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Andrew Brown

Farmers led down 'dead end' on opposition to EU deal

A trade minister says farmers are being led "down a dead end" by those promising a better EU deal. (Stephanie Gardiner/AAP PHOTOS)

A better trade deal between Australia and the European Union is not possible, the trade minister has warned farmers, despite concern from the sector about the agreement.

The federal government signed the $10 billion trade deal with the EU in March following eight years of negotiations.

The deal, which has been predicted to one day reach as much as $30 billion, would allow for cheaper European food, wine, cars and clothes, while tariffs would be eased on Australian produce such as agricultural goods and critical minerals.

Don Farrell and Matt Canavan
Trade Minister Don Farrell says there is "no way Matt Canavan can get a better deal". (Joanna Kordina/AAP PHOTOS)

But while farmers have argued they won't be better off under the deal due to cheaper European goods being able to enter the market, Trade Minister Don Farrell denied claims that a better agreement was possible.

In a speech to the National Farmers Federation, Senator Farrell said agricultural sectors would have been worse off without the trade deal being signed.

"The choice here is not between our agreement and a better agreement in five years' time. The choice is our agreement or no agreement," he said.

"Anyone who says there is a better deal is pulling your leg. They are leading you down a dead end. I'd like you to support this deal."

The trade deal will need to be ratified by both Australia's and the EU's parliament to come into effect.

The coalition is set to oppose the deal after Nationals leader Matt Canavan warned of the impact on farmers.

But Senator Canavan has denied there was friction within the coalition after the concerns the opposition to a free trade deal would go against underlying philosophies of the Liberal Party.

Australia's newly signed trade deal with the European Union
The federal government signed the $10 billion EU trade deal in March. (Susie Dodds/AAP PHOTOS)

Prime Minister Anthony Albanese on Thursday accused the coalition of "nativist politics" in their opposition.

Senator Farrell said concerns from the Nationals about the EU agreement were unfounded.

"There is no way Matt Canavan can get a better deal ... don't send a boy on a man's mission," he said.

"This is our one and only chance to get our foot in the European door and we cannot miss it."

Deputy Liberal leader Jane Hume said the coalition was still supportive of a free trade agreement, but the EU arrangement was not fair for Australians.

"It undermines our future negotiating positions because you've lowered the standard of bilateral trade agreements. Minister Farrell has negotiated this free trade agreement poorly, and it's our industries that will pay a price," she told ABC Radio on Friday.

"We want a foot in the door in Europe, but certainly not at any price."

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