EU & Australia Near Trade Deal Breakthrough, Europe Eyes Australian Social Media Ban Model

EU & Australia Poised for Trade Deal, Europe Eyes Social Media Ban Model

An air of cautious optimism surrounds the long-running free trade negotiations between Australia and the European Union, with a potential breakthrough anticipated as early as this weekend. Australian Prime Minister Anthony Albanese and EU President Ursula von der Leyen are set to convene on the sidelines of the G20 summit in Johannesburg, fueling hopes for significant progress. Beyond trade, the EU is also reportedly considering adopting Australia's pioneering approach to social media regulation, using it as a blueprint for a bloc-wide ban.

Closer to a Landmark Trade Deal

Sources indicate that trade negotiators have diligently ironed out most contentious issues in recent months, leaving beef as the primary hurdle requiring high-level political intervention. This paves the way for a potential agreement this weekend, with formalization eyed for the Australian summer. EU Trade Commissioner Maros Sefcovic expressed confidence during an exclusive interview in Melbourne with ABC, following discussions with Australian Trade Minister Don Farrell. He noted that while a few months remain to tackle the most challenging chapters, typically reserved for the final stages, he's "optimistic" for a "finishing line" in the European spring of next year.

Historically, sensitive areas like beef exports, luxury car tariffs, and the protection of geographical indications for European products such as Prosecco, feta, and parmesan have been major sticking points. However, Mr. Sefcovic highlighted a shift in the global landscape, particularly in the wake of the Trump tariffs. He emphasized the EU's renewed focus on collaborating with "friends" and "like-minded countries," identifying Australia as a crucial partner. This alignment has fostered a "new dynamic" in discussions with Senator Farrell.

The EU stands as Australia's third-largest trading partner and a significant investor. Mr. Sefcovic also met with Resources Minister Madeleine King to explore joint ventures in critical minerals. Furthermore, the European Investment Bank's vice-president visited Australia recently to finalize a joint investment agreement in this sector, aiming to bolster economic security. Sefcovic underscored the complementary nature of their economies and the shared objective of diversification, driven by the "painful lesson" of weaponized dependencies experienced over recent years, from oil and gas to sensitive technology and rare earth minerals.

Australia's Social Media Ban: A European Blueprint?

In a significant move, the EU appears keen to emulate Australia's bold stance on social media regulation. When Prime Minister Albanese presented Australia's social media ban at the UN General Assembly, EU President von der Leyen was notably present. Now, Commissioner Sefcovic confirms the bloc is studying Australia's "pioneering approach" with a view to implementing something similar across Europe, drawing on Australian experiences.

Ms. von der Leyen's discussions with the Australian Prime Minister evidently left a strong impression. She even referenced the social media ban in her recent State of the Union address to the European Parliament. In her September speech, she drew a parallel with past societal efforts to restrict children's access to smoking, drinking, and adult content, suggesting it's time to consider a similar approach for social media. She explicitly stated her close observation of Australia's policy implementation to inform Europe's next steps. This interest is not isolated, as Denmark has already announced its intention to proceed with a social media ban akin to Australia's.