Steve Georganas (Adelaide, Australian Labor Party) Share this | Link to this | Hansard source

I move:

That this House:

(1) notes the mature approach which has been demonstrated by the Government in the ongoing negotiation of a trade agreement with the European Union;

(2) congratulates the Government for its unwavering support of Australia's interests, including those of Australian farmers, businesses, and exporters during these negotiations; and

(3) supports the Minister for Trade and Tourism in his ongoing fight for a deal that defends Australia's interests and delivers meaningful outcomes for Australia's workers, businesses, and consumers.

The Albanese Labor government believes in free, fair and open trade. Our focus is very clear. This government's trade strategy articulates a key concept: trade diversification. It's not just a notion; it's the very core of our approach. It's an approach where we not only strengthen but expand our trading relationships, particularly in our own backyard. This isn't just about to trade; it's about building bridges and relationships that lead to a stronger, more prosperous future. For example, in the green energy economy area, by building stronger international partnerships on green trade and investment, we can harness the potential of hydrogen and critical minerals. The goal is clear: global leadership, focusing on what's sustainable, to drive Australia to become a renewable energy superpower. By investing in green industries, we're investing in our shared tomorrow. It is a journey marked by action, not just words.

For example, developing a Southeast Asian economic strategy is a vital initiative. Multilateral, rules based trading systems, defending and reaffirming the multilateral rules based trading system including the World Trade Organization, is not just a priority; it's a necessity. We have a responsibility to be responsive, efficient and capable of addressing modern challenges.

The EU free trade agreement negotiations are taking place at the moment, and this government is all about paving the way for a better future, a future where a free trade agreement with the EU is a reality. In our trade landscape, the EU is Australia's third-largest trading partner. The EU is massive. It's a high-income market of around 450 million people with a GDP of around $24 trillion in 2022. The bilateral trade spanning both goods and services surged to an impressive $97 billion during the period 2021-22.

This agreement could serve as a platform for addressing critical global challenges. Australia has made it clear we are committed to clean energy transitions, and so has the EU. The EU has made it clear that companies are eager to tap into Australian critical minerals. Strengthening our economic partnership will play a pivotal role in reaching the goal of working to eliminate import tariffs on critical minerals. To make this dream a reality, the Minister for Trade and Tourism is currently negotiating to secure the best trade deal possible with the EU, and we will only sign off on a deal that delivers commercially meaningful market access for Australian farmers.

This government will only agree to a deal that delivers outcomes in the interest of Australian people because that is the No. 1 goal. We're very interested in protecting workers rights during these negotiations, as well. In fact, this agreement would go further to implement legally binding commitments to uphold labour rights, placing the essence of International Labour Organization conventions at its heart. So we're committed to strengthening the role of civil society engagement, including unions, because we recognise the pivotal role that they play. So, if you're still asking yourself why free trade agreements with the EU are important, be assured the answer is clear and it's big: trade doesn't merely play a part in Australia's GDP; it forms a significant 29 per cent.

This isn't just about numbers; it's about lives. One in every four Australian jobs is intertwined with trade. In my electorate of Adelaide, we had some great businesses showcased right here in parliament last year which were the 2022 national finalists for the 60th Australian Export Awards. We had Avance Clinical in the international health category, Accolade Wines in the sustainability category and ODD Games in the creative industries category, and we had a great company called MyVenue, which was the winner in the emerging exporter category. All are great businesses within the trade sector in my electorate. They are great reminders that the trade industry is important locally and nationally and that jobs within export industries bring home incomes that exceed the national average by a notable five per cent. In a global landscape, this agreement with the EU isn't just a deal—it's a strategic step towards amplifying Australia's trade potential, fostering economic resilience and forging a pathway to shared prosperity.

Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

Is the motion seconded?

Dan Repacholi (Hunter, Australian Labor Party) Share this | Link to this | Hansard source

I second the motion and reserve my right to speak.

