Overcoming legacies of foreign policy (dis)interests in the negotiation of the European Union–Australia free trade agreement

Abstract

ABSTRACTDespite a troubled trade history dominated by disputes over agriculture, the negotiation of a European Union (EU)–Australia free trade agreement (FTA) was initiated in 2015. The initiation of these negotiations was made possible because of the shift in EU trade policy towards the negotiation of what the EU terms ‘new generation free trade agreements’. The EU has concluded FTA negotiations with South Korea, Singapore, Vietnam and Canada, and is negotiating other FTAs— notably with Japan and the USA . The EU faces many commercial challenges to its FTA negotiations that go beyond tariff reduction, including the protection of its geographical indicators, public procurement and investor–state dispute settlement. These issues are likely to be substantial features of any EU FTA with Australia. In addition to these challenges, the promotion of sustainable development interests and human rights through FTA negotiations is an important component of the EU’s approach. The EU’s position on the trade-related aspects of sustainable development and the negotiation of human rights conditionality has presented significant challenges to the EU’s trade agenda, particularly in negotiations with Canada and Singapore. This article draws lessons from the EU’s new generation trade agreement negotiations to date. It compares these negotiations with Australia’s approach to FTA negotiations, and analyses potential stumbling blocks for an EU–Australia FTA in light of past tensions in the relationship. The article argues that shifts in both EU and Australian trade policies and positive developments in the relationship mitigate past obstacles to a negotiated agreement. However, EU– Australia relations still suffer from the tyranny of distance. The resulting deficit in foreign policy salience between the EU and Australia broadens the best alternatives to a negotiated agreement.