EU trade deal faces Senate test as farmers and Coalition push back

The Labor government expects to introduce its $10bn-a-year free trade agreement with the European Union to parliament early in the new year, after talks were finalised in March. The deal faces opposition from the Coalition and meat producers urging the government to go back to the drawing board, according to The Guardian.

Trade Minister Don Farrell has warned there is no room to renegotiate the agreement. "we've got to either accept or reject this offer", he said, rejecting demands from some farmers to walk away.

Nationals leader Matt Canavan has declared the Coalition is opposed to the deal in its current form. Nationals frontbencher Bridget McKenzie told ABC Radio the Coalition is opposed to the agreement, but the Liberals insist they have not agreed to oppose it despite Canavan claiming both Coalition parties opposed it, according to ABC News.

Prime Minister Anthony Albanese gave the green light on the deal after meeting with the EU's chief in Canberra. Labor lacks a majority in the Senate and needs either the Greens or the Coalition to pass legislation.

When the agreement enters into force, 98% of Australia's goods exported to the EU will enter duty-free. The EU says it will remove over 99% of tariffs on EU exports, opening access to a market of 450 million people worth about $30tn, according to the European Commission.

Australia and the EU agreed to step up cooperation on critical minerals under the agreement. It includes a binding commitment to respect the Paris climate Agreement, but makes no change to entry requirements for Australian tourists, students or working holidaymakers.

For beef, the deal guarantees preferential access of 35,000 tonnes carcase weight equivalent a year into the EU, including 30,600 tonnes of new market access. That is a nearly eightfold increase on Australia's previously guaranteed access. For sheep meat, it guarantees access of 30,851 tonnes carcase weight equivalent a year, including 25,000 tonnes of new market access. The EU will remove tariffs on 87.3% of dairy products.

Australia agreed to protect geographical indicators for European products such as champagne. It secured free use of the term parmesan, while feta will be grandfathered.

The National Farmers' Federation argues at least 50,000 tonnes carcase weight of beef access is reasonable. It says at least a minimum of 67,000 tonnes of lamb should be on the table.