Helen Haines (Indi, Independent) Share this | Link to this | Hansard source

I thank the member for Adelaide for this motion. A free trade agreement between Australia and the European Union holds great potential for Australian producers and consumers. Like many in this place, I support the principle of increasing trade avenues for our industries, particularly in agriculture. But, while the agreement still under negotiation holds potential, many in my region in north-east Victoria are deeply concerned at what such an agreement could mean for them with its potential to greatly harm their livelihoods if the government was to sign onto an agreement which is bad for Australia. The fear in my electorate comes from seeing the demands by the EU when it comes to geographic indications on products, specifically the demand from Italy that grape growers and winemakers in Australia be banned from using the name 'Prosecco'.

Almost 60 per cent of Australia's Prosecco is grown in the beautiful King Valley in my electorate of Indi, a key pillar of the viticulture industry, which is a main employer in my region. Prosecco is worth more than $200 million a year to Australia's economy in sales alone, with even more value added when you consider the tourism and hospitality industries as well. If the use of the name Prosecco was banned, it would cause significant economic distress to this industry, causing confusion to consumers, adding significant costs and reducing sales. Free trade agreements are supposed to increase prosperity and jobs, but a free trade agreement that sells our Prosecco would do the exact opposite.

As parliamentarians we want to encourage industries which are growing and innovating, and Prosecco producers in my electorate of Indi are doing just that. They are family owned businesses putting in the work and reaping the rewards. We must not let them down.

Doctor Hazel Moir, an expert in geographic indications at the Australian National University, was quoted in the Sydney Morning Herald recently. Dr Moir has empirical evidence on geographic indications, or GIs, as they're known. Dr Moir says it's clear that banning the use of names such as Prosecco or feta would hurt Australian producers, but what isn't clear, she says, is how limiting the use of such terms actually benefits consumers or producers who are able to use the protected term. What that means is the bid to stifle the use of the name Prosecco is not about creating benefits for Italian producers but about actively harming Australian producers, and such a move should not be rewarded and codified into any free trade agreement.

At this point, it must be noted that we're speaking about a grape variety and not a method, such as champagne. It's very important to get the facts right because it was only in 2009 that Italy changed the name of the grape variety to 'glera' and registered 'prosecco' as a geographic indicator in the European Union. But this is not just an argument about cold hard economics; it's also about our identity as a nation, proud of its migrant history. The first prosecco vines in Australia were planted by Otto Dal Zotto, who decided to plant the variety because it reminded him of his childhood home in Italy, in Valdobbiadene. To hear Otto speak about prosecco, you know this is about so much more than the bottom line; it's about maintaining that identity, it's about growing that connection and it's about us as a migrant nation and seeing us thrive for decades into the future.

Some members may be listening to this right now and thinking, 'Well, there's no prosecco in my region; this isn't a big deal.' But if GI status were to be granted to prosecco, it would create a concerning precedent for other wine varieties. In recent EU trade negotiations with China, Japan, Mexico, Brazil, Argentina, Paraguay, Uruguay and New Zealand, attempts were made to protect an expanding list of grape varieties—so this could just be the start. I understand negotiating a free trade agreement not an easy thing to do, and I am grateful to the trade minister, Don Farrell, who last year took the time to meet the grape growers and winemakers from the King Valley and hear about this issue and what prosecco means to them. I know that Minister Farrell understands deeply how important it is to remain steadfast on this point, with no backward steps.

I thank the member for this motion, and I absolutely underscore the importance of protecting our prosecco industry and making sure we get the best results under this EU deal for our country.

Dan Repacholi (Hunter, Australian Labor Party) Share this | Link to this | Hansard source

We are a government who stands up for Australians. We are a government who believes in free, fair and open trade. We stand up for Australians here at home and also on the world stage. Standing up for Australia is exactly what we're doing right now by engaging in ongoing negotiation of a trade agreement with the European Union.

