The National Farmers’ Federation (NFF) is again urging the Government to reject any subpar European Union Free Trade Agreement (EU FTA), as compounding trade headwinds face agriculture in the coming 12 months.
NFF President Hamish McIntyre said as we head into 2026, global trade uncertainty was having a direct impact on the sector’s bottom line.
“China’s newly announced 55% (post-quota) tariff on beef exports will undoubtedly impact the cattle industry, with estimates it could cost the sector more than $1 billion,” Mr McIntyre said.
“For Australian beef producers, China is our second largest export market.
“In the United States – Australia’s largest beef export market – trade policy volatility is still causing underlying uncertainty, not just in that market, but across broader global trading frameworks.
“And back home, increases to export cost recovery arrangements announced by the Department of Agriculture, Fisheries and Forestry late last year will also hurt the competitiveness of our exports by driving up supply chain costs,” Mr McIntyre said.
Mr McIntyre said the emergence of these issues only increased the need to achieve a strong outcome on the major trade policy item for 2026; the EU FTA.
“There are clearly many trade factors out of Australia’s control in global trade, but one thing the Australian Government has absolute control over is the deal it chooses to accept from the EU,” Mr McIntyre said.
“The way for Australia to respond to trade headwinds is by doubling down on strong, principles-based leadership, as opposed to accepting a subpar deal for important industries such as agriculture.
“If we drift away from the principles of open and liberalised trade, we set a precedent for future trade agreements that will ultimately be detrimental to us, as well as going against the very standards we expect from others in forums such as at the World Trade Organisation and Cairns Group.
“While we can’t control other nations’ policies, we do have control over the trade deals we accept.
“Australian negotiators must continue to push for materially improved offers for Australian agriculture, in particular for Australian redmeat, dairy, sugar and rice producers.
“As we saw in December, European Union nation states are more than willing to push back on deals such as that with MERCOSUR nations that they view as substandard; we should be willing to do the same.
“Australian agriculture exports 80% of the food and fibre it produces, and hits to our international competitiveness have a direct impact on the sector’s, and nation’s, productivity,” Mr McIntyre said.
Ashleigh Whittaker
Stacey Davidson