EU trade deal hangs on lower farm tariffs

Prime Minister Malcolm Turnbull says Europe must address the "very restrictive farm tariffs and quotas" on Australian farm exports in any free trade deal.

Europe must bring down restrictive barriers that hurt Australian farming exports if a free trade deal is to be done, Malcolm Turnbull says.

The prime minister is set to meet German Chancellor Angela Merkel on Monday to discuss a free trade agreement Australia hopes to sign with the European Union.

In a speech on Sunday night in Berlin, Mr Turnbull said the deal must look after Australians.

"The (free trade agreement) we are seeking will deliver for Australian producers and farmers as well as their European consumers," Mr Turnbull said.

"And it must also signal to the EU's agrifood sector the huge opportunities for expanded EU trade with and investment in Australia.

"The agreement must address the very restrictive farm tariffs and quotas that our farmers currently face."

Europe is Australia's second-largest trading partner and largest source of foreign direct investment, with trade worth $99.5 billion.

"Angela Merkel, who I'll meet with tomorrow, is a very strong supporter of a high-quality free trade agreement with Australia," Mr Turnbull told reporters.

Mr Turnbull pointed to Aldi and Siemens as examples of German companies making a positive economic contribution in Australia.

The prime minister met with German Defence Minister Ursula von der Leyen on Sunday and inspected some of the armoured vehicles Rheinmetall will build in Queensland.

"More and more Australian companies are going to find their way into the global supply chain for Rheinmetall's combat reconnaissance vehicles," he said.

Mr Turnbull will later meet with European Commission President Jean-Claude Juncker in a bid to push ahead with the free trade agreement.

The prime minister said striking a deal with Europe would help counter "state capitalism in China and rising protectionism in the United States".


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Source: AAP


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