The EU is a massive market, and this is a massive opportunity for our country. The EU has tariffs higher than Australia's. That is why this agreement is so important. Currently, Australian exports to the EU face tariffs of up to 12 per cent on minerals and metals, 10 per cent on wooden paper and seven per cent on chemicals. This agreement will mean Australia will seek the elimination of all EU tariffs on industrial goods, which will give a big advantage to Australian goods exporters. The EU is Australia's third-largest trading partner, with a total two-way trade on goods and services worth $97 billion in 2021 and 2022.

There is a long list of benefits this trade agreement will bring. It will significantly improve market access for Australian exports. An agreement like this will provide guaranteed access for Australian service providers. This agreement will see the expansion of the two-way investment flows. It will also provide a more predictable and seamless business environment that will implement rules to support the digital economy and innovation. An agreement like this will help to create reduced costs and help cut through the red tape—particularly for small business and medium-sized business, who will both hugely benefit as a result of this deal. We will also help consumers by providing greater customer choice. Another benefit is this deal will lead to a higher standard, including on sustainable development.

It makes sense we should have a deal like this in place with the EU. We have a lot of common interests with the EU, as we have a lot to offer the consumers over there. One common interest is wine—and my electorate has stacks of that. Members of the EU like France and Italy think they have great wine. They do, but it just doesn't quite compare to the wine from the Hunter and Australian regions. The thing with some countries in the EU is they think they own all wine. They even want to stop us from calling wines certain names like 'prosecco'. This is another thing this government is standing up for in these negotiations with the EU, because it's not right and it doesn't make sense that the best prosecco in the world can't be called 'prosecco'. Our prosecco industry is hugely important. It's worth over $200 million and, at the moment, is fetching the second-highest average grape price of any white grape variety. If we are unable to call our prosecco by its proper name, it won't be able to be sent all over the world. This will be a big hit on the industry and a massive hit on my electorate and all the producers of prosecco in the Hunter and also Australia. It's important that we put our foot down now. prosecco is a variety of grape; no-one should own the name of a variety of a grape.

If the EU is able to stop us from using the name of a variety of grape from our products, who knows what other terms will not be able to be used? This is also dangerous for other varieties of wine that could also fall victim to their naming rights being taken by the EU. This trade agreement will give us the opportunity to make sure that prosecco producers in this country get a fair. It will allow us to stand up for an industry and protect Australian prosecco. By protecting Australian prosecco, we are showing our unwavering support for what is in Australia's best interests. We are looking out for Australian farmers and businesses, as well as our exporters. We are making sure that this trade agreement is good for farmers, businesses and exporters, and good for the whole of Australia.

I want to give a special mention to the Minister for Trade and Tourism, Don Farrell, who is doing a great job of negotiating this deal. Not only is this good for our farmers, businesses and exporters; it will also have real-world impact on our workers and our consumers.

Kevin Hogan (Page, National Party, Shadow Minister for Trade and Tourism) Share this | Link to this | Hansard source

I acknowledge the member for moving this motion and agree with a lot of what is in it. This country's wealth was born in the early 1980s—I'll even acknowledge Paul Keating as Treasurer—when Paul Keating embarked on a lower taxes, lower tariff economic model. From that, and followed by the Howard government and others since, those policies have driven the wealth and the growth of this country and given us a quality of living that we have now enjoyed for over 40 years.

One of the great unsung achievements of the previous coalition government, between 2013 and 2022, was in the Fee Trade Area agreement. I've just seen a former trade minister walk in. Through that time, we had goods and services that were covered by a free trade agreement go from 20 per cent to—and the minister here did the two deals; the UK deal and the India deal—80 per cent. That's been a great thing; that's been no small thing.

There's a big test here for the Labor government. They don't have a good record in nailing free trade agreements. The EU trade agreement is going to be a test for them. I also note that these free trade agreements have encouraged growth in our export areas. Because we have extra markets for things that we export, there has been a hell of a lot of investment in the areas that we excel at exporting. Currently, those areas are coal, gas, iron ore and ag. Those four areas combined are probably generating, give or take, depending on the prices of those commodities--let's round it out at $400 billion. That would generate—this is back-of-envelope stuff—over $100 billion a year into the three different levels of government income, whether it be royalties, company taxes or pay-as-you-go taxes for those who work in those areas. Those areas of funding our country right now, and the investment has gone into those areas because of the free trade agreements that have been driven largely by a coalition government.

