooperatives across Europe. The organisations argue that the agreement, if not carefully structured, could exacerbate existing pressures on these sectors, which are already grappling with rising production costs, geopolitical tensions, and the impacts of previous trade deals like Mercosur.

Market Implications

The core concern is that any increase in market access for Australian products, even if minimal, could destabilise the European agricultural market. The EU's consumer base of 450 million people starkly contrasts with Australia's 28 million, creating a structural imbalance that could disproportionately favour Australian exports. This could lead to intensified competition for EU farmers, potentially affecting production, pricing, and the overall viability of farming operations in Europe.

Copa president Massimiliano Giansanti emphasised that additional market openings could "add fuel to the fire", further straining sectors already under duress. The lobby insists that the European Commission must acknowledge these vulnerabilities and ensure that the trade agreement is balanced, protecting the interests of EU agriculture.

Future Considerations

The agricultural lobby is urging the European Commission to consider the cumulative pressures facing EU farmers and to limit market openings for sensitive products. Without such measures, the agreement risks undermining the sustainability and future investment in European farming.

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