Australia-EU Trade Agreement Raises Concerns in Dairy Sector

The Australian dairy sector is expressing significant concern over the terms of a new trade deal negotiated between Australia and the European Union (EU). The trade agreement, which aims to streamline economic relations between the two regions, has sparked fears within the dairy industry regarding potential increases in European dairy imports to Australia.

Industry experts warn that the agreement could see a reduction in tariffs on EU dairy products, making them more competitive against local Australian products. This is particularly concerning for regional dairy producers who fear that cheaper European imports could erode their market share.

A critical component of the agreement is the introduction of geographical indication (GI) rules. These rules would protect the names of specific regional products, such as certain cheeses, preventing Australian producers from using these names unless the products are made in the specified European regions. This could have significant implications for Australian dairy manufacturers who have built brands around these names.

According to the Australian Dairy Industry Council, the imposition of GI rules could lead to job losses in regional areas heavily dependent on dairy production. The Council is advocating for the Australian government to consider the interests of local producers during the finalization of the trade deal.

The negotiations between Australia and the EU have been ongoing for several years, with both parties aiming to expand their trade relations. However, the dairy sector's concerns highlight the complexities and potential challenges associated with international trade agreements that impact local industries.