Read The Times Australia

Daily Bulletin

A European Union-Australia trade deal may heal a troubled history

  • Written by: The Conversation Contributor
imageTrade relations have been fractious between the European Union and Australia.Image sourced from www.shutterstock.com

For decades, trade relations between the European Union and Australia have been marked by sourness and rancour. So Prime Minister Malcolm Turnbull’s announcement last month that Australia will begin working towards a “comprehensive and high-quality” Free Trade Agreement with the EU marks a gradual thawing in relations.

An agreement will ensure trade and investment relationship reaches its full potential by removing trade barriers and expand service linkages and investment ties, while enhancing “regulatory cooperation in specific sectors of interest to business”. The process is expected to take between five and seven years.

The troubled relationship dates as far back as 1975 when the British first entered the European Community (as it was then named), shutting out Australia’s primary products from the UK.

Relations were already strained by the direct subsidies to specific agricultural products and tariffs introduced under the European Common Agricultural Policy (CAP) in the late 1960s. These two events defined Australian EU trade discussions for decades.

Disagreements over market tariffs and agricultural subsidies escalated over time and became a serious international issue. They were further inflamed by personal antagonism between then-Prime Minister Malcolm Fraser and the European Commission President, Roy Jenkins.

As Minister for Special Trade Negotiations, John Howard found Australia was effectively shut out of the EU. His summary of his 1977 Brussels visit was of “seven weeks tramping round Europe, not making a great deal of progress”.

The concern over agricultural subsidies between Australia (and other agricultural producing nations) on the one hand, and the European Community, USA and Japan on the other, led to the creation of the Cairns Group in 1986 (chaired by Australia).

The Cairns Group called for the total elimination of government subsidies for agriculture. Alongside the agricultural issues which continually featured in official discussions between Australia and the European Community, other disputes emerged in the 1990s. One source of irritation was Foreign Minister Alexander Downer’s refusal in 1996 to entertain the insertion of a human rights clause into EU Treaties.

But since the 2000s the trade agenda for both the EU and Australia has changed significantly. Partially as a result of the stalled WTO Doha Round, the trade agenda and search for liberalisation took on new forms. A new phase of regional and bilateral agreements opened, which both the EU and Australia began to pursue.

Moreover on the EU side agricultural subsidies took on a slightly different emphasis and Australia began looking at its export destinations with bilateral agreements.

In addition the Australian economic landscape saw the rise of mining and iron ore especially with a thirsty Chinese market which refocused much of Australia’s approach towards trade. Australia and the EU began to enter a new phase of trade agreements where negotiations worked on the best possible outcome - not necessarily the aspirational objective.

The new lease of bilateral arrangements with trade partners leading to the milestone US Free Trade agreement in 2005 taught Australia some new limits and expectations for trade agreements. The mainly-ignored Mortimer report of 2008 referred to the desirability of FTAs, including a European Union one.

Equally agriculture in Australia has taken on a lesser dimension and the agricultural lobby has seen some downscaling with the decline of influence of the National Party as a Coalition partner.

It was the Abbott government which provided some of the circuit breakers with the EU trade agenda, including a possible EU FTA as an election agenda item as early as 2012. An important change was the elevation of Andrew Robb as trade minister, the first time since the 1949 Menzies government that a Liberal rather than National has held the portfolio.

So how is an FTA between the EU and Australia possible today? Both sides have moved on from their entrenched positions, recognising there was little to gain.

Robb has referred to this new possible FTA as a “missing piece” in Australia’s significant array of trade agreements that includes deals with China, Japan and South Korea) and most recently, the Trans Pacific Partnership agreement.

EU and Australian representatives today go to great lengths to highlight the trust and shared values they have in common on security, human rights and foreign policy. The reality is that the few economic advantages can be squandered.

Bruno Mascitelli received funding from the Europe Center at ANU. Bruno is affiliated with European Studies Association of Australia.

