Labor defends European Union free trade deal as Coalition threatens to block ratification

Small businesses are being touted as the big winners from an Australia-EU free trade deal, but the Opposition wants it torn up, calling it the “worst trade deal in history.”

Prime Minister Anthony Albanese and EU Commission president Ursula von der Leyen shook hands on the deal in March, but it is currently in limbo, with parliament yet to give it the green light.

Under the deal, tariffs would be scrapped on 98 per cent of Australian exports, with the hope that Australian businesses will be exposed to 450 million new customers.

Labor says it’s a game-changer for small businesses like Western Sydney manufacturer DECO, whose director Ross Doonan said it would directly benefit his industry.

“For years, we have known there’s demand overseas for our aluminium technology, but high tariffs have made it difficult to compete,” Mr Doonan said.

“Now, with this deal in place, we can confidently and competitively explore opportunities in Europe and beyond, without changing the foundations of our business or how we manufacture.”

Trade Minister Don Farrell said the trade deal with the European Union will open up Australian businesses to a $30 trillion market.

“For local businesses like DECO, this deal means new opportunities to grow in European markets, and cheaper access to the machinery, equipment and technology they need to boost productivity and compete globally,” he said.

“Australia has always been a great trading nation. When Australian businesses succeed internationally, Australia succeeds.”

Mr Farrell comments and meeting with Mr Doonan comes as the Labor and Coalition parties fight over the free trade agreement.

On Monday night, Trade Minister Don Farrell warned Australia will only get one shot at signing a free-trade agreement that was years in the making.

“Now is not the time to hamstring the operations of businesses in this room, limiting your opportunities to expand and risking your existing customer bases, all on the fairytale promise of an Australian economy that simply cannot exist except for in the imagination of politicians selling an empty promise,” Senator Farrell said.

Nationals leader Matt Canavan claims the Coalition is united against blocking the trade tariff deal.

Reports later emerged that the Liberal side of the Coalition had not formally decided their position.