Positive signs of progress on elusive trade agreement

Negotiations over the proposed free trade agreement began in 2018 but have fallen twice at the final hurdle as Australia pushes for greater access to European markets for local beef producers.

EU negotiators have so far refused to budge on the key demand.

Good progress was made in ⁠narrowing gaps on a small number ​of outstanding matters, the trade ministers said in a joint statement on Friday.

"The ministerial-level engagement was constructive and positive and allowed the two sides to converge positions on a range of issues," the statement said.

"The principals will now report back to their leaders."

Despite years of tough negotiations, agriculture remains the deal's central sticking point.

Australia initially pushed for more than 30,000 tonnes of beef, while Europe tried to whittle down the quota to protect domestic farmers who oppose more meat flooding the market and eating into their income.

However, negotiators are still at an impasse over some import restrictions.

Even though other free trade deals Europe has signed, such as with Canada and New Zealand, allocated tens of thousands of tonnes of tariff-free meat, they haven't been able to use the vast majority due to Europe's strict import controls.

A free trade deal would give Australian exporters greater access to global markets of more than 450 million people.

After two days of meetings, Senator Farrell said he was pleased with the progress made during his short trip.

"As I've said repeatedly, any agreement must be in Australia's national interest and provide real benefit for Australian business, producers, exporters and workers," he said."I am confident that both Australia and the European Union will reach agreement that benefits both of our economies."

It comes months after Mr Sefcovic travelled to Australia, where he revealed the final stages of negotiations could be finalised in 2026.

"That is achievable," he said in November.