Australia could be $10 billion a year poorer if parliament fails to ratify its landmark free trade deal with the European Union, the bloc’s new ambassador has warned.
Lawrence Meredith urged lawmakers not to delay the agreement or seek to renegotiate it, saying the pact represented “an enormous opportunity” for Australian people and businesses.
Mr Meredith, who presented his credentials to Governor-General Sam Mostyn this week, said the EU-Australia free trade deal could come into force early next year if approved by parliament.
“I think that what’s important here is that the people, the businesses of Australia, stand to benefit greatly,” he said.
The Coalition has indicated it will oppose the agreement over concerns it could bind Australia to legally enforceable climate action and leave the country exposed to European sanctions. Former finance minister Mathias Cormann has urged his former colleagues to support the pact.
The agreement has also faced criticism from Meat and Livestock Australia, which described it as the “worst ever free trade agreement” when it was unveiled in March.
The industry group attacked the access secured for Australian producers, highlighting a sheep meat quota of about 25,000 tonnes for Australia compared with 163,769 tonnes for New Zealand.
Mr Meredith said Australia had nevertheless secured an eightfold increase in access for beef and a fivefold increase for lamb, describing the concessions as “significant benefits”.
He played down the climate provisions in the agreement, noting that Australia and the EU had both made emissions reduction commitments under the Paris climate accord.
“The objective of a free trade agreement is free trade, and the top priority is to bring in the economic benefits,” he said.
The deal could secure support from the Greens because it does not include an investor-state dispute settlement clause, which allows foreign companies to sue host governments and has featured in previous trade agreements opposed by the party.
Mr Meredith said he hoped the agreement would receive “as broad support as possible” in parliament, adding that negotiations had taken years to complete.
“So let’s get it into force, and let’s bring those benefits to the people and businesses of both Australia and the European Union,” he said.
He said the agreement had greater significance amid “troubled geopolitical times”, arguing that Australia and Europe needed to strengthen ties with their closest and most like-minded partners.
The ambassador also said Australia and the EU could play an important role in developing stronger rules for artificial intelligence, despite resistance from the United States and China to slowing its development.
“The European Union is a single market of 450 million consumers and citizens, and Australia is already showing leadership in this space,” he said.
Mr Meredith’s arrival comes as new American and Chinese ambassadors have also taken up their posts in Canberra.
