Nationals leader Matt Canavan has claimed both Coalition parties oppose the Australia-EU trade deal, a position immediately disputed by Liberal senators who told the ABC the agreement is better than the status quo and should be supported.
Senator Canavan, writing in The Australian, argued the deal negotiated by Trade Minister Don Farrell would "weaken Australia's sovereignty on climate change policy" and was bad for the steel industry and some farmers. He said the deal, which parliament must approve, was opposed by both Coalition parties. Senator Bridget McKenzie backed that view, telling ABC Radio National: "Don Farrell can try all he likes to find a Coalition senator willing to vote for it. He won't because we are absolutely united."
Two Liberal senators subsequently told the ABC the opposite, with one citing the diplomatic importance of the deal at a time when the US was waging trade wars. "As long as it's not a really bad free trade agreement, and I don't think it is, we should support it," the senator said. "It goes to what the Liberal Party stands for. There is a lot of internal disquiet about this."
Multiple senior Liberals told the ABC the matter had not been considered by shadow cabinet or discussed in the Coalition party room, and should be dealt with through the parliament's joint standing committee on trade. One said "you can't short-circuit that by [writing] an op-ed," framing Senator Canavan's intervention as an attempt to strongarm the Liberals and reignite tensions between the parties.
The deal's text was agreed between leaders this year, but will not be signed until Australia and each EU member state complete the requisite legal checks, most likely early next year. Some Liberals believe that leaves time to renegotiate aspects of the agreement, while two cautioned that the agreed position was "opposed to the deal as it stands, subject to the proper parliamentary and Coalition process." Senator Canavan used more cautious language in a press conference, saying the opposition was "opposed to the deal in its current form."
The government has rubbished the idea that renegotiation is possible. "There is no room... the deal is done," Senator Farrell said, dismissing a Coalition veto as "vandalism." He has projected confidence the Senate will not block the deal, telling the ABC he believed "enough senators... understand how important this is." One interpretation is that he expects Liberals to cross the floor to vote for it, although none of those who spoke to the ABC suggested they would.
Analysis
Why This Matters
- The EU-Australia trade deal requires parliamentary approval, and the government does not have the numbers in the Senate in its own right, giving the Coalition a potential veto.
- A public clash between the Nationals and Liberals over trade policy could revive the internal Coalition tensions that marked the leadership of Sussan Ley.
- The deal's fate will affect Australian steel producers and farmers, and shape how climate change obligations are written into Australian trade commitments.
Background
Australia and the European Union have pursued a broad free trade agreement for years, and the text was finally agreed between leaders this year. It will not be signed until Australia and each EU member state complete legal checks, most likely early next year, before going to parliament. The Nationals, the Coalition's junior partner, represent rural and industrial constituencies, which is why the steel and farming provisions are central to their objections. The Liberal Party has historically championed free trade, which makes the internal divide over this deal notable.
Key Perspectives
The Nationals: Senator Canavan and Senator McKenzie say the deal would weaken Australian sovereignty on climate change policy and harm the steel industry and some farmers. They insist the Coalition is united against it.
Liberal backbench voices: Two Liberal senators told the ABC the deal is better than the status quo and should be adopted, citing its diplomatic importance while the US wages trade wars. They argue support for free trade is central to what the Liberal Party stands for.
Senior Liberals wary of process: Multiple senior Liberals say the deal has not been formally considered by shadow cabinet or the party room, and should be scrutinised through the joint standing committee on trade before any position is set.
The government: Trade Minister Don Farrell says the deal is done and renegotiation is impossible. He has dismissed a Coalition veto as "vandalism" and expressed confidence that enough senators understand the deal's importance.
What to Watch
- The joint standing committee on trade's scrutiny of the deal, which is still some time away.
- Whether the deal is signed early next year once legal checks with Australia and each EU member state are complete.
- Whether any Liberal senator signals a willingness to cross the floor when the deal eventually comes to a vote in the Senate.