EU 'optimistic' about breakthrough in free trade agreement negotiations with Australia
In short:
Australia and the European Union could make a breakthrough in their long-stalled free trade agreement negotiations as soon as this weekend, sources have told the ABC.
The EU trade commissioner says he believes a couple of months will be needed to conclude the negotiations before reaching the "finishing line" next year.
He has also revealed the EU wants to follow Australia's lead on the teen social media ban.
A breakthrough in long-stalled negotiations over a free trade deal between Australia and the European Union could come as soon as this weekend when Prime Minister Anthony Albanese and EU President Ursula von der Leyen are due to meet on the sidelines of the G20 summit in Johannesburg.
The EU also seems set to use the Australian social media ban as a model for a similar ban across the bloc.
Sources have told the ABC that virtually all issues have been smoothed out by trade negotiators in recent months, with beef being the only major issue still requiring political horse-trading between leaders.
That leaves open the possibility of a deal being agreed this weekend and formalised over the Australian summer.
EU Trade Commissioner Maroš Šefčovič seemed to confirm the optimistic outlook in an exclusive interview with the ABC in Melbourne where he held talks with Australian Trade Minister Don Farrell.
"I believe that we still need a couple of months to conclude the negotiations and to focus on the most difficult chapters, which are always at the end," he said.
"I'm optimistic that, I hope, that in the spring of the next year we can go to that finishing line."
Australian officials said Thursday's talks with the EU had been "positive" and "demonstrated a genuine desire to achieve a deal which is in both Australia and the EU’s interests".
"With good faith from both sides, a deal can be reached. Negotiations are continuing but there was progress today," they added.
Investments flagged in critical minerals, sensitive technologies
Beef, luxury cars, and the naming rights for products like prosecco and cheeses linked with particular regions of Europe — such as feta and parmesan — have long been contentious in free trade agreement negotiations.
Naming rights for products like Prosecco were one of the contentious issues in the Australia-EU FTA negotiations. (ABC Rural: Annie Brown )
But Mr Šefčovič said the Trump tariffs had changed much in the world.
"A lot has changed because we are now living in really the new transformation times, especially for global foreign trade, and therefore for [the] European Union," he said.
"It's very important to work with our friends, with the like-minded countries.
"Australia clearly is one of them and therefore I very much appreciate the new dynamics we have with Senator Farrell."
The EU is Australia's third-largest trade partner and a major investor.
Mr Šefčovič was due to hold talks with Resources Minister Madeleine King about joint projects in critical minerals.
EU Trade Commissioner Maroš Šefčovič said Trump's tariffs have changed much of the world. (Reuters: Yves Herman)
He also noted that the vice-president of the European Investment Bank has been in Australia this week to sign an agreement on joint investments in the sector "which would guarantee better economic security".
"There is a lot we can do together because our economies are very complementary. We have a couple of projects in mind," Mr Šefčovič said.
"We learned a very painful lesson over the last couple of years that, unfortunately … in these days, everything can be weaponised.
"It started with oil and gas, it continues with sensitive technology, with rare earths, and simply the lessons for us is that dependencies are extremely expensive and therefore we want to diversify.
"I understand that, for Australia, the lessons are the same. So let's do it together."
EU wants to introduce social media ban, inspired by Australia
When Mr Albanese recently showcased Australia's social media ban at the meeting of the United Nations General Assembly the EU president was one of the dignitaries to attend.
European Commission President Ursula von der Leyen said Australia is pioneering social media restrictions. (Reuters: Yves Herman)
Mr Šefčovič has told the ABC that the bloc is now looking at following Australia's lead.
"We look at this as a very pioneering approach of Australia," he said.
"Some of our member states already go in that direction and we want to introduce something similar on a European-wide scale, learning from your experience."
Mr Šefčovič said Ms von der Leyen's conversation with the prime minister had made a big impression on her, and noted that she had referred to the social media ban in a recent state of the union speech at the European Parliament.
In her September speech, she said:
"Just as in my days, we as a society taught our children that they could not smoke, drink and watch adult content until a certain age. I believe it is time we consider doing the same for social media.
"Our friends in Australia are pioneering a social media restriction. I am watching the implementation of their policy closely to see what next steps we can take here in Europe."
Denmark recently announced it would proceed with a similar ban to Australia.