EU, Australia to begin free trade negotiations

CANBERRA: Negotiations on a comprehensive free trade agreement between Canberra and Brussels are to begin next month, the European Union’s Trade Commissioner Cecilia Malmstrom and Australian Prime Minister Malcolm Turnbull announced on Monday.

“In challenging times, it is heartening to see that Australia shares our commitment to a positive trade agenda, and to the idea that good trade agreements are a win for both sides,” Malmstrom told a joint press conference in Canberra.

The negotiations come amid a developing trade war between the US and China.

President Donald Trump last week imposed duties on $50 billion of Chinese imports which were swiftly met by Beijing with retaliatory tariffs.

The EU is also among those hit by Trump’s recent decision to impose duties of 25 per cent on steel and 10 per cent on aluminium imports. Australia was exempted in return for agreeing to limit its export volumes.

“It is a very hands-on statement that we are sending,” Malmstrom said.

“The European Union and Australia have always been defenders of the international system, multilateral trade, global rules, the predictability. It is not perfected but they have served us well,” she added.

The EU is Australia’s second largest trading partner, after China, and twoway-trade was worth about A$100 billion ($75 billion) in 2016-17.

“Free trade and open markets means jobs — more jobs for Australians and for Europeans more opportunities, more investment,” Turnbull told reporters.

“There is already A$155 billion ($115 billion) of European investment in Australia and A$100 billion of Australian investment in Europe.”

In a bizarre scene, Turnbull and Trade Minister Steve Ciobo deserted Malmstrom on the podium in the middle of the press conference and rushed back to parliament to block an attempt by the opposition to debate the privatisation of the country’s public broadcaster ABC.

A confused Malmstrom was escorted out shortly after. The three came back 15 minutes later to continue the briefing.

The first formal round of trade talks between the two teams will take place in Brussels on July 2 to 6.