I note, though, that the union movement and parts of Labor don't like free trade agreements. Last year, members of the CFMEU said before a committee that they don't like free trade agreements and they think they take Australian jobs—albeit one in four jobs is related to an export industry. Work that one out. So, I note that there are areas within Labor that do not like free trade agreements. In fact, I remember speaking to Andrew Robb, a great previous coalition trade minister, who said that his job was to do three free trade agreements in his first 12 months. The South Korean trade agreement was ready to sign because the previous Labor minister wasn't allowed to sign it because there was an ISDS provision in it.

This is good news in trade for our country. I certainly wish the current minister well in negotiating a good deal. What will a good deal look like for Australia? It's always a sticking point, and I've had many amicable conversations with the minister, but he can't surrender on whole beef, sheep, rice, dairy and sugar quotas. He's saying he's not going to surrender on that. We have to get good access for our agricultural sectors. The quotas are really important, and, within that, there are things we need to look out for. Just quietly, I don't think New Zealand's deal with the EU was a great deal for New Zealand. The EU can't impose their farming practices on us. We have a very different farming sector. We have broadacre farming. We do a lot of things differently from Europe, because they don't have the space to do it the way we do. They even divide up grass and grain fed beef. We have to have access for both those different categories and not surrender the way New Zealand did. Mind you, New Zealand don't have a lot of grain fed beef. That being said, we cannot agree to some of the things New Zealand did. I've made that very clear to the minister as well. And we can't import the farming practices that the EU use, because ours are just not equivalent.

Another thing that has been mentioned is GIs. I've met the prosecco growers in the King Valley in Victoria, and I've spoken to the minister. Not only do we not want to give that up; we can't grandfather it. What do I mean by grandfathering? It means allowing existing producers to use terms like prosecco or feta or any other GIs, but new producers can't. That doesn't work either. How do you onsell a business if the new owner potentially can't use that? So they have to be ruled out completely. This has to be a good deal. This deal will stand for long time. It has to be a good deal for the Australian community.

Jerome Laxale (Bennelong, Australian Labor Party) Share this | Link to this | Hansard source

I'd like to thank the member for Adelaide for the opportunity to speak to this motion, and I note his commitment to free and open trade, particularly in his role as chair of the Joint Standing Committee on Trade and Investment Growth. Free, fair and open trade is fundamental to Australia's place in our global economy. It underpins our economic prosperity. It underpins industry growth, resilience and innovation, and it has an important part to play in international relations.

The government is committed to generating new international trade and investment opportunities to drive Australia's economy, employment and growth. In this ever-changing global landscape, trade diversification is the linchpin of our trade policy strategy. We recognise the need to deepen and diversify our trading relationships, particularly within our own region.

One of the most significant trade negotiations in recent times is our ongoing pursuit of a free trade agreement with the European Union. The EU has a massive market—approximately 450 million people and a GDP of around $24 trillion in 2022. This presents a substantial opportunity for Australia. As a block, the EU is our third largest trading partner, with two-way trade, goods and services worth nearly $100 billion in our financial year 2021-2022. Our relationship with the EU is built on a strong foundation of shared democratic values and a like-minded approach to various international issues. Therefore, securing a comprehensive trade deal with the EU is not merely an economic endeavour but also a very important strategic one. Europe is seeking out stable, like-minded partners and, in Australia, they have one. A free trade agreement with the EU will strengthen our economic and trade links at a time of heightened geostrategic uncertainty. It will enable us to diversify our trade portfolio and collaborate with like-minded partners on critical issues facing the globe, such as climate, energy and upholding the global rules based trading system.

