Trade talks between Australia and EU collapse

Last-chance negotiations on a trade agreement between Australia and the European Union have fallen through, Australian Trade Minister Don Farrell said on Sunday.

"Unfortunately, we have not been able to make progress," Farrell said in a video statement after informal discussions between Canberra and Brussels. "Negotiations will continue and I am hopeful that, one day, we will sign a deal that benefits both Australia and our European friends."

The talks, held on the sidelines of a meeting of G7 trade ministers in Japan, were seen as a last-ditch attempt for the two sides to bridge remaining gaps.

Australia performed a theatrical walk-out in July, objecting that the offer on the table wouldn’t open the EU market sufficiently to its farm produce. The Australian trade minister warned over the weekend that he’d be ready to walk away again if the offer from Brussels was "not good enough" for Australia.

He also said that failure to reach a deal now would mean having to wait until the next European Commission is appointed after next June’s European elections.

Getting better access to the large European market for beef, sugar and sheep meat is an imperative for Australia’s large agricultural sector. For Brussels, an agreement would grant better access to Australia’s vast reserves of strategic minerals.

Farrell was expected to meet with EU trade chief Valdis Dombrovskis on Monday. Agriculture Commissioner Janusz Wojciechowski was also in Japan to take part in the negotiations.

The European Commission did not immediately respond to a request for comment.