Australia should compromise to reach EU trade deal, minister says

CANBERRA (Reuters) -Australia should accept compromises to reach a trade deal with the European Union and demonstrate that such agreements can still be reached in a more protectionist world, Trade Minister Don Farrell said on Friday.

Farrell said in a speech at the Lowy Institute in Sydney that free trade was under threat and that Australia should work with other countries to defend it.

In a question and answer session after the speech, Farrell said Australia-EU trade negotiations that restarted this year would be successful and it was in both sides' national interest to make it so.

"It will require some compromises in our negotiations, but I think the imperative here is to show the rest of the world we're fair dinkum about free and open trade and we can do agreements with other countries," he said, using an Australian phrase meaning honest, genuine or sincere.

Asked if he meant that Australian industry would have to step up in the national interest, he said: "I'm saying exactly that."

A previous attempt to reach a trade deal failed in 2023, with Canberra wanting more ability to sell farm goods in Europe. The EU is seeking greater access to Australian critical minerals and lower tariffs on manufactured goods.

Farrell also said a trade agreement with India should be reached "in the very near future." The two countries are aiming to conclude the second phase of a trade pact by the end of the year.

Australia is also seeking to negotiate with the United States to reverse tariffs enacted by President Donald Trump and prevent new ones from being imposed.

Canberra on Thursday loosened biosecurity rules to allow greater access to U.S. beef, though it said this was the result of a long-running scientific assessment rather than a part of trade talks.

(Reporting by Peter Hobson; Editing by Jamie Freed)