An FTA with Europe would be good for Europe, but it also must be good for Australia. While great progress has been made on the finalisation of this agreement, understandably some negotiations have presented unique challenges, particularly in certain agricultural sectors where offers have not met Australia's initial expectations. The Minister for Trade and Tourism has been integral in ensuring that our national interests are not compromised and ensuring that the government does not settle for a deal that falls short of our community's expectations or our needs.

We need an agreement that provides good outcomes, particularly for Australian farmers and businesses. Negotiating a comprehensive trade agreement with the EU is not a task that should be rushed or undertaken lightly. It's a process that demands careful consideration, strategic planning and unwavering dedication. To that end, I applaud the minister for making it clear that the Australian government will only accept a trade deal if it delivers commercially meaningful market access for Australian agricultural products.

In an era where economic prosperity is deeply intertwined with international trade, the minister's resolute stance reflects his commitment to promoting Australian exports and bolstering our domestic industries. His insistence on commercially meaningful market access for agricultural products and his promotion of clean energy transition and, importantly, workers' rights demonstrates our government's unwavering dedication to our national interest.

The Albanese Labor government's commitment to free, fair and open trade is unwavering. We believe in generating new international trade opportunities, defending and reforming the global rules-based trading system and building partnerships that align with our ambitions for a renewable energy future. We've got so much to give in this space. We truly can become a renewable energy superpower. It would in particular serve Europe's interests that we supplied them with our goods, wouldn't it?

As we navigate the complexities of these negotiations with the EU, we must remember why it is crucial to take the time necessary to ensure the best possible outcomes for all Australians. A comprehensive trade agreement with the EU is not a transaction; it's an investment in our future and our industry. The potential benefits of this agreement extend far beyond immediate economic gains. They offer a pathway to prosperity, job creation and sustainable growth for our nation. Therefore, it's imperative that we give due diligence to these negotiations to secure the best deal for Australians. Rushing through this process would be a disservice, and I applaud the minister's efforts to date and wish him well for future negotiations.

Dan Tehan (Wannon, Liberal Party, Shadow Minister for Immigration and Citizenship) Share this | Link to this | Hansard source

I also congratulate the member for Adelaide for this motion, because it comes at an incredibly important time for the Australia-European Union Free Trade Agreement negotiations. It's an important time because we all have an interest in making sure that the government gets this right and, in particular, that the new trade minister gets it right.

The new trade minister so far has had a pretty easy job. He's been going around basically promoting the work that was done by the previous government, saying: 'Isn't it great that we've got a UK free trade agreement, signed and negotiated by the previous government? Isn't it great that we've got an India free trade agreement, signed and negotiated by the previous government?' It's pretty easy going around claiming credit for other people's work. I must commend the new trade minister. He's been pretty good at taking credit for other people's work, and good luck to him, because those two agreements are in the national interest.

But the rubber hits the road here for the new trade minister. This is where we see whether he can take his training wheels off or not. He's right in the middle now of a serious negotiation, which we have to get right. As we all know, 50 years ago the EU changed its trading arrangements with Australia and New Zealand, and they said to New Zealand and Australia, 'We'll give you some benefits.' In the end, those benefits have worked much more for the EU than they have for Australia and for New Zealand. New Zealand have negotiated an FTA with the EU, and, as has been mentioned previously, we think in the end that New Zealand probably short-changed themselves. We do not want to see that happen to Australia.

So what we have to do is ensure that we get good outcomes when it comes to dairy, sheep, beef, sugar and rice. We have to make sure that EU farm practices are not exported to Australia, and we have to make sure that we get good outcomes when it comes to GI. The new trade minister understands that, and, to his credit, he stared the EU down when they tried to say, 'This is as good as it gets.' But now what we require is a significant amount of hard work to make sure that we get the outcome that we want. If we get a good outcome with the EU, it will take the proportion of our trade covered by free trade agreements beyond 80 per cent and heading towards 90 per cent. That is a huge win for our exporters, but we've got to make sure that we get the right outcome.

