EU chief Ursula von der Leyen is in Australia to advance a free trade agreement, with talks focusing on agricultural access and energy security amid global tensions
SYDNEY: EU chief Ursula von der Leyen arrived in Australia on Monday with hopes of finalising a long-awaited free trade agreement.
Her visit, the first since taking office, comes as both sides navigate renewed energy vulnerabilities sparked by the war in the Middle East.
Von der Leyen was welcomed in Sydney by Australia’s Governor-General before heading to Canberra for meetings with Prime Minister Anthony Albanese.
She is joined by EU trade commissioner Maros Sefcovic, fuelling speculation a deal could be imminent.
Key sticking points include improved access to the European market for Australian lamb and beef.
Australia has offered to drop a luxury car tax on European vehicles in return for greater agricultural market access.
The use of geographical indicator names for cheese and wine products has also been a contentious issue.
Trade Minister Don Farrell said an EU deal would add Aus$10 billion to bilateral trade in its first year.
“They are potentially our second largest trading partner if we can pull this off,” he told Sky News Australia.
The European Union is currently Australia’s third largest two-way trading partner and second largest source of foreign investment.
Australia is seeking to diversify its export markets following past trade disputes with China and recent US tariffs.
The war in the Middle East and its impact on global energy security will also feature prominently in discussions.
International Energy Agency chief Fatih Birol warned of a severe energy crisis if the conflict is not resolved.
Von der Leyen recently said the conflict served as a “stark reminder” of Europe’s energy vulnerabilities.
Australia, heavily reliant on imported fuel, has felt pressure from the global energy squeeze.
Energy Minister Chris Bowen conceded some petrol stations had run out but said the country was a “long way” from rationing.