Authors: The Conversation Contributor

Read more http://theconversation.com/a-european-union-australia-trade-deal-may-heal-a-troubled-history-51390

Business News

How Fulfilment Services in Australia Help Businesses Scale Efficiently

The growth of e-commerce and modern retail has transformed customer expectations. Consumers now expect fast shipping, accurate order processing, and seamless delivery experiences regardless of where...

Daily Bulletin - avatar Daily Bulletin

Practical Ways Australian Workplaces Can Reduce Operating Costs

Reducing business costs doesn’t always mean cutting staff, shrinking services or making the workplace feel bare-bones. In many cases, the smarter savings are hiding in everyday operations: the light...

Daily Bulletin - avatar Daily Bulletin

Executive Recruitment Solutions That Help Organisations Secure Exceptional Leaders

Leadership has a direct impact on organisational performance, employee engagement, strategic growth, and long-term success. Businesses operating in increasingly competitive environments require experi...

Daily Bulletin - avatar Daily Bulletin

Why A WooCommerce Website Designer Matters For Online Growth

Running an online store today requires more than simply listing products and waiting for customers to arrive. Businesses need a website that is fast, reliable, easy to navigate, and designed to suppor...

Daily Bulletin - avatar Daily Bulletin

Turning Your Empty Tables into Revenue

The rise of AI demand tools in hospitality, the EatClub–CommBank partnership, and seven trends reshaping Australian dining  A growing number of Australian venues are turning to AI-powered demand ma...

Daily Bulletin - avatar Daily Bulletin

High-Impact Dental Marketing Strategies That Are Driving Real Practice Growth Today

The landscape of dental practice growth in Australia has shifted dramatically over recent years. Standard, broad-spectrum advertising campaigns no longer yield the return on investment they once did. ...

Daily Bulletin - avatar Daily Bulletin

How Telematics Helps Australian Companies Improve Productivity

Operating a commercial fleet in Australia is a uniquely demanding endeavour. Between the sprawling urban sprawl of cities like Sydney and Melbourne and the immense, unforgiving stretches of the Outb...

Daily Bulletin - avatar Daily Bulletin

Inside the Icon: The BridgeMuseum Officially Opens at the Sydney Harbour Bridge

A bold new way to experience one of Australia’s most recognisable landmarks has arrived, with BridgeClimb Sydney officially opening the all-new BridgeMuseum.  Located inside the Sydney Harbour Bridge...

Daily Bulletin - avatar Daily Bulletin

Is Your Brand Showing Up in AI Search? Most Melbourne Brands Aren't.

The New Front Door Nobody Told You About Something changed. Quietly. Without a press release. The way buyers find businesses in Australia has been rewired. Not replaced, rewired. Google isn't dead...

Daily Bulletin - avatar Daily Bulletin

The Daily Magazine

Traffic Light System Solutions For Safer And More Efficient Traffic Management

Modern cities and growing communities rely heavily on effective traffic management to ensure safety...

Gold Migration Lawyers in Liquidation: How the Closure Affects Your ART Appeal

If your appeal was with Gold Migration Lawyers, a recent change to how the Tribunal decides cases ...

The pressure cooker: life in urban Australia in 2026

Australian cities have always been demanding. Long commutes, rising housing costs, busy schedules a...

What Actually Makes a Good Criminal Lawyer in Melbourne

Most people only think about this question once. That is usually too late. Most people charged wi...

Why Working With A Chatswood Tutor Can Improve Academic Performance

Academic expectations continue increasing for students across primary school, high school, and senio...

Is It Worth Getting Solar Panels in Melbourne?

The real question is not whether solar works in Melbourne. It works. The question is what it is co...

How A Diploma Of Project Management Builds Practical Skills For Modern Work Environments

Developing the ability to plan, execute, and deliver outcomes efficiently is a key requirement in to...

How to Choose the Right Football for Every Level

Choosing a football may seem straightforward, but the right option depends on who will be using it a...

What to Ask a Wedding Photographer Before You Book

Booking a wedding photographer can feel deceptively simple: you like the photos, you like the vibe...