Having negotiated with Valdis Dombrovskis, I know that the EU trade commissioner is very detail oriented and very diligent in his work. He does his homework and comes to every negotiation very prepared. What we have to ensure is that we are doing exactly the same. This will not be an easy negotiation. This is going to get in the trenches. We have to make sure that, as we have done once before, we can do it again—that we will walk away. There is too much at stake here. Fifty years of missing out on access to the EU market is at stake here, and our farmers are watching. They want to make sure that, when it comes to rice, dairy, sugar, beef and lamb, we get the access we need and deserve. They want to make sure that, when it comes to GIs, we do not give away too much that will then impact on our agricultural production here in Australia. And we should note those farm practices that the EU have for a variety of reasons—and that's ultimately up to them—and the regulation they have which kills and stifles their farmers. We have to ensure that we do not see that type of regulation kill and stifle our farmers.

Tania Lawrence (Hasluck, Australian Labor Party) Share this | Link to this | Hansard source

Berrys Creek Gourmet Cheese from South Gippsland in Victoria has been named Supreme Artisan at the 2023 International Cheese and Dairy Awards. They are the first Australian company ever to attain that great height. It's a fantastic example of Aussie endeavour, and I congratulate Berrys Creek and master cheesemaker Barry Charlton. I'll be keeping an eye out for a piece of Berrys Creek blue the next time I'm shopping. It's also an example of why the government is proceeding with great care in the negotiations for the free-trade agreement with the European Union. We have excellent manufacturers right here doing great work and, increasingly, beating the Europeans at their own game. In London earlier this year, our own Old Young's Gin from the Swan Valley in Hasluck took out the prestigious Craft Producer of the Year award, and Victoria's Four Pillars Gin's Cameron Mackenzie was named Master Distiller. Indeed, Western Australia traded $9.2 billion worth of goods with the EU last year, which accounted for 29 per cent of Australia's goods exports to the EU. While this mostly comprised gold and canola, WA has a growing range of products being exported, from wines made in Hasluck by Oakover and Garbin Estates all the way to ACUS water tanks.

There is, though, a significant trade imbalance in favour of the EU. We import more than double our exports to the EU across both goods and services. It is a market of 446 million people with a nominal GDP of US$16.6 trillion. There is significant scope for Australian exports to the EU to grow. In 2022, Australia ranked as the EU's 18th-biggest trade partner in goods, while the EU was Australia's third-largest trading partner after China and Japan. The interests of our current exporters and our up-and-coming businesses for whom export will be an option are paramount, so we do need to be appropriately cautious, which is what the government is doing. At the same time, in a world in which it is imperative that we diversify our supply chains and export ties and in which we seek to attract investment for our green energy transition, Australia has much to gain from the completion of this and other agreements. There are many products already being exported to the world which could be the subject of increased exports to the EU. These include our Wagyu beef, WA malting barley, seafood, truffles and Noongar country 's own jarrah honey. I spoke on this matter in November last year and noted that one of the major obstacles to the completion of the agreement was the former government's failure to take climate change and emissions targets and legislation seriously. We are now on the same page with the EU on climate matters, and negotiations have been able to proceed on that basis. It's marvellous the difference a little bit of science can make.

Organisations making submissions to DFAT on the agreement process have supported the proposed FTA. The Australian Grape and Wine Authority note significant advantages to Australian producers and exporters. The Australian Food and Grocery Council notes that the EU is the largest market not yet covered by a bilateral agreement. The Minerals Council meanwhile notes the potential benefits for the export not only of minerals but also of Australia's highly regarded mining services sector. Mining operations all over the world benefit from our expertise, with service exports by companies such as Blast Movement Technologies. Service exports are an important part of Australia's trade relationship with the EU, and there is scope for further growth.

