When announcing the negotiation results in Melbourne (Australia) last week, both Australian Prime Minister Anthony Albanese and European Commission President Ursula von der Leyen praised and emphasized the global political relevance of these agreements, recognizing the progress and new quality in cooperation relations between the EU and Australia.
In fact, if the upheaval of the times had not pushed the two sides into a new situation, it is not certain that the above negotiation results would have been achieved. The two sides started the negotiation process in 2018 but negotiations broke down in October 2023. The main obstacle is that the EU does not compromise on opening the market to Australia and Australia does not compromise on the condition of abandoning the use of some EU brands in the Australian market.
The new agreement reached is the result of the two sides accepting conditions that they had previously resolutely rejected for a long time. EU and Australian leaders expressed satisfaction with the free trade agreement and the military, defense and security cooperation treaty, but there are still many concerns on both sides about the outcome of this negotiation.
Mr. Albanese and EU leaders did not miss that concern internally but still compromised with each other due to the urgency and pressure of the new situation and times, especially from the US and China, as well as due to the impact of the developments of the world's political and security situation in general.
The conflict in Ukraine and the war that the US and Israel launched against Iran more than a month ago have fundamentally changed the world order, economic system and world trade. President Donald Trump, after returning to power in the US, launched a trade tariff war with US economic and trade partners. China uses its almost exclusive advantages and advantages in supplying rare earths and precious metals to cope, directly and deeply affecting the global supply chain of rare earths and precious metals.
Economies around the world are forced to quickly find ways to sharply reduce dependence on the US market, while limiting dependence on China in the supply chain of rare earths, rare metals and many other important commodities.
The EU and Australia need a free trade agreement to jointly escape the above-mentioned difficult and awkward situation in relations with the US and China, but at the same time also to build a certain level of alliance, linkage and alliance to promote and gather forces to protect the world's political, economic and trade order based on the rules and effectiveness of international law.
The two sides urgently brought the negotiation process to an end because they were aware that the negotiation process could not be prolonged forever. Only concessions right now can avoid double long-term losses.
The negotiation results also help the EU and Australia become more confident and capable in handling each party's relations with the US and China. Diversifying economic and trade partners as well as military, defense, and security are strategic orientations of both sides in the new situation.
For the EU, the agreement with Australia also creates opportunities for the EU to access and penetrate in order to gradually conquer the Indo-Pacific region.