The 15th round of negotiations concluded in April and did not bring the FTA to completion. The EU's report on the process however described discussions as constructive with both sides sharing a commitment to a rapid conclusion. DFAT too noted that the substantial progress made puts us on track for an early conclusion of an ambitious and comprehensive trade agreement. Trade Minister Farrell is resolute in ensuring that Australia gets the best deal possible, particularly for the agricultural and food sectors. And I'm pleased to see the opinion piece from Tony Mahar, from the National Farmers Federation, following the minister's trip to Brussels supporting his efforts. The Prime Minister has emphasised that the FTA will only be concluded when it contains new market access for our agriculture products, and that is appropriate.

Blessed are the cheesemakers, the vintners, the brewers, the growers, the farmers and the manufacturers across the nation. Their interests are being well represented by Minister Farrell, himself a vintner. We look forward to progress and to completion, in the interests of both Australia and the EU.

Rick Wilson (O'Connor, Liberal Party, Shadow Assistant Minister for Trade) Share this | Link to this | Hansard source

I rise today to support and thank the member for Adelaide for bringing forward this motion on this very important issue not only to Australia as a whole but to the miners and farmers in my electorate of O'Connor in particular.

I cannot speak on trade agreements in this place without mentioning the great Bert Kelly, the modest member who represented the seat of—I'm going to have to refer to people more knowledgeable than me about Bert Kelly's seat, but he was certainly a South Australian member who fought for free trade back in the 1970s when it was very unfashionable in this place. I also want to mention Labor member Peter Walsh, who was the finance minister in the first Bob Hawke government. He was from Doodlakine, near Kellerberrin in my electorate of O'Connor. He also fought very hard for a free market for Australian farmers.

The current EU free trade negotiations will replace a 50-year-old agreement. That agreement was made in a very different time, back in the early 1970s, when the European Union had a butter mountain and an ocean of milk and other agricultural products that they were very much oversupplied in. The deal Australia got at that time was very poor not just by international standards but certainly by the standards compared to our neighbours, such as New Zealand. This negotiation is a great opportunity to put those wrongs to right. I applaud Minister Farrell for the work he's done thus far.

To put numbers on the benefits to agriculture and the farmers in my electorate, at the moment we currently sell $4 per head of agricultural produce or food to the European Union. They sell $200 per head of food to the Australian people. The average tariff on agricultural produce is 14.2 per cent. Going into specifics, on dairy that's 32 per cent, on sugar that's 27 per cent and on meat that's 19 per cent. At the moment, with the Western Australian meat market in freefall due to the current government's policy on live exports, we're seeing animals that have virtually no commercial value at the moment. It is critically important to Western Australian farmers that we get access to sell more meat into the European Union. If all tariffs to the European Union were eliminated, that would mean an additional $31 billion in GDP to the Australian economy.

What do we have in return for the European Union? Of course, we have critical minerals. That is something that Western Australia has in abundance. Last week, I was very pleased and honoured to introduce the shadow minister for resources, Senator Susan McDonald, to many of the operators in my electorate in Western Australia. We went to the Kathleen Valley lithium plant, which is nearly up and running, and we also visited the Lynas Rare Earths plant in Kalgoorlie, which is also nearing completion and moving into the production phase. These are important elements that will be required for the transition to more renewable energy, and they are also used in a lot of our high-tech gear, such as mobile phones. At the moment, the Chinese control in excess of 90 per cent of the world's critical minerals. Therefore, Australia has a very strong bargaining position.

One of the things I urge Minister Farrell to be very cautious of is allowing the European Union to impose their farming practices on our farmers. We have glyphosate, which is a very, very important chemical for the Australian farming sector. Some may say it is probably the most important investment in agriculture since humans first started to plant crops. It is critically important that we don't allow the European Union to impose their values in relation to glyphosate on us, and also in relation to methane emissions and nitrogen. We have seen Dutch farmers driven to the wall and, basically, rebel against their governments. We have to be eternally vigilant about not allowing the European Union to impose those practices on our hardworking farmers.

Lisa Chesters (Bendigo, Australian Labor Party) Share this | Link to this | Hansard source

The time allotted for this debate has expired. The debate is adjourned and a resumption of the debate will be made an order of the day for the